Let the market forces decide the economy, and our future. This is the cry of capitalism, with a minimal or no intervention by the authorities. Monopolization, inflation, credit-crunch, are words commonly used these days.
If you take a look at the situation in Maldives, it is quite simple. All you can see is the 'Dark Side' of capitalism. The public is exploited in the name of a 'free market' governed by a 'democracy'. Apparently, the beneficiaries are a selected few. We have seen that 'free market' is anything but free, with all kind of influences on it.
Everything about Maldives is unique. Likewise, the Maldives is dependent on a Import Tariff as the main taxing system. Which means that the businessmen who import the goods will be taxed, and they will sell the goods to the public with inclusion of this tax in the price, and at the end of the day the public is indirectly taxed. This means that even if you earn a billion or earn in mere hundred, you end up paying these indirect taxes, which is absolutely why Maldives is a safe haven for investments in a certain perspective. It is established that Maldives is run by a clan of entrepreneur factions, who have infiltrated into the political avenues, deciding their own fate today. This is the main picture in the Majlis, and the government. Politician Businessmen, who decide what is best for their businesses. Isn't this the reason why, there is no firm discussion about an Income Tax system yet.
So the poor keeps paying indirect taxes (fixed), taking a huge portion out of the low income class, while scraping the surface of the higher income class. Disparity between income classes become more and more profound. The poor bank their money in the only Maldivian bank, and they are loaned (minute) amounts at a high interest rate, while the high class reap the benefit of huge loans (even at times of crisis) at the lowest available interest rates. Another avenue of exploitation. The rich invest this, and become even more rich.
There aren't any Anit-Trust laws (and there might never be), no security for new enterprises, or anyone from the low class to do any sort of business. Today, you see the top factions in exploiting all ranges of business, with understandings among the factions (of this top clan). Shipping lanes, ISPs & Media, Travel, Tourism, Import of common goods, Tobacco and everything is controlled by a few of this so called 'elite' with the rest at their mercy, since they are in control of themselves as they are also the government today. Over the past, the National Treasury had been divided amongst themselves, and they have secured investments abroad becoming self sufficient, even if they are to be exiled from Maldives (which is quite unlikely, given today's situation). So, if you want to import onions or eggs, they'd make sure that you remain at he end of the qeue at MPA (Maldives Port Authority), making every possible delay for you vessel to dock and load the shipment to be transported to you store. At the end of the day, you'd end up with a wastage of a shipment, whatever can be salvaged has to be sold at a extremly high price or you'd run the risk of getting in to debt ( think of the loan with high interest you have to pay the bank). The elite who imports and controls these goods, is enjoying a nice meal and laughing it off, another mere adversary slaughtered for him.
The government itself has instituted some companies (apparently for the public benefit) with actual interests of these elites. One day they decided to go public, for a company to exploit tourism in Maldives, the apparent justification being equal distribution of income (especially that from tourism in Maldives). When everything leveled up, it was evident that the elite had (illegally) bought off majority of the shares, which was brushed off without any action by any authority. Dividends were paid, with improper accounting principles, to show off high profit and lure in more and more scape goats. This scandal cannot be anymore clearer.
Another, single shared company, is the Maldives Airports Company Limited. This is a place where the roots of corruption run above the soil, but ignored for some unknown fact. For years, foreign aid came in as staple food, which was meant to be distributed for free (or maybe even at a low price), but the government decided to sell it at the usual price. The money accumulated from such sales were meant to be used in a much more 'meaningful' area of development. This might have been for some Turkish carpets used in the presidential palace. It is also inconceivable that in a span of 25 years, the capacity of MIFCO storage vessels remained the same while those of the local fishermen surpassed those of MIFCO vessels. In the 20 years of business, MIFCO could not afford to increase its fleet, nor upgrade them, but it seems that certain elite have reaped off a good portion from it. Dhiraagu, is another company which has benefited from exploitation of the public.
At the end of everything, the interest is that of a few, who are sitting at the top.
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