Month: December 2011

Comment: Is privatization only happening in the Maldives?

Privatization is one of the economic policies of modern governments, be it large or small, democratic or authoritarian, capitalist or socialist. Privatization is a global phenomenon. The trend towards privatization can be traced back to the 1970’s and 1980’s.

Firstly, it was President Jimmy Carter who in the year 1976 said American Administration ‘lacked administrative skills’ for the performance of daily work, which shook entire public administration and changed its traditional performance. This led to  the emergence of new approach in the discipline of Public Administration called ‘New Public Management’ (NPM) perspective.  The successor of Jimmy Carter was Ronald Reagan, who was convinced that the administration must undergo changes to tackle new problems. America was facing huge budget deficits and inefficiency, which Reagan accused as the result of the misallocation and mismanagement of public funds.
The idea which promoted privatization was that government is not the solution to the problem, but rather it is the problem to the solution.
In England Margaret Thatcher, then prime minister, was faced with similar situations. The public spending was increasing, as productivity and efficiency of public bodies were in decline. This also added fuel to the growing idea of free markets, deregulation and privatization. The government which governed least, or the ‘rolling back of the state’, was the idea behind privatization.

What about communist and socialist states?
For a long time China was regarded as an ‘inward looking’ and isolationist country. During the revolution in 1949 chairman Mao was much inspired by the writings of Marx and Lenin which led to establishment of the communist state. However in the year 1979 Chinese leadership felt it must compete in international trade to help boost their economy. Today China is regarded as the world’s second largest economy, with growth rates around 10% per year.

With the fall of the Berlin wall in the year 1991 the Soviet Union disintegrated. This marked the end of the rivalry between communist Russia and Capitalist America, and was regarded as a triumph for democracy and capitalism. This made the whole world believe that democratic states are the best states and capitalism is the best economic policy. To perpetuate the idea of capitalism and democracy which favored privatization, international institutions such as IMF, World Bank and WTO promoted ‘Washington Consensus’ in the interest of the West.

It is also interesting to note that the so-called socialist state of Cuba, under the leadership of Raul Castro, talked in favor of privatization. Cuba planned to layoff half a million state workers stating that too many workers with low productivity burdens the budget.

The Indian case
Indhira Gandhi was the champion of Indian socialism during the 1960’s. The word ‘socialist’ was added into the Indian constitution to direct its policies towards socialism. The nationalization of 14 Indian banks and its coal industry came when socialism in India was at its peak. However India entered into a debt trap by the end of 1990’s because of excessive wasteful public expenditures and inefficiency in the public sector. Therefore India adopted the new economic policy Liberalization, Privatization and Globalization (LPG) in the year 1991 under the leadership of the then finance minister Manmohan Singh.  Today India is regarded as one of the major emerging economies of the world with the growth rate of around 8% per year.

The Maldives
Privatization of the Maldivian economy has been a hot topic since 2008, with the arrival of the first popularly elected government under the leadership of Mohamed Nasheed. Since this government came into power one of its economic policies has been privatizing the economy. The sale of Male’ International Airport to Indian company GMR was one of the very first steps in this direction. As Maldives tries to expand its tourism sector the need for a modernized airport and efficient management arises to compete with its counterparts, such as neighboring Sri Lanka. The airport was not developing enough to compete and give decent service to the tourists. The airport remained as it was without a major improvement in infrastructure.

In the upcoming year the current government has decided to privatize 5 more companies. This includes STELCO, Maldives Post Limited, Island Aviation, Housing Development Corporation and Maldives In-Flight Catering. However the privatization of these 5 companies was rejected by the parliament, which stated that it violates Maldivian financial laws.

There were plenty of objections to privatization in England and the US during 1980’s, protests in India during the 1990’s and also in Maldives since 2009 against the idea of privatization. I acknowledge the protestors also have points to prove, such as the private sector‘s objective to maximize its profit at any cost and the widening of income disparities because of private sector.  I shall talk about the process and defects of privatization in another occasion.

Therefore the idea of privatization is a global phenomenon and is happening in most countries in the world. It is happening because of inefficiency, delay, corruption, red tapism and nepotism in the public sector, in the interest of delivering results the people expect.

What comes to mind is a couplet written by English poet Alexander Pope. He wrote, “For forms of government let fools contest; whatever is best administered is best.” Therefore it is very clear that whether it be a democratic, authoritarian, socialist or communist government, at the end of the day if that government is not able to administer and live up to its promises, then that government will lose popularity.

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American scientist’s car set on fire in Addu

The police are investigating an apparent arson attack on a car used by a team of American scientists conducting research in Addu.

South police division Commander, Superintendent Yoonus Sobah told Minivan News that police were alerted to the incident around 12:51am on Sunday. The fire was put out when the police team reached the scene.

Sobah said it is too soon to say whether the fire was a deliberate attack or a random incident.

“We are continuing the investigation. So far we have not found any evidence to prove the fire was set deliberately,” Sobah said.

The car was rented by the American research team involved in the Dynamics of the Madden-Julian Oscillation (DYNAMO) project based on Gan in Addu atoll.

According to DYNAMO project Research Assistant Justin Stachnik, one of 13 American researchers currently in Addu, the car was parked outside the house they are currently residing in Hithadhoo.

He said the details of the incident remains “unclear”, and it was the neighbours who spotted the fire and put it out.

“What I believe happened was that someone put a half litre of petrol between the tire and the outer gate wall, ignited it and ran away. The tire burned and popped, there’s some damage to the metal and the bumper, as well as the electrical system–some of the wires have been fried,” Stachnik said. “But overall, the damage is fairly minimal.”

From looking at the char and soot marks in the car, outer wall and the leaves in an overhanging tree, Stachnik estimates the flame was between three and three-and-a-half metres high.

Although “there is no doubt” that the act was intentional, Stachnik does not believe it was “directed specifically at him by an organised group.”

Stachnik said neighbors have told him that nothing like this has happened before.

According to a senior official at Addu City Council, the office has received reports that the research team is seldom disturbed by some locals who “dislike” foreigners or non Muslims.

The official attributed the fire incident to the recent increase in religious tensions and the December 23 protest, which he claimed has exacerbated religious intolerance in Addu.

“We have received information that some parents with extreme views are telling their children the American scientists are Kafir [non muslims] and they must not speak to them. It is possible the fire was set by the children as a prank,” he said.

However, Stachnik who arrived in the Maldives nine days ago to track tropical rainfall during the final intensive leg of Project DYNAMO said that aside from the car incident, the team has been warmly welcomed to the area.

“People are smiling and saying hello as I go by on my bike, sometimes stopping to offer help if I need anything. The grocer had us over for dinner the other night and some people have been making plans for picnic boat rides to other islands.” He said he hasn’t heard of any discrimination against foreigners.

Project DYNAMO is a component of the first in-depth study of equatorial tropical storms between the Maldives and Papua New Guinea, designed by the US Energy Department’s Atmospheric Radiation Measurement (ARM) climate research facility.

It is scheduled to finish in April.

Meanwhile opposition Progressive Party of Maldives (PPM) has condemned the attack on the car.

Spokesperson for PPM and MP Ahmed Mahloof alleged that the government is behind the fire incident claiming it is part of a “government conspiracy to provoke conflict between the opposition and foreigners”.

“Foreigners have been coming to this country for a long time and they have always been living in harmony with the local community. However, the attack is suspicious because it happened not long after the December 23 protest. The government is trying to defame the opposition and religious groups by conspiring against us,” Mahloof accused.

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Chief Judge of the Criminal Court to sue MDP MP

Chief of the Criminal Court Abdulla Mohamed has decided to sue Maldivian Democratic Party (MDP) MP Ibrahim ‘Bonda’ Rasheed for defamation following comments he made in parliament yesterday.

Speaking at the parliament meeting yesterday Rasheed referred to Judge Abdulla as the ‘’big thief ‘’ who has hijacked the parliament as well as parliament speaker Abdulla Shahid.

Rasheed also said it is time for citizens to come out and demolish the courts.

‘’The citizens do not have justice, the laws were made to provide justice,’’ he said. ‘’The constitution was made to provide justice, but we don’t have it.’’

He also said the Judicial Service Commission (JSC) and Judicial Administration want to depart on trips abroad as soon as they get the money allocated for them in the annual budget.

Today Judge Abdulla Mohamed told Minivan News that he is currently examining the case in order to sue Rasheed.

‘’I don’t have any further comments to make at this time,’’ he said.

Local media reported that the Judge had told local media that comments MP Rasheed made were against Islamic principles.

Newspaper Haveeru reported that Judge Abdulla said everyone’s good name has to be protected and that he was currently examining the case to sue him.

Speaking at the Parliament Rasheed also accused Jumhoory Party leader and MP ‘Burma’ Gasim Ibrahim of funding terrorists, and called for the accounts of persons doing illegal business to be frozen.

Today in a text message, Rasheed accused Judge Abdulla of bringing islanders from his island for the December 23 ‘Defend Islam’ protest while accusing Gasim of sending money in envelopes.

Rasheed also said he has evidence that Judge Abdulla decided to sue him according to Gasim’s order, adding that he has decided to send a case against Gasim to the Inter-Parliamentary Union (IPU).

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Broadcasting Commission, Journalist Association condemns MNDF “threats” to private media

The Maldives Broadcasting Commission (MBC) and Maldives Journalist Association (MJA) has condemned the Maldives National Defence Force (MNDF) for asking private television stations not to broadcast any content from Friday’s ‘Defend Islam’ protest that could disrupt national security and “encourage the toppling of the lawfully-formed government.”

Privately-owned media outlets, DhiTV and Villa TV, broadcast live coverage of the eight-hour long protest organised by a coalition of NGOs and seven opposition parties.

In a statement yesterday, MJA contended that the letter sent to the television stations, signed by Chief of Defence Force Major General Moosa Ali Jaleel, amounted to “undue influence” and “threats” to free media, noting that regulating the media was the role of the Media Council and Broadcasting Commission.

MJA claimed that MNDF was politically pressured to send the letters, observing that the directive was sent before the protest had started.

“The announcement was very irresponsible and we call on MNDF to apologise,” MJA said in the statement.

The journalist association also strongly criticised state broadcaster Maldives National Broadcasting Corporation (MNBC) for “biased coverage” of Friday’s opposition and ruling party protests.

In addition to repeated runs of President Mohamed Nasheed’s speech at the ruling Maldivian Democratic Party’s (MDP) rally in support of ‘moderate Islam,’ the state broadcaster also showed live telecast of an impromptu rally held at the MDP Haruge facility on Friday night.

“MNBC is run by state money and transmitting biased video footage and images is something that Maldives Broadcasting Commission should investigate,” the MJA said, reiterating its call for the government to transfer assets of MNBC to MBC, which was formed by an Act of parliament.

Broadcasting Commission Chair Badr Naseer meanwhile told local media that threats to the media from the military was “not something that we should see in a society maturing for democracy.”

MNDF Spokesperson Major Abdul Raheem told Minivan News that the army did not wish to comment on the MJA statement.

“That day we issued the statement because we found that it was necessary given the situation at that time,” he said.

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Islanders protest as President arrives on Filladhoo

Islanders of Filladhoo in Haa Alifu Atoll gathered at the beach yesterday upon President Mohamed Nasheed’s arrival on the island to protest the current government’s religious policy.

President of Filladhoo Council Mohamed Vijaan told Minivan News that the protesters conducted the protest to express their opinion from the time President arrived until he left the island.

“I do not know which party they represented or the amount of protesters,’’ Vijaan said. ‘’They were protesting against placement of ‘idols’ in Addu and demanding to give the money that Filladhoo is waiting to receive from the money foreign countries gave in aid to the country following the 2004 December tsunami.’’

Vijaan said the money was granted to the Maldives during the time of former President Maumoon Abdul Gayoom.

‘’Due to a court ruling the money was not given to Filladhoo, and this government said they would appeal the case at the High Court but after that there was no news of it,’’ Vijaan said, adding that 110 houses in Filladhoo were destroyed by the tsunami.

He said President Nasheed arrived to the island at 12:20pm and left at 3:30pm yesterday. The protesters protested until his departure.

Press Secretary for the President Mohamed Zuhair said that it was not a protest but a group of people expressing their opinion.

‘’There was no unrest,’’ Zuhair said. ‘’It was this government that introduced freedom of expression and freedom of assembly.’’

According to the President’s Office the President met with Island Councils of Filladhoo and exchanged views with the Council members on proposed development projects for the islands.

‘’He also called for the support of the Island Councils in executing government policies,’’ read a statement on the President’s Office website.

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Aasandha scheme doesn’t cover private clinics

The treatment from private clinics will not be covered in the universal health insurance scheme “Aasandha” commencing on January 1, 2012.

State Minister Ibrahim Waheed said the “Aasandha” scheme will not include private clinics as the government wants to establish a mechanism that would allow patients to receive all kinds of treatment from a single place, according to Haveeru.

“We haven’t planned to include private clinics in Aasandha in 2012. The government doesn’t want everyone to set up clinics in their houses but rather wants the people to be able to receive treatment from a single place,” he was quoted as saying in Haveeru.

According to Aasandha website, the scheme will initially cover treatment from IGMH, ADK Hospital, IMDC Hospital in Addu and other hospitals and health centers currently operated by state owned health corporations.

Under the parliament-approved scheme, all Maldivian citizens will receive government-sponsored coverage up to Rf100,000 (US$6,500) per year, including further provisions to citizens who require further financial assistance.

Expatriate workers are also eligible for coverage providing their employers pay an upfront fee of Rf1,000 (US$65).

The Aasandha program was officially signed at Artificial Beach on December 22 with hundreds of Maldivian citizens in attendance.

Aasandha is a public-private partnership with Allied Insurance. Under the agreement, Allied will split the scheme’s shared 60-40 with the government. The actual insurance premium will be paid by the government, while claims, billing and public awareness will be handled by the private partner.

The service will cover emergency treatment, including overseas if the treatment is not available locally, inpatient and outpatient services, domestic emergency evacuation, medicine under prescription, and diagnostic and therapeutic services.

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Ambassador Mohamed ‘Nazaki’ Zaki awarded Malaysia’s Dato’ title

Maldives’ Ambassador to Malaysia Mohamed ‘Nazaki’ Zaki was awarded the Dato’ title by Malaysia’s king Abdul Halim Mu’adzam Shah during a ceremony at the king’s palace on December 22.

Dato’ is the most common highly regarded title in Malaysia and is awarded to prominent figures who have made significant social contributions.

Zaki is the only Maldivian to have been awarded the title.

Expressing his gratitude, Zaki said he was awarded the title for his 23-year residency in Malaysia and his service as an Audit Committee member of the nation’s Islamic University.

Zaki also serves as the non-resident ambassador to Brunei, Indonesia and Thailand, according to Haveeru.

Zaki left the Maldives in the early 1990s due to political turmoil, returned in 1993, and received a life sentence in 2001 for his involvement in then-opposition newsletter ‘Sandhaanu,’ Haveeru reports.

Zaki was subsequently declared a prisoner of conscience. Faced with international pressure, the former government released him in 2005.

Zaki’s company, Nazaki Shipping, now operates in the Malaysia.

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MP Ali Waheed requests Addu to remove monuments

Maldivian Democratic Party (MDP) Thoddu MP Ali Waheed has requested Addu Mayor Abdulla Sodiq to remove the monuments given by SAARC member countries during this year’s summit, held in Addu.

Of the seven monuments given in memoriam of the event four have been vandalised or stolen; only those from Bhutan, India and Bangladesh remain untouched.

Following the theft of Nepal’s monument, Sodig said the council was considering moving the remaining monuments to an enclosed, secure location.

Waheed’s request comes on the heels of a similar demand voiced by a coalition of religious groups and opposition parties at the “Defend Islam” protest on December 23.

Addu City Council Hussein Hilmee reported that a group of 20 to 30 individuals had gathered in Addu on Friday to watch the televised coverage of the protests in Male’.

The Islamic Ministry has also voiced concerns, and opposition Progressive Party of the Maldives (PPM) reported the Customs department to the police for allowing the monuments to enter the country.

Speaking in parliament today, Waheed said the demand has wide public support and that respecting it is not a defeat within democracy, reports Haveeru.

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Protests leave government and coalition awaiting next move

In the wake of the December 23 protests, coalition members who defended Islam and ruling Maldivian Democratic Party (MDP) members who called for a continuation of the nation’s moderate tradition await each others’ next move while attempting to articulate the differentiate between religious and political motives.

At an MDP rally held on Saturday night, party Chairperson ‘Reeko’ Moosa Manik claimed that he would not let President Mohamed Nasheed listen to the any of the demands without party approval.

“If you note down the demands and submit it to MDP, we will look into it and forward any demands we see worthwhile to send to the President,” Moosa noted.

He claimed that MDP is well aware of the Islamic history and government will not be forced into doing anything whenever a person says something or protest.

On Friday night, Moosa led an enervated crowd at Haruge in a protest against the demands and those calling for them.

The demands have not been formally presented to the government, President’s Office Press Secretary Mohamed Zuhair confirmed. He added that Moosa’s demand for a party review was in keeping with standard protocol.

Meanwhile, Adhaalath Party chief spokesperson and former State Islamic Minister Sheik Mohamed Shaheem Ali Saeed hopes the President “will accept the people’s voices.”

Furthermore, religious coalition spokesperson Abdullah Mohamed said no deadline has been set for the government to meet the protestor’s demand, however the coalition will meet this week to discuss the government’s reaction and next steps.

“We will observe very closely how much the government is doing to meet our demands. We will try to peacefully resolve the issues by discussing with the government,” he said, warning of another mass protest should the talks fail.

Meanwhile, no party has said it will formally submit the demands as requested.

The coalition of opposition parties and religious groups made five key demands of the government at Friday’s protest: to formally condemn UN Human Rights Chief Navi Pillay for her comments on Shari’ah law; to deny El Al and other Israeli airlines service to the Maldives; to remove the SAARC monuments in Addu; to reverse the decision on declaring areas of inhabited islands uninhabited in order to permit alcohol sales; and to close Male’ brothels.

In a significant shift from the Maldives’ tradition of moderate Islam protestors also called for the full implementation of Shari’ah law, including hand cutting and stoning. These requests have not been officially endorsed by any party.

While all demands stem from Islamic principles, Zuhair believes they have been made “for political gain and recognition by political leaders, not by religious scholars and for religious purposes.”

“This is actually deceit on a grand scale. We are all Muslims, and as such share that part of our identity. But each and every political party can compete politically under separate identities.

“Then, the opposition takes a side and calls on all Muslims to come over. It’s political trickery, and the people will be aware of it.”

Zuhair suggested that financial advantage was also part of the mix, pointing out that the religious scholars who accused former president Maumoon Abdul Gayoom of not being a Muslim during the 2008 Presidential campaign were the “same people now speaking on the same platform as the former president.”

He claimed that the end goal was political and financial profit.

“The sheiks have been brought to the public as a people who say one thing for political gain during one period, and then change during another. Everyone has an agenda. The mullahs are taking the businessmen for a ride, Gayoom is taking the mullahs for a ride, it’s a win-win situation,” Zuhair said.

The loss, Zuhair suggested, could come on the international platform.

“In today’s interconnected world, information is disseminated by foreigner partners and concerns are raised beyond the government’s reach,” he said.

Foreign Minister Ahmed Naseem noted that few foreign reporters were sent to cover the protest due to its collision with the holiday season, but that foreign media outlets had picked up the event. “All governments are concerned,” he said. “I don’t believe this was good publicity for the country.”

However, the peaceful execution of both protests had reassured many, he concluded.

Minivan News asked DRP leader and MP Ahmed Thasmeen whether the protest was religious or political.

“It was organised by religious and civil society groups for issues concerning them, it was not a political event,” he said. He added that the protest would have no bearing on the 2013 presidential election, but said that the demands made must be discussed by political parties.

The purpose of the protest, according to Thasmeen, was to point out that the government’s habit of pursuing policies which “undermine religion” have created a “growing fear among the Maldivian people.”

Minivan News asked whether a distinction could be made between religion and politics. “The protest was organised by a variety of groups,” he responded, “and has achieved its goal of showing that the Maldivian people are deeply concerned.”

Minivan News inquired of Thasmeen, a resort owner, whether the demand to recall the resolution over selling alcohol on uninhabited islands would damage the tourism industry.

If approved, Thasmeen said the demand “would only impact tourism in a few locations. We are requesting that the government stop using technical loop holes to sell alcohol on these islands.”

Meanwhile, MDP party members spoke out against Thasmeen and Gassim at an impromptu party rally late Friday evening, calling for their arrest as well as the execution of former president Maumoon Abdul Gayoom.

Thasmeen today accused the government of labeling the protest as “radical–which is not a label that fits in with the people who attended.”

Officials agree on one thing: the December 23 protests brought significant issues to the table, which both sides will be hard-pressed to ignore.

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