Pestel Analysis of Maldives

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Pestel Analysis of Maldives

By | March 2013
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Introduction
Land area of 298 sq km and is made up of 1,192 islands is situated in the Indian Ocean. Forecasts of Maldives' inundation are a great concern for the Maldivian people. The official language is Dhivehi while English is commonly used in trade and commerce. Political Structure:

Maldives is a presidential representative democratic republic. The President is the Head of Government and executive power is exercised by the government. The President is directly elected by the people to a five-year term by a secret ballot and can be re-elected for a second term. The parliament is unicameral in nature and called the Majlis of the Maldives which is composed of 77 members serving a five-year term. Local Government is devolved to an Atoll Council to administer each atoll and an Island Council to administer each inhabited island. Abbr.| Name| Leader| Est. In| No. Of Members in Majlis| MDP| Maldivian Democratic Party| Reeko Moosa Manik| 2005| 29| DRP| Dhivehi Rayyithunge Party| Ahmed Thasmeen Ali| 2005| 14| PPM| Progressive Party of Maldives| Maumoon Abdul Gayyoom| 2011| 18| JP| Jumhooree Party| Qasim Ibrahim| 2008| 6|

Political Crisis:
Peaceful protests against the mismanagement of the economy occurred during the Arab Spring in 2011. The protests were fuelled by rising commodity prices and the poor economic situation which led to the resignation of President Mohamed Nasheed and the Vice President Mohammed Waheed Hassan Manik was sworn as the new president. Nasheed stated that he was forced out of office at gunpoint. The situation garnered international political attention and elections have been announced to be conducted in July, 2013. These proceedings have led to the emergence of uncertainty in the political system negatively impacting the growth of Maldives. Tax Policy:

* There is no income tax, corporate tax or property tax in the Maldives * Bank profit tax is the only direct tax imposed in Maldives which is 25% *...