Economic stability threatened by “significant policy slippages”, warns IMF

The Maldives has suffered “significant policy slippages” that have undermined the country’s capacity to address its crippling budget deficit in 2011 and beyond, the International Monetary Fund (IMF) has warned, in a statement concluding its Article IV consultation with the Maldives.

“On the expenditure side, there have been no net fiscal savings from public employment restructuring, public sector wages will be restored to their September 2009 levels earlier than expected, and the new Decentralisation and Disability Bills will lead to considerable spending increases,” the IMF stated. “Also, the Business Profit Tax will come on stream eighteen months later than planned.”

The IMF warned that the Maldives economy was presently unsustainable, on the back of “expansionary fiscal policies” from 2004 which left the country especially vulnerable to the decline in tourism during the 2008-2009 recession.

The country’s financial deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009. On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF reported.

The IMF said that while it recognised “the difficult political situation facing the authorities”, “decisive and comprehensive adjustment measures” were required to stabilise the economy, allow sustainable growth and reduce poverty. In particular, it raised concern about the “lack of significant progress in public employment restructuring.”

“Efforts to strengthen the financial sector and improve the business climate will also be critical,” the IMF said, noting that private sector credit had all but stalled. However it generously conceded that the pace of adjustment “should take into account political constraints.”

The IMF’s Mission Chief to the Maldives, Rodrigo Cubero, told Minivan News that while the government had introduced the core components of a modern tax regime that would begin generating revenue from this year, these achievements were offset by new spending on legislative reforms such as the decentralisation act.

“We see bringing the fiscal deficit down as the key macroeconomic priority for the Maldives,” Cubero said. “A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor.”

“Further efforts are still needed to reduce the fiscal deficit. Those efforts should comprise further tax reforms as well as measures to reduce expenditure and to improve the channelling of social expenditures to the needy.”

He would not be drawn into the politics of the Maldives’ economic situation, “but what we can say with confidence is that broad political support will clearly be needed both to design an economic programme and to carry it out as planned. That is why we also support as broad a spectrum of consultations with different stakeholders as possible.”

Graduation impact

The Maldives graduated in January 2011 from the UN’s ‘Less Developed Country’ designation to ‘Middle Income’, a move which reduces its access to certain concessional credit and donor aid.

Cubero said that as far as the IMF was concerned, “the Maldives remains eligible to the IMF’s concessional financing under the Poverty Reduction and Growth Trust (PRGT). The IMF follows its own rules and procedures to determine PRGT eligibility; the criteria include income per capita, market access, and short-term vulnerabilities.”

The Maldives had, he said, “made significant economic progress in recent decades, allowing it to reach middle-income status. However, given the large public debt and still very large fiscal deficit, it is very important that the financing terms for the Maldives’ public borrowing remain as favourable as possible. While reducing the fiscal deficit is imperative to maintain debt sustainability, favourable financing conditions would also help keep debt manageable.”

Confidence

In its report, the IMF was broadly confident that the Maldives could stabilise its economy in the medium term, due to the tight monetary policy of the Maldives Monetary Authority (MMA) in mopping up excess liquidity, as well as the passing of the Business Profit Tax and a Tourism Goods and Service Tax.

The economy had rebounded strongly after shrinking 2.25 percent in 2009, and GDP growth for 2010 was an estimated 4.75 percent, the IMF said, with an expected inflation rate of five percent in 2010.

As for the ongoing dollar shortage, while the IMF did not actively advocate a revision of the pegged exchange rate, it did call for “continued discussions between the authorities and the staff on this issue while being mindful of the risks involved and the impact on the poor.”

“The MMA continues to ration the supply of foreign exchange to banks, while fully meeting the demand from the central government and some state-owned enterprises,” the IMF stated. “Dollar shortages persist, and the parallel market premium has increased somewhat.”

In November 2010 the IMF delayed a disbursement under the second review of its program with the Maldives, ahead of the 2011 budget.

The delay, Cubero explained at the time, was due to the “fiscal slippages” caused by insufficient progress towards reducing the wage bill and passing tax legislation – most significantly, the Business Profit Tax.

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President appoints Korean pop singer honorary consul of Maldives in Korea

President Mohamed Nasheed has appointed 64 year-old Korean pop singer Yoon Hyung-ju as honorary consul of the Maldives in Korea.

A report in Korea’s Chosun Ilbo newspaper, one of the country’s largest publications with a circulation of 2.2 million, claimed that Nasheed had offered the position to Hyung-ju when the singer visited the country at the government’s invitation from February 21-23.

The President’s Press Secretary Mohamed Zuhair confirmed to Minivan News that Hyung-ju had been offered the position, “although the paperwork has not been completed yet.”

Hyung-ju, who is currently writing a song called ‘Save the Maldives’ for distribution across Asia and other parts of the world, told Chosun Ilbo that he wanted to let people in Korea know about the environmental challenges faced by the Maldives.

“I’ve long wanted to be a diplomat, and the dream came true at a late age,” Hyung-ju said.

“The reason I quit medical school when I was young wasn’t that I wanted to focus on my singing career but because I wanted to have a free-spirited life, travelling around the world.”

Hyung-ju said he had been introduced to the Maldivian Foreign Affairs officials when the diplomats visited Korea last year. It was these officials who had urged the President to make Hyung-ju an honorary consul, he claimed.

“Many people know the Maldives only as a tourist destination, but it is suffering from a number of difficulties. I will devote my remaining life to be of help to them,” the singer said.

Zuhair said that having a popular figure in Korea as honorary consul could “highlight Maldivian values and culture for would-be visitors.”

The job, he said, was unpaid and did not come with a diplomatic passport, although it “would include some privileges.”

South Korea is a major Asian tourism market for the Maldives, along with Japan and more recently, China. Minivan News understands that the Maldives is currently assessing whether to participate in this year’s World Expo, to be held in Korea.

President Nasheed’s previous appointees to the post of honorary consul include David Hardingham, founder of UK-based NGO Friends of Maldives.

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Adhaalath claims tourists openly drinking alcohol, wearing bikinis on Hulhumale’ beach

The Adhaalath Party has complained that tourists have been wearing improper clothing and consuming alcohol on Hulhumale’ beach in public, and that the area was becoming “a place where Maldivian families cannot visit.”

The sale and consumption of alcohol is banned on inhabited islands. Resorts – and the airport hotel at Hulhule’ – are classified as ‘uninhabited’. As a result, the hedonistic concept of Western resort tourism has been able to peacefully coexist with the more conservative Islamic population on local islands. But the promotion of mid-market ‘guest house’ tourism on inhabited islands such as Hulhumale’ blurs the separation between the two.

“People who own beach front houses have developed guest houses in the area, and as a result tourists coming to the guest houses have started to use the Hulhumale’ beach they would aresort beach,’’ said the Adhaalath Party in statement. “They have been in the beach wearing clothes that do not properly cover their body, and are swimming likewise.’’

The Adhaalath Party cited “a reliable source” as claiming that tourists have been “putting up umbrellas and consuming alcohol under them on Hulhumale’ beach.”

The Party said that such things “should not occur on any of the inhabited islands of the Maldives.”

“It is not permissible under the law, religion or on social grounds,’’ said the party. ‘’It violates many rights of the Maldivians who visits the beach, when they see nudity and alcohol consumption.”

The party also said that it was “a serious issue” and that the concerned authorities should try and resolve.

Secretary General of the Maldives Association of Tourism Industry (MATI), ‘Sim’ Mohamed Ibrahim, acknowledged that such occurrences would be a challenge for mid-market tourism in the Maldives.

“The way it is currently structured is that alcohol is banned and there is a dress code for inhabited islands. Unless the regulations are changed – and I’m not saying they should be relaxed – tourist areas will need to be separated from local areas. In Male’ people cannot drink alcohol openly and nobody wears bikinis – it isn’t a problem.”

Ibrahim suggested that unless there were demarcated tourist areas, “there will always be these kinds of issues. It’s not an Adhaalath party issue or necessarily a religious issue – Western tourist dress is very different from traditional Maldivian dress.”

Separate tourist areas on inhabited islands would also be for the benefit of tourists’ privacy, he suggested. “They should be able to have a holiday in the Maldives, but they need privacy.”

Tourists, he agreed, should also be made more aware of Maldivian cultural traditions.

A UK national who lived in Hulhumale’ for a year until recently said she had not heard of foreigners living in Hulhumale’ using the beach in such a manner. But there were many new boutique hotel and guest house developments being constructed along the beach and there had been, she said, one instance of police being called after several tourists were seeing wearing bikinis “on a quiet corner of the beach.”

“Two foreign girls were also reported to police for wearing bikinis on the beach, but when police arrived they were wearing boardshorts and shirts,” she said.

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Deploy UN peacekeepers to Libya, urges Maldives President

President Mohamed Nasheed has called for the United Nations to deploy peacekeepers in the troubled gulf state of Libya, in an effort “to contain” its leader Muammar Gaddafi.

Nasheed made the suggestion during an interview on ‘Walk the Talk’, a current affairs program on Indian television station NDTV.

The Libyan government, a 42 year autocracy under Gaddafi, is facing rising international censure after using African mercenaries and military hardware – including anti-aircraft missiles – against civilian protesters.

At least 300 people are believed dead in the uprising while armed opposition groups now control much of the east of the country including Zawiyah, a town just 30 miles from the west of the capital of Tripoli. The British SAS meanwhile evacuated more than 500 British oil workers from a staging point in the Libyan desert, using C-130 Hercules transports.

“I feel that the UN should now be thinking about peacekeeping in Libya – on the ground intervention. This is very important,” Nasheed said on ‘Walk the Talk’.

“It is very disturbing to see the whole thing being played out, and everyone talking about their nationals – we all humans and sovereignty cannot be played over humanity,” Nasheed said.

“It is very disturbing to hear everyone talking only about their own nationals. People should be talking about Libya and the people. You kill an Indian, you kill a Libyan, what difference does that make? You’ve killed someone.”

Direct action was needed, Nasheed said, rather than the further economic sanctions that had been imposed.

“[The international community] are talking about sanctions – but Libyans already can’t import anything,” he said.

Nasheed noted that Gaddafi had survived the extreme political turbulence of the last 3-4 days, and said he was “very jittery” about the prospects of the leader stepping down voluntarily.

“Certainly he should go – I’ve no doubt about that,” he said. “It is our responsibility to make sure that at the end of the day we don’t have headlines saying 500,000 people are dead from aerial bombing in Libya.”

The Maldives, Nasheed said, was a “laboratory case” for the current call for democracy in the Middle East and the ousting of autocratic leaders.

“For the last 100 years Maldivian leaders have tried to emulate Egypt. There was Gayoom, but other leaders before him also studied in Egypt.

“What they need now are political parties. We will always support movement in any country when people want to be free – it is very important for development that countries haves strong political parties and free and fair elections.”

The uprisings had showcased that there was “no contradiction between Islam and democracy”, Nasheed said. “We are a 100 percent Muslim country and we have been able to galvanise the public for political activism, we’ve been able to amend our constitution, we able to build political parties, we have had free and fair presidential elections, parliamentary elections, local elections, we have separation of powers, we have a very vibrant independent media, we have all the fundamental rights – but all that requires space for organised political activism.”

A theocracy based around an extreme religious idea, Nasheed said, was simply “The camoflage of a standard dictatorship – except in the name of God.”

Issues such as Israel and Middle East peace issues could be more easily dealt with in a free and democratic country, Nasheed said.

“We have been able to have a number contacts with Israel now – the people have no issue with that.”

Queried by the interviewer about the widespread public anger Nasheed faced when reaching out to Israel, Nasheed claimed that “there is always organised opposition, and there should be and we can always talk about it and give our point of view.”

The uprisings had broken many Middle Eastern stereotypes, Nasheed agreed.

“Finally we will be able to show Islam for what it is – a high sophisticated intellectual life, that is highly attractive to people.”

Asked by the interviewer if he himself was “a devout Muslim”, Nasheed described himself as “practicing”, “but I don’t think that necessarily narrows my thinking or my attitude or my interactions with anyone.”

The interviewer also challenged Nasheed on how the Maldives could balance a broadly Islamic population with the influences of Western-style beach tourism.

“Traditionally we were Sufi Muslim, so therefore we were very liberal,” Nasheed said. “But in 70s we had wahabism starting to come in. Then in the late 70s Gayoom came to power, after living in Egypt.

“There was always a tendency to use religion or verses from the Quran or hadiths to justify yourself or justify your actions. Some other leader might have said “for development’. But Gayoom would say, ‘for God, so that we may attain paradise.’ What you are really saying is that you are building a school.”

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Runaway judiciary leaves the Maldives “at a dangerous junction”, says Velezinee

The Maldives is at “a dangerous junction” following the publication of an in-depth report into the state of the country’s judiciary by the International Commission of Jurists (ICJ), says President’s Member of the Judicial Services Commission (JSC) Aishath Velezinee.

The report was released this week following a visit by an ICJ delegation that included former UN Special Rapporteur on the Independence of Judges and Lawyers, Dr Leandro Despouy. It urged the provision of institutional and individual support for judges and magistrates in the Maldives, foreign oversight and assistance, and highlighted judicial accountability as “the key to cultivating public confidence [in the judiciary]”.

The report was especially critical of the JSC, “constitutionally established as an independent and impartial body tasked with vetting non-Supreme Court judges and magistrates.”

The JSC, the report said, “was unable to carry out its functions in a sufficiently transparent, timely, and impartial manner. To date, JSC decision-making has been perceived as being inappropriately influenced by a polarised political environment. Also troubling is that members of the judiciary have been subject to threats and intimidation as well as improper inducements by both governing and opposition party members.”

The JSC has refused to even table the report, Velezinee said on Thursday.

“We have not been given the opportunity to discuss the report in the JSC,” she said.

“The first thing is for those members exposed as not up to the conduct required by JSC to seriously think about resigning. Number two – we need to table the ICJ report and discuss it. But they have shown no interest in doing so.”

The ramifications of not doing this meant that the Maldives  had “a runaway judiciary”, Velezinee said.

“There has been very public resistance from JSC to any sort of democratisation of the JSC. I’m afraid the people are fooled – the constitution promises an independent judiciary and JSC, which would ensure judges are impartial and independent. But the JSC never institutionalised itself as an independent institution.”

The ICJ had managed, Velezinee said, “to put together a clear picture drawing from the little documentation that was available to them.”

“A lot of very political opinions were shared with them by stakeholders, and they would have had to be really vigilant to not be taken in by the politics of it,” Velezinee said.

“I think the challenge for them was that almost all the documentation is in Dhivehi and not available publicly. Considering the difficulties they had getting information and the very political situation we are currently in, I think they have done an excellent job.”

Situation at hand

Under the constitution the next step forward would be for the Majlis (parliament) to act as the independent oversight body and “put the JSC on trial”, Velezinee said.

“But every time controversy in the JSC becomes public the Majlis intervenes – not in a way that holds JSC accountable, but with the sole objective of covering JSC’s misdeeds. Right now the parliament has a three-member subcommittee conducting a secret investigation of JSC – these are meetings that are closed door [and not public knowledge].”

Parliament, Velezinee contended, had failed to hold the JSC to account and had resisted reforming the watchdog body.

“The parliament is together with the judiciary on this – certain influential members of parliament would like to maintain the status quo so they can control the judiciary,” Velezinee said.

“This is not such a far-fetched radical thought coming from me any more because of the things we have seen over the last year to do with politicians and judicial action. The courts are a playground for politicians and are not trusted by the general public.

“Parliament has failed, and there is no other institutional mechanism in this constitution for the JSC to be held to account.”

It was, Velezinee said, in the interests of everyone, including the international community and the state, “to ensure that the constitutional provisions to establish independent judiciary are followed to the letter and in spirit. We have failed to do that.”

The reason for that failure, she suggested, was a fear among leaders of the former administration “who are continuing with criminal activities they have allegedly been carrying out for a long, long time. These are allegations only because they have never come up before a court of law in all this time.

“There is widespread public perception that certain members of parliament are behind all the serious organised crime going on in this country. This includes serious drug issues, gang violence, stabbings. It is a much discussed issue, but it has never come up in the courts. I can see now that perhaps it may be true – otherwise why prevent the formation of an independent judiciary? I don’t think they would have confidence that they would get away free.”

Velezinee observed that former political figures such as attorney generals were now representing these MPs in court as their lawyers, and by and large, “they win every case.”

“I would find it an insult if had to go and argue my case before someone who does not understand the law. Why are these people doing it? On some islands the parents are locking up the primary schools if the teacher is not qualified. Why are we content with people who have not completed primary school sitting on the bench and judging us?”

Deep-rooted cultural issue

Many of the problems now embedded in the Maldives and its institutions can be traced to the fact that the country never had the opportunity to acclimatise to the concept of democracy before it was introduced, Velezinee suggested.

“For the last two years I have done nothing but think about this and try to change the JSC. I have spent hours and hours by myself thinking this through.

“What I think is this: when a student from a developing country goes to a university in a developed country, you go through an orientation process. If you live in the developing world and you go to work in the third world as a volunteer you also go through orientation – it’s to prevent culture shock.

“We just woke up one day to a new culture. We have always had this culture of subservience, of submissiveness where you are taught to respect your elders – certain people who have been shown to you as the leaders. Then suddenly we adopted this constitution that says everyone is equal.

“I think what people have found as my brazenness is that I have dared to publicly criticise the Speaker of Parliament and senior judges. They do not understand that I am equal to them as a member of JSC – the concept is completely lost on them.”

For the past 30 years judges effectively worked as the employees of those “hand-picked” by the former government, Velezinee explained – to the extent that failures to extend a particular ruling as required by the then Ministry of Justice resulted in a black mark on the judge’s file.

“The only qualification it appears was a willingness to submit to the will of the government at the time – to follow orders,” Velezinee said.

“Not everyone has the mindset to follow orders and serve in that kind of capacity. I believe it has excluded people with independent thinking, or the necessary legal knowledge – such people would take it as an insult for someone to order them how to decide a case.

“Now the JSC has decided – I believe with the support of parliament – that the same bench will remain for the next 40 years, retitled as an ‘independent judiciary’.”

Download the ICJ’s report, ‘Maldives: Securing an Independent Judiciary in a Time of Transition’ (English)

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Employer in Bangladeshi burial dispute was “shying from responsibility”: High Commissioner

A Bangladeshi construction worker who died suddenly on January 26 has become the center of a legal battle over the burial of expatriates in the Maldives.

The man, identified as ‘Muneer’, died on January 26 and was buried on February 22, almost a month later. Islamic custom requires that a body be buried as soon as possible after death.

A police spokesperson told Minivan News that police procedure was to wait for permission from the relevant embassy or the Maldivian Foreign Ministry before burying an expatriate.

Police would not comment on how Muneer had died, or whether it was a natural death, stating only that the Health Ministry was preparing a report.

Permission was eventually given by the Foreign Ministry.

The construction company that employed Muneer, Maala High Rising Construction, originally took the matter to the Civil Court claiming that it had paid Rf 31,200 (US$3642) in mortuary costs for Muneer while authorities dithered.

The company’s lawyer, Shaheem Ahmed, said in court that the Bangladeshi High Commission had requested US$1500, then US$3000, and later US$4000, telling the company that a relative of Muneer’s was going to marry.

High Commissioner Rear Admiral Abu Saeed Mohamed Abdul Awal explained to Minivan News that there had been a delay while Muneer’s family was contacted to determine if they wished the employer to repatriate his body, or for him to be buried locally.

“They are a poor family and requested US$3000 in exchange for permission from the next of kin [for authorities ]to perform a local burial [of Muneer],” Rear Admiral Awal said, explaining that this request was relayed to the Maldives Foreign Ministry.

As Muneer was legally employed by the construction company, they had a legal and a moral responsibility for him, he said.

“We have had two cases where people who have [left their] employer, who are illegal immigrants, and when they have died the original employers still provided support and money, not because they had any legal obligation to do so, but because they were good employers and good Muslims.”

“This is an example of an employer shying away from their responsibility.”

Haveeru contacted coworkers of Muneer on the site of the new State Trading Organisation (STO) building on Eydhafushi in Baa Atoll.

Muneer had been in dispute with members of his family for failing to send money to Bangladesh, they told the local newspaper, adding that Muneer’s brother had called him the day he died and “said they had been living with no food.”

“Most probably he died because of a sudden shock that was caused because of the worry he had about his family,” suggested one.

Muneer had been seeking money to return to his home country, the coworkers told Haveeru.

The Planning Department of the Maldives has meanwhile announced that it will surveying expatriate workers in the Maldives to assess their income, expenditure and standard of living.

The Department will be visiting workers’ residences to collect information following the launch of the survey of February 18.

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UN Security Council meets as Gaddafi vows “to die a martyr”

Libyan President Muammar Gaddafi has vowed on national television that he will not step down from the country’s leadership, and was ready “to die a martyr.”

Speaking in the third person, Gaddafi said “I am not going to leave this land. I shall remain, defiant. Muammar is leader of the revolution until the end of time.”

The leader of the 42 year-old autocracy has reportedly used African mercenaries, snipers and even anti-aircraft missiles to target increasingly fractious demonstrators, with reports of 200-300 killed.

Referring to his green copy of the Libyan penal code, Gaddafi stated that anyone Libyan who “uses weapons against Libya will be sentenced to death.”

The public speech, he said, was intended to refute earlier reports in the international media that he had escaped to Venezuela.

A New York Times journalist in the country reported that much of the east appeared to now be under opposition control. Many of the protesters were armed, she observed.

The UN Security Council has meanwhile called for Gaddafi to cease his campaign of violence against his own people, deploring “the repression of peaceful demonstrators.”

Libya’s Deputy Ambassador to the UN, Ibrahim al-Dabashi, defected from Gaddafi’s regime and confirmed that the east of the country was no longer under government control. He said he had received reports of “genocide” occurring in the country’s west.

The UN Security Council’s message to Gaddafi was “not strong enough. But any message to the Libyan government at this stage is good,” he said.

As well as losing the UN delegation, Gaddafi has lost at least one military battalion and two air force colonels, who flew to Malta in their jets and requested asylum after refusing to bomb protesters.

The Maldives has meanwhile joined Jordan and Qatar among Muslim nations called for an emergency session of the UN Human Rights Council, on which Libya also sits.

Maldivian President Mohamed Nasheed called on the international community to “strengthen measures to realise the aspirations of the Libyan people to fundamental rights and freedoms.”

“The right not to be tortured, the freedom to speak your mind, the ability to choose your own government… these liberties are not the preserve of Western nations but universal values to which everyone aspires,” Nasheed said. “These are the forces that are being played out on the streets of Libya and other countries of the Middle East.”

Established democracies had a responsibility to assist those who aspired to democracy and basic freedoms, he said.

Retired British MP Robert Key, who is currently visiting the Maldives for the first time since taking its case for democracy to the British parliament, said earlier this week that the Maldives had led “blazed a trail in promoting democracy and empowerment of the citizen, with all the difficulties that presents”, and could “hold its head high”.

“There will be leaders in North Africa who will be wishing they had listened to the Maldives, had done what the Maldives chose to do in 2008,” he said.

Oil prices spiked to US$106 a barrel on the back of ongoing unrest in the region.

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Q&A: Former UK MP for Salisbury Robert Key talks democracy in the Maldives

Robert Key was the UK’s MP for Salisbury between 1983 and 2010, and member of cabinet during Margaret Thatcher and John Major’s administration. He was responsible for bringing the Maldives to the attention of both the British parliament and the Westminster Foundation for Democracy. He has supported the country’s path to democracy ever since current President Mohamed Nasheed walked into his constituency office and made his case.

Minivan News spoke to Key during his first visit to the Maldives.

JJ Robinson: Was it difficult to visit the Maldives while a serving MP, given its image as a holiday destination?

Robert Key: No it’s not difficult, because there are organisations that do it such as the Inter-Parliamentary Union and the Commonwealth Parliamentary Association – they all do organised visits, with a political purpose.

But to be completely free of politics and party and able to take a more academic interest in it – I was a teacher for 16 years before I was a politician – has been a great privilege.

In five days I have had a political reeducation. Because a lot of the aspirations I have taken for granted as a British politician do not necessarily apply in the culture of the Maldives.

JJ: What sort of aspirations?

RK: Aspirations towards human rights, for example. In my political life in the UK, human rights have always been an important issue on the political agenda, have has always been seen as virtuous and necessary, and have always been pressed for by the electorate.

I have to realise this is not the case for all people in the Maldives, who have come across human rights only in the last year or two. It’s a new and challenging idea for them, and they are not quite sure what it means. I’ve had to understand that. Even though I’ve been a British politician for 27 years, I certainly don’t have all the answers.

JJ: How did you originally become aware of the Maldives?

RK: Of course I have been aware of the Maldives for many years as a desirable holiday destination – islands in the sun. But it was really the arrival of President Mohamed Nasheed in my constituency office in Salisbury with an agenda of issues for which he needed the assistance of the local member of parliament.

He walked in through the door with his school-friend David Hardingham (Nasheed attended Dauntsey’s school with the founder of the Salisbury-based Friends of Maldives NGO), and said “I have problems. I have problems with visas, I have problems with police, I need some advice from police about how to protect my little office in Salisbury” – all these sorts of issues.

There were bigger problems: such as how to engage the British government ministers and the Commonwealth with what was happening in the Maldives. He quite rightly, as a good democrat, used the democratic system in the UK to pursue answers to his problems.

JJ: This was before the founding of [Nasheed’s] Maldivian Democratic Party (MDP)?

RK: Absolutely. It was when he was setting up the party in a room above a shop in Millford street in Salisbury. That is where he was writing for Minivan News, that is where he was broadcasting on the Internet to Germany, and uplifting the shortwave to the Maldives.

JJ: Can you describe that first meeting?

RK: It was quite an extraordinary meeting. Over my many years I’ve realised you never knew what was going to hit you next as an issue. You never knew who was going to walk through your office door with what sort of problem. It might be a regular sort of problem – housing or taxation – but just sometimes there was an issue that really gripped me as really important. This was one of those.

I saw a young man with great vision and enormous energy and determination, who wanted to change his country. I’d had only one or two similar experiences in Salisbury, with other people who had equally great ambitions, interests and determination, but I recognised this particular young man as someone who I could not ignore, indeed who I wished to promote, because I believed he had all the right instincts as a democrat.

It was an extraordinary impression he made at first. He was very nervous, and very apprehensive. He didn’t know if he could trust me. Trust is the big issue in democratic politics, and I think he had one or two rebuffs from other politicians.

I took it at face value, and we took it from there. I met him a number of times in Salisbury, and I never ceased to believe in his own vision and his motives, and his motives appeared to me to be all correct.

I know nothing about all the party politics of the Maldives, but I do understand a good democrat when I see one.

JJ: What motivated you turn that meeting into a push for democracy in the Maldives? Wasn’t it a far-reaching project for the member for Salisbury?

RK: Not really, because I’d always believed in the Commonwealth and international development issues. I had worked for Chris Patten when he was Secretary of State for International Development, both as his parliamentary secretary and later as a minister, and I understood his view of the world. He left politics to become governor of Hong Kong where he oversaw the hand-over of Hong Kong back to the Chinese government, and I was close to that process.

So I always believed that British politicians had a duty to other Commonwealth countries. And that was why I believed it was more than worthwhile – it was my duty – to assist in this process.

At that stage I knew nothing about the politics of the Maldives – I had no reason to. But if what [Mohamed Nasheed] said was true, he had a strong case.

That was why I needed to take the case to Ministers in the British government, to seek their involvement.

JJ: What was the reaction from British ministers when you presented this story to them?

RK: I think it was always positive, always open-minded, waiting for the evidence to emerge. I think the British government never sought to interfere with political processes, but it did wish to ensure democratic processes were possible in the Maldives.

That was why the Westminster Foundation for Democracy – which is an all-party Foundation – was willing to supply funds and people to advise.

JJ: When did the Westminster Foundation become involved and what support did they provide?

RK: In the year or so before the 2008 presidential election a number of people came out to the Maldives to give advice based on their experience from other parts of the world – the Commonwealth in particular – on what was going on and what was possible. It was completely even-handed and fair-minded, and it was not taking up a party political stance.

JJ: A version of the story told here is that Westminster Foundation funded and trained the MDP.

RK: No no, the Westminster Foundation is completely non party-political. That is why the leaders of all parties are trustees of the Westminster Foundation. It is absolutely not party political. It operates in a whole range of countries, for example Macedonia and other countries of the former Yugoslavia. It acts exactly the same way in any given circumstance anywhere in the world.

JJ: It often stated here that the MDP was strongly supported by the UK Conservative Party. What was the extent of that relationship beyond yourself?

RK: It simply started with me because I was the local MP and happened to be a Conservative. It may equally be true that if it was a Labour Party constituency it might have been the Labour Party that took up the cause. But that wasn’t the issue.

At no stage did I ever discuss party politics with President Mohamed Nasheed. He never asked me anything party-political and I didn’t offer it, any more than I have [during this visit]. I’ve seen both political parties, both party headquarters.

JJ: One of the accusations the former administration threw at both yourself and David Hardingham was that you were Christian missionaries out to subvert Islam in the Maldives. How did you deal with that?

RK: Well I recognised it as a political ploy. But we had to take it seriously as a threat because that was how it was presented – that Salisbury Cathedral might become a target for some kind of activity. It was very specific.

The actual threat was that Salisbury and Salisbury Cathedral were trying to convert the Maldives to Christianity. Which was absolute nonsense but had to be taken seriously, because quite obviously in the Maldives that would be seen as a significant threat in a country that is 100 percent Islamic. I understood that straight away.

It was not true, and therefore we had to say “It is not true.” The Dean of Salisbury Cathedral understood the issue, she took it at face value, and we sought security advice as necessary. But it was never a serious threat. It was a juvenile political ploy.

JJ: Were there any difficulties you faced with the cultural differences of the Maldives? What has your experience been like?

RK: This is my first visit. I was always very keen that people would see my concern for the Maldives as completely impartial and in the interest of good government in the Maldives. That is why I am here, and that is the message I have given to the civil servants I met [on Monday].

The turnout included 14 permanent secretaries – not bad for a retired backbencher. If they are prepared to take me seriously as an impartial supporter of the Maldives, I hope everyone else will.

JJ: What was your reaction when you heard that Mohamed Nasheed had won the 2008 Presidential election?

RK: Astonishment. And delight – in that order. But then I should have recognised that the people are right. As a good democrat I shouldn’t have been surprised. I should have been delighted that he has become President, for the right reasons, doing it the right way, playing it by the rulebook, to make sure his view of good government in the Maldives has prevailed.

He’s now finding out how difficult democracy really is. But that should not deflect him from his vision – of course its difficult, of course the issues are intractable. But, as long as his motives remain completely clear, then I think he will stand again as president, with honour. He clearly has the backing of his party and I wish him well. It’s up to the people of the Maldives.

JJ: Are you aware that when the cabinet resigned Nasheed came under a lot of international pressure for detaining one of the MPs, People’s Alliance (PA) leader Abdulla Yameen, allegedly outside what the constitution permitted?

RK: I’m not aware of that at all. I had just retired [in July 2010], I was away on holiday.

JJ: Have you followed the Maldives since Nasheed’s election? What is your assessment now you’ve seen it first-hand?

RK: I haven’t seen everything, I’ve seen a sample. It’s extremely interesting. I have an agenda of things to go back and do in the UK and contacts to make. I compared notes with the new High commissioner to the Maldives (John Rankin).

I had a fascinating meeting about the importance of statistics to good government. I pointed out that even the British government has only for one year had an independent office of national statistics that everyone can trust – journalists, taxpayers and politicians. And no-one can say “You’re massaging the figures minister” because they are independent.

JJ: Why did this meeting jump out at you?

RK: Because of their anxiety to maintain independence, and their sense of the collective wisdom of the government of the Maldives. In other words, the mark of any good civil service. That was hugely encouraging – their desire not to be party political, or be seen to be party political. All of these are virtuous aspirations on behalf of a civil service determined to serve the people well.

They were asking questions like ‘How do you educate ministers?’ A very important question.

I explained how it worked for me, and how influential civil servants ulitimately are in shaping a government and having limits beyond which they will not go – at which point the cabinet secretary has to see the prime minister to talk about it.

JJ: One of the major economic issues here is that the Maldivian civil service employs a substantial percentage of the population. How do you pare down a civil service while maintaining its integrity and keeping it clear of party politics?

RK: I was asked directly what happens when a government comes in committed to cutting the size of the civil service, and what difference did that make.

I pointed out that is exactly what I had to do during Margaret Thatcher’s government, when as Local Government Minister I was charged with introducing policy that took delivery of public service out of the hands of political and civil servants, and put it in the hands of agencies and contractors, while maintaining services to the public.

It was a painful process – and by and large it worked – but sometimes you had to admit you were wrong. To be able to say, “No, this has failed, stop it and don’t waste any more money. Change the policy.” And that was the advice I gave.

JJ: What reaction did you get whenever you did that?

RK: Huge relief, not least from the Treasury. Because if a policy is not working, it’s wasting money. For example the [UK] poll tax – it was generally recognised politically, but it didn’t work. It was massively expensive, and every time there was another protest, the government had to spend more money to get themselves out of a hole. The only sensible thing to do was put your hands up and say “It hasn’t worked”, and change it. We abolished the poll tax and introduced the council tax in the UK, which is still going strong. Now I can say, “Hey, I got it right.”

JJ: There’s a sense in the Maldives that while everyone agrees on the constitution, not everyone is working in the spirit of it. If you have a situation where the international community is piling on pressure to respect the constitution, how, as a leader and a President, can you work within the boundaries of the constitution when you are dealing with people who may not have its best interests at heart?

RK: I don’t know, because Britain doesn’t have a written constitution. Which is why Britain works!

I have read the Maldivian constitution online, and I recognise some very, very very difficult issues in the constitution which are at loggerheads with the expressed policy of the government over, for example, human rights. Which is very difficult to handle. I don’t know the answer and I’m certainly not going to tell the government how to do it.

But I recognise, and I’m sure they do, that if you have a written constitution, you ought to either abide by it, or change it. But you shouldn’t try to do either too quickly. As I said today, don’t do too much too quickly. Some things you have to do quickly – you have to tell the truth – you have to tell the electorate what your intentions are. But you can’t do it all at once.

It took Margaret Thatcher 11 years to get anywhere near where she wanted to be, before she resigned – or was forced to resign, to be honest.

JJ: In your reading of the Maldivian constitution, what were some of the things that jumped out at you as contradictory to government policy?

RK: I think the clash between human rights and 100 percent Islam is a really difficult issue. I’m a religious person – I therefore respect the Islamic tradition very much, and I’m certainly not trying to convert anyone in the Maldives to Christianity.

But that would be difficult for any government when they are signing up to the UN declarations, which are all about religious freedom and liberty, while at the same time trying to respect a constitution which says “Absolutely not. 100 percent Islam.”

There is a difference in my mind, in my understanding as a Western democrat, that there’s a difference between saying that as a citizen of a country you must belong to a particular faith and, as in Britain, saying: “This is a broadly Christian country, but any other religion is tolerated.”

How you square that circle politically is going to be really difficult to carry out by any government of any complexion, and it’s more likely to take 50 years than five.

JJ: A recurrent observation from the liberal side of debate here is there is a conflict between human rights and Islam. Do you think this then is more a conflict between human rights and the constitution?

RK: No – I think the Maldives will find that it goes through an age of Enlightenment, just as Europe did in the 18th century, when the certainty of a particular interpretation of a particular faith is questioned.

It is not denigrated, it is not abandoned – it is simply talked about. People ask questions. That was the great break in European civilisation – the age of Enlightenment. When science became respectable, when creationism was abandoned, by all but a few.

It didn’t shake the faith, it didn’t abandon the faith, it learned how to question it, and live with the consequences of being a mature democracy. I think the Maldives will go through a similar process.

It will take a long time – if you have a culture which has not been questioning, for hundreds of years, hasn’t seen the need to, and then suddenly the world moves on, that is a big challenge for any government.

JJ: If many of the issues in an emerging democracy will take time to resolve, is there a risk of losing perspective when you are dealing with five year political terms?

RK: Some of the consequential policy changes are going to be difficult if they are done too quickly. But one of the most interesting features of my visit to the Maldives this week has been what is going on in the Middle East and North Africa – and the sense that if the Maldives hadn’t come as far and as fast as it has since the last presidential elections, they may well have found themselves in the situation of one of the North African or Middle Eastern states. Where younger people in particular decided that enough is enough of a particular regime.

The Maldives can hold its head high, and say “We have led the way. We have blazed a trail here in promoting democracy and empowerment of the citizen, with all the difficulties that presents.”

There will be leaders in North Africa who will be wishing they had listened to the Maldives, had done what the Maldives chose to do in 2008.

JJ: What role do think international community can continue to play to ensure the Maldives does see the benefits of democracy?

RK: There is an enormous international role and responsbility. For example in strategic defense planning. The head of military told me about the reorganisation of the military into different heads and commands, and that was an important strategic review that needed to be carried out. It does need to be said that the Maldives’ neighbours, not only India – which is currently providing a helicopter, but the wider international community – should take some responsibility. For example: over this issue of the 37 Somali pirates currently in the Maldives, presenting a huge legal problem for such a small country.

The UN should take the lead in this, and I think there’s a way through this to resolve it internationally. There are other issues of security in the Indian Ocean in terms of everyone’s safety – surveillance of the seas, but also in terms of environmental conservation. I would also like to see the Maldives one day able to lead other emerging democracies down the path of democracy.

JJ: One of the problems civil society organisations have faced here is that because the MDP campaigned strongly on a platform of democracy, freedom of speech, independent media and so forth, suddenly these values and organsiations promoting them have been politicised by association. How does a country separate these values from politics?

RK: It’s not easy, and it takes time, and it’s not the first time this issue has arisen. 10 years ago the Labour Defence Minister asked me to go with him and stand with him in Slovenia in the aftermath of the break-up of Yugoslavia, to convince them that democracy needs an opposition as well as a government – because they were inclined to shoot the opposition.

The Minister took me with him to Slovenia and I sat beside him in a meeting with the group that had obtained the greatest number of votes, and said “Don’t shoot the opposition. You need them to work with you in a democracy.”

Here it is not as extreme. There is not a war in the Malidves. But having talked to both parties I have noticed that there is a very young shoot of democracy here, and it’s going to need time to mature. The political parties are going to both have to see the best in each other and their leaders as well as the worst.

There is no love lost between the political parties here, and in my judgement things that should not be politicised are being politicised. That is the mark of the new democracy. It is a strange idea, it is difficult to handle. But as political thought matures, as the electors get used to democracy, they will encourage their leaders to be more constructive over policy differences. I am not dispirited by this – I think it is competely normal and natural, and part of growing up in a democracy.

We have been at it for a thousand years in England – we take too much for granted. We have politicians slagging each other off, and we yawn. I’m quite sure that is a position people will reach in the Maldives when they want their politicians to get serious about policy issues, and not keep blaming each other for what has happened in the past – and above all, not to seek revenge.

JJ: There is an almost post-apartheid dichotomy between revenge and reconciliation in the Maldives, and a ‘head in the sand’ approach in the hope it will go away. Do you think that is a reasonable position to take, or do old wounds fester and contaminate this discourse you are encouraging?

RK: I think the Maldives should probably seek the advice of Nelson Mandela, who post-apartheid set up the truth commission as a way of learning and forgiving, rather than seeking political revenge. But that is a decision for the Maldivian people – not for me.

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Male’ will not survive without resolving housing, congestion and fuel challenges: President Nasheed

President Mohamed Nasheed has said that Male’ “will not survive without some solution to its housing, some solution to its congestion, some solution to the amount of oil that we are importing everyday.”

Nasheed was speaking at a press conference yesterday to launch the second phase of the Gulhi Falhu development project, attended by the Danish Ambassador Freddy Svane.

The first street of the US$600 million Gulhi Falhu development project, intended to reduce the congestion of Male’, will be called Copenhagen Avenue.

The project involves the reclamation of 40 hectares of land on which will be constructed 2500 housing units. The new landmass will be connected by bridge to Villingili on completion of the second stage of the project and eventually, Nasheed said, joined to Male’ via a bridge from the tsunami monument to Vilingili.

“We have one long stretch of road that starts from the tsunami monument in Male’, and ends at Thilafalhu, which is right next to Giraavaru, which is very far away,” he said. This road would be called Copenhagen Avenue, in recognition of the support of the Danish government.

The houses built by the project’s Global Projects Development Company will be constructed in an environmentally-friendly manner, in partnership with US company Red Dot. Red Dot will construct a solar park which will provide electricity to the new residential and industrial districts.

Nasheed also said that a campus for the recently inaugrated Maldives National University would also be constructed on Gulhi Falhu.

“[Gulhi Falhu] is our showpiece development, our showpiece community and we are quite confident that we will be able to use the land by, hopefully end of next year or early 2013,” President Nasheed said.

Development, the President added, was not measured in concrete.

“During the last two months, I have visited more than 130 islands and very often I am given a shopping list. ‘President; we need a harbor, we need a sewerage system.’

“They [say they] need a water system and they also like a lot of concrete. I have been consistently trying to tell everyone that development is not measured in concrete. It is measure by what we know and what we understand. It’s a phenomenon that happens to a person, not to a country. If we want to develop, we will have to develop our minds. We will have to broaden our minds. We will have to be able to think outside the box, find solutions and fix problems.”

Projects such as Gulhi Falhu would not save the world, Nasheed said, “but we like to think that if we can become an example, the rest of the world can have a look at it and people can actually see and understand that it is working. So in very many senses, this whole project is a green project, and at the centre of it is a green park.”

Nasheed thanked the Danish government for its support of the undertaking.

“If all goes wrong in the Maldives, of course it is an issue for the Danes,” Nasheed said. “All of us are interconnected. If things go wrong in Denmark it’s going to have huge effects and impacts on us. We must be able to look after each other. That doesn’t mean that we should be asking for aid and grants. No, we are asking, seeking for trade. This is a very good example of trade collaborations and also a very good example of how a friendly country can actually back a flourishing or a democracy that is in the process of making.

Danish Ambassador Svane expressed gratitude for Nasheed’s “tremendous job” in Copenhagen at the COP15 summit, saying that the Maldives was setting a benchmark for global efforts to fight climate change.

However he also agreed that development was as much a state of mind as it was physical infrastructure.

“We can build up all these fancy buildings, towers and so forth, but we need to change the mindset of people,” he said, adding that President Nasheed had played an important role in changing the mindset of many people all over the world.

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