INTRO
- Island state + Islamic Republic
- Maritime security
- Prevent gum running
- Terrorism - ISIS influence has inc. in MALD, so relations need to be maintained closely
- It is victim of PIRACY ---> Jointly tackle this menace with INDs leadership in maritime security
- It has a large expanse of EEZ
- But, it lacks Defence Capacity + Surveillance over the marine zone
- 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
- CHI is building bridges + ferry terminals in MALD
- 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
- IND realised the strategic imp. Of MALD 1st during the British rule
- Cold War ---> USA x RUS ===> Inc. in geostrategic role of MALD
- British introduced USA in MALD to contain IND + ensure strategic defence of Gulf
- For IND, Indian Ocean (IO) is a lifeline and has always wanted it to be a "zone of peace"
NOTE :
- IND always aspired to protect the sea + its channels of communication + IO is crucial for INDs energy security.
- 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
- IND has used mechanism likes BIMSTEC + IORA for strategic co-op. + Milan naval exercise (neethu)
- US presence in the IO is perceived by IND as a stabilizing factor
- 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
- Prez. Nasheed - invite bids internationally to privatize + redevelop the Ibrahim Nasir International Airport.
- Any bidder willing to share max profit with Govt. would be selected
- Bid overseen by IFC (Int. Financial Corp) - WB arm, assists investors in doing biz. In developing nations + boost investments
- 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
- 2012 - Prez. Waheed changes things, local MALD court nullifies the contract of GMR saying that it worked without Parliamentary Authority
- Waheed deiced to take over the airport to be manged by Maldivian Airport Co. Ltd (MACL)
- 2012 - GMR approached Singapore HC
- Ruled against GMR but made sure GMR received monetary compensation
- 2016 : International Arbitration Tribunal (neethu) also directed MACL and MALD Govt. to pay GMR money.