DEMOCRATISATION IN MALDIVES AS ECONOMIC TSUNAMI & CASH FLOOR VACUUM
By Adam Rasheed Ahmed:
It is much safer for an academic to write a flawless work on a picayune topic than to explore an interesting topic and make some mistakes along the way. In The Political Economy of Dictatorship,
By “Ronald Wintrobe”
Mr Ali Shiyam, Economic Advisor to the President, was appointed as the Chairman of the Commission and Sheikh Hussain Rasheed Ahmed, President of Adhaalath Party, was appointed Joint-Chair.
Maldives it’s about 1,900 islands, only 198 are inhabited 380,000 people wih 100 world renown tourist resorts.
An ancient times the Maldives were renowned for cowries, coir rope, dried tuna fish (Maldive Fish), ambergris (Maavaharu) and Coco de mer (Tavakkaashi). Local and foreign trading ships used to load these products in the Maldives and bring them abroad.
Nowadays, the mixed economy of the Maldives is based on the principal activities of tourism, fishing and shipping.
Tourism is the largest industry in the Maldives, accounting for 28% of GDP and more than 60% of the Maldives' foreign exchange receipts. It powered the current GDP per capita to expand 265% in the 1980s and a further 115% in the 1990s. Over 90% of government tax revenue flows in from import duties and tourism-related taxes.
Fishing is the second leading sector in the Maldives. The economic reform program by the government in 1989 lifted import quotas and opened some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment.
Agriculture and manufacturing play a minor role in the economy, constrained by the limited availability of cultivable land and shortage of domestic labour. Most staple foods are imported.
Industry in the Maldives consists mainly of garment production, boat building, and handicrafts. It accounts for about 18% of GDP. Maldivian authorities are concerned about the impact of erosion and possible global warming in the low-lying country.
The population is scattered throughout the country, and the greatest concentration is on the capital island, Malé. Limitations on potable water and arable land, plus the added difficulty of congestion are some of the problems faced by households in Malé.
Development of the infrastructure is mainly dependent on the tourism industry and its complementary tertiary sectors, transport, distribution, real estate, construction, and government.
The International media describe ex-HEP President Maumon abdull Qayyom is the man who change Maldives changed FISHING VILLAGE as a one of the fine tourism destination.
The history shown the TOURISM in Maldives has introduced late Ibrahim Nasir. Ever since the launch of the first resort in Maldives in 1972, however, tourism in Maldives has flourished.
The arrival of the first tourist group is estimated to have occurred in February 1972. The group landed at Malé, the capital island of the Maldives, and spent 12 days in the country. Tourism in Maldives started with just two resorts with a capacity of about 280 beds in Kurumba Village and Bandos island Resort.
According to published data’s, tourism benefits directly & indirectly only about 10% of the population in Maldives.
The majority of Maldivians agreed to changed Qayyoom’s government by public referendum for following reasons.
1-Equal distribution of wealth
2-Unfare of judiciary practice
3-Humanrights
4-Religious issues
5-Nipotism
6-Corruption
7-Drug & related issues
9-Freedom of speech & media
10-Monopolising the opportunities for 30 years & dictating Politics against full flag democracy.
Dictators therefore place more emphasis on building networks of loyalty to compensate for the weakness of democratic enforcement mechanisms; they also tend to lash out at bonds of loyalty that allow other members of society to enforce agreements potentially at odds with the dictator’s wishes. Thus, according to Wintrobe,
Stalin may have been extraordinarily ruthless, but he was not irrational if we look at the effects of the terror from his point of view. . . . He transformed the CPSU, especially its upper echelons, from an organization dominated mainly by Old Bolsheviks whose loyalties were primarily to the CPSU itself (or to each other) into an elite which was entirely of Stalin’s own making.
Top-down (“vertical”) loyalty networks keep the dictator in power; “horizontal” loyalty networks enable the dictator’s followers to enrich themselves at the expense not only of the ruled but possibly of the ruler as well.
Dictators create loyalty the same way firms do: by paying “efficiency wages“wages in excess of a person’s opportunity cost. Wage premiums obviously give a dictator’s supporters an extra benefit, but that benefit can be withdrawn for disloyalty. In fact, in a dictatorship,
The Economist Intelligence Unit’s Index of Democracy 2008
The results of the Economist Intelligence Unit's Democracy Index 2008 confirm that, following a decades-long global trend in democratisation, the spread of democracy has come to a halt. Comparing the results for 2008 with those from the first edition of the index, which covered 2006, shows that the dominant pattern in the past two years has been stagnation. Although there is no recent trend of outright regression, there are few instances of significant improvement.
However, the global financial crisis, resulting in a sharp and possibly protracted recession, could threaten democracy in some parts of the world.
This is the second edition of the Economist Intelligence Unit’s democracy index. It reflects the situation as of September 2008. The first edition, published in 2006 in the Economist's World in 2007, reflected the situation in September 2006.
The Index provides a snapshot of the current state of democracy worldwide for 165 independent states and two territories (this covers almost the entire population of the world and the vast majority of the world's independent states (27 micro states are excluded). The Economist Intelligence Unit’s democracy index is based on five categories: electoral process and pluralism; civil liberties; the functioning of government; political participation; and political culture. Countries are placed within one of four types of regimes: full democracies;
Half of the world’s population lives in a democracy of some sort, although only some 14% reside in full democracies. Despite the advances in democracy in recent decades, more than one third the world’s population still lives under authoritarian rule.
The relationship between the level of development (income per head) and democracy is not-clear cut. There is an apparent association; the simple correlation between our democracy index for 2008 and the logarithm of GDP per head (at PPP US$) in 2007 is just under 0.6. This may look even surprisingly low—it implies that in a simple two-variable regression of the democracy index on income per head, just over one third of the inter-country variation in democracy is explained by income levels. If we also control for oil wealth & etc.
Aftermath of Dictator & Maldives Economy:
Aftermath of Qayyoom’s dictatorship the Maldives economy was badly effected for following reasons:
1-Both MDP & DRP was using economy as a tool.
2-MDP has pointed out lot of corruption & fraudulent claims to DRP
3-DRP has positive relation to MMA
4-DRP has full control of Citizens Majlis(Parliament)
5-M.Nasheed’s government fully control the state funds & wastage of Government spending.
6-M.Nasheed’s government minimized the size of government administration.
7-M.Nasheed’s government interrupted DRUG related transaction.
8-M.Nasheed’s government minimized or controlled corruption related deals
9-Tourist arrivals decreased about 15 %
10- Narcotics, which has deeply affected the social fabric of the Maldives, effected badly worth about US$10 million, for those involved in trafficking it through his country.
11-International regulatory bodies has pressure on 2005 Maldives Government to establish ( F I U ) Financial Intelligence Unit up to President Nasheed Government this was ignored systematically. The Maldives is developing its anti-money laundering and combating the financing of terrorism system. The Maldives is in the process of drafting anti-money laundering and combating the financing of terrorism laws. The Maldives has not yet established a Financial Intelligence Unit but is developing a system for reporting suspicious transactions.( APG ) Maldives becam e member 2008
12- International regulatory bodies has pressure Maldives Government to establish SNIFFING DOGS checking in both customs port regulation with LAW namely THILAFULHI & ships direct call to other Island ports in Maldives.
13- Airport Security Agency / Remote Airport Needs Tighter Security
Anonymous writes:
Maldives — Airport security and those trained for security functions are inadequate at Male International Airport in the Maldives. The International Civil Aviation Organization believes "the Ministry of Tourism and Civil Aviation is not concerned enough with training security personnel." Although many may have no idea where the Maldives are, it has just the kind of remote international airport with slack security that terrorists look to exploit.
14-The dictator Qayyoom has planted his stakeholders & controls most influential independent areas of Maldives other than MNDF ( Maldives National Defence Force ) & Maldives Police Services. Therefore Nasheed’s government has stiffness in terms of democracy to a deal with International & local authorities to investigate dictator SCANDALS & BIRBERY related issues to get state funds.
United Nations Office on Drugs and Crime
EXECUTIVE SUMARY
· Findings from a rapid assessment in 2003 confirm that opiates (mainly heroin) and
cannabinoids (mainly hashish) are the most frequently used drugs. About 8%
reported IDU and half of these had started injecting before the age of 17 years. About
half reported sharing of syringes ‘ever’. A variety of sexual risk behaviours were
reported.
· The country is aware of the various factors which may threaten a drug-driven HIV
epidemic (sexually active young population, the importance of blood transfusions in
public health) and has taken countermeasures.
· Seizures of heroin by Indian and Sri Lankan authorities destined for the Maldives
appear eight times the average annual seizures within in the country itself by the
Maldivian authorities. Considering the small size of the country, this trend is a matter
of great concern.
· The Maldives is very well connected with the outside world through its international
airport and sea ports. It is potentially vulnerable as a point for the illegal shipment of
precursor chemicals or large quantities of drugs destined for other countries.
GORM officials fear
Maldives has the potential to become a transshipment point for drug smugglers. Most drugs come into the
country by sea, but the Maldivian Customs Service and police find it impossible to search all ships
adequately. The GORM has discussed using drug-sniffing dogs to help search vessels, but opposition to
the proposal, in part over questions of cost effectiveness, has prevented the project’s implementation
The Republic of Maldives consists of 1,100 islands in the Indian Ocean with a comparatively small, but growing, drug problem. The fact that children under 16 constitute 50 percent of the population makes police and UN officials wary of the high growth potential for drug abuse in the country. Police, however, think they can still control the sale of drugs on the streets of the capital, Male'. Police officials believe the country's 25,000 foreign workers, mainly Indians and Sri Lankans who work in the country's resorts, conduct most of the trafficking. The U.S. has received reports from informed observers who note that an epidemic of heroin abuse (in the form of brown sugar, a relatively unrefined version of heroin suitable for smoking, not injection) by Maldivian youth may be under way in the Maldives.
Officials fear that the Maldives might become a transshipment point for drug smugglers. Most drugs come into and through the country by ship, but the customs service and police find it impossible to search all ships adequately. The government has discussed using drug sniffing dogs to help search vessels, but strong cultural resistance to dogs and opposition in part over questions of cost effectiveness, prevent the project's implementation.
The Government of the Republic of the Maldives (GORM), assisted by $25,000 in USG funding, began to computerize its immigration record-keeping system in 1993 in an attempt, among other things, to track the movements of suspected drug traffickers. The U.S. provided another $33,000 between 1996 and 1998 to the GORM to expand this computer system with additional computers and microwave networking technology.
In November 1997 the GORM established a Narcotics Control Board (NCB) under the Executive Office of the President. The Board's first commissioner, a lieutenant colonel, has concurrent duties as Deputy Commissioner of the Maldivian National Security Service.
The NCB coordinates drug interdiction activities, oversees rehabilitation of addicts, and coordinates actions of NGOs and individuals engaged in counternarcotics activities. In 1997 the GORM also established the country's first drug rehabilitation center with space for several dozen clients. The government launched a national antidrug program in 1998 and sent teams to increase drug awareness and assist with drug detection to 11 of the 19 atolls. The Italian government donated funds in 1998 for drug rehabilitation training.
The Republic of the Maldives has no extradition treaty with the United States. In 1994, however, the Maldives cooperated with the U.S. in rendering a Nigerian national to the U.S. to face narcotics trafficking charges. The GORM has signed the 1988 UN Drug Convention, although the country's legislature has not ratified the Convention. The South Asian Association for Regional Cooperation (SAARC) Convention on Narcotic Drugs came into force in the Maldives in 1993. The Drug Action Program of the Colombo Plan has conducted training for Maldives prison authorities and other interested officials in controlling abuse of narcotics among prison inmates. No evidence exists of narcotics-related corruption in the Maldives.
In 1998, the UNDCP donated computers to the NCB to assist efforts to control precursor chemicals. Although some in the Maldives hope to establish the country as an offshore financial center, its antiquated banking laws and regulations and currency controls present challenges. No laws specifically address money laundering or seizure of assets.
Bureau of Economic, Energy and Business Affairs
February 2009
Overview
CORRUPTION
Corruption is a serious problem in Maldives, and the new government has vowed to fight it. The World Bank's Control of Corruption Index for Maldives shows a steady decline in recent years from +0.06 in 2003 to -0.15 in 2004, -0.32 in 2005, -0.51 in 2006 and -0.78 2007. Transparency International's Corruption Perception Index surveyed Maldives for the first time in its 2007 index and Maldives ranked 84 with a score of 3.3 out of a possible 10. In 2008, Maldives slipped 31 places and ranked 115 out of 180 countries with a score of 2.8.
The law on prevention and punishment of corruption (2002) defines bribery and improper pecuniary advantage and prescribes punishments. The law also outlines procedures for the confiscation of property and funds obtained through commission of the included offenses. An Anti-Corruption Commission was created in December 2008 following the passage of the Anti Corruption Commission Act. The responsibilities of the Commission include inquiring into and investigating all allegations of corruption; to recommend further inquiries and investigations by other investigatory bodies; and to recommend prosecution of alleged offences to the Prosecutor General, where warranted. The Anti-Corruption Commission is empowered to handle cases of corruption of members of parliament. It cannot investigate corruption in the private sector.
In March 2007, the Maldives acceded to the United Nations Convention against Corruption.
Campaigners urge banks to shun dictators
Banks are facilitating international corruption by doing business with the world's dictators, according to a report today by an anti-corruption campaign group. Global Witness calls for banks to work harder to turn away business from individuals who pose a corruption risk. It also demands an end to tax haven "secrecy jurisdictions", saying: "The most important change is to ensure that every country produces full public online registers of the ultimate beneficial ownership of all companies and trusts."
Banks named in the report include Barclays, who the campaign group says kept open an account for the son of the dictator of Equatorial Guinea, despite evidence of looting of oil revenues. Barclays declined to comment because of client confidentiality. Other banks "hid behind bank secrecy laws" to frustrate US inquiries, the report says.
Banks are also alleged to have facilitated the activities of Liberian warlord Charles Taylor, now on trial at The Hague for war crimes. A German bank is alleged to have assisted the late president of Turkmenistan to keep gas revenues under his personal control.
Dozens of other international banks are accused of providing oil-backed loans to the state oil company of Angola, which has been accused of corruption and secret arms deals.
Gavin Hayman, campaigns director of Global Witness, said: "The same lax regulation that created the credit crunch has let some of the world's biggest banks facilitate the looting of natural resource wealth from poor countries.
"Government must take responsibility to stop banks doing business with corrupt dictators and their families."
GDP MALDIVES
Economy, Investment & Finance Reports
Economic Statistics and Indicators for Maldives, for the Year of 2008
GDP Per Capita (PPP), US Dollars for Maldives in year 2008 is US$ 4,950.77
This makes Maldives No. 110 in world rankings according to GDP Per Capita (PPP), US Dollars in year 2008. The world's average GDP Per Capita (PPP), US Dollars value is US$ ; Maldives is US$ 4,950.77 more than the average.
In the previous year, 2007, GDP Per Capita (PPP), US Dollars for Maldives was US$ 4,585.08 GDP Per Capita (PPP), US Dollars for Maldives in 2008 was or will be 7.98% more than it was or will be in 2007.
In the following or forecasted year, 2009, GDP Per Capita (PPP), US Dollars for Maldives was or will be US$4,931.89 , which is 0.38% less than the 2008 figure.
Gross Domestic Product (GDP)
The contribution of Travel & Tourism to Gross Domestic Product is expected to decline from 59.7% (MVR10,782.8 mn or US$842.4 mn) in 2009 to 47.9% (MVR16,423.5 mn or US$1,283.1 mn) by 2019.
Employment
The contribution of the Travel & Tourism economy to employment is expected to fall to 59,000 jobs in 2009, 51.5% of total employment or 1 in every 1.9 jobs to 63,000 jobs, 41.4% of total employment or 1 in every 2.4 jobs by 2019.
Growth
Real GDP growth for Travel & Tourism economy is expected to be -10.1% in 2009 and to average 2.2% per annum over the coming 10 years.
Exports
Export earnings from international visitors and tourism goods are expected to generate 61.3% of total exports (MVR7,772.4 mn or US$607.2 mn) in 2009, growing (nominal terms) to MVR12,150.9 mn or US$949.3 mn (40.1% of total) in 2019.
These are some reason why Maldives economy has madly effected & it seems that DEMOCRATIZATION has created economic TSUNAMI & CASH FLOOR VACUUMED.
The majority cash rich giants has bought US Dollars higher than the regulated US Dollar rate (Maldivian Ruffiya 12.85) the unhealthy BLACK MARKET created USD buying rate as (Mrf: 14.50 )
Banks Managers & Resort Managers has indirectly enjoys about what’s happening in the financial Market & regulator MMA (Maldives Monetary Authority) may be not aware there is public advertisement out side windows of local shops & Daily news media has pictured the Ads which is not allowed in MMA monetary regulation to sell or buy USD higher or lower than the MMA certified rate.
Adam Rasheed Ahmed:
wowmaldives@hotmail.com
wowmaldives@gmail.com
