India underscored its influence during Maldives 1988 coup: Times of India

When Maldives was attacked in 1988 to overthrow President Maumoon Abdul Gayoom, India underscored its influence in the region despite the timely help to Maldives, writes Sameer Arshad for The Times of India.

It was a decisive moment for India in Male way back in November 1988. Dozens of opposition backed mercenaries had descended on the Maldives capital and attacked president Maumoon Abdul Gayoom’s palace to overthrow his government. A handful of guards engaged the attackers, allowing Gayoom to seek New Delhi’s help. Within hours, India obliged and flew in 1,600 paratroopers to frustrate the coup.

India’s timely help – considering Maldives had no army or navy – underscored its influence in a region which straddles the major sea lanes of the Indian Ocean. But more than two decades later, experts blame India for frittering away its advantage as China jockeys with it for influence in the region.

“India has, as usual, been very late in realizing China’s seriousness about Maldives. Like all its neighbours ( NepalMyanmarSri Lanka), New Delhi continued to believe Maldives will remain in its pocket,” says Harsh V Pant, a lecturer at King’s College Defence Studies in the article.

Pant warned of “real difficulty” for India if Maldives becomes another “pearl in China’s string of facilities around its periphery”.

China’s economic, political and diplomatic investment in Maldives is significant as it was not on its radar till recently, says Pant. “China has given India a run for its money, and even left it behind in some cases, in Maldives.”

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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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India’s 3-1 win “bad luck for us”, says Maldives coach

India has defeated the Maldives 3-1 in the semifinals of the South Asian Football Federation (SAFF) championship, securing its place at the finals of the ongoing Championship Tournament.

The Maldives equalised an early goal from the India side, with Shamweel Qasim scoring in the 60th minute.

However India regained the lead after the Maldives brought down India’s Sunil Chhetri in the penalty area, losing the penalty and allowing India to pull ahead in the 70th minute.

Chhetri scored India’s third goal during injury time, cementing a victory for India that will see it playing Afghanistan in the final, following the latter’s 1-0 victory over Nepal.

Maldives’ coach Istvan Urbanyi said India was “lucky to have won the match.”

“The Indian coach said that the team which made less mistakes will win the tournament. But I said luck is very important. It was 1-1 deadlock and then India got the penalty and we had enough chances to restore parity again but we could not. So it was bad luck for us,” Urbanyi said, following India’s win.

“I had said the team which has extra quality players will win the tournament and my side has more quality players. But bad luck for us.”

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Maldivian hotelier arrested in India for not passing guests’ details to police

A Maldivian national, identified by Indian authorities as Salim Haji, was arrested in Trivandrum for allegedly running a hostel without informing police of his visitors’ details.

Haji was presented before the Indian court on the charge of violating the Foreigner’s Registration Act (FRA) and has been remanded in judicial custody, Haveeru reports.

Indian police were running a pre-tourism season security check to ensure that guest housing establishments had registered foreign guests with the local station house.

India’s The Hindu today reported that a small section of foreign travelers misuse their visas to run commercial operations, mainly homestays for foreign holiday-makers and Maldivian nationals visiting the city for medical treatment and educational purposes.

The article estimates that 4,000 Maldivians live in Trivandrum.

Maldivians are currently allowed to spend up to 90 days in India without a tourist visa.

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Comment: India-Maldives ties moving forward

Nothing explains the width and depth of bilateral relations between India and Maldives than the speed with which the People’s Majlis passed a special legislation unanimously for the visiting Heads of State and Government to address members in a special session, only days before Prime Minister Manmohan Singh was to arrive in Male for bilateral talks with President Mohammed Nasheed.

Despite the deep divisions within the Maldivian polity, which often gets reflected in Parliament, as in other democracies, Maldives offered a near-full House when Singh became the first visiting Head of Government to address the House.

“The People’s Majlis is a testimony to the strong faith the people of Maldives have shown in democracy. As a fellow democracy, we take delight in your achievements,” the Prime Minister said.

“India will be at your side in your transition to a fully functioning democracy. We will assist the Majlis by way of training, formulation of rules and regulations, and any other assistance that you may desire,” he said, touching upon the democratic milestones achieved by this “pearl of the Indian Ocean” in a short span since 2008, when the nation adopted a new Constitution providing for multi-party democracy and elected a new President.

Singh also touched upon the formation of the India-Maldives Parliamentary Friendship Groups. The Indian Prime Minister also met with the Leader of the Opposition in the Majlis, Thaseen Ali of the Dhivehi Rayyathunge Party (DRP), setting a healthy precedent.

In a way, the Prime Minister’s references to the ushering in of democracy in Maldives and the strengthening of democratic institutions in the country were an acknowledgement of the initiatives taken by President Nasheed and his Government since his Maldivian Democratic Party (MDP) began a movement for the purpose while in the opposition.

As Singh pointed out in his Majlis speech, Maldives has “undertaken the reforms necessary for the independent functioning of the judiciary and other vital organs of the State. The People’s Majlis has upheld the freedom of speech and expression of the people and the media which are the pillars of democracy,” he said.

The Prime Minister’s references to capacity-building thus included Indian assistance to all sections and sectors of Maldivian Government and democratic institutions. When put into action, it would go a long way in furthering democratic linkages, whose institutional mechanisms would go a long way in deepening and widening the ties and trust between the two Indian Ocean neighbours.

Agreements

After structured talks between President Nasheed and Prime Minister Singh, the two sides signed six agreements. Topping the list was the Framework Agreement on Cooperation in Development. The agreement committed India to aiding and assisting Maldives in a series of development projects over the coming years. India is already committed to setting up the Maldivian National University in Male, for which buildings are already coming up.

Another agreement provides for New Delhi renovating the Indira Gandhi Memorial Hospital in the capital, a gift from India. Prime Minister Singh said that India would also undertake a feasibility study on constructing a port in northern Kulhudhuffushi. India also contributed substantially to the development of Addu City and Atoll into the ‘convention capital’ of Maldives to help integrate the southern part into the nation at a faster pace.

Given the economic realities in which Maldives is placed, combined with some of the politically-driven decisions of the Government in the past, Indian assistance for the atoll-nation has always been substantial and readily forthcoming. Immediately after President Nasheed came to office in November 2008, India extended a US$100 million line of credit, as sought by the Maldivian Government. In 2009, India fully subscribed the $ 100-m treasury bonds floated by Maldives.

Among the agreements signed during the prime ministerial visit this time, one provided for a US$100 million standby credit facility for the country.

Sensitivity to security concerns

The second item on the list of six agreements was a ‘Memorandum of Understanding on Combating International Terrorism, Trans-national Crime, Illicit Drug Trafficking and Enhancing Bilateral Cooperation in Capacity-Building, Disaster Management and Coastal Security’.

As the long title indicates, the agreement reads all-inclusive, to cover all aspects of security, starting with human security. At the news conference held after the conclusion of the agreements and bilateral talks, both the leaders touched upon the decision to introduce ferry services between the two countries.

Considering the logistics and other issues involved, the two sides would be holding further talks in the matter, to dovetail Indian concerns, if any, and Maldivian interests, given the continuing family and cultural linkages between the peoples of the two countries in some islands.

“In furtherance of the shared recognition that the security interests of both the countries are inter-lined in the region, they (the two leaders) reiterated their assurance that each side would be sensitive to the concerns of the other on the issue and that their respective territories would not be allowed for any activity inimical to the other and by any quarter,” the Joint Statement issued at the conclusion of the visit said.

Though tugged in between commitments on fighting international terrorism, piracy and drug-trafficking, the message was clear. In this context, the joint statement said, “The two leaders agreed to strengthen cooperation enhance maritime security in the Indian Ocean Region through coordinated patrolling and aerial surveillance, exchange information, capacity-building and the development of an effective legal framework against piracy.”

India’s concerns in the shared Indian Ocean neighbourhood do not stop with terrorism, piracy and drug-trafficking, though, among them, there is always a greater concern about the first in the list. Strategic analysts in India and elsewhere have often been writing about the perceived increase in fundamentalism in Maldives. At the conclusion of the SAARC Summit, fundamentalist elements in southern Addu set fire to, and later decamped with, the monument erected by Pakistan as part of a SAARC custom. To them, the motifs at the foot of the monument depicting the artefacts of the Indus Valley Civilisation had idols of worship, which was not allowed in Islam. The reference was to motifs resembling Buddha, worshipped in some of the SAARC nations.

While the fundamentalist Adhaalath Party has gone to court, charging the Government with going against the letter and spirit of the Constitution, some leaders of the newly-formed Progressive Party of Maldives (PPM), founded by former President Maumoon Gayoom, said those who destroyed the monument were ‘national heroes’. PPM and Adhaalath Party youth also held demonstrations, something that not all the senior leaders in the former reportedly relished. The strategic community reads all this in the context of the 26/11 experience, when sea-borne terrorists had attacked Mumbai, the nation’s business capital. For the Maldivian authorities, it is a concern about the increasing permissiveness and acceptance of fundamentalist elements, if not ideology. However, the dividing line, as they understand, is also thin.

India’s concerns are also directed at China, whose increasing interest in Maldives came to the fore with the opening of an embassy in Male on the eve of the SAARC Summit. India is alive to diplomatic and political realities, where the opening of an embassy by any country in any other by itself should not be a cause for concern. But New Delhi’s concerns now are because of China’s increasing military might and strategic ambitions, particularly in the immediate Indian Ocean neighbourhood. However, India draws clear distinction between China’s economic interests and investment potential in all nations in the neighbourhood and beyond, though New Delhi is not unaware of the political clout and dominance that it could facilitate over time.

While the neighbourhood countries are hungry for huge investments, Indian private sector, unlike their Chinese counterparts, if the latter could truly be called so, has not been so forthcoming. The result is that the countries are left with little choice. In this regard, the Indian Government may have to do as much at home as overseas to encourage the Indian industry to put big money in the neighbourhood, combining economic interests with a sense of national duty, and not crib that China and Chinese are everywhere and that they had no space to play out when they enter overseas markets belatedly.

The writer is a Senior Fellow at the Observer Research Foundation

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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SAARC Summit reveals Indian interest in Gan: Daily Star

Addu in the south of Maldives suddenly became vibrant as all the eight heads of states and governments arrived for the Saarc Summit held on November 10 and 11, writes former Bangladeshi High Commissioner to the Maldives, Selina Mohsin, for Bangladesh’s Daily Star newspaper.

On July 28, 2011, the government of India provided a grant of US$5 million to Maldives for the Saarc Summit in Addu. In return, the government of Maldives officially handed over a plot of land in the capital for the Indian Mission. Simultaneously, agreements for the construction of a multi-disciplinary university and health centres and upgrading of an existing hospital in Laamu Gan in Addu Atoll were finalised with an Indian company.

Two earlier Saarc Summits were successfully hosted by Maldives in the capital Male. The necessary buildings and infrastructure were present in the capital so why was this summit held in Addu at such a great cost? Two reasons can be cited. The first was concern that opposition parties might create a disturbance during the Summit and the other was a preference by India in collaboration with Maldives to develop Addu Atoll. India has a particular interest in Gan island in Addu.

Gan’s strategic location in the Indian Ocean was identified by the British, who first established a base there during the 2nd World War as part of the Indian Ocean defenses. In 1956, the British took over Gan and developed a Royal Air Force base with a large runaway, jetties and a series of causeways connecting several islands in the Atoll, which served as a Cold War outpost. In 1976, the British pulled out. India had recently shown keen interest in Gan as a strategic location, but an attempt to establish a base there was revealed in the Indian media and halted after an outcry from the People’s Majlis of Maldives on issues of sovereignty.

After the Mumbai bombing, India began a project to network all the 7,500 km of its coastline with radar. India probably intends to include Maldives in its security grid to have a permanent presence in Gan for its surveillance aircraft and ships. Secondly, India would like a secure foothold in the Indian Ocean where the power of China is increasing. Beijing has pockets of influence around India with the Chinese built ports of Gwador in Pakistan and Hambatota in the southern coast of Sri Lanka. As 60 percent of Chinese oil imports come from Africa, China has to maintain its ability to protect its interests on this ocean route.

It is felt that India, by providing a grant for the Saarc Summit and by building facilities in Addu Atoll, will surely gain a strong presence in Gan.

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China/India Cold War warming up in the Maldives: Reuters

On the pristine equatorial shores of the Maldives, an archipelago best known for luxurious resort hideaways swathed in coral reefs and cerulean seas, India and China’s regional cold war is warming up, writes Bryson Hull for Reuters.

“Stretched across 90,000 sq km (35,000 sq m) of the Indian Ocean southwest of India, the Sunni Muslim nation of 1,192 islands finds itself sandwiched between the two Asian rivals, and both flexed their muscles at a meeting of South Asian nations hosted by the Maldives last week.

China preceded the heads-of-state meeting of the eight-nation South Asian Association for Regional Cooperation (SAARC) by opening its first embassy in the Maldives, a ceremony attended by Vice Foreign Minister Zhang Zhijun.

Two Maldivian officials said China had hurriedly rented a space to open the embassy in time for the summit, while the actual embassy is being built. Officials with the Chinese delegation declined repeated requests by Reuters for comment.

“The bureaucrat in me says the timing is right. You want to open something like that when there is a big official around. But opening it right before SAARC is a way to tweak India,” an Asian diplomat told Reuters on condition of anonymity.

India’s response to China’s diplomatic display included a show of military force and political largesse.

Navy frigates patrolled off the Gan atoll, where the summit was held, to protect VIP visitors including Afghan President Hamid Karzai, and Indian Prime Minister Manmohan Singh held a one-day state visit to the capital island, Male.

“This is our extended neighborhood. We wish to work with the Maldives and other like-minded countries to ensure peace and prosperity in the Indian Ocean region,” Singh told the Maldivian parliament.

India extended a $100 million credit line, inked pacts on maritime and counterterrorism cooperation, and both nations agreed “their respective territories would not be allowed for any activity inimical to the other and by any quarter.”

New Delhi has long been concerned by any moves China makes to boost its presence in neighboring countries, and is worried about the so-called “string of pearls” ambition to expand Chinese maritime influence in the Indian Ocean and beyond.

China made its present felt throughout the SAARC summit. The post-summit giveaway bag included porcelain pens and diaries from the Chinese Foreign Affairs Ministry detailing “Five Years of China-SAARC Cooperation.” A box for a new 40-inch TV in the media center bore a sticker: “China Aid.”

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India not worried about Chinese presence in Indian Ocean: Economic Times

India on Tuesday indicated that it was not too worried over China’s increasing presence in the Indian Ocean region, after Beijing opened a new embassy in the Maldives ahead of last week’s SAARC summit in the island nation, reports the Economic Times.

“Defence Minister A.K. Antony told reporters that such efforts by China in the region cannot be prevented, but the only cause for worry was Beijing building military infrastructure along India’s borders and expansion of its defence capabilities.

“‘How can you prevent any country from establishing an embassy or furthering relations with any other country in the world,’ Antony asked, when his response was sought on Beijing setting up its embassy in the Maldives last week.

“We are also establishing embassies and building relations with every country. It is a natural process,” he said.

However, “China is expanding its military capabilities and building military infrastructure along the borders with us. We know that…we are aware of that, and we are concerned about that,” Antony said.

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Maldives has seen nothing like Addu’s SAARC Summit: BBC

The Maldives has seen nothing before like the SAARC Summit in Addu, writes Charlie Haviland for BBC News.

“Every so often ordinary vehicles, including the buses that ferry the journalists around, have to pull into the tiny country lanes and wait while fleets of black Maldivian limousines carrying VVIPs pass by.

“They move back and forth along the road which, at 14km, is the longest in the entire Maldives archipelago, spanning four southerly islands via causeways.

A stringent security regime has been set up to protect the top officials.

“Appropriately, the tiny host nation has chosen “Building Bridges” as the theme for this 17th conference of the South Asian Association for Regional Cooperation (SAARC), which was founded in 1985 grouping Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka and admitted Afghanistan in 2005.

The chosen theme reflects a desire that the boundaries so evident in the region should start to dissolve and that transport, communication and trade linkages should thrive.

The historically tense relationship between India and Pakistan has been the focus of strong interest here.

Their two prime ministers, Manmohan Singh and Yusuf Raza Gilani, had warm words for each other after their bilateral talks on the summit’s sidelines at a luxury island resort, which took place in a luxury thatched hut above a white sandy shore.

The building of confidence is the theme of the moment, three years after the relationship plunged to rock-bottom after the Mumbai attacks in which 166 people were killed.

The Indian foreign secretary said the two neighbouring, nuclear-armed rivals would be moving to implement easier trade and travel measures, agreed in July.

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