COUNTRY PRESENTATION MAURITIUS

Socio-Political-Economic Parameters Wage Rate Index

The economy in 2011 grew by 4.0% and the Gross National Income per capita at market prices reached 253,335 rupees. Inflation stood at 6.5% in 2011 Population: 1.3 million GDP (PPP): $20.2 billion 3.3% growth 3.9% 5-year compound annual growth $15,592 per capita Unemployment: 8.0% and likely to increase 8.2% in 2014 whereas 7.9% in 2011 Inflation (CPI): 3.9% FDI Inflow: $360.9 million

Economic Indicators

Population pyramid

Trends in household income distribution

Financial Architecture

Financial Crisis
Debt Crisis 1994 October Crisis 2001

ABCP Crisis 2007

The ABCP Crisis in Canada: The Implications for the Regulation of Financial Markets
Canadian financial markets were shaken in mid-August, 2007 $32 billion of non-bank, or third-party, sponsored assetbacked commercial paper (ABCP) was frozen by the inability of the conduits to rollover their maturing notes The affected conduits represented 27% of the $117 billion ABCP market The US sub-prime crisis was the actual trigger of the crisis, but because of the inherent fragility of the ABCP market, other events, such as a rise in short-term interest rates, could also have sparked a crisis

 Causes:
The usual rating were inappropriate thus favorable rating was done ABCP involved in heavy writing of credit derivatives Some Canadian banks also sponsored ABCP conduits, holding them off-balance sheet so as to avoid capital requirements avoiding a technical market disruption, denying the conduits support from their liquidity providers

Implications:
prospectus requirements be based on an issuers activities credit rating agencies register with securities authorities, adopt separate rating scales for structured products and make clearer the risks they cover the banking regulator review the continuing suitability of on- and offbalance sheet distinctions for banking related activities with respect to regulatory capital requirements the rules governing the sale and distribution of structured products reflect the characteristics of the product

 The communication among regulators should be reviewed to determine whether greater communication could prevent or reduce the severity of crises in the future

Conclusion
The ABCP crisis was both predictable and preventable It was predictable in that the fragile financial structure of ABCP conduits, together with their levered credit risks, combined to create a product highly vulnerable to shifting market conditions It was preventable in that possible warning signals for investors were switched off

Foreign Ownership Partnership (FDI)

Foreign Direct Investment Stocks in Mauritius Country wise

Dubai France Germany Belgium Luxembourg Reunion Island South Africa Switzerland U.K. U.S. South Asia East Asia Others 2010 2011 2012 2013 11.7 10.7 12.5 3.7 71.8 50.7 111.5 58 0.8 0.1 0.34 3.1 11.0 3.1 0.1 2.0 8.1 1.7 6.0 4.3 2.8 0.5 15.7 46.6 73.5 70 13.8 18.7 1.7 2.2 46.0 147.0 59.4 5.9 21.0 4.2 7.8 4.9 9.8 91.6 3.3 7.9 20.8 20 6.9 42.2 48.0 29.8 35.5 7.2 ------------------------------------------------------------Total 270.5 442.8 320 202.6

Foreign Direct Investment Stocks in Mauritius Industry wise

Foreign Direct Investment by Sector, 2010-2013(USD million)
2010 Manufacturing Tourism Financial Real Estate Health Other Total 2011 2012 2013

15.0 2.0 1.8 3.3 57.0 26.5 19.6 12 42.0 147.0 55.8 15 132.0 109.0 155 123 4.5 87.0 20.0 73.3 87.8 49.3 --------------------------------------------------------------270.5 442.8 320 202.6

Indias trade & economic ties

Longstanding bilateral ties, built upon shared values of democracy and pluralism, and strong people-to-people links Bilateral merchandise trade in 2010 totalled approximately C$4.2 billion, an increase of 46.6 percent since 2005

Merchandise exports in 2010 totalled C$2.1 billion (a 2.7 percent decrease from 2009), imports from India reached C$2.1 billion (a 6.0 percent increase from 2009) Exports to India have increased by 92.2 percent since 2005

 In November 2009, the Prime Ministers of Canada and India set a combined annual trade target of CDN$ 15 billion (up from just under CDN$ 5 billion in 2009) to be reached by 2015
Trade relations include:
Security Investment Science & Technology Environment & Energy Immigration & Visas Stakeholder Involvement Development Assistance

Banking & Financial Institution Framework

Financial Institutions Banks, Insurance companies, Credit Unions, Developmental banks, Trusts, Loan companies, MF companies, Securities industry and Venture capitalists Functions
Develops the regulations that govern the institutions Analyzes the financial sector in Canada and abroad Helps ensure that Canada has an effective regime to combat money laundering and the financing of terrorism Manages the debt and international reserves of the Government of Canada and provides policy advice on activity in the domestic capital markets

Bank of Canada
Founded in 1934 as a privately owned corporation Functions:
Monetary Policy - contributes to solid economic performance and rising living standards for Canadians by keeping inflation low, stable and predictable Currency - designs, produces and distributes Canadas bank notes and replaces worn notes. It deters counterfeiting through leading-edge bank note design, public education and collaboration with law-enforcement agencies

 Funds Management - provides effective and efficient fundsmanagement services for the Government of Canada, as well as on its own behalf and for other clients For the government, the Bank provides treasury-management services and administers and advises on the public debt and foreign exchange reserves. In addition, the Bank provides banking services to critical payment, clearing and settlement systems

Financial System - The Bank promotes a stable and efficient financial system. oversees Canadas key payment, clearing and settlement systems; acts as lender of last resort; assesses risks to financial stability; and contributes to the development of financial system policies

 Monetary Framework
Monetary policy is concerned with how much money circulates in the economy, and what that money is worth The cornerstone of the Bank's monetary policy framework is its inflation-control system

How does it works?

The Bank carries out monetary policy by influencing short-term interest rates. It does this by raising and lowering the target for the overnight rate The "overnight rate" is the interest rate at which major financial borrow and lend one-day (or overnight) funds among themselves Changes in the target for the overnight rate usually lead to changes in other interest rates, and so affect people's spending decisions This, in turn, influences the level of demand for goods and services

 The Board is composed of the Governor, the Senior Deputy Governor and 12 independent directors appointed to threeyear renewable terms by the Governor in Council (the Cabinet). The Deputy Minister of Finance is an ex officio nonvoting member of the Board
Canada's monetary policy is built on a framework consisting of two key components:
Flexible Exchange Rate Inflation-Control Target

INDONESIA

Socio-Politico-Economic Parameters
Indonesia officially the Republic of Indonesia is a country in Southeast Asia Capital : Jakarta Official languages : Indonesian Demonym : Indonesian Currency Rupiah (Rp) (IDR) Government : Unitary presidential constitutional republic President - Susilo Bambang Yudhoyono Vice President Boediono largest economy in Southeast Asia and a member of the G-20 major economies Indonesia has a mixed economy in which both the private sector and government play significant roles Literacy Rate - 92.81%

Economic Indicators
GDP (PPP)2012 estimate - Total$1,208 trillion (15th) Percapita$4,943(122nd) GDP (nominal)2012 estimate - Total$928.274 billion(17th) Per capita$3,797 (107th)

Financial Crisis
Asian Financial Crisis (1997) Mini-Crisis' due to international oil prices rises and imports (2005)

Asian Financial Crisis (1997)

The Asian financial crisis was a period of financial crisis that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion In July 1997, when Thailand floated the baht, Indonesia's monetary authorities widened the rupiah currency trading band from 8% to 12% The rupiah suddenly came under severe attack in August. On 14 August 1997, the managed floating exchange regime was replaced by a freefloating exchange rate arrangement. The rupiah dropped further Although the rupiah crisis began in July and August 1997, it intensified in November when the effects of that summer devaluation showed up on corporate balance sheets

Impact
By November 1997, rapid currency depreciation had seen public debt reach US$60 bn In 1998, real GDP contracted by 13.7% The economy reached its low point in mid-1999 and real GDP growth for the year was 0.3% Inflation reached 77% in 1998 The rupiah, which had been in the Rp 2,600/USD1 range at the start of August 1997 fell to 11,000/USD1 by January 1998

Foreign Ownership Partnership (FDI)

Indias trade and Economic ties

Bilateral Agreements between India & Indonesia

India Indonesia Comprehensive Economic Cooperation Agreement (CECA) 2009

MOU between The Ministry of commerce and Industry of the Republic of India and The Ministry of trade of the Republic of Indonesia on the establishment of Biennial trade ministers forum.

Bank Indonesia
Bank Indonesia was founded on 1 July 1953 The central bank of the Republic of Indonesia Bank Indonesia has one single overarching objective: to establish and maintain rupiah stability This objective incorporates two key aspects: The first is a stable rupiah for goods and services, reflected by the inflation rate The second is exchange rate stability against other foreign currencies, which is reflected by rupiah performance against other foreign currencies

Strategic objectives
Maintain monetary stability Maintain the financial sustainability of the Bank of Indonesia Strengthen the effectiveness of monetary management Create a sound and effective banking system and financial system stability Maintain the security and effectiveness of the payment system Increase the effectiveness of Good Governance implementation Strengthen the organization and build highly competent human resources with the support of a knowledge-based work culture Integrate the Bank of Indonesia's transformation in line with Bank Indonesia's destination statement of 2008

Organisation
The bank is led by the board of governors, comprising the governor, a senior deputy governor and seven deputy governors The governor and deputy governors serve a five year term, and are eligible for re-election for a maximum of two terms The governor and senior deputy governor are nominated and appointed by the president, with approval from the People's Representative Council Deputy governors are nominated by the governor and appointed by the president, with approval of the People's Representative Council