INTRODUCTION

- Stepping on to the world stage -

Reform and economic integration is taking one of
the world´s least-known nations into the modern world.

Mauritania rarely hits the headlines in the British press. This is partly because, since it gained independence in 1960, the country's main point of contact in Europe has been the former colonial power, France. But it also reflects a desire by the Mauritanians until fairly recently to stay out of mainstream world affairs. Mauritania is 100 per cent Muslim; something that unites the various ethnic groups, from the 'White Moors' in the desert to the various black peoples along the Senegal River, as well as the various linguistic communities.

Arabic is the official language, more often heard in the local dialect form of Hassaniya, while many citizens speak French as well as their own local tongue. The country is an Islamic Republic, though of a different nature to that of Iran or Sudan. Religion tends to be private and, as in many nomadic communities, the status of women is higher than in other Muslim states.

On the eve of independence, a group of tents was set up near an old fort just a few kilometres inland from Mauritania's long Atlantic coast and was declared the new nation's capital, Nouakchott. Today, its population is in excess of 750,000, nearly a third of the country's total. Migration into the city was largely spurred by the great Sahel drought of the mid-1970s, when nomadic communities were forced to watch their livestock die. Of late, there has been evidence of the more familiar causes of urbanisation associated with West Africa, as young men in particular have despaired at the possibility of earning a decent standard of living in the rural areas, which in Mauritania's case largely means the desert.

For a generation, the country remained one of the least developed on earth. And slavery was only officially abolished in 1980. But there has been significant change since 1984 when an army colonel, Maaouya Sid'Ahmed Ould Taya, removed the previous president and ushered in a period of economic liberalisation. Until then, the government was responsible for almost every aspect of economic life, apart from some family businesses, and many businessmen preferred to travel abroad to try to make their fortune. Following the democratisation of the country, President Taya has kept a firm grip on political affairs, being returned comfortably as civilian leader.

The opposition is fragmented and much of it boycotted the last parliamentary elections amongst allegations of irregularities. What is certain though is that there has been a degree of stability in Nouakchott which is unusual in the region's capitals, enhancing Mauritania's reputation among foreign investors and financial institutions.

The International Monetary Fund (IMF) has been highly complimentary about the government's economic reforms, notably regarding privatisation. The speed of reform has recently gathered pace, and the World Bank has endorsed the agenda for 1999-2002. This includes harmonisation of corporate and personal tax regimes, aligning external tariffs with those of neighbouring countries, structural reforms and poverty reduction strategies, and facilitating Mauritania's economic integration into regional and global economies.

One of the key personalities in this process is the minister for economic and development affairs, Mohamed Ould Nany, who explains: "The 1999-2002 programme aims to put in place the conditions needed for more prolonged economic growth, thereby stabilising and consolidating the situation at the macro-economic level and inflation, and so on." The ministry is hoping for five per cent economic growth this year, and maybe even higher in 2001. Although the current average income of Mauritanians is below $US500, while living costs are high, many people think their situation is improving compared to the 1970s. Privatisation is at the centre of the reform process, with the telecommunications sector among the first to be opened up.

The National Regulatory Council exists to make sure that such operations respect transparency and competitive norms. The council's president is Moustapha Ould Cheikh Mouhamedou, who points out: "The government decides a policy and we apply it. But, in the application, we are independent. We carry out studies for the government and we give advice."

Although Mauritania has very little industry, compared with neighbours such as Morocco or Senegal, it does have some valuable resources, which form the back-bone of its export trade. Iron ore has been traditionally important, and still plays a significant role, but it has been overtaken by fishing in terms of contributions to national earnings.

The fishing grounds off the country's coastline are among the richest in the world. The Japanese are especially involved, as are the Spanish. Relations with Britain have been low-key until recently. The British government was displeased when Mauritania sided with Iraq in the Gulf War, although it subsequently turned its back on Baghdad. Last year, it even established diplomatic relations with Israel, to the delight of both London and Washington. Perhaps as a reward for this economic and political reorientation, Mauritania was chosen to be one of the first to benefit from debt reduction under the global Heavily Indebted Poor Countries Initiative (HIPC).

Britain's participation coincided with the opening of the first Mauritanian Embassy in London, which will facilitate business and official contacts between the two countries. There is a strong desire among the Mauritanian elite to enhance relations with Britain and the English-speaking world in general. Naturally, that includes encouraging investment. Mr Nany adds: "The president is determined to open up Mauritania to the outside world. It's a country that is stable politically. It offers the sort of security that is indispensable for investors, but it is also a country which has resources and extremely important economic strengths in terms of the macro-economic environment."