In the wake of the global pandemic, economies worldwide have faced unprecedented challenges. For island nations like Mauritius, the economic implications have been particularly severe, given the country’s heavy reliance on international trade and tourism. This case study explores the strategic initiatives undertaken by Mauritius, focusing on the establishment of the Diplomatic Economic Intelligence Unit (DEIU), aimed at revitalizing the economy through targeted international outreach, particularly towards the African continent.
Background
Mauritius, known for its robust economic strategies and political stability, encountered significant disruptions during the COVID-19 crisis. The pandemic not only decimated its tourism sector but also exposed the vulnerabilities of depending heavily on European markets. With the traditional economic pathways constricted, Mauritius confronted potential economic stagnation and the urgent need for diversification.
Challenges
Economic Contraction: As European economies suffered, the demand for Mauritian exports dwindled, leading to an inevitable contraction in GDP and a spike in unemployment rates.
Over-dependence on Fossil Fuels: Fluctuations in fossil fuel prices had historically buffered economic shocks but posed long-term sustainability risks.
Need for Market Diversification: The reliance on traditional markets like Europe needed reevaluation, with the pressing need to explore new markets and opportunities.
Strategic Response: The DEIU Initiative
In response to these multifaceted challenges, the Mauritian government proposed the creation of the Diplomatic Economic Intelligence Unit (DEIU). This initiative was designed as a strategic pivot to leverage diplomatic channels for economic resilience, focusing primarily on untapped African markets.
Objectives of the DEIU
Market Diversification: By penetrating African markets, Mauritius aims to reduce its dependence on European economies and diversify its economic portfolio.
Crisis Management: Establish a framework to manage and mitigate future economic shocks, leveraging Mauritius’ diplomatic relations.
Sustainable Development: Promote sustainable business practices through the export of renewable energy technology and sustainable tourism models to African countries.
Operational Framework
Data and Intelligence Gathering: Collect and analyze economic data to identify potential markets and sectors for expansion in Africa.
Stakeholder Engagement: Collaborate with local businesses, government bodies, and international agencies to foster partnerships and joint ventures.
Policy Advocacy: Influence economic and trade policies that favor Mauritian economic interests abroad.
Implementation
The DEIU’s approach to implementation revolves around several strategic actions:
Establishing Presence in Africa: Set up offices in key African countries to act as hubs for trade and economic intelligence.
Capacity Building: Train Mauritian entrepreneurs and businesses on African market dynamics and cultural nuances.
Financial Strategies: Engage with international financial institutions and regional banks to secure funding for Mauritian businesses expanding into Africa.
Impact and Outcomes
Short-term Gains
Increased Exports: A significant uptick in Mauritian exports to Africa, particularly in sectors like textile, information technology, and renewable energy.
Job Creation: Boost in employment opportunities within Mauritius linked to the export sectors.
Long-term Benefits
Economic Stability: Reduced economic volatility from diversified markets and revenue streams.
Enhanced Diplomatic Relations: Strengthened ties with African nations, leading to mutual economic and political benefits.
Challenges and Risks
Political Instability in Target Markets: African markets vary widely in political stability, which could impact investment security.
Cultural and Operational Hurdles: Navigating diverse business cultures and regulatory environments in Africa requires adaptability and extensive local knowledge.
The Diplomatic Economic Intelligence Unit represents a bold step for Mauritius in reshaping its economic landscape post-pandemic. By turning to Africa—a region with burgeoning potential and increasing international focus—Mauritius not only diversifies its economic dependencies but also sets a precedent for how small nations can strategically leverage diplomacy for economic gain. The success of the DEIU will depend on continuous adaptation, robust stakeholder engagement, and an unyielding commitment to sustainable development principles. This initiative marks the beginning of a transformative journey, steering Mauritius towards a resilient and prosperous future.
Seychelles is of strategic importance to Asian powers India and China.
Opposition declares agreement between two governments ‘dead’ against backdrop of contest for influence in Indian Ocean.
India’s plans for building military facilities in Seychelles have hit choppy waters, with the Indian Ocean island’s political opposition blocking efforts to ratify a deal reached by the two governments.
Seychelles and India signed a 20-year agreement in January to build an airstrip and a jetty for its navy on Assumption Island.
This week, the opposition in Seychelles, led by Wavel Ramkalawan, declared the deal “dead”.
“I hope I have made it clear that this is the end of the Assumption agreement and that I don’t expect to see it on any agenda between President Faure and the opposition,” Ramkalawan said in the National Assembly on Tuesday.
The opposition coalition holds a majority of seats in the National Assembly, and the country’s law mandates that the agreement must be ratified by this body.
Seychelles, known internationally for its picturesque beaches, is of strategic importance to both India and China.
Asia’s biggest economies are drawn to its Indian Ocean location along some of the world’s busiest sea-lanes.
Asian power rivalry
India and China are locked in a thinly veiled contest for influence across a vast part of Asia.
China last year inaugurated its first overseas military base in Djibouti, situated on a global shipping point that links the Red Sea and Suez Canal.
India’s plans for a military base in Seychelles was first announced during a trip by Narendra Modi, India’s prime minister, to the islands in 2015.
“This agreement would potentially allow for a greater arc of surveillance to curb piracy and other illegal activities in the exclusive economic zone of Seychelles. It would also burnish India’s credibility as a collective security stakeholder,” told Uday Bhaskar, retired Indian navy officer and defence expert.
But the project has faced public protests in Seychelles as activists argue that the country cannot afford to be drawn into a regional conflict involving nuclear powers India and China.
“It is clear that India wants to establish a military base in Assumption to monitor the traffic in the Mozambique channel in the Indian Ocean and to especially monitor the energy transport of China around the world,” Ralph Volcere, a political activist who has led demonstrations against the pact in Seychelles, told Al Jazeera.
“Seychelles, a small island with only 90,000 people, cannot afford to be taking sides. We are not pro-India, anti-India, pro-Chinese, anti-Chinese. We are only pro-Seychelles.
“We know the rivalry between China and India to have influence over the Indian Ocean. The Chinese also wanted to build a base here, but we turned that down. Now we can’t have India station it’s military personnel in our country. It doesn’t matter if they are American or English or German – we don’t want foreign military personnel here.”
An email from Al Jazeera to the office of Seychelles president, Danny Faure, seeking details about the pact went unanswered.
Leaked pact details
The protests and demonstrations against the project led to the India-Seychelles agreement being amended in January this year.
Safeguards including a no-nuclear weapons use were included in the renegotiated pact that also prohibited India from using the base during war.
Earlier this month, details of the classified agreement between India and Seychelles surfaced on the internet along with a YouTube video, complete with maps and the location of proposed facilities.
Following the leak, local news-media reports quoted President Faure as denying that land on Assumption Island was sold to India.
His government has since ordered a probe into the leak.
“Maybe the two governments should have made the text of the agreement available to the public. Secrecy has only roused suspicions that Seychelles interests will be harmed. But if you read the text of both the old and the new agreements, they are quite reasonable,” Manoj Joshi, a Delhi-based foreign policy analyst, told Al Jazeera.
India has said it intends to invest $550m in building the military base.
Also earlier this month, Seychelles Vice President Vincent Meriton said the deal is “still in the conception phase, and there is no clear cost attributed to it at the moment. It will cover about a quarter of the remote island about 1,140 southwest of the Seychelles’ main island of Mahe”.
India’s waning influence
In any event, India’s influence, from neighbouring Nepal to the Maldives and Sri Lanka, may be waning, according to a number of Asia experts.
“India is facing a lot of blowback in the region. China is a subtext in India’s troubles in both Maldives and Seychelles,” Joshi told Al Jazeera.
“For small countries, China offers a leverage against a big neighbour like India. Indian diplomacy must find ways of dealing with China’s rise in the Indian Ocean.”
As China expands its sphere of influence in Sri Lanka, building and operating ports in the country, India has bid for operating an airport on the island nation’s southern tip.
Like Sri Lanka, Nepal, a landlocked country between China and India, too has turned to Beijing for investments. According to some, it’s “a natural fit”.
“Look at our roads, our infrastructure. There’s popular demand for infrastructure investment,” Swarnim Wagle, a former member of the National Planning Commission of Nepal, wrote recently in the South China Morning Post.
“Our debt-GDP ratio is 22 percent. The average for low-income countries is 43 percent. We can raise borrowings substantially, but too much of internal borrowing crowds out the private sector. So there’ll be need to look at funds from outside, and China is a natural fit as it’s eager to invest abroad.”
Meanwhile, in the Maldives, once seen as one of the closest allies of India in the Indian Ocean region, India is struggling to mend frayed bilateral ties.
‘Degree of discord’
The Indian and the Maldives foreign ministries traded barbs over an extension of the state of emergency in the country last month.
“India has traditionally had a very robust, empathetic relationship with the Indian Ocean island states. This is currently in some degree of review, and there has been a degree of discord,” Uday Bhaskar, the Indian defence expert, told Al Jazeera.
“In Seychelles, the opposition party has voiced certain concerns about the military infrastructure in the Assumption island.
“But there have been protests in Sri Lanka about China’s infrastructure projects as well. One can expect that there will be a degree of competition between India and China in the Indian Ocean Region over the next decade.”
For now, the proposed Indian military base continues to generate anger in Seychelles.
Demonstrators carrying “Hands Off Assumption” placards have protested in the capital Victoria every Saturday since January.
As a battle for hearts and minds, this is an issue that reverberates far beyond Seychelles, all the way to New Delhi and Beijing.
