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Its prime minister, Navinchandra Ramgoolam, says its success has depended on regular changes of government at the ballot box.
ECONOMIST: Mauritius: Beyond beaches and palm trees | The
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Born in 1947, Mr Ramgoolam served as prime minister between 1995 and 2000.
BBC: Mauritius profile
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Former Prime Minister Navin Ramgoolam of the Social Alliance returned to power after defeating Paul Berenger of the Mauritian Militant Movement in elections in July 2005.
BBC: Mauritius profile
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Fiscal sense, but it has opened a box of problems which neither the prime minister, Navin Ramgoolam, nor the ruling Labour Party, have been able to solve.
ECONOMIST: Paradise threatened in Mauritius
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The ruling alliance, which included Mr Ramgoolam's Labour Party and the Militant Socialist Movement, was re-elected in a closely fought vote in 2010, defeating the Mauritian Militant Movement led by Mr Berenger.
BBC: Mauritius profile