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Mauritius became an independent sovereign state in March 1968 after more<br />

than 150 years of British rule that followed 95 years of French colonialiSM4<br />

. The<br />

political system is a parliamentary democracy based on the Westminister model.<br />

The democratic process is exercised through a national assembly on the island of<br />

Mauritius, a regional assembly sitting at Rodrigues and local government. There is<br />

separation of powers between the executive, the legislative and the judiciary and the<br />

legal system benefits from enrichment from two past colonial powers for being a<br />

hybrid one combining both French Civil law (Code Napoleon) and English common<br />

law. The enonomy is now classified as an upper middle incomes one with a national<br />

'income of $4000 per head and government expects that the current modernization<br />

process will allow a 100% increase in national income in ten years.<br />

1.2 From a Monocrop Economy to Financial Liberalisation<br />

Prior to independence, Mauritius, just like many other British colonies, was<br />

a low-income plantation economy based to a great extent on sugar6 and to a much<br />

lesser extent on tea plantation for regular supply to Great Britain. Sugar milling and<br />

tea blending therefore largely dominated the few manufacturing activities. Around<br />

two third of the jobs available were either in the agricultural sector or in the public<br />

sector. On the road to independence during the 1960s, Mauritius adopted the import<br />

substitution strategy, consistent with the prevailing mainstream economic thinking<br />

4 1715-1810: French; 1810-1968: British.<br />

5 The World Bank classifies countries having a national income between $ 3,036 and $9,385 as<br />

upper middle-income economies.<br />

6 Basically monocrop.<br />

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