President Mohamed Nasheed met with the Honourary Consul of Maldives in Italy, Dr Luca Fiormonte, yesterday afternoon.
The meeting focused on strengthening trade, health and education between the two countries.
Dr Fiormonte studied law in Rome and also works at LUMSA University in Rome and State University in Milan.
(0)Dislikes
(0)The Elections Commission (EC) would be in “a difficult situation” if the president ratifies the decentralisation bill but vetoes the complementary local council elections bill, EC President Fuad Thaufeeq has said.
If the president leaves more than a 28-day period between the ratification of the two bills, said Fuad, the EC would not have enough time to prepare for the elections.
President Mohamed Nasheed has said he will veto the local council elections bill as article four of the legislation woul disenfranchise “half the electorate” as it requires citizens to be present in their registered constituency to be able to vote.
“If he ratifies the decentralisation bill first, it states that elections should take within 150 days,” Fuad said. “But the other bill, the local council elections bill, gives a period of 122 days. So even if the Majlis passes amendments as soon as possible, say in June, we won’t have enough time to prepare.”
He added that the EC believes the two bills should be ratified together in order to avoid the clashes.
Moreover, if an amendment is passed to allow remote voting, the EC would need “double the funds to allow people to vote anywhere”.
The EC would need “a lot of manpower” as there would be 279 constituencies and some islands would require 100 different kinds of ballot paper.
The EC did not raise concerns with article four as it would be fairer for those living in their registered constituency or island of birth to elect local government representatives.
“It would be better for those who actually live in the island to be able to vote than those who are registered,” he said.
In his weekly radio address on Friday, President Nasheed said article four would disenfranchise “at least 60,000 people” from the atolls currently residing in Male’.
Nasheed said he would ratify the bill only as “a last resort”.
“In my view, it is not the right thing to do. It is not a good bill,” he said.
Mohamed Zuhair, president’s office press secretary, said parliament had to bear responsibility for the problems as “they passed the bill knowing all these periods were in there”.
In addition to problems regarding process, he added, the president had to consider economic, social and legal ramifications.
“We can’t sacrifice content or substance because it could compromise the process,” he said. “But the president hasn’t made a final decision and he will serious consideration to these issues.”
Although article four did not allow for remote voting in the original draft legislation submitted by the government, MPs of the ruling Maldivian Democratic Party (MDP) proposed an amendment to allow people to vote anywhere in the country.
However, the amendment did not garner bipartisan support as MPs of the opposition Dhivehi Rayyithunge Party (DRP) voted against it.
Vili-Maafanu MP Ahmed Nihan said the DRP said he participated in a “heated debate” at a meeting with the EC over article four.
Nihan said the DRP agreed to keep the article unchanged based on the EC’s recommendations and the government’s assurances.
“We passed the bill the way it was sent to us by the Attorney General,” he said. “Now [MDP] are trying to blame us. We have said we will submit an amendment to allow everyone to vote even if takes three times more money.”
Nihan said the DRP parliamentary group was ready for an emergency sitting of parliament to vote on amendments, but added that the president should ratify the bill first as further delays would put the government and the Majlis “on the back foot”.
(0)Dislikes(0)President Mohamed Nasheed has said he will sign the decentralisation bill into law despite misgivings as any further delays would do “more harm than good”.
In his weekly radio address on Friday, President Nasheed said the constitutionality of some provisions could be challenged at court.
“I hope that after I ratify this bill, amendments will be made as soon as possible, within the present framework, to change the provisions where these conflicts could arise,” he said.
The president said grouping atolls into provinces and devolving decision-making powers concentrated in Male’ to seven regions was a campaign pledge of the ruling Maldivian Democratic Party (MDP).
“It’s not at all the case that the government decided to create provinces because there was a political opportunity or purpose in it,” he said, adding that it would be more politically advantageous to continue with the existing system of “considering the capital of the atoll to be the atoll council.”
Continuing with the traditional system would be the “narrowest” way of devolving powers, Nasheed said, adding he did not want to prolong the existing model of island and atoll development committees with “small, minimal powers”.
Meanwhile, the purpose of provinces was “to find a better path” for economic growth and development.
The province offices created in the first months of the new government was intended to “introduce and implement” the model, Nasheed said.
Moreover, he added, as the constitution empowers the president to create posts and offices for administrative purposes, desks were set up at the province offices for the main government ministries.
But, DRP MP Ahmed Nihan told Minivan News today the bill would not hamper development as it would vest “executive power” in the hands of the people and stipulate equal distribution of government funds.
He further accused the president of exercising executive power with “total disregard” to the constitution.
While the president was empowered to appoint councillors and state ministers by article 115 of the constitution, he said, the DRP did not accept that it could be done for the purposes of decentralisation in the absence of enabling legislation.
“We believe [the appointments] was made by misusing the powers granted by article 115 as it was done for political purposes,” he said.
Nihan added it would have been better for the president to voice concern about “building human resources” for decentralisation as the process was new to the country and was likely to result in teething problems.
On the issues of maintaining the existing administrative division into 21 atolls, Nihan said “the core reality is that Maldivians don’t want to lose their island identity.”
Moreover, he said the government’s fear that the bill would create “21 opposition governments within the country” was unfounded.
Empowerment
The decentralisation and regionalisation policy began with the appointment of state ministers under Home Minister Gasim Ibrahim, who quit his post 21 days into the new administration.
Gasim joined the DRP-PA MPs, several independents and the two MPs of the Dhivehi Qaumee Party to vote through the final bill by 42 votes.
The model of provinces was removed from the government’s bill by the opposition DRP-dominated committee after it was submitted for a second time in March this year.
Opposition MPs have argued that the atoll councils referred to in article 230(b) of the constitution must be established at the atoll level for the 21 administrative atolls of the country.
The battle over the legislation throughout the first two sessions of parliament involved forced cancellations, clashes in the chamber and protests.
(0)Dislikes(0)President Mohamed Nasheed met with the National Security Act Assessment team of the US Pacific Command who are visiting the Maldives.
The meeting took place at the President’s Office yesterday, where they focused on formulating a national defense and security plan.
President Nasheed said the main areas concerning national defense and security are terrorism, piracy in the Western Indian Ocean and drug trafficking.
The US Pacific Command, led by Army Attaché to Sri Lanka and the Maldives, Lieutenant Colonel Lawrence Smith, said they would assist the Maldives in further strengthening the national security framework.
(0)Dislikes(0)On his return from Bhutan and China, President Mohamed Nasheed said Vice President Dr Mohamed Waheed’s recent criticisms, and individual parties regrouping as a strong opposition, did not concern him, reports Miadhu.
President Nasheed said his main concern at the moment are the development projects for the country, some of which could begin soon, he said.
The president added that the Chinese government will donate US$210 million to the Maldives, US$10 million of which will be grant assistance.
He said China would work on increasing the number of Chinese tourists to the Maldives, as well as assisting in improving the medical sector and deliver more scholarships for Maldivian students.
(0)Dislikes(0)As part of his official visit to China for the Shanghai World Expo 2010, President Mohamed Nasheed met with Chinese President Hu Jintao yesterday at the International Convention Centre in Shanghai.
President Jintao said President Nasheed’s visit was a historic one and represented the importance of relations between China and the Maldives.
He thanked the government and people of the Maldives for their support of China and hoped to strengthen bilateral relations to benefit both countries. He said he hoped to increase mutual trust, economic and trade cooperation, and improve communication and coordination between the two governments.
President Jintao continued to say China would assist the Maldives in overcoming economic challenges, and pledged 50 million Chinese Yuan (US$7.3 million) in grant aid for the Maldives.
The Chinese president added climate change was an issue equally important to China as it is to the Maldives and assured support to the Maldives on the issue.
President Nasheed thanked the Chinese government and people for making an important contribution to the social and economic development of the Maldives.
He said the Maldives was facing many developmental challenges due to climate change, with fresh water and housing both in short supply.
President Nasheed encouraged Chinese companies working in renewable energy technologies to invest in the Maldives, thus improving their bid to become carbon-neutral by 2020 and creating an example on green technologies.
President Nasheed also briefed President Jintao on the recent sixteenth South Asian Association for Regional Cooperation (SAARC) Summit that took place in Bhutan last week, as China is an observer country of the SAARC.
(0)Dislikes(0)After their official visits to Bhutan and China, President Mohamed Nasheed and First Lady Laila Ali have returned to the Maldives.
The president visited Bhutan for the Sixteenth South Asian Association for Regional Cooperation (SAARC) Summit, which was held in Thimphu on 28 and 29 of April.
President Nasheed met with several SAARC country leaders during his first visit to a SAARC summit.
They departed for China after the summit to attend the Shanghai World Expo 2010 and inaugurate the Maldives Pavilion at the fair.
The president also met with Chinese President Hu Jinato and with Honourary Consuls to the Maldives in China.
First Lady Laila Ali also met with the Honourary Consul in Shanghai, who donated US$20,000 to Kudakudhige Hiya home for children in Vilingili.
(0)Dislikes(0)As part of their official visit to China, President Mohamed Nasheed and First Lady Laila Ali met with Honourary Consuls to the Maldives in China.
President Nasheed met with Honourary Consul in Shainghai, Yang Guisheng, and with Honourary Consul in Hong Kong, Bob N Harulela.
President Nasheed called for more dynamic roles of Honourary Consuls in the development of the Maldives, noting they could play an important role in developing stronger relations and increasing commercial ties between the Maldives and their countries.
The president noted the areas the Maldives needed most assistance, and the consuls assured assistance to the Maldives and said they would be more engaged in finding new investments for the Maldives.
(0)Dislikes(0)The Maldives faced the worst economic situation of any country undergoing democratic transition, according to World Bank statistics for the last 50 years, President Mohamed Nasheed has said.
In his address at the 16th SAARC Summit last week, President Nasheed said the global recession hit the domestic economy hard at a time when the country was “still adjusting to the recent shift from authoritarianism to democracy”.
While the transition has been “smooth, secure and stable” in the first 18 months of democratic governance, said Nasheed, the new administration inherited “an economy in crisis”.
“In the years leading up to the 2008 presidential elections, the former administration went on a spending spree that almost bankrupted the country. Public expenditure was at a peak of 64% of GDP in 2008,” he said. “We took over a budget where 70% of government revenue was spent on public sector wages. Our administration inherited a huge national debt. Our deficit in 2009 was set to be at 33% of GDP.”
But, he added, the deficit was reduced to 28 per cent of GDP through austerity measures introduced last year, including controversial and unpopular pay cuts for civil servants.
Among other measures taken by the government to alleviate the budget deficit were cutbacks on foreign travel and a freeze on non-essential expenditure.
In addition, the new government was “bequeathed millions of dollars of unpaid bills”.
While the Maldives continue to face serious budgetary shortfalls, the government was determined to “implement structural reforms that will set the economy on a straight course”.
The president’s remarks were lampooned at the opposition Dhivehi Rayyithunge Party (DRP) rally last week as “humiliating” the country in the international arena.
Moreover, opposition parties have strongly condemned the government for disregarding campaign pledges by enforcing pay cuts and hiking electricity tariffs.
Economic outlook
The Asian Development’s Banks annual flagship economic publication, the Asian Development Outlook 2010, released last month noted that reckless fiscal expansion and a recession-induced drop in tourism “have taken the economy to the brink of crisis”.
The fiscal expansion of the past few years was “excessive”, the report notes, as it included large increases both in public sector wages and subsidies.
“It pushed budget expenditure to 63% of GDP by 2008 and the overall deficit to 17% of GDP,” it reads.
Meanwhile, the deficit spending led to “a marked balance-of-payments deterioration”, which, coupled with the impact of the global recession, threatened macroeconomic stability.
Consequently, GDP tumbled in 2009 by nine percentage points due to contractions in the tourism, construction and fisheries industries.
While GDP is projected to grow by 3 per cent this yyear, the report notes that economic outlook depends on the performance of tourism and fisheries “as well as the government’s ability to push through its reform measures”.
Apart from cuts in spending, the economic reform programme initiated by the current government includes broadening the revenue base by raising airport service charges, introducing a business profit tax and transforming the tourism bed tax into a goods and services tax.
“In order to align expenditures with revenues, the government is streamlining administrative machinery by downsizing the civil service, reducing electricity subsidies, and linking power tariff adjustments to cost of inputs twice a year,” it reads. “The government also plans to privatize parts of the extensive network of state-owned enterprises.”
In December 2009, the International Monetary Fund (IMF) approved a US$79.3 million standby arrangement US$13.2 million under a program to deal with external shocks.
As the role of monetary policy was limited with the currency pegged to the US dollar, the report advises that fiscal policy has to “play the greater role in demand management and economic stabilization”.
Weak institutions and human resource deficiencies, including “the fragmented structure of government”, were identified as major constraints to economic growth.
Moreover, the report notes that the government’s policy of grouping atolls into seven provinces to develop regional administration and economic centres was “a tall order” as the government “aims to reduce the cost to itself at the same time”.
Globe-trotter
In his radio address on Friday, the president said he received a text message from a resident of an “isolated island”.
The person observed that the president was “always abroad” and implied that he was neglecting domestic affairs.
The president arrived in China yesterday to open the Maldives pavilion at the Shanghai Expo 2010.
Addressing the concerns in his radio address, the president said he would leave “no stone unturned” in his efforts to secure aid and assistance for development projects.
“I have to go to all these places. I have to talk to a lot of people. I have to do a considerable amount of work to secure financial support, projects and assistance for the country,” he said, adding that he did not enjoy travelling.
Meanwhile, in his speech at the summit, Nasheed said he was under “tremendous pressure” to prosecute members of the former regime accused of corruption and torture.
He added that it was “understandable” for people who had been wronged in the past to seek justice and reparations.
“It is particularly difficult to forgive people, when they refuse to say sorry for the hurt they have caused,” he said. “But I am loath to act against the former regime. If we took action against everyone implicated in corruption and torture, we would end up arresting most of the opposition. I do not believe that arresting the opposition, is the best way to build a healthy democracy.”
(0)Dislikes(0)