Day: November 14, 2010

Budget 2011 will drop fiscal deficit to 10-15 percent, President tells media

President Mohamed Nasheed has said the country’s crippling budget deficit of 26.5 percent will drop to 15 percent in the upcoming 2011 state budget, and potentially 10 percent by the end of the year.

The government’s aim had been 18 percent, Haveeru reported the President as saying following the laying of the foundation stone for 1000 flats in Hulhumale’ last week.

Nasheed noted that when the present government came to power in 2008, “the deficit was 44 percent compared to net national productivity.”

The government is under considerable pressure from the International Monetary Fund (IMF) to reduce the deficit, and earlier this month delayed its third disbursement to the country because of the government’s inaction on the matter this year, pending the release of the 2011 budget.

While the IMF program itself is worth US$92.5 million, other foreign donors and investors consider the IMF’s opinion of a country’s fiscal policies when making decisions.

While acknowledging the political pressures faced by the government during 2010, particularly regarding its ability to cut a crippling public sector wage bill which increased 400 percent between 2004 and 2009, the IMF has stated throughout 2011 that the country is “living beyond its means.”

In June 2010, the IMF published its Country Report for the Maldives, and calculated that if the government continued to pursue economic reform at its current pace and policy, the country’s fiscal deficit would increase by one percent of GDP in 2010 and 4.5 percent of GDP in 2011.

Attempts to increase revenue by passing a Business Profit Tax bill has been obstructed in parliament by vested business interests, while the Civil Service Commission has taken the Finance Ministry to court over its refusal to restore a 15 percent salary cut.

The forthcoming 2011 budget, explained leader of the Maldives IMF delegation Rodrigo Cubero, was “a crucial opportunity for the government to implement the austerity measures much needed. At the moment, the current policy stance is not sustainable.”

The government has not yet revealed how the 2011 budget intends to reduce the deficit by such a margin as stated by the President.

Last year, parliament’s Finance Committee, headed by the opposition-aligned People’s Alliance MP Ahmed Nazim, amended the budget to include an additional Rf 800 million (US$62 million) in order to aid the restoration of civil servant salaries following a 15 percent pay cut, and subsidies for sectors ranging from fishing and agriculture to private media.

Finance Minister Ali Hashim had not responded to Minivan News at time of press.

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Miss France pageant a Maldivian tolerance test for tourism, says MATI chief

While perhaps cliché to suggest that visually-immaculate beauty pageant participants can help change the world, Secretary General of the Maldives Association of Tourism Industry (MATI) ‘Sim’ Mohamed Ibrahim believes hosting the Miss France 2011 competition is at the very least a positive development for travel in the country.

Speaking to Minivan News, Sim said that beyond providing a touch of glamour to the Maldives, hosting such a high-profile international event highlights the wider aim of expanding the country’s appeal to guests of varying religions, politics and attractiveness.

Part of this year’s Miss France event, thought to be one of the European nation’s biggest annual televised spectacles, will be held at the Coco Palm Bodu Hithi resort in the North Malé Atoll before moving on to Caen, Normandy for a crowning ceremony to be held on December 4.

Having originally started back in the 1920s, this year’s contest sees 33 participants from across France staying at the resort between November 11 to 18 to partake in a number of photogenic activities such as water sports, Maldivian cooking, exploring local natural curiosities and even filming a music video.

Although the concept of women parading around in haute couture and swim wear is seemingly at odds with the more conservative day-to-day values expected of women living in the Maldives, concerns over cultural sensitivity appear to be missing the point for the industry. Sim says he hopes Miss France 2011 will be the the first of many events that will reshape perceptions of tourism in the Maldives by encouraging greater acceptance of the industry among local people.

Sim claimed that amidst concerns over growing religious fanaticism in the maldives, displaying greater tolerance towards a large number of events and guests welcomed to the country was vital to the overall survival of the country’s lucrative holiday business.

Unless a sufficient replacement source of income can be located, Sim said, the country is likely to continue looking to similar high profile events to boost its image as a secluded desert island escape for global travellers.

“It [Miss France] has found its way to the Maldives, there are likely to be many more [high profile] events to come,” he said.

Although still a moderate Islamic nation, beyond the potential credence of hosting a bevy of French beauties at one of the country’s resorts, Sim suggests that trying overcome the intolerance creeping into some sections of Maldivian society remains a key aim for both the travel industry and government.

Having been a Muslim nation for hundreds of years, fears of growing extremism in the Maldives are, according to Sim, a more recent development for a nation that has generally tried to peacefully coexist with neighbours and foreigners.

Whether to the benefit or detriment of the Maldives, Sim says that the Miss France event also highlights the need to diversify the country’s appeal beyond hotel stays to meetings, incentives, conferencing and exhibitions – collectively termed ‘MICE’.

As a striking counterpoint to the country’s hosting of Miss France 2011, the Maldives garnered a different sort of global attention earlier this year after holding peace talks between members of Afghanistan’s parliament and various other political and armed groups linked to the nation’s ongoing insurgency.

President’s Office Press Secretary, Mohamed Zuhair, confirmed back in May that that all in involved the peace talks had valid passports and visas. The talks, which did not directly involve the Maldivian government, were reported to have taken place at the country’s Paradise Island Resort.

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President lays foundation stones for 1350 housing units

President Mohamed Nasheed has laid the foundation stone of 1000 housing units to be built in Hulhumale’ under an agreement between the Maldives and the Chinese government.

The 1000 housing units will be built across 40,000 square metres on the reclaimed island 1.3 kilometres north of Male’ to relieve housing pressure on the densely population city, one of the most congested in the world.

Chinese news agency Xinhua reported that Vice President of CMEC Li Chaoyang, the Chinese contractor building the project, said the firm would would abide by Maldivian laws and respect the and customs of the Maldivian people in the process of carrying out the project.

“We will strictly implement the contract, elaborately organise the construction works, and ensure the quality of the project. We will deliver an eco-friendly, enjoyable and high quality residential area for the Maldivian people,” Li said.

Xinhua reported Chinese Ambassador Yang Xiuping as saying that she was “very glad that the Chinese company, CMEC, won the bid for the project in Hulhumale. I wish it every success.”

According to the government’s Isles project, the units are expected to be completed in two years.

Earlier last week President Nasheed laid the foundation stone for another 350 housing units in Male’, which will be build by Indian developers Kargwal 18 SG.

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Maldives elected Co-Chair of World Bank’s Strategic Climate Fund Committee

The Maldives has been elected Co-Chair of the World Bank´s Strategic Climate Fund Committee, part of the US$6.4 billion Climate Investment Fund (CIF).

CIF consists of two funds: the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF), which will channel funding through the African Development Bank, Asian Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, and the World Bank Group.

The funds are intended to help developing countries trial low-emission development projects, including clean technology, renewable energy and sustainable forest management.

The Maldives was represented at the committee meeting by the President’s Envoy for Science and Technology, Ahmed Shafeeq ‘Sappe’ Moosa.

Moosa said he encouraged the private sector in the Maldives “to take a lead in benefiting from global financing mechanism which are now increasing targeted at clean technology and renewable energy to build more climate resilient communities.”

“This is an opportunity for Maldives to learn about and benefit from the wide range of climate change finance mechanisms that are available now. It also provides an excellent platform to interact and associate with leading professionals in the area.”

The Maldives was selected together with Ethiopia, Honduras, Kenya, Mali and Nepal as a pilot country under the Scaling-up Renewable Energy Program (SREP) in July 2010, with grant financing of up to US$30 million.

“Going forward, it is my hope that further funding can be channelled to the Maldives through the CIF program,” Moosa said.

Donors to CIF include the United States ($2 billion), United Kingdom ($1.212 billion), Japan ($1.190 billion), Germany ($741 million), France ($274 million), Norway ($177 million), Australia ($137 million), and Spain (US$108 million).

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President welcomes the release of Aung San Suu Kyi

President Nasheed has hailed the release from house arrest of democratically-elected leader of Burma Aung San Suu Kyi as a “historic step forward for freedom and democracy in Burma.”

Suu Kyi has been detained in her home in Rangoon for 15 of the last 21 years.

“Many people, myself included, have drawn strength from her courageous and tireless work for human rights and democracy,” Nasheed said. “Aung San Suu Kyi shines as a beacon of hope across Burma and the world. The Maldives will continue to work for Ms Suu Kyi´s complete freedom and we look forward to her being able to play a full and active role in Burmese politics,” the President stated.

Recent elections held by the Burmese military junta have been dismissed as fraudulent by international observers.

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Tolerance guards against the politics of polarisation: UN Secretary General

Tolerance is “especially necessary to guard against the politics of polarisation,” UN Secretary General Ban Ki-moon has said in a statement to mark the International Day of Tolerance.

“Tolerance is the foundation for mutual respect among people and communities, and is vital for building a single global society around shared values. It is a virtue and a quality, but above all, tolerance is an act – the act of reaching out to others and seeing differences not as barriers, but as invitations for dialogue and understanding,” Ki-Moon stated.

“Tolerance does not mean accepting all practices and views as equal. On the contrary, its value lies in instilling greater awareness of and respect for universal human rights and fundamental freedoms.

“Tolerance cannot be taken for granted. It has to be taught, nurtured and communicated. Education, inside and outside the classroom, is essential for strengthening tolerance and for combating hatred and discrimination.

“On this International Day of Tolerance, let us recommit to dialogue and understanding among all peoples and communities, and let us focus our minds and hearts on those who face discrimination and marginalisation. A single humanity means living together and working together on the basis of mutual respect for the great wealth of human diversity.”

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High density living in the Maldives less than eco-friendly

There are many good reasons for a concerted global effort to mitigate global warming, writes eco-blogger China Matters.

“However, enabling the Maldives to continue its high population density/atoll-filling/trash-dumping/tourism-based lifestyle one metre above sea level is perhaps not one of them.

“The Maldives is in many ways an artificial human construct.  The capital city, Male, is one of the most densely populated cities in the world.

“In a quest for lebensraum, the island was expanded by filling in the surrounding sea floor to the encircling coral atoll and beyond.  A 3.5 metre high, six kilometre sea wall was constructed with Japanese aid to protect the island (mostly one metre above sea level).

“Another atoll a few miles away, Hulhumale’, was filled in to a height of two meters above sea level to serve as a new home if Male becomes unviable.”

Read more

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Comment: Extremism threatens our economy

We’ve heard in recent news government officials referring to rising fear of Islamic extremism in the Maldives.

We’ve heard about children not being vaccinated or not being sent to school in the name of religion; women being provided with a single bucket of water for the day, again in the respect of religious norms; children being restricted from music and other types of art; male children being forced to wear trousers shin high; schools threatened for asking male children to shave their beards; the classifying of many immaterial matters outright haraam such as smoking, watching movies or cartoons (Tom & Jerry, Mickey Mouse), singing, playing or listening to music, women travelling of women without a husband or family member, the showing of hair or wearing of perfume by women; or news and blogs promoting genital mutilation of females.

Another serious threat is the increased preaching of hatred against the west. The west (the majority of whom are understood to be Christians or Jews) is portrayed as the singular prime threat to the religious stability of the country.

This is a paramount danger to our economy given our dependence on foreign money. We should keep in mind that an act such as the one that happened at Sultans Park a few years ago could cripple our economy, slashing our foreign income.

Currently, the government is committing the Maldives to large contracts with foreign nations, with majority populations of Christians, Jews, Hindus, Buddhists and others. The Maldives is not self-sufficient and therefore we are at the mercy of other nations who are willing to ally with us and help us bear fruit. We cannot afford to live on the annual ration of a few tonnes of Saudi dates.

During recent years, many industries and public services are being capitalised on foreign investments. At such a time, how can we even allow the thought to draw a religious boundary around ourselves? We have been selling liquor and allowing illicit sex on all our resorts for almost 40 years because we cannot let religious boundaries starve us to death.

Our main politico-religious party is Adaalath Party, who also has its presence in the government sphere, ruling the Ministry of Islamic Affairs. They are assigned the responsibility of upholding the religion of the country – Islam – with a reported US$16 million budget.

Adaalath recently held one of their statutory meetings at a prominent public space (Alimas Stage). The whole meeting was aired live on Maldives National Broadcasting Corporation’s TV channel, MNBC one. The station is well known for its pro-government programming.

I was watching intently one of the speeches of this meeting. I found it really distasteful and offensive, to hear one of the famous preachers in the country, Sheikh Ilyas, known for being arrogant and blunt about religious statements.

He was saying that Muslims should not trust Christians or Jews in any way for they are not reliable on their word. He went on to say that any agreement made by them would never be kept. He mocked human rights and women’s rights as tools used to evade Islamic prudence. Every now and then he raised a copy of Quran above his head and said that he was presenting the word of God.

It is hard to imagine why the government, on one hand, is acknowledging the spreading extremism in the country, while at the same time is assigning public funds for the spreading of such extreme and radical ideologies.

The reason is that it is constitutional for the government to uphold and strengthen Islam as the religion of the country. And the government fulfils this part very smoothly: sets up a specific Ministry (the first religious ministry of the country), puts the leading religious political group in charge, and assigns a significant chunk of budget for their purpose.

Here is something the Ministry of Islamic Affairs published on their website (in local language), followed by a translation (by a blogger) during the Haiti disaster:

“Are there any Muslims in Haiti? Do we have to gain wisdom from this [disaster]? Haiti is a caribbean island nation, located not far from America. A certain number of Muslims live there. It is reported that they are not good people. There is no doubt about this; such earth quakes are moral lessons for everyone. Such [disasters] are caused by God because of the actions of mankind.”

Now, the public is at a loss for words. Those who are assigned the responsibility of upholding and strengthening Islam in the country, are advocating against the government’s policies and also promoting extremism. They are outright in saying that no deals should be made with infidels (such as Christians or Jews, who are not trustworthy as per God). They mock human rights and women’s rights in public.

It doesn’t take one to wonder, why this could happen? Why is the government apologetic about growing extremism but still allowing such things to preached in the public? Is our government crippled from doing anything about this?

Firstly, the Islamic Ministry was a promise the ruling party made during the elections. Protecting Islam was one of the major five promises of the ‘Other Maldives’ campaign. Since Adaalath sided with the MDP during the coalition to overthrow Gayoom’s dictatorship, MDP duly handed the reigns of the ministry to Adaalath. On top of this, our constitution demands our government promote and strengthen Islam. As such the government is carrying out their constitutional responsibilities.

Our constitution also says that Sharia is based on the Quran and those findings, judgments and rulings concurred by the majority of religious scholars. When the majority of the leading scholars of the country concur on hatred against Christians, Jews and other infidels, backed up by our Constitution, what should the government do instead of sleeping with the enemy? I think the government should change their partner, before its too late.

All comment pieces are the sole view of the author and do not reflect the editorial policy of Minivan News. If you would like to write an opinion piece, please send proposals to [email protected]

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Islamic Ministry launches toll free religious helpline

The Ministry for Islamic Affairs has launched a toll free hotline for advice on matters of religion, reports Haveeru.

Launching the hotline on Thursday, State Islamic Minister Sheikh Shaheem Ali Saeed said Ministry scholars would be available to answer religious queries on 8003008901.

The Ministry also announced it had received Rf 25 million (US$1.9 million) in alms as of October 2010.

“We used to get about Rf13 to 14 million. Last year we collected Rf27 million and this year we have already collected Rf25 million. This is a huge improvement,” Haveeru reported Shaheem as saying.

The Ministry also released four free books covering alms giving and Islamic rulings on the practice. Media outlets were also awarded prizes for positive coverage of the Ministry’s works, Haveeru reported.

“Before I start my work every day, I check the websites of newspapers. I get encouragement from the media reports that praise us and try to correct mistakes identified in the reports that criticise us. I believe that media reports should be credited for the good name Islamic Ministry has been receiving,” Shaheem said.

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