Who Served As Labour Party General Secretary the Longest?

When Kalyanee Juggoo resigned as General Secretary of the Mauritius Labour Party recently Arvin Boolell wondered if the 13 years she had served in that position wasn't the longest. We knew she didn't but went to find out. 

Why Are HSC Pass Rates Dipping?

Simple Tools To Evaluate Political Projects (4)

Let's bring back the income distribution data from the previous post.

Income share in % 1986/7 1991/2 1996/7 2001/2 2006/7 2012
Bottom 20%              5.6      6.4      5.9      6.2     6.1      5.4
Top 20%                  44.2    43.5    46.2    44.8    45.6    47.5
Ratio                         7.9       6.8      7.8      7.2      7.5      8.8

After Bheenick and Bunwaree had reversed some of the damage of policies of Sithanen, Berenger and Pravind Jugnauth reduce slightly the share of the bottom 20% while they increase that for the top 20% by 0.8%. Finally after the first five years of the Sithanen flat tax the weakest 20% households see their share fall to at least a 25-year low while the top 20% hit a record level of 47.5% after they get an increase of 1.9%. There is little surprise then in seeing the share ratio reach a record 8.8X.

So each time Sithanen has been Finance Minister inequality has increased. After his first stint the top 20% saw their share rise by 2.7% of GDP and his flat tax has handed this group another 1.9% in 2012 while the bottom quintile have seen their share fall by 0.5% and 0.7% after his stints or toxic policies were implemented. Lutchmeenaraidoo, Bheenick and Bunwaree on their side have reduced inequality when they were Finance Minister. At this point in time it is useful to have another look at the different cakes that were baked.

We can see that not only the biggest cake was produced by Vishnu in the five years ending in 1992 but the sharing was also the best for the bottom 20% as they grabbed a 6.4% share. Compare this to the smallest share of the bottom 20% and one of the smallest cake produced in the first five and half years of the Sithanen flat tax. There are other interesting conclusions you can draw from combining these two data sets. Have fun. We'll return with a few more tools.

Simple Tools To Evaluate Political Projects (3)

So we've seen the types of cakes that have been cooked over five-year periods for the last 35 years. In this post we look at the second part of our framework to analyse political projects: how the cake is shared. Statmu provides us with a wealth of data to do this. The simplest information is the share of the cake going to the bottom and top 20% households. For example this what happened since 1986/7 (the sexy charts will be for later).

Income share in % 1986/7 1991/2 1996/7 2001/2 2006/7 2012
Bottom 20%              5.6      6.4      5.9      6.2     6.1      5.4
Top 20%                  44.2    43.5    46.2    44.8    45.6    47.5
Ratio                         7.9       6.8      7.8      7.2      7.5      8.8

Clearly this puts the lie to the assertion used by TINAwallahs that there is little we can do about inequality and that it is a phenomenon which is entirely tied to globalisation. As the data shows although it has been increasing -- let's focus on the ratio for now -- since 2001/2 there are also two interesting periods where it actually fell. One is in 1991/2 which coincided with the passing of the baton of Finance Minister between Lutchmeenaraidoo and Sithanen. So the former actually decreased inequality by putting an extra 0.8% of GDP in the hands of the bottom 20% and this was mostly financed by reducing the share of the top 20%. Enter Sithanen and he reverses most of the gains of the bottom 20% while giving the top 20% an extra eye-popping 2.7% -- that's more than three times what the bottom 20% got in the preceding 5 years. This ensured that the top 20% got their biggest share since 1986/7.

And then five years later Bheenick and Bunwaree clawed back three-fifths of the loss the bottom 20% experienced and reduced the share of the top 20% by 1.4% or half of what they gained during the first stint of Dr. TINAnen. We obviously have more to say on this interesting dataset. We'll do this in our next posts.

Reforms See Poor Make Tiny Progress

Indeed the 10% poorest households saw their real disposable income increase by only 6.2% for the five years ending in 2012. This compares very unfavourably to the huge progress recorded after the first mandate of Navin Ramgoolam as PM -- Bheenick and Bunwaree (BB) were his Finance Ministers. At that time the weakest households of our country saw their purchasing power increase by a very healthy 48.6% -- that's 7.8X the 2012 increase -- over the levels of the preceding half-decade. 

The reforms have been very good for the 10% wealthiest though: their disposable income has surged by almost 30%. Of course the increased inequality has helped Mauritius clock some of the worst growth rates in more than 35 years: 2014 will be the fourth consecutive year with one under 4%. Which is half what was promised to us in 2005. And the basis for the 15% flat tax.

Happy voting!

Resources For The December 10 Elections

Who will you vote for? Well it will have to be three of these candidates.

Where will you vote? Enter your NIC# and the Electoral Commissioner's office will tell you where that will be. That's specially useful if it's the first time you're voting.

Who's the better cake-cutter? That is who divides the national cake more reasonably. I've looked at the HBS data for the past 25 years and it all boils down to who is the Finance Minister. Lutchmeenaraidoo -- at least in the data analysed -- has been good. So have Bunwaree and Bheenick. Sithanen has been a reverse Robin Hood -- takes from the poor to give to rich -- each time he's been MoF. So he's to be avoided at all costs.

Who bakes the bigger cake? Have looked at this data recently and what I've found is that Lutchmeenaraidoo baked a bigger one than the FMs who came after him; the Sithanen reforms generated the smallest cake and that Bheenick and Bunwaree hatched a cake which was slightly bigger than what Sithanen cooked in his first mandate. More on this soon.

Of course we don't want a second republic, party lists, more MPs and double candidacies.

Why Sithanen Won't Eliminate Poverty

Simply because he's so good at creating it. See, at the end of Ramgoolam's first mandate -- Bheenick and Bunwaree were his Finance Ministers -- there were only 500 more poor people than five years earlier. But at the end of Ramgoolam's second -- I guess you recall who was Finance Minister -- there were an additional 22,000 Mauritians that had been thrown into poverty. That's a staggering 44 times more. Or if you prefer almost 2.5 times the 8,902 votes Sithanen got at the end of his first stint as FM back in the 1995 general elections when his party was routed with a 60-0.

There are only two reasons to create so much poverty. One is you love doing that. The other is you don't have the slightest clue what you are doing. In either case I don't think we want someone with that kind of a skills mismatch to be our next Finance Minister.

Proof That Reforms Have Worked

2011: The Year in Review

January: African leaders get wonderful opportunity to benefit from advice that could be lethal to their political careers. Water problems confirm Ramgoolam's economic model is junk. Planning maverick barely recognisable because Labour Party forgot who she was. State could have spent our money better. Bunwaree makes access to A-level education easier.

February: IMF analysis too bland to pick up social volcanoes that had been brewing right under surface of Arab world. Journalist remembers SSR's last public meeting. Minister magic needed at earth's driest place. Union boss wants price of basic foodstuffs controlled.

March: Nobel puts feet in mouth. Powerful earthquake sets off deadly Tsunami in Japan. BRIC and Germany say no to military action in Libya. Boolell says he's not there to serve fat cats. Proposed 10-20% hike in water charges has no basis. MPs want answers from Financial Secretary. Free guide to understanding the infamous stimulus package published.

Read the review for Q2, Q3, Q4.

Eski Leta Gagn Drwa Interdir Leson?

Enn gran deba pe deroule la: Minis Bunwaree inn vinn ek enn zistwar ki apel Enhancement Programme. Sindikalis Vinod Seegum pa dakor ek sa program la. Li pe usi dir ki Bunwaree ti bizin kumans par sanz kurikulum ek enkadreman. Mo entierman dakor lor sa dernye pwin la.

Ki u ena pu dir lor la?

What Bunwaree Should Do Now

Allow as many students who didn't make it through the ridiculously tough CPE exams last December and who didn't even get a seat in a vocational school to join their friends in Form 1. That is enable 2,500(?) of these 3,500 kids to move ahead in life immediately by adding a few chairs in each Form 1 classroom.

This should save us a lot of problems down the road.

1 Less Credit Now Needed To Access A-Level Education

As announced by Minister Bunwaree. What do you think about it?

How Bunwaree Can Be Bold In the Next Few Days

By deciding to add a few chairs on average to each Form 1 classroom in January so that the impending CPE results don't condemn several thousands kids to one more year of boredom studying a grossly ill-designed curriculum. In the process he will make some real progress on his strategic goal to make our school system more efficient.