Pensions Increase and Crass Populism

Editorial

In his recent address to the nation commemorating the 56th Independence Day anniversary, Prime Minister Pravind Jugnauth made a significant announcement that is poised to affect the national economy and impact the political landscape of Mauritius. With effect from April 2024, all 60-year-old pensioners will obtain a significant increase in their monthly pensions, bringing them to Rs 13,500.

This announcement regarding a pension increase, mentioned initially in 2019, underscores a common political strategy where parties vie for public support through policy promises, especially during election cycles. This strategy involves presenting initiatives that are framed as addressing pressing issues, such as financial concerns among the elderly, etc.

Supporters of the party in power might emphasize that it signifies a departure from mere election promises, portraying it as a genuine policy change aimed at improving the lives of the elderly and addressing the financial challenges faced by certain demographic groups. They may argue that the move demonstrates the government’s commitment to addressing real societal issues.

For those elderlies and OAPs who, for the past two to three years, have been facing the brunt of inflationary pressures through currency depreciation against the dollar, the high taxes on fuels and diesel-related distribution costs, this is certainly a well-deserved relief and only a catch-up on their dwindling financial situation. Economists can and will calculate how much such an announcement outside the confines of the budget (where costs to the Exchequer and financing means could have been clarified) will cost the country annually and how sustainable the CSG taxation-based approach to pensions remains for the future.

However, given the competitive nature of elections, other political parties are likely to respond by making their own promises or even attempting to outbid the initial announcement. This dynamic can lead to a situation akin to an auction, where parties strive to offer more appealing policies to attract voters. Ultimately, the impact of such an announcement on voting behaviour will depend on various factors, including how it is perceived by the electorate, the credibility of the party making the promise, and the overall political landscape at the time of the elections. It remains to be seen whether the pension increase will indeed sway voter preferences in favour of the current government.

However, one might anticipate the opposition to adopt a cautious stance, refraining from overtly contesting a measure that stems the erosion of the socio-economic welfare of a vulnerable demographic group. This strategic restraint is further compounded by recent judicial rulings that seemingly lend credence to the use of populist measures in electoral campaigns, thereby discouraging direct opposition against such initiatives.

A pivotal development in this matter is the landmark judgment delivered by the Law Lords of the Judicial Committee of the Privy Council, in the matter of the electoral petition filed by the Labour Party’s unreturned candidate, Suren Dayal against the election in 2019 of Pravind Jugnauth and his two running mates. In a detailed explanation, the Privy Council elucidated the fine line between legitimate electoral campaigning and illicit inducements, particularly in the context of allegations leveled against Prime Minister Jugnauth for purported promises made during that electoral campaign.

Of particular significance is the Privy Council’s reading of electoral pledges, distinguishing between lawful campaign strategies and acts of bribery as delineated under existing legal statutes. While acknowledging the potential for abuse and manipulation, the Law Lords underscored the imperative for a contextual and fact-specific evaluation in determining the legality of electoral practices, thereby endorsing a nuanced approach tailored to individual circumstances.

The Privy Council’s ruling should have served as a clarion call for legislative reforms aimed at strengthening the integrity of electoral processes, curtailing the potential for abuse and subversion of democratic norms. But that was too much to ask from the political establishment in power. The necessity of civic engagement and public oversight in ensuring elected officials uphold their campaign pledges and implement policies responsibly is paramount. The nation’s political direction rests on striking a delicate balance between electoral pragmatism and ethical governance, underscoring the crucial role of active citizenship in safeguarding democratic values and promoting accountability.

Mauritius Times ePaper Friday 15 March 2024