four filter model of mauritius.docx

8/14/2019 Four filter model of Mauritius.docx

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Four filter model of Mauritius :

Economy

Mauritiuss economic freedom score is 76.9, making its economy the 8th freest in the 2013 Index. Its

overall score is essentially the same as last year, with improvements in property rights and labor

freedom counterbalanced by declines in freedom from corruption and monetary freedom. Mauritius

is ranked 1st out of 46 countries in the Sub-Saharan African region.

Maintaining its status as one of the worlds 10 freest economies, Mauritius continues to be a global

leader in economic freedom. All the pillars of economic freedom are solidly maintained. The small

island economy benefits greatly from a sound and transparent legal framework that strongly

upholds the rule of law. Budgetary reforms remain largely on course, keeping public debt and

budget deficits under control despite expansionary fiscal policy since 2008.

With a stable business climate, Mauritius sustains a dynamic entrepreneurial environment. Barriersto free trade are low, and commercial operations are aided by efficient regulations that support

open-market policies. Inflationary pressures are under control, and foreign investment is welcome.

So overall score for economy is :7.6/10

Politics and government

Property rights:

Each country is graded according to the following criteria: for 100 percent Mauritius is ranked the

following ways.


2/5

100Private property is guaranteed by the government. The court system enforcescontracts efficiently and quickly. The justice system punishes those who unlawfully

confiscate private property. There is no corruption or expropriation.

90Private property is guaranteed by the government. The court system enforces contractsefficiently. The justice system punishes those who unlawfully confiscate private property.

Corruption is nearly nonexistent, and expropriation is highly unlikely.

80Private property is guaranteed by the government. The court system enforces contractsefficiently but with some delays. Corruption is minimal, and expropriation is highly unlikely.

70Private property is guaranteed by the government. The court system is subject to delaysand is lax in enforcing contracts. Corruption is possible but rare, and expropriation is

unlikely.

60Enforcement of property rights is lax and subject to delays. Corruption is possible butrare, and the judiciary may be influenced by other branches of government. Expropriation is

unlikely.

50The court system is inefficient and subject to delays. Corruption may be present, andthe judiciary may be influenced by other branches of government. Expropriation is possible

but rare.

40The court system is highly inefficient, and delays are so long that they deter the use ofthe court system. Corruption is present, and the judiciary is influenced by other branches of

government. Expropriation is possible.

30Property ownership is weakly protected. The court system is highly inefficient.Corruption is extensive, and the judiciary is strongly influenced by other branches of

government. Expropriation is possible.

20Private property is weakly protected. The court system is so inefficient and corrupt thatoutside settlement and arbitration is the norm. Property rights are difficult to enforce.

Judicial corruption is extensive. Expropriation is common.

10Private property is rarely protected, and almost all property belongs to the state. Thecountry is in such chaos (for example, because of ongoing war) that protection of property is

almost impossible to enforce. The judiciary is so corrupt that property is not protected

effectively. Expropriation is common.

0Private property is outlawed, and all property belongs to the state. People do not havethe right to sue others and do not have access to the courts. Corruption is endemic.

Rule of law:

Property Rights 70.0

Freedom From Corruption 51.0


3/5

The judiciary is independent, and trials are fair. The legal system is generally non-

discriminatory and transparent. Expropriation is unlikely. Enforcement of laws regarding

intellectual property rights is relatively effective. The Independent Commission Against

Corruption investigates offenses and can confiscate the proceeds of corruption and money

laundering. Mauritius is one of Africas least corrupt countries.

Limited government:

Government Spending 81.9

Fiscal Freedom 92.1

The income and corporate tax rates are a flat 15 percent. Other taxes include a value-added

tax (VAT), and the overall tax burden is equal to 18.5 percent of total domestic income.

Government spending has increased to 24.6 percent of total domestic output. The budget

deficit has been under control, and public debt hovers around 50 percent of GDP.

Therefore overall political and government score is : 7.25/10

Social regulations:

REGULATORY EFFICIENCY

Business Freedom 78.2

Labor Freedom 72.3

Monetary Freedom 75.4

With no minimum capital requirements, the overall start-up process has been simplified. Launching

a business takes five procedures and six days on average. Licensing requirements remain time-

consuming, taking over 100 days to complete. Labor regulations are not rigid, and the costs of

terminating employment are relatively low. Inflationary pressures have increased, but overall

monetary stability has been well maintained.

The overall social score is : 7.35/10

Trade process:

OPEN MARKETSVIEW METHODOLOGY

Trade Freedom 87.9

Investment Freedom 90.0

Financial Freedom 70.0

The trade-weighted average tariff rate is very low at 1.1 percent, and there are relatively few non-

tariff barriers. The investment framework is open and efficient, facilitating the flow of new

investment. The growing financial sector, dominated by private commercial banks, is competitive.


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The number of non-performing loans is declining, and banking continues to be well-capitalized and

resilient despite ongoing global financial turbulence.

So overall social behaviour score for Mauritius can be given as : 7.55/10

So according to the PEST analysis and four filter model Mauritius is a good place to start a new

business.

LIMITED GOVIEVVIEW METHODOLOGY

PROPERTY RIGHTS 70.0 CREATE A GRAPH USING THIS MEASUREMENT

FREEDOM FROM CORRUPTION 51.0 CREATE A GRAPH USING THIS MEASUREMENT

THE JUDICIARY IS INDEPENDENT, AND TRIALS ARE FAIR. THE LEGAL SYSTEM IS GENERALLY NON-

DISCRIMINATORY AND TRANSPARENT. EXPROPRIATION IS UNLIKELY. ENFORCEMENT OF LAWS

REGARDING INTELLECTUAL PROPERTY RIGHTS IS RELATIVELY EFFECTIVE. THE INDEPENDENT

COMMISSION AGAINST CORRUPTION INVESTIGATES OFFENSES AND CAN CONFISCATE THE PROCEEDS OF

CORRUPTION AND MONEY LAUNDERING. MAURITIUS IS ONE OF AFRICASLEAST CORRUPT COUNTRIES.

LIMITED GOVERNMENTIEW METHODOLOGY






COMMISSION AGAINST CORRUPTION INVESTIGATES OFFENSES AND CAN CONFISCATE THE PROCEEDS OF

CORRUPTION AND MONEY LAUNDERING. MAURITIUS IS ONE OF AFRICASLEAST CORRUPT COUNTRIES.

LIMITED GOVERNMENTW METHODOLOGY






COMMISSION AGAINST CORRUPTION INVESTIGATES OFFENSES AND CAN CONFISCATE THE PROCEEDS OFCORRUPTION AND MONEY LAUNDERING. MAURITIUS IS ONE OF AFRICASLEAST CORRUPT COUNTRIES.


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LIMITED GOVERNMENTVERNMENT

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