Report: Decentralisation in the Maldives, An Economic Perspective

Decentralisation in the Maldives, introduced with high hopes and expectations, remains a contentious topic. The idea behind decentralisation is to bring governance closer to the people, enhancing accountability and ensuring that local needs are met more effectively. However, fifteen years since its implementation, the economic implications of decentralisation continue to be debated.

Initial Challenges and Maturation of the System

Initially, the decentralisation system in the Maldives faced significant challenges. Some councillors, newly empowered, were found neglecting their duties, instead working in resorts or engaging in personal activities like fishing. This initial period of laxity reflected a broader issue: the readiness of local officials to shoulder their new responsibilities. Over time, as the system matured and councillors’ salaries increased, the role became more demanding and full-time. Despite this progress, public concern persists regarding the capability and accountability of councillors. Recent debates in Parliament have brought these issues to the forefront, highlighting instances of alleged fiscal irresponsibility among councillors and raising questions about the overall effectiveness of the decentralisation system.

Economic Arguments for and Against Decentralisation

- Advertisement -

From an economic perspective, the primary argument in favour of decentralisation is that it can lead to more efficient and responsive governance. Local councils, being closer to their constituents, are theoretically better positioned to understand and address local needs. This proximity can result in more targeted and effective use of resources, potentially driving economic development at the local level.

However, the Maldivian experience with decentralisation reveals several economic challenges. The costs associated with maintaining local councils and their operations can be substantial. Reports of councillors engaging in expensive international trips, allegedly funded through questionable means, have sparked concerns about financial mismanagement. Such expenditures not only strain local budgets but also undermine public confidence in the decentralisation process.

Geographical and Logistical Challenges

The Maldives’ unique geography, with its dispersed islands, complicates the implementation of a decentralised system. The logistical challenges and costs of ensuring effective governance across numerous islands can be prohibitive. This has led to a situation where, despite decentralisation, economic activity and resources remain heavily concentrated in Malé, the capital. This centralisation of the economy diminishes the potential benefits of decentralisation, as many islands continue to rely on the central government for critical services and development initiatives.

Criticism and Alternative Approaches

Critics argue that the current decentralisation system, while well-intentioned, is overly expensive and inefficient. They suggest that a more centralised approach, with streamlined local administration advised by local councils, could be more cost-effective. This model could retain the democratic principles of decentralisation while reducing bureaucratic overheads and ensuring better resource allocation.

Councillor Qualifications and Women’s Development Committees

Another significant issue is the educational and professional qualifications of councillors. The effectiveness of decentralisation hinges on the capability of local officials to manage resources and make informed decisions. The Maldives has seen debates about whether educational qualifications should be mandatory for councillors. Proponents argue that higher standards would improve governance and economic outcomes, while opponents contend that such requirements could undermine democratic participation.

The role of women’s development committees also highlights the economic challenges of decentralisation. Despite efforts to integrate these committees into the broader council framework and increase their allowances, they continue to face issues of membership and effectiveness. This situation underscores the broader problem of ensuring that decentralised institutions are both efficient and representative.

Ultimately, the economic success of decentralisation in the Maldives depends on finding a balance between local autonomy and central oversight. Ensuring that local councils have the capacity and resources to govern effectively is crucial. At the same time, mechanisms must be in place to prevent fiscal mismanagement and ensure accountability.

The ongoing debate about decentralisation in the Maldives reflects broader global discussions about the best way to structure governance in diverse and complex societies. For the Maldives, the key to unlocking the potential of decentralisation lies in addressing the economic challenges head-on, ensuring that the system is both efficient and equitable. Only then can decentralisation truly drive economic development and improve the quality of life for all Maldivians.

- Advertisement -