All the disadvantages associated with smallness of island states weighed heavily in his conviction that Mauritius was caught in a Malthusian trap and, therefore, if economic progress could at all be achieved, it would be to a very limited extent.

[citation needed] The government's development strategy centers on expanding local financial institutions and building a domestic information telecommunications industry.

Mauritius has attracted more than 9,000 offshore entities, many aimed at commerce in India and South Africa, and investment in the banking sector alone has reached over $1 billion.

[citation needed] With a well-developed legal and commercial infrastructure and a tradition of entrepreneurship and representative government, Mauritius is one of the developing world's most successful democracies.

The economy has shown a considerable degree of resilience, and an environment already conducive to dynamic entrepreneurial activity has moved further toward economic freedom.

The economy is increasingly diversified, with significant private-sector activity in sugar, tourism, economic processing zones, and financial services, particularly in offshore enterprises.

[20] From a poor country with high unemployment exporting mainly sugar and buffeted by the vagaries of world demand, Mauritius has become relatively prosperous and diverse, although not without problems.

[20] By the 1980s, thanks to a widespread political consensus on broad policy measures, the economy experienced steady growth, declining inflation, high employment, and increased domestic savings.

[20] The economy had slowed down by the late 1980s and early 1990s, but the government was optimistic that it could ensure the long-term prosperity of the country by drawing up and implementing prudent development plans.

[16] The emerging political system encouraged a consultative approach to policy formation that allowed strategies for growth to be continued regardless of changes in the parties in power.

[16] This enabled Mauritius to exploit advantages, learn from expertise brought in through FDI and maintain competitiveness in a fast evolving international market.

[16] Education and health services are free and have been expanded in recent years, in order to create further employment opportunities and ensuring inclusive growth.

[16] Around 90% of entrepreneurs in the export processing zone (EPZ) and in the manufacturing sector were eventually Mauritian nationals, businesspeople had the human capital, education and knowledge needed to exploit market opportunities.

The proceeds from this corporate responsibility levy will be used to support national initiatives to protect, manage, invest in, and restore the country's natural ecosystem and combat the effects of climate change.

The nation of 1.26 million people is experiencing more climate change-related events and needs to mobilize 300 billion rupees to meet its adaptation and mitigation goals.

[24] In 2024, flash floods brought the capital, Port Louis, to a halt, causing significant disruptions in banking and market activities.

Additionally, a government-support agreement is expected to unlock over 15 billion rupees in private-sector investment in renewable energy projects, demonstrating the government's commitment to sustainable development and economic resilience.