Business & Tourism – Page 52 – Minivan News

Government cannot pay state salaries without Indian cash: Finance Minister

Minister of Finance Abdulla Jihad has said the government is unprepared to meet its recurrent expenditure – including salaries – for the final three months of 2012 without the US$25million loan promised by the Indian government.

Jihad, who was not responding to calls at the time of press, told local media outlet Sun Online that he believed the loan is being delayed due to the ongoing controversy over Indian infrastructure company GMR’s development of Ibrahim Nasir International Airport (INIA).

The Ministry’s Financial Controller Mohamed ‘Kuday’ Ahmed was also not responding to calls at time of press.

India’s High Commissioner to the Maldives DM Mulay told Minivan News that “India stands by every commitment and hopes Maldives will reciprocate. We have excellent rapport with the GOM [Government of Maldives] and issues, if any, are sorted out amicably.”

India’s Ministry of External Affairs publicly expressed concern over the political stability and the investment climate in the Maldives earlier this month.

Sun meanwhile reported Jihad as saying he had made repeated requests via the High Commission for the loan to be expedited.

Jihad’s comments come during a week in which President Dr Mohamed Waheed Hassan has been campaigning in Faafu and Dhaalu Atolls, reportedly reassuring the people that the economy was running smoothly whilst crticising those who he claimed sought to weaken it.

A concerted campaign by government-aligned parties to annul the US$511million concession agreement with GMR – the single largest foreign investment in the country’s history – has sparked concerns over investor confidence with damaging implications for the long term development of the economy.

Waheed is also reported as saying that he would not resort to borrowing from foreign governments in order to finance government activities.

“I will not try to run the government by securing huge loans from foreign parties. We are trying to spend from what we earn”, he was reported to have told the people of Nilandhoo.

“The Maldivian economy is fine. Don’t listen to whatever people say. We don’t have to [worry] about the Maldivian economy being in a slump,” he was quoted as saying during a rally in Meedhoo.

Minivan News was unable to obtain comment from President’s Office spokesmen on this issue before going to press.

The US$25 million was agreed upon last month as part of the $US100 million standby credit facility signed with Prime Minister Manmohan Singh in November 2011.

Unpaid bills

Despite Waheed’s reassurances, this month has seen a number of state owned institutions face disconnection from the capital’s power grid as bills amounting to around MVR150million (US$9.7million) were said to be owed to the State Electricity Company (STELCO).

Responding to the institutions’ blaming of his ministry, Jihad told Sun that the finances were simply not there.

“We are not receiving foreign aid as was included in the budget. How can we spend more than we receive? That’s why those bills are unpaid. We can’t spend money we don’t have,” he told the paper.

He mentioned that the government would have difficulties paying the salaries of civil servants in the final quarter of this year.

Since coming to power in February, the government has committed to reimbursing civil servants for wage reductions made during the austerity measures of the previous government, amounting to Rf443.7 million (US$28.8 million), to be disbursed in monthly installments over twelve months from July.

A MVR 100million (US$6.4 million) fuel subsidy for the fishing industry was also approved by the Majlis Finance Committee earlier this month, with the hope of stimulating the ailing sector.

The overall deficit for government expenditure has already reached over MVR2billion (US$129million). Jihad has told the Majlis’ Finance Committee that he expected this figure to rise to MVR6billion (US$387million) by year’s end – 28percent of GDP – alleging that the previous government left unpaid bills equal to over one third of this anticipated deficit.

Former Minister of Economic Development Mahmood Razee told Minivan News that this increased expenditure in the face of a pre-existing deficit represented the government “ignoring reality.”

“If they don’t get the loan, they will have to cut travel expenses, stop certain programs – take drastic measures or get another loan,” said Razee, claiming that the only alternative would be to sell treasury bills.

Following reports in August that the government was attempting to raise funds through the sale of treasury bills, former Finance Minister Ahmed Inaz said that this would not address the concerns of the IMF, prolonging economic uncertainty.

China has made large commitments towards the Maldives’ economic development in recent months, although Razee said he believed that current changes within the Chinese government in the upcoming month made this an inopportune time to look there for additional financial aid.

In August, the current Finance Ministry announced its own austerity measures intended to wipe over MVR2.2billion (US$143million) from this year’s budget deficit though few of these propositions have as yet been followed through.

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Rising oil price forces STELCO to call in US$10 million in unpaid government bills

Chief Technical Officer of the State Electricity Company (STELCO) Dr Zaid Mohamed has said that the problem of state run companies not paying their electricity bills is a long term one, made more urgent by recent rises in the price of oil.

“This problem has gone for a long time – a couple of years but lately the bills have been getting higher,” said Zaid.

Zaid said that the recent rise in fuel prices was beginning to threaten the company’s ability to operate and so the board made the decision to disconnect certain companies.

The most recent figures from the Maldives Monetary Authority (MMA) show the price of crude oil to have risen 9 percent in the last month and 6 percent between August 2011 and August 2012.

STELCO has since started discussions with the government to resolve the issue.

“We have payments to make to our suppliers,” said Zaid, who was reluctant to discuss individual clients while the company was holding discussions with the government.

However, local media reported earlier this week that STELCO had sent staff to both the Maldives Broadcasting Corporation (MBC) and the headquarters of Malé City Council (MCC) to disconnect their electricity.

MCC councillor Kareem told Minivan News that the money had now been sent to the finance ministry.

MBC have released a statement blaming the government for a lack of financial assistance resulting in the possible suspension of its services – Television Maldives (TVM) and Voice of Maldives (VOM), reported Haveeru.

The statement added that it had received warnings for non-payment of bills from several other service providers.

“The average monthly revenue of this corporation during the year has been MVR1.6 million. Due to the highlighted financial difficulties most services and other items had been sought on credit,” the statement was reported to have read.

Minivan News was unable to obtain comment from the Finance Ministry regarding this matter at the time of press.

Haveeru reported that STELCO was owed MVR7.1 million (US$460,000) and MVR6.8 million (US$440,000) by MBC and the MCC, respectively.

The paper discovered that STELCO is owed MVR150 million (US$10 million) from various state institutions, including the Malé Health Service Corporation (MHSC), the police and the Maldives National Defence Force (MNDF).

Oil dependency

The Maldives dependency on oil was discussed yesterday by President Dr Mohamed Waheed Hassan at the World Energy Forum in Dubai.

“A development path primarily based on expensive diesel generated electricity is unsustainable in any country, let alone a small country like Maldives,” said Waheed at the forum’s opening ceremony.

“Today, we spend the equivalent of 20 percent of our GDP on diesel for electricity and transportation. We have already reached the point where the current expenditure on oil has become an obstacle to economic growth and development,” he continued.

President Waheed explained that the current price of 35-70 US cents per KW hour meant that the government was being forced to provide “heavy subsidies” to consumers, giving little option but to move towards a low carbon alternative.

The Maldives Energy Authority recently announced that its US$138 million project would convert ten islands within the country entirely to renewable energy with 30 percent of the total energy demands of a further 30 islands provided from renewable sources.

“Under this strategy, through installation of up to 27 megawatts of renewable electricity, we will be saving on the use of 22 million liters of diesel per year and reduce up to 65,000 tons of carbon dioxide emissions each year,” Waheed explained in Dubai.

“In addition we will be making significant savings from the heavy fuel and other electricity usage subsidies that are currently in place,” he added.

“We are mindful that these programmes cannot be implemented without the engagement of the private sector. In order to make the investment environment more favorable for the private investors, a number of attractive financial guarantee instruments and measures will be adopted.”

Some of the key behind the Scaling-Up Renewable Energy Program (SREP) for the former government said earlier this year that the project had fallen through after political instability following February’s controversial transfer of power had deterred potential investors in the scheme.

The SREP plan revealed the scale of the problem: “If the oil price rises to $150/bbl by 2020, and consumption grows by four percent per annum, oil imports are expected to reach around US$700 million.”

This figure equates to around US$700 million or almost US$2,000 per head of population, whose per capita income – based on the most recent government figures – is just under US$4000.

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“We will celebrate liberation of airport on February 7”: Sheikh Imran

Adhaalath Party President Sheikh Imran Adbulla has said that the people of the Maldives will celebrate the liberation of Ibrahim Nasir International Airport (INIA) on the first anniversary of the resignation of the previous government – February 7, 2013, local media has reported.

The comments were made at a press conference held by a coalition of NGOs and political parties opposed to the deal with the Indian infrastructure company GMR – signed by former President Mohamed Nasheed’s administration – to develop and manage the country’s international airport.

Imran predicted there would be “some unrest and damage” on the day the deal is annulled, but urged people to come out and support the calls for nationalisation – although the GMR deal is actually a 25 year lease arrangement and the airport still belongs to the government.

Minivan News was unable to gain further comment from the Adhaalath Party members at the time of press.

Imran said the Maldivian population would be able to endure economic hardship should the deal be annulled, before threatening “a completely different activity” should the government fail to resolve the issue to the coalition’s satisfaction.

“February 7 this year should suffice to make this clear [to the government],” Imran was quoted as saying by Haveeru.

“We were talking about a particular thing and a particular person completed it. Therefore, when the Maldivian people carry out these activities, too, in a certain way, the people who completes it will decide it a certain way. I hope the President has the courage, ability and steadfastness to take such a measure on behalf of the people,” he continued.

Imran’s comments are symptomatic of the incendiary rhetoric surrounding the airport, the nationalisation of which the Adhaalath Party has previously described as a “national jihad”.

The Civil Coalition of NGOs joined with the seven now-government aligned parties to campaign against the former Maldivian Democratic Party (MDP) led administration, most famously gathering on December 23 last year to defend Islam against what it perceived as irreligious tendencies in the Nasheed government.

The Coalition explained that it was to conduct a week of activities between November 3 – 9 in opposition to the deal, referred to as “airport week”, rather than the mass protest that had previously been planned.

Sun Online reported that the decision had been made owing to clashes with school exams and the government’s plans to celebrate the anniversary of 1988’s attempted coup on November 3.

The paper also reported that the week would be accompanied by the launching of songs and a special logo in support of the movement.

A large balloon has appeared in recent days over the skies of Male’ reading “GMR go home.”

However, previous attempts to organise demonstrations in opposition to the development met with disappointing results when a September protest was poorly attended.

One government-aligned party, the Dhivehi Rayyithunge Party (DRP), refused to join the September protest, arguing that the dispute ought to be resolved through the courts.

DRP leader Ahmed Thasmeen Ali has previously expressed his concerns that reneging on the GMR deal might have detrimental effects on investor confidence in what is already a perilous financial situation for the Maldives.

Abdulla Jabir, Deputy Leader of the Jumhoree Party (JP), has also been vocal about the economic impact of politicising the deal, criticising the Adhaalath Party.

“Sometimes they are religious experts, sometimes they are financial experts. But everyone loves Islam here. Right now, foreign investors are finding it difficult to understand the climate here,” Jabir told Minivan News earlier this month.

“This is not a perfect time for this issue to be happening with GMR,” he added. “I think these protests [against GMR] are unrealistic.”

The JP were, however, represented at the press conference, with State Minister for Fisheries and Agriculture Fuad Gasim reportedly suggesting that senior government figures were being pressured into silence over the deal.

Official government opposition to the deal is currently taking the form of investigations of the $511million deal via the country’s Anti Corruption Commission (ACC) as well as through a Singapore court of arbitration as agreed in the original contract.

However, the Attorney General has asked the Supreme Court to rule on whether the matter might be dealt with within the Maldivian court system.

Earlier this month, INIA CEO Andrew Harrison told Indian media that the company had received no official word from the Maldivian government concerning a resolution to the dispute.

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Maldives travel retail in the spotlight after airport sells US$39,000 bottle of whisky

This story was originally published on Minivan News’ spin-off travel review site, Dhonisaurus.com.

Ibrahim Nasir International Airport (INIA) in Male’ has become the second duty free operator in the Asia Pacific region to sell a recently launched US$39,000 (MVR592,000) bottle of whisky, reflecting what one retailer said is the growing significance of the destination for providers of high-end luxury goods.

Earlier this month, resort chain Anantara announced it would be offering guests a limited edition elephant-harvested coffee – priced at US$1,100 per kilogram – to target high-end gourmet appeal.

While the sale and consumption of alcohol products outside of the country’s airport and resort properties is prohibited under local law, the Maldives National Chamber of Commerce and Industries (MNNCI) said there remained definite potential for local industry and crafts to profit in a market like INIA, despite the MNNCI’s “concerns” over the development.

According to the Moodie Report, an influential travel retail publication, one Chinese passenger travelling through INIA this month purchased the limited edition commemorative Balvenie Fifty whisky just nine days after it had gone on sale at the site. Only 88 bottles are said to have been produced.

“With the Maldives being a top luxury travel destination in the Indian Sub-Continent, we believe that Malé duty free can act as a gateway to the great collection of rare and vintage malts,” distiller William Grant and Sons’ Indian Sub-Continent Brand Development Manager Neeraj Sharma told the trade publication.

GMR, the Indian infrastructure group with a concession agreement to manage and develop the new airport terminal and retail facilities, has taken exclusive rights to certain duty free items to be sold at INIA.

However the GMR contract, which was drafted with assistance from International Finance Corporation (IFC), has come under intense criticism in the country’s political circles, with some key MPs and now government-aligned parties accusing the company of corruption and seeking to “enslave the nation and its economy”.

GMR has denied the charge, contending that it is contracted to operate as a caretaker for the site, which continues to remain Maldivian owned.

However, in the same week when INIA was selling the exclusive whisky to a passenger, local groups supporting a move to “re-nationalise” the airport continued to campaign to sway public opinion against the developer, releasing a large balloon in the capital adorned with the message “go home GMR”.

The government and GMR are presently involved in an arbitration case in Singapore concerning GMR’s levying of an airport development charge.

Authentically Maldivian

MNCCI Vice President Ishmael Asif said aside from selling exclusive duty free goods, local manufacturers of products such as wood carvings and traditional clothing could also benefit from operating in INIA. However, Asif stressed that local laws needed to be amended accordingly.

“There are no local laws right now protecting authentic Maldives products. The goods being sold as Maldivian often come from other countries and do not reflect our traditions and culture,” he claimed, pointing to the types of products sold in stores on busy retail streets like Chaandhanee Magu in Male’ as an example.

Asif claimed that legislation outlining quality and production standards could greatly boost the profitability and market for local techniques such as wood carvings of fish and dhonis (local boats) as well as smaller items like drums used in bodu beru – a local musical form combining rhythmic drumming and dancing.

According to the MNCCI, factories previously existed during the 1990’s specialising in such local woodworking techniques, which used paints and fabrics derived from local materials and colourings. Asif claimed that these factories were no longer in operation outside of some specialist operations supported by resorts based in Baa Atoll.

“We have been trying to work on a special logo that can be used to identify local Maldivian products, this is something that could be done and used at the airport,” said Asif.

The MNCCI added that in recent years, specialist retail groups had set up operations to try and provide authentic products to the country’s lucrative tourism trade, but had more recently struggled to maintain a property in the capital. The commerce group added that organisations such as the UN were now being sought to provide support to such enterprises to help maintain local cultural practices.

In terms of high-end luxury products, Asif added that traditionally INIA – formerly Male’ international Airport – had been viewed locally as a way to bring tourists to the country, rather than as a means of making money as a retail location.

“We are known [as a destination] for having expensive resorts, and the Maldives has tried to develop the best resorts in the world,” he claimed. “GMR seem to feel this is only a place for the elite, [while] we need to accommodate everyone.”

GMR said that as part of a redevelopment of the existing airport terminal, new restaurant properties providing fast food and Thai specialities – particularly popular with Maldivians – would be opened to both passengers and local people.

Yet despite the untapped retail potential for Maldivian products at INIA, the MNNCI said it held “concerns” over the airport agreement with GMR, which was signed with the previous government, and complained it had not been consulted about developing local retail potential.

Asif has previously said that the MNNCI held concerns about the impact of the GMR deal on local businesses, alleging that a planning council related to the infrastructure group’s bid had not been open to the public or its members.

He pointed to the case of local enterprises such as MVK Maldives Private Limited, which in December last year was ordered by the Civil Court to vacate the Alpha MVKB Duty Free shop based at INIA after its agreement had expired.

However, speaking to private broadcaster Raaje TV last month, former Economic Development Minister Mahmoud Razee, who worked with the previous government and international partners on the GMR agreement, denied the deal had resulted in local enterprises being kicked out.

“The privatisation policy does not itself kick others out. It is about honouring the contract. No one has actually been kicked out, but private parties have opportunities to participate. The issue that has always existed is getting cheap capital for small scale businesses,” he said at the time.

Razee claimed that the GMR deal reflected a commitment by the former government to pursue privatisation as outlined in the Maldivian Democratic Party’s (MDP’s) manifesto.

“Firstly, if or when anything is run like a business, private people are more skilled and efficient. They are far more competent and they work for profit unlike the government,” he claimed. “This means it requires less cost for the government, but needs more outside investment or capital. Private people are more skilled and efficient in terms of managing. The end product thus is more beneficial.”

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OPEC loan for Hithadhoo hospital finalised

A delegation from the OPEC Fund for International Development (OFID) has concluded a visit to the Maldives after signing a US$8.4 million (MVR 129million) loan agreement to finance the Hithadhoo Regional Hospital Project in Addu Atoll.

OFID Director-General Suleiman J. Al-Herbish met with President Dr Mohamed Waheed Hassan to discuss the fund’s current operations in the Maldives as well as further avenues for cooperation.

Suleiman said the new hospital would deliver a wide range of specialized and emergency medical services, benefiting around 76,000 people.

Permanent Secretary at the Ministry of Health Geela Ali said that the work on the 100-bed facility would upgrade the level of healthcare in the atoll to tertiary level.

Currently, this advanced level of healthcare is only provided in Male’s two hospitals – the privately operated ADK hospital and the state-run Indira Ghandi Memorial Hospital (IGMH).

Other than this, Maldivians can receive secondary of care in the country’s six regional hospitals. This includes Raa Atoll regional hospital which the ministry intends to begin renovating.

“This will be a huge project. We are currently seeking government funding for this,” explained Geela.

OFID is a finance institution established by the group of petroleum exporting states to channel aid to less-developed nations.

Previous loan support from the fund was given to upgrade Male’ international airport in 1999, and again in 2005 to extend Wataniya’s telecoms coverage.

A press release from the fund described the fund’s 35 year relationship with the Maldives during which time is has co-financed projects to strengthen the country’s agriculture, education, transportation a sanitation sectors.

“Under its Trade Finance Facility, OFID has participated under the International Islamic Finance Corporation’s syndication of US$25 million to assist the State Trading Organization, Maldives, in importing refined petroleum products. In addition, grant funding has provided emergency aid for tsunami victims and supported healthcare programs,” read the statement.

Chinese visit

As the OFID visit concluded, a high level Chinese delegation arrived as part of a three nation tour which will also take in Pakistan and Bangladesh.

The delegation is headed by Li Changchun who is China’s fifth highest-ranking leader and has been on the Standing Committee of the Political Bureau of the Communist Party of China Central Committee since 2002.

Chinese state media reported Li as lauding the exemplary nature of the Sino-Maldives relationship as a model for ties between larger and smaller nations.

“The development of relations between China and the Maldivians serves the fundamental interests of the two peoples as well as maintaining the regional peace, stability and prosperity,” Xinhua reported Li as saying upon his arrival at Ibrahim Nasir International Airport (INIA).

Li has since met with President Waheed who thanked him for China’s continuing assistance with the Maldives’ development, whilst welcoming Chinese investors to explore opportunities in the country.

Waheed expressed similar sentiment when paying his first official state visit to China last month during which he finalised a deal for US$500 million in aid, with promises for further assistance in the future.

The President’s Office website has confirmed that the Ministry of Housing has exchanged letters agreeing to a feasibility study for developing a road in the Laamu Atoll Gan to Fonadhoo stretch of islands.

A memorandum of understanding was also signed between the Chinese Ambassador Yu Hongyao and the Ministry of Environment and Energy concerning the provision of goods for addressing climate change.

Chinese relationships with the Maldives was established 40 years ago but has expanded rapidly over the past decade.

China leapfrogged the United Kingdom in 2010 to become the number one source of arrivals for the country’s travel industry.

China opened an embassy in Male’ in time for the opening of the SAARC summit last November, reciprocating the opening of a Maldivian mission in Beijing in 2007.

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Maldives “enslaving” migrant workers by withholding passports, warns Indian official

A senior Indian diplomatic official in the Maldives has expressed concern over the ongoing practice of confiscating passports of migrant workers arriving to the country from across South Asia – likening the practice to slavery.

The diplomatic source, who wished not to be identified, has told Minivan News that although several government ministries were critical of the practice of withholding the passports of foreign staff coming to work in the country, the state had taken no action.

Some Ministries – such as the Education Ministry – themselves routinely confiscate passports of migrant workers.

“I’ve not met a single government minister who says that such a system [withholding passports] is legal,” the source said, claiming that they had seen little “real progress” from authorities in trying to address these concerns over the last 10 months.

The Maldives has come under strong criticism internationally in recent years over its record in trying to prevent people trafficking, with the country appearing on the US State Department’s Tier Two Watch List for Human Trafficking three years in a row.

In the report, the Maldives is mainly flagged as a destination country for victims of labour exploitation, particularly from Bangladesh and to a lesser extent, India, but was also noted as a destination for sex trafficking.

“An unknown number of the 80,000 to 110,000 foreign workers that government officials estimate are currently working in Maldives – primarily in the construction and service sectors – face conditions indicative of forced labour: fraudulent recruitment, confiscation of identity and travel documents, withholding or nonpayment of wages, or debt bondage,” the 2012 report notes.

According to the source within the Indian High Commission, by impinging on a person’s right of movement – such as by taking their right to travel freely between different countries – migrant workers without passports were essentially being subjected to “slavery” in the Maldives.

“Slavery is of course not permitted under Islam, but this system also incurs cost for the Maldivian people,” the source claimed, pointing to the rising costs of trying to attract skilled workers such as teachers to the country, when compared to other countries like Sri Lanka.

According to the High Commission, Indian workers experienced similar treatment with regard to their passports being withheld when they first began migrating to nations within the Organisation of the Petroleum Exporting Countries (OPEC) in the 1970’s and 1980’s.

“This was at a time when there was not much opportunity for work for skilled Indian workers,” he said. “However, now they have the choice of where to work and conditions have greatly improved.”

The diplomatic source said that countries such as Saudi Arabia had moved away from keeping the passports of migrant workers, as well as ensuring improved working conditions so they could attract the best staff for positions.

From the perspective of the Maldives, the high commission representative likened the attitude of many of the country’s employers towards hiring foreign staff as being synonymous with “ownership”, something he said did not reflect the critical need for foreign workers in the Maldives – both skilled and unskilled.

“If you are giving visas to these people then they are obviously needed. But if you need something you must also value it. Should you buy a expensive piece of electronic equipment, you would not go throwing it around and treating it badly,” the source suggested.

Contacted about the passport issue, Abdul Razak Ibrahim, Director General for the Ministry of Human Resources, Youth, and Sport, forwarded enquiries to the Department of Immigration and Emigration, which he said now dealt with employment issues.

Both Immigration Controller Dr Mohamed Ali and Deputy Controller Ibrahim Ashraf were not responding to calls from Minivan News at time of press.

Indian concerns

The issue of retaining passports is one of a number of concerns about the wider treatment of migrant workers from India and the South Asia region in the Maldives.

Earlier this year, the High Commissioner of Bangladesh in Male’, Rear Admiral Abu Saeed Mohamed Abdul Awal, questioned the treatment of workers from the country, who he said were regularly being brought to the Maldives to perform unskilled work, usually in the construction industry. Awal alleged that upon arriving, expatriates from Bangladesh were suffering from the practices of “bad employers”.

“This is a real problem that is happening here, there have been many raids over the last year on unskilled [expatriate] workers who are suffering because of the companies employing them. They are not being given proper salaries and are paying the price for some of these employers,” he said.

Rear Admiral Awar added that it was the responsibility of employers to ensure expatriate staff had the proper documentation and suitable living standards.

Concerns about the treatment of expatriates from across the South Asia region were also shared by Indian High Commissioner Dynaneshwar Mulay. Speaking to Minivan News, Mulay has previously raised concerns over the general treatment of Indian expatriates in the Maldives, particularly by the country’s police and judiciary.

Mulay claimed that alongside concerns about the treatment of some Indian expatriates in relation to the law, there were significant issues relating to “basic human rights” that needed to be addressed concerning expatriates from countries including Sri Lanka and Bangladesh.

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Government conducting financial survey, and census in 2014

The government has decided to conduct a national census in 2014 while the Department for National Planning is currently conducting an economic survey to gauge the country’s productivity.

The last census was conducted in 2006 by the Ministry of Planning and Development after the 2005 census had been delayed after the previous year’s tsunami.

The first modern census in the Maldives was said to have been carried out in 1977. Following this, the government conducted the survey once every five years from 1985.

The 2006 census required just under 3000 staff to conduct and collected data relating to the size, geographical distribution, and socio-economic characteristics of the population including age, sex, educational attainments, marital status, and employment.

Data relating to size, geographical distribution, and socioeconomic characteristics of the population such as age, sex, educational attainments, marital status, and employment. will be collected.

The 2006 census found the population to be 298,968 although the most recent statistics from the department give a figure of 330,652.

The Department of National Planning also revealed yesterday that the Planning Ministry’s five-yearly economic study has commenced.

The information gathered from establishments involved in economic activities, between now and next May, will be used to determine the country’s productivity as well as to re-base GDP, local media has reported.

Real GDP – which uses a base year to measure the growth of an economy, in order to take account of price changes – currently takes 2003 as the base year, although the last economic survey was conducted in 2007.

Nominal GDP suggests that the Maldivian economy has grown by 261 percent since 2003, while real GDP shows that the rate is just 174 percent.

The 2007 report suggested that the retail, manufacturing and hospitality were the country’s largest employers, provided jobs for 19, 18, 16, percent of the working age population, respectively.

Fishing, traditionally one of the country’s largest employers, only accounted for 7 percent of the workforce according to 2007’s data.

In financial terms, tourism continues to be the economy’s greatest source of income this year, with the most recent figures predicting that over 30 percent of real GDP will come directly from this sector in 2012.

The service sector as a whole is expected to account for just over 80 percent of 2012’s real GDP.

The Minister of Finance and Treasury Abdulla Jihad told the Majlis last month that this year’s budget deficit can be expected to be double the original estimate of MVR3billion (US$195million) – over 18 percent of nominal GDP.

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Government spending MVR 5 million on 136 political appointees

The government spends MVR 5 million a month (US$325,000) on 136 political appointees, approximately US$4 million a year, according to statistics obtained by local news outlet Sun Online.

The monthly spend includes 19 Minister-level posts at MVR 57,500 (US$3730), 42 State Ministers (MVR 40,000-45,000, US$2600-2900), 58 Deputy Ministers (MVR 35,000, US$2250), five Deputy Under-Secretaries (MVR 30,000, US$1950) and 10 advisors to ministers (MVR 25,000, US$1620).9\

President Mohamed Waheed is officially paid (MVR 100,000, US$6500) a month, Vice President Waheed Deen (MVR 75,000, US$4850).

Waheed’s Special Advisor Hassan Saeed, the Chancellor of the National University and the Controller of Immigration are paid at ministerial level.

On paper, the annual MVR 60 million spend on political appointees is approximately MVR 40 million less than the spend on political appointees during the former administration.

Figures released by the Ministry of Finance in July 2011 showed that the executive was spending MVR 99 million (US$6.5 million) annually on 244 political appointees, two percent of the state’s total wage bill.

The country’s 77 MPs are meanwhile paid a base salary of MVR 42,500 (US$2,750) per month, a further MVR 20,000 (US$1,300) per month in allowances for phone, travel, and living expenses, and a further MVR 20,000 in committee allowances.

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Maldives committed to carbon neutral aims despite political uncertainty

The government says it remains committed to pursuing the previous administration’s carbon neutral ambitions despite recent political tensions reportedly affecting investment potential for such schemes.

Environment Minister Dr Mariyam Shakeela contended that some of the programs presently being undertaken by her ministry had started seven years previously – before Former President Mohamed Nasheed came to power – and were being adhered to on the grounds they would benefit the nation.

“We are continuing with the carbon neutrality program,” she said. “ We are giving it our best shot.”

Nasheed, who alleges he was forced to resign under duress back in February of this year, claimed that resulting political tensions from his ouster had all but ended hopes of achieving these aims. The former president aimed to position himself globally as a high profile advocate for pursuing carbon neutral developments.

However, as the Maldives commits itself to a new US$138 million project that it has claimed within five years will generate 16 megawatts of renewable energy, one regional environmental organisation has called for greater collaboration between Indian Ocean nations to drive sustainability.

Mumbai-based NGO, the Centre for Environmental Research and Education (CERE) has told Minivan News that despite being a small island state, the Maldives stood as a good indicator of how other larger nations could scale up its programs to successfully undertake green initiatives.

“Maldives needs to assume a bigger role in the sustainability dialogue with India and a clear road map on how this will be achieved has to be stipulated,” CERE stated, pointing to the key commitments it hoped to see from the present government.

The comments were made as the Maldives Energy Authority yesterday told local media that once the US$138 million project became operational, ten islands within the country would be entirely powered with renewable energy. The ministry contended that a further 30 percent of the total energy demands of 30 islands would be “converted” to renewable energy.

Minister of State for Environment and Energy, Abdul Matheen Mohamed, said that a so-called Sustainable Renewable Energy Project (SREP) was also set to be conducted on 50 islands with assistance from organisations like the Climate Investment Fund as part of wider national sustainability commitments, according to Haveeru.

Environment Minister Dr Shakeela confirmed to Minivan News today that the SREP scheme was directly related to the the Scaling-Up Renewable Energy Program in Low Income Countries devised under the previous government of former President Nasheed.

Some of the key minds who helped devise the Scaling-Up Renewable Energy Program (SREP) for the former government said earlier this year that the project had fallen through after political instability following February’s controversial transfer of power had deterred potential investors in the scheme.

Dr Shakeela, who was in Hyderabad, India, for the 11th Convention on Biological Diversity confirmed that the project had been within the Economic Ministry before she retrieved and reviewed the plans.

“I worked on it with the World Bank, the Asian Development Bank and the IFC and it has now been finished,” she said.

“I think it is important [to understand] that our ministry does not categorise projects according to who has [initiated them]. Our plan is to continue them with all the policies and programs as long as they are not detrimental to the economy.”

The government of President Dr Mohamed Waheed Hassan has previously stressed that it was committed to “not completely” reversing the Nasheed administration’s zero carbon strategy: “What we are aiming to do is to elaborate more on individual sustainable issues and subject them to national debate.”

As well as committing to trying meet the carbon neutral goals of his predecessor, President Waheed has also announced plans to make the Maldives the world’s largest marine reserve within the next five years five.

Eco-challenges

Addressing the Maldives’ ongoing eco-commitments, CERE claimed that the main challenge for carbon reduction developments both in the country and around the world was to show sustainability projects could actually be synonymous with economic benefit.

CERE Co-Founder Kitayun (Katy) Rustom claimed that the organisation continued to try and advocate green strategies that defied traditional perceptions of sustainability being seen as ‘anti-development’ or ‘anti-growth’.

“It is necessary for all of countries to realise that our window of opportunity for carbon reduction is only till 2020 – after this it will be next to impossible to mitigate the disastrous and irreversible impacts of climate change,” she claimed.

“The key challenge is to see carbon reduction as a positive economic initiative.”

Rustom said that the Maldives’ ongoing attempts to become a carbon neutral economy were well publicised in India and reflected a “commonality of purpose” between the two nations.

“India is one of the most vulnerable to climate change especially with respect to sea level rise – just like the Maldives – since it has a 7,500 km long coastline and even a one metre rise in sea levels will submerge an estimated 5,700 square kilometres displacing millions of people,” she added.

“Of course, there are a host of other catastrophic impacts that climate change will have on our country. India does not see itself as any different from the island states in the Indian Ocean and it understands the need of working on a united platform.”

Rustom added that she ultimately hoped for much more defined collaborations between the authorities of Indian Ocean nations in future.

“A cross-sharing of carbon reduction strategies need to be encouraged and formalised in which quantitative targets need to be spelt out. The Maldives needs to assume a bigger role in the sustainability dialogue with India and a clear road map on how this will be achieved has to be stipulated,” she said.

“Perhaps the Ministry of Environments of both countries can set up a Indian-Maldivian Committee to work on this mission and lay down specific goals.”

Earlier this year, former President Nasheed’s Climate Change Advisor – UK-based author, journalist and environmental activist Mark Lynas – said that after the controversial nature of the transfer that bought the present government to power, he was sceptical of its ability to take stands on sustainable development.

Lynas claimed that the loss of “democratic legitimacy” in the Maldives had destroyed its ability to make a moral stand on climate change-related issues, and be taken seriously.

“I think that the Maldives is basically a has-been in international climate circles now,” said Lynas, who drew a monthly stipend of Rf10,000 (US$648) for expenses whilst serving in his position.

“The country is no longer a key player, and is no longer on the invite list to the meetings that matter. Partly this is a reflection of the political instability – other countries no longer have a negotiating partner that they know and understand,” he said.

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