Maldives President Visits India To Reforge Diplomatic Ties
Last Updated on December 8, 2024 5:52 am
Maldivian president Mohammed Muizzu started a five-day visit to India looking to reforge diplomatic ties and for economic support. The Maldives’ foreign exchange reserves have dropped drastically which puts the island country at risk of defaulting on its debt. However, the government has denied the possibility of a debt default and has refused to enter an International Monetary Fund program that would help with the crisis. Muizzu’s visit comes after a series of decisions around Muizzu’s ‘Maldives First’ campaign that aimed to limit Indian influence in the Maldives and create closer ties with China instead. However, this visit proves he is unable to ignore India’s aid after China didn’t extend any financial support to the Maldives. Now, Muizzu must secure a financial assistance package from India that would bolster their foreign exchange reserves and prevent default.
“We are confident that any differences can be addressed through open dialogue and mutual understanding,” said Muizzu to the B.B.C.
This case is an example of how rising nationalist sentiments around the world are proving detrimental to the economic well-being of nations. It also serves to show the increasing influence China has on the world. The Maldivian economy is incredibly dependent on India, especially for food, infrastructure, and healthcare. Muizzu’s nationalist attempts to reduce ties have proven unsuccessful and have had consequences for the island’s economy. No deal has been confirmed yet, but both parties know that preserving the economy of the country would be important to the economic and political security of the region. Should the country go into default, tensions could cause civil or political unrest as the people look for someone to blame for their economic misfortune. This could potentially impact neighboring countries as well, depending on how intertwined regional economies are. However, it’s also important for diplomatic ties to be reforged. India is a powerhouse regionally, and maintaining stable diplomatic relations is important for international cooperation and economics.
This is Muizzu’s first bilateral visit after being voted into power last year. Muizzu’s election campaign centered around policies that would make the Maldives less dependent on India yet has proven unsuccessful. The island nation is dependent on tourism, and strained ties with India have resulted in losses amounting to around $150 million after Indian tourists stopped visiting.