Assessing the Overall Trade, Business and Investment Climate in the Island States of the Western Indian Ocean

This paper evaluates the trade, business and investment climate currently in place within the island states of the Western Indian Ocean.  Operating on the premise that trade-based globalization poses a considerable challenge to island states' economic stability and prospects for equitable development, this report argues that both state institutions and exporting firms in the Comoros, Madagascar, Mauritius and the Seychelles must aggressively seek to put in place policies and practices that are conducive to attracting foreign investment, encouraging private sector growth and expanding export capabilities.  As part of this analysis, this paper provides a politico-economic overview of the Western Indian Ocean island states as well as a theoretical outline of academic perspectives relating to island states' prospects for growth in a globalizing world economy.  This is followed by an examination of trade and investment-related trends in these four countries (informed by primary interview research) and the presentation of potential policy options these countries can pursue to improve their competitiveness and overall trade performances.

About Graham Sherbut

Graham Sherbut is a recent graduate of the School of Development Studies at the University of KwaZulu-Natal, where he received a Masters Degree in Economic Development. Currently, he is working with the Peace, Conflict and Development Unit at the International Development Research Centre (IDRC) in Ottawa, Canada. His research interests revolve primarily around issues of banking and development finance, trade policy and (currently) the importance of migrant worker remittances in encouraging post-conflict reconstruction.
 

Keywords: Development Finance, Economy, Globalization, Investment, Island States, Trade, Western Indian Ocean