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The Political Economy of Maldives



Almost everyone will agree that Singapore is currently a well-developed and an economically thriving nation. Its efforts to attain such levels of development commenced after its political independence during 9 August 1965. It is interesting to note that Maldives gained political independence two weeks prior to Singapore. But Maldives remains well behind in comparison. However, in terms of resources per capita and strategic location, we are not inferior to them. Today they are among the richest nations with a very high standard of living, while the majority of our population are victims of economic slavery without adequate access to clean water, sanitation, health facilities and education. Where did we go wrong? How were we made victims of economic slavery by a very powerful group of people?

Did you know that there was an iniquitous poll tax called vaaru, levied on Maldivians who were residents of islands other than Malé? This tax was abolished during Ibrahim Nasir's term at office. However, the islanders still had to take prior approval from the government in order to visit Male'. This rule was abolished by President Maumoon. Such harsh treatment towards the people in the islands resulted in uprisings against government on several occasions notably the rebellion in Suvadive Republic.

Suvadive Republic was a short-lived breakaway nation in the remote Southern Atolls of the Maldives. The alleged causes of a creating a separation included the centralistic policies of the government and iniquitous taxes, racism and humiliation largely aimed at the islanders. To suppress the revolt in the southern atolls, the government brutally attacked islands such as Thinadhoo where people were ruthlessly killed, women raped and many burnt in their homes. Nasir's officials established the new atoll offices in the looted houses. The new policemen from Male' behaved unethically. Some accounts suggest that women were often victims of assault. A testimonial of an elderly in Huvadhu in 1997 quoted 'They wore shorts and drank alcoholic toddy. A woman couldn't even go to the mosque to get water without being harassed! People were arrested and assaulted and women were often raped. Some were made pregnant." (Source: Maldives Culture Website) Most of these cases were not prosecuted and the injustice remained unanswered. Police brutality & violence has been a routine throughout the history.

After the uprisings against economic inequality and caste system, the politicians realised that the most effective way of controlling people will be to control how they think. Mass propaganda through media which was controlled by the state focused on symbols and slogans of nationalism and patriotism. Language and heritage, religion, values and beliefs were promoted with patriotic songs as a way to keep people united no matter how barbaric government policies will become.

People were made to believe that this is a poor country with very limited resources, while few kept on looting resources and getting rich. Propaganda and religion played a huge role in public perception that wealth was a gift granted by God in order to test the faith of people. This made the public to believe that the corrupt rich got wealth as a gift from God. Religion was also used as a mean of indoctrinating the masses to force them to be content with what they have and not question the authority. Finally people would happily accept poverty and injustice.


If you look at Maldivian history, you will understand that the wealthiest people who control the country now, acquired their wealth by either illegally making a government company their own, or transferring assets and resources of government to their businesses without any compensation. They managed to do this by making deals with politicians, with a promise that they will fund, promote and control people to safeguard the governments & politicians for years to come.

One reason why people in power let corruption get in their way of better judgment was because they were aware that economic freedom will liberate the people which will make it difficult to control them. Thus they limited economic activities by making laws to favor their business and used religion as an excuse. For example, in 1984, after lobbying from resort owners, guesthouse tourism was prohibited, which gave monopoly of foreign currency income and employment to a few very powerful people.

It is a fact that there were times when other regions in Maldives were more developed and economically sufficient than Male' region. After uprisings in northern & southern atolls, central government in Male' region decided to halt major economic activities, resulting in less employment opportunities. Government’s decision to not equally allocate resources to the northern and southern atolls of Maldives resulted in underdevelopment of these regions compared to central atolls. As a result of socio economic hardships created by underdevelopment, Male’ atoll and surrounding areas became a pull zone for domestic immigration. Consecutively, over the years this led to an uneven distribution of population around the country which was the main cause of the major problems being faced by Maldives today (such as congestion, lack of basic facilities and income disparity).

The intentionally “forced” migration led to economic slavery creating social problems such as drug abuse, social problems, poverty, crimes & lots of mental diseases we see all throughout the country. The biggest challenge we face today is to convince the people that they are victims of economic slavery. What we must remember is poverty and injustice is not natural, it is man-made. George Orwell once stated in an essay named "Notes on Nationalism" that nationalism is ‘the worst enemy of peace’, as it gives us a false feeling of freedom. Real freedom is economic freedom, not waving a flag.

Recently initiated population consolidation plans arouses suspicion, because it could reduce number of inhabited islands thus reducing prospect for guest house tourism in these islands which would be economically beneficial to eradicate disparity. Last year, a new plan was initiated by the government to introduce Special Economic Zones (SEZ). SEZ takes power away from the people, local government and elected officials, concentrating wealth under a centralized authoritarian government. The rich are afforded huge tax cuts, while the rest struggles with indirect taxation and inflation. Lack of a minimum wage, human trafficking, regressive tax system, and gap between rich poor makes Maldives a nightmare for the poor & middle classes. Read our article on SEZ here http://minivannews.com/…/comment-sez-bill-opens-doors-for-e…

Over the years, laws made by parliament members funded by the rich, and propaganda via media controlled by the rich have kept us in economic slavery until the age of information which made us think. The uprisings have started, but differently. Educate yourself, educate others.


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