To sustain growth, Mauritius is in the proces of: 1) strengthening its technology capacity to ensure that productivity increases match rises in real wages; and 2) enhancing flexibility in the markets for labor and capital so as to enable them to flow to their most efficient uses. To achieve these objectives, the government and its partners are focusing their efforts on developing a more supple and competitive incentive framework while building the structures for a know-how rich and information based economy. The World Bank is supporting this process through Economic Sector Work (ESW)--"Technology Strategy for Competitiveness," and two subsequent projects, "Technical Assistance to Enhance Competitiveness" and "Services Sector Modernization."