Maldives

INTRO 

1. Island state + Islamic Republic 
2. Maritime security 
3. Prevent gum running 
4. Terrorism - ISIS influence has inc. in MALD, so relations need to be maintained closely  
5. It is victim of PIRACY ---> Jointly tackle this menace with INDs leadership in maritime security 
6. It has a large expanse of EEZ 
7. But, it lacks Defence Capacity + Surveillance over the marine zone 
8. Also, suffers from Islamic Extremism  because literacy is high but no higher edu. Inst so they are recruited by extremists with Salafi-Jihadi ideology. 

HISTORICAL BACKGROUND 

1880s : British Colony 

1887 : British Protectorate 

1965 : Independence from the Brits 

1981 : Bilateral Trade Agreement (discussed below) 

2014 : "Water Aid Diplomacy " 

• Male Water and Sewage Co. caught fire 
• No perm rivers + streams in MALD ---> Drinking Water Crisis --> Distress call to IND  
• IND sent 20 tonnes of fresh water for 1.5L people via : 
  • 5 planes 
  • INS Sukanya + Vivek to purify water through reverse osmosis. 

2016 : MALD Prez. Visit to IND 

• Revive relations with IND, which had plummeted post GMR controversy 
• Thanked IND for 2014 Water Aid 
• Defence Co-op plan agreed (although, INDs discontent with MALD+CHI growing friendship) 
• Long term co-op plan agreed wrt : 
• S.Asian satellites 
• Taxation 
• Conservation of ancient mosques + monuments  
• Tourism 
• Edu. 

NOTE : 

MALD + CHI relations  

1. CHI is building bridges + ferry terminals in MALD 
2. MALD is part of CHI - Silk Route Prj. 

This is CHI String of Pearls Policy to contain IND in the IOR. 

STRATEGIC IMP OF MALDIVES FOR IND 

1. IND realised the strategic imp. Of MALD 1st during the British rule 
2. Cold War ---> USA x RUS ===> Inc. in geostrategic role of MALD 
3. British introduced USA in MALD to contain IND + ensure strategic defence of Gulf 
4. For IND, Indian Ocean (IO) is a lifeline and has always wanted it to be a "zone of peace"  

NOTE : 

5. IND always aspired to protect the sea + its channels of communication + IO is crucial for INDs energy security. 
6. Problem with IO  

• Lack of a unified transoceanic community in the IO region 
• Also, countries face challenges due to difference in MIL & ECO capabilities + Convergence of Security Co-op 

7. IND has used mechanism likes BIMSTEC + IORA for strategic co-op. + Milan naval exercise (neethu) 
8. US presence in the IO is perceived by IND as a stabilizing factor 
9. IO is imp for : 

• Fishing 
• Mineral exploration 
• Communication    

Hence, IND should ensure that there is no external power domination in IOR. 

COMMERCIAL DIPLOMACY 

1974 : Since then, SBI instrumental in Eco. Dev. Of MALD 

1981 : Bilateral Trade Agreement  

• Both agreed to export commodities essential for each other 
• Export : 
  • Agri 
  • Poultry 
  • Sugar 
  • Fruits + Veggies  
• Imports : Scrap metals 

IND investments in MALD Examples = Tata Housing + Taj , etc. 

GMR Controversy 

1. Prez. Nasheed - invite bids internationally to privatize + redevelop the Ibrahim Nasir International Airport.  
2. Any bidder willing to share max profit with Govt. would be selected 
3. Bid overseen by IFC (Int. Financial Corp) - WB arm, assists investors in doing biz. In developing nations + boost investments 
4. 2010 -  IND MNC - GMR Group bid and won the contract  
   • 25yr right to run the MALD airport 
   • In case of dispute, victim can approach HC of Singapore or London 
5. 2012 - Prez. Waheed changes things, local MALD court nullifies the contract of GMR saying that it worked without Parliamentary Authority 
6. Waheed deiced to take over the airport to be manged by Maldivian Airport Co. Ltd (MACL) 
7. 2012 - GMR approached Singapore HC 
   • Ruled against GMR but made sure GMR received monetary compensation 
8. 2016 : International Arbitration Tribunal (neethu) also directed MACL and MALD Govt. to pay GMR money.