(Land legislation
approving foreign ownership of land)
Indian Ocean Archipelago, Maldives passed crucial land
legislation in the Parliament Majlis last week that approved foreign ownership
of the land. According to the new legislation, any foreign individuals or companies
that invest more than USD 1 billion and can reclaim over 70% of the land (for
project) can buy land in the country. The new legislation was passed on July 22nd
hurriedly with a thumping majority as 70 representatives voting in favour and
14 against it. While the government says the new amendment was necessary to
reduce reliance on tourism and to transform the economy through large scale
foreign investments the clauses in the tweaked legislation clearly facilitates
Chinese interests. Previously the country’s legislation permitted land leases
for a period of 99 years. This worrying new development sent jitters across
Asia and sent alarm bells ringing in India.
Maldives has been India’s traditional ally and a SAARC member
but reiterated by the opposition this move would inevitably facilitate robust
Chinese presence in the island. Located strategically in the Indian Ocean,
China is has been eagerly waiting to seize an opportunity to establish its
foothold in the island. For the past 10 years China has pumped sizeable investments in various infrastructure
projects in Maldives including the Male- Hulhule, bridge project that connects
the capital Male to the airport. Further it has given major push to its tourism
industry whereby 30-40% of the tourists to the island are Chinese. In sharp
contrast to Chinese initiatives, India during the last decade failed to
revitalise its relations with Maldives.
Maldives bilateral relations with China reached a zenith when
leaders of both countries reciprocated each other’s visit in a span of one
month. President Xi Xinping’s visited Maldives last September shortly after his
trip to India, during which the island country expressed its willingness to
contribute constructively towards development of Maritime Silk Route also
referred as Belt Road Initiative (BRI). It has even recently signed up for the
Asia Infrastructure Investment Bank (AIIB). Though India has a strong
conventional cultural, diplomatic connect with Maldives it failed to capitalise
on its good will due to its political stand. India is a major trading partner
of Maldives and besides providing several loans and grants it dispenses as much
as 5% of its total international developmental budget to the island. Relations
between India and Maldives have their own lows and highs. India helped Maldives
to set up its coastal surveillance capabilities and was the first responder
when Maldives only sewage plant caught fire whereby nearly 100,000 lost access
to safe drinking water. But the relations reached its lowest ebb when an Indian
firm, GMR’s contract for construction of airport in Male has been cancelled.
This project is now awarded to a Chinese company.
In February 2015 when deep political crisis loomed over the
island following the unceremonious arrest of democratically elected leader,
President Nasheed, India expressed its concerns. Nasheed, the leader of
opposition from the Maldivian Democratic Party (MDP) was incarcerated on
charges of terrorism, following a hearing headed by a panel of judges loyal to the
incumbent President Abdulla Yameen of Progressive Party of Maldives (PPM). Nasheed
in fact sought asylum in the Indian Embassy at Male for two weeks. India’s
statement drew a sharp rebuke from Yameen’s government and was viewed with
scepticism whereas China adhered to its policy of non-interference in domestic
affairs. Owing to this reigning political turmoil, Modi cancelled his scheduled
visit to the island in March. Speculations were rife that the cancellation was
connected to the arrest of Nasheed who is perceived to be pro-Indian. The
cancellation of the visit at the eleventh hour sent adverse signals to the
Maldivian government.
Aside all these factors, China will be greatly benefitted by
the new land amendment as it has demonstrated great expertise in land
reclamation. With mastery over reclamation, China is now converting small
islets, reefs, shoals in the disputed South China Sea into vast sandy stretches
of island. China in fact effectively used land reclamation capabilities in Sri
Lanka as well and clinched several projects there too. Unlike India China with
its deep pockets can effortlessly invest $1 billion worth projects in Maldives.
While the Indian political system marred with squabbles acts as a greatest
deterrent to make investments, China’s hassle free decision making can generate
investments quickly. Moreover China is known for its time bound delivery and
completion of projects on foreign lands, India is stymied by disrepute of
delayed completion. Needless to say, the new legislation is essentially
designed to foster Chinese interests.
In a bid to allay fears of opposition in Maldives following
the passage of landmark legislation that allows foreign companies to own land,
Chinese foreign ministry asserted that it will not build military bases. But
the undeterred aggressive land reclamation in South China Sea stands testimony
to China expansionist attitude. India which believes that Maldives is in its
sphere of influence is evidently perturbed.
On
July 26th Maldives celebrated its 50th year of independence
and Prime Minister Modi reached out to the island calling it as a “valued
partner in the Indian ocean neighbourhood”. India should now aggressively steer
ahead in rebuilding relations with Maldives and other neighbouring nations in
its immediate neighbourhood. Perhaps the ideal way to initiate the process
would be through a bilateral visit by the Prime Minister Modi. India should
rejuvenate its cultural, diplomatic, academic and people to people interactions
with the island. Maldives on the other hand is looking forward to India’s help
and support in addressing the climate change issues. India must encourage its
industrialists and business houses to invest in the Maldives to rejuvenate
economic ties. It is time India should now consider seeking help from the EU
and Japan, the pioneers of the land reclamation to clench crucial deals in the
island.
Maldives
during the last fortnight has witnessed a phase of intense political churning
wherein the opposition and the ruling party have struck a political deal. While
the opposition party MDP is conceived to be pro-Indian, the ruling party PPM is
pro-China. The situation in Maldives is akin to Sri Lanka whose former
President Rajapaksha with his leanings to China fostered cordial relations with
Beijing as opposed to the present President Sirisena who is pro-India. While
the situation is Sri Lanka is now propitious to India, the voices of pro-Indian
party in Maldives led by MDP have buckled under pressure. In sheer despondency
to secure freedom for their leader Nasheed, it is believed to have conceded to
three conditions of the ruling party. The primary objective of the opposition is
to ensure release of all political prisoners and dropping all the charges registered
against them. The details of the political deal between the two parties were
posted on the website too. These included a. Legislative support for certain
projects b. Impeachment of vice president Jameel c. Constitutional changes to
relax age limits of the president and vice-president.
Accordingly,
some of the members of the opposition have cross-voted for the safe passage of
the new land legislation. Opposition leader has issued whip to promulgate the
impeachment of Vice president Jameel. In order to facilitate the promotion of
the underage tourism minister, Ahmed Adeeb to the post of Vice president the opposition
agreed to lower age limit to 18 despite its own reservations about the issue.
In spite of the MDP party’s doubts about the veracity of the land legislation,
it has yielded to ruling party’s demands out of desperation. But as yet the
ruling party has not delivered on its promise and this might eventually lead to
political unrest and a relentless wave of street protests. Even President Gayoom,
half brother of Yameen who held on to power for more than three decades urged President
Yameen to seek public opinion on ratification of this amendment.
As
of now the message is loud and clear, the new constitutional amendment will
pave way for the establishment of Chinese bases on the 1200 strong island
conglomeration of Maldives eventually turning it into a Chinese colony. While
Maldivian government has ensured India that they will strive to keep Indian
Ocean region demilitarised, the statement holds no ground as the new
legislation was laid out to benefit China. Ever since the political regime of
Sri Lanka refused to be a charming piped piper to the dragon, it has turned its
focus to Maldives. Sri Lanka was left high and dry as the Chinese investments
in infrastructure projects left a trail of high debts with huge interest rates.
The country now owes anywhere between 6 to 8 billion dollars to China.
Clearly
Maldives political scenario has taken a discernible shift ever since Yameen’s
government has come to power. India has every reason to be concerned as any
perspicuous Chinese presence in its own backyard is an imminent threat.
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