Although known to Arab and Malay sailors as early as the 10th century, Mauritius was first explored by the Portuguese in 1505; it was subsequently held by the Dutch, French, and British before independence was attained in 1968. A stable democracy with regular free elections and a positive human rights record, the country has attracted considerable foreign investment and has earned one of Africa's highest per capita incomes. Recent poor weather and declining sugar prices have slowed economic growth, leading to some protests over standards of living in the Creole community.

While Arab and Malay sailors knew of Mauritius as early as the 10th century AD and Portuguese sailors first visited in the 16th century, the island was first colonized in 1638 by the Dutch. Mauritius was populated over the next few centuries by waves of traders, planters and their slaves, indentured laborers, merchants, and artisans. The island was named in honor of Prince Maurice of Nassau by the Dutch, who abandoned the colony in 1710.

The French claimed Mauritius in 1715 and renamed it Ile de France. It became a prosperous colony under the French East India Company. The French Government took control in 1767, and the island served as a naval and privateer base during the Napoleonic wars. In 1810, Mauritius was captured by the British, whose possession of the island was confirmed 4 years later by the Treaty of Paris. French institutions, including the Napoleonic code of law, were maintained. The French language is still used more widely than English.

Mauritian Creoles trace their origins to the plantation owners and slaves who were brought to work the sugar fields. Indo-Mauritians are descended from Indian immigrants who arrived in the 19th century to work as indentured laborers after slavery was abolished in 1835. Included in the Indo-Mauritian community are Muslims (about 17% of the population) from the Indian subcontinent.

Franco-Mauritians control nearly all of the large sugar estates and are active in business and banking. As the Indian population became numerically dominant and the voting franchise was extended, political power shifted from the Franco-Mauritians and their Creole allies to the Hindus.

Elections in 1947 for the newly created Legislative Assembly marked Mauritius' first steps toward self-rule. An independence campaign gained momentum after 1961, when the British agreed to permit additional self-government and eventual independence. A coalition composed of the Mauritian Labor Party (MLP), the Muslim Committee of Action (CAM), and the Independent Forward Bloc (IFB)--a traditionalist Hindu party--won a majority in the 1967 Legislative Assembly election, despite opposition from Franco-Mauritian and Creole supporters of Gaetan Duval's Mauritian Social Democratic Party (PMSD). The contest was interpreted locally as a referendum on independence. Sir Seewoosagur Ramgoolam, MLP leader and chief minister in the colonial government, became the first prime minister at independence, on March 12, 1968. This event was preceded by a period of communal strife, brought under control with assistance from British troops.

ECONOMY

Mauritius has one of the most successful and competitive economies in Africa; 2006 GDP at market prices was estimated at $6.5 billion and per capita income at $5,214, one of the highest in Africa. The economy is based on tourism, textiles, sugar, and financial services. In recent years, information and communication technology (ICT) and seafood have emerged as important sectors of the economy, growing by an average of 40% last year. Over the past two decades, real output growth averaged just below 6% per year, leading to a more than doubling of per capita income and a marked improvement in social indicators. However, since 2002, the economy started to face some serious challenges as a result of globalization, involving the erosion of trade preferences for both textiles and sugar, two pillars of the economy. Economic growth declined to 3-4% while unemployment, government budget deficit, and public debt increased steadily.

The government that took office in July 2005 embarked on a bold economic reform program aimed at moving Mauritius from reliance on trade preferences to global competitiveness. The reform strategy, outlined in the FY 2006-2007 government budget, was designed not only to remedy fiscal weaknesses but also to open up the economy, facilitate business, improve the investment climate, and mobilize foreign direct investment and expertise. The reforms and the opening up of the economy have already started to positively impact the economy. GDP growth increased to 5% in 2006, and the same rate is expected in 2007.

In addition to encouraging the restructuring and modernization of the textile and sugar sectors, the government is putting much emphasis on the development of the ICT sector and the promotion of Mauritius as a seafood hub in the region, using existing logistics and distribution facilities at the Freeport (free trade zone at the port and airport). To further diversify the economic base and generate sustainable growth, the government is actively encouraging the following economic activities: (i) the land-based oceanic industry, (ii) hospitality and property development, (iii) healthcare and biomedical industry, (iv) agro-processing and biotechnology, and (v) the knowledge industry.

The business climate is friendly yet extremely competitive. The World Bank 2007 Doing Business Survey ranks Mauritius 32nd in the world and second in Africa for ease of doing business. Mauritius has a long tradition of private entrepreneurship, which has led to a strong and dynamic private sector. Firms entering the market will find a well-developed legal and commercial infrastructure. With regard to telecommunications, Mauritius has a well-developed digital infrastructure and offers state-of-the-art telecommunications facilities including international leased lines and high speed Internet access. Telecommunications services were liberalized in January 2003. The government policy is to act as a facilitator to business, leaving production to the private sector. However, it still controls key utility services directly or through parastatals, including electricity, water, waste water, postal services, and broadcasting. The State Trading Corporation controls imports of rice, flour, petroleum products, and cement.