Sovereignty of Maldives
TABLE OF CONTENTS Page
TABLE OF CONTENTS 1
CHAPTER 1-INTRODUCTION 2
CHAPTER 2-LITERATURE REVIEW 3
2.1 Privatization 3
2.2 Financial Foreign Aids 4
2.3 Unemployment 5
2.4 Budget Constraints on Military 5
CHAPTER 3-CONCLUSION AND RECOMMENDATION 6
3.1 Conclusion 6
3.2 Recommendation 7
REFERENCE 8
1. Introduction
Today Maldives is experiencing the most serious economic crisis of all time and nation’s sovereignty is been challenged in various ways. The biggest challenges to Maldives sovereignty are unemployment, dependency on foreign aids including military, financial and bailouts or loans.
Deficit level has endangered the sovereignty of the nation. Expenditure in the country has exceeded income, and as a result, the budget deficit is increasing. Fiscal control became progressively worse due to increased government spending. The country last year spent 63.1 percent of its GDP on government expenses. (Robinson, 2012).
Sovereignty is absolute supremacy over internal affairs within a territory, absolute right to govern its people, and freedom from any external interference (Petrie, 2009). Part of the sovereignty is also the ability of a state to solve its domestic problems on its own. (Sawle, 2010).
2. Literature Review 3.1. Privatization
In order to overcome the deficit the government did privatize the international airport, but this did not solve the debt instead it further worsen sovereignty risks.
Since GMR took the management of the airport on 25 November 2010, they have increased service charges and fuel charges by 2 to 3 times without any development to the airport or to the services. (sun.mv, 2012). As a result, ticket prices continued to increase and tourists are facing difficulties visiting the Maldives. (maldives royal family). They even tried to charge US$ 25 Airport Development
TABLE OF CONTENTS 1
CHAPTER 1-INTRODUCTION 2
CHAPTER 2-LITERATURE REVIEW 3
2.1 Privatization 3
2.2 Financial Foreign Aids 4
2.3 Unemployment 5
2.4 Budget Constraints on Military 5
CHAPTER 3-CONCLUSION AND RECOMMENDATION 6
3.1 Conclusion 6
3.2 Recommendation 7
REFERENCE 8
1. Introduction
Today Maldives is experiencing the most serious economic crisis of all time and nation’s sovereignty is been challenged in various ways. The biggest challenges to Maldives sovereignty are unemployment, dependency on foreign aids including military, financial and bailouts or loans.
Deficit level has endangered the sovereignty of the nation. Expenditure in the country has exceeded income, and as a result, the budget deficit is increasing. Fiscal control became progressively worse due to increased government spending. The country last year spent 63.1 percent of its GDP on government expenses. (Robinson, 2012).
Sovereignty is absolute supremacy over internal affairs within a territory, absolute right to govern its people, and freedom from any external interference (Petrie, 2009). Part of the sovereignty is also the ability of a state to solve its domestic problems on its own. (Sawle, 2010).
2. Literature Review 3.1. Privatization
In order to overcome the deficit the government did privatize the international airport, but this did not solve the debt instead it further worsen sovereignty risks.
Since GMR took the management of the airport on 25 November 2010, they have increased service charges and fuel charges by 2 to 3 times without any development to the airport or to the services. (sun.mv, 2012). As a result, ticket prices continued to increase and tourists are facing difficulties visiting the Maldives. (maldives royal family). They even tried to charge US$ 25 Airport Development
References: 1- (n.d.). Retrieved october 7, 2012, from maldives royal family: http://www.maldivesroyalfamily.com/maldive_numbers.shtml 2- 2012, may 13) 3- Fiyaz, H. (2012, september 24). Estimated budget deficit will exceed by MVR3 billion. Retrieved october 8, 2012, from haveeru.com.mv: http://www.haveeru.com.mv/news/44744 4- Maldives, H 5- Ministry of Defence. (2011). Retrieved october 9, 2012, from Defence.gov.mv: http://www.defence.gov.mv/index.php/about-mod/mendates 6- Pandit, R 7- Petrie, M. C. (2009). How Economic Globalisation is Changing state Sovereignty. Wellington: Vitoria University of Wellington. 8- Robinson, J. (2012). Maldives facing worst economic situation in recent history. Male: Minivan News. 9- Saeed, H. (2011, june 12). Giving airprt to GMR: Beginning of enslavement. Retrieved october 10, 2012, from minivan news: minivannews.com/files/2012/03/DQP-GMR-booklet-translation.docx 10- Sawle, D 11- treasury, m. o. (2010). Millennium Development goals: maldives country report 2010. Male: Ministry of finance and treasury.