Maldives: Background and Issues Facing Congress

Maldives: Background and Issues Facing Congress

May 29, 2024
Maldives: Background and Issues Facing Congress
Background
distress” without “significant policy changes.” According to
The Republic of Maldives is an archipelagic nation of
Maldives’ official figures, the Export-Import Bank of China
approximately 515,000 people located in the Indian Ocean
owned roughly $555 million (25%) of Maldives’ external
near strategic sea lanes southwest of Sri Lanka. About 188
debt and was the country’s biggest creditor as of June 2023.
of Maldives’ 1,192 low-lying coral islands are inhabited.
Substantial portions of the country’s external debt are
Maldives has been extremely vulnerable to the effects of
owned by external bondholders (23%) and the Export-
climate change and sea level rise. Approximately 41% of
Import Bank of India (13%).
the population lives in the capital of Malé. Since 2020, the
United States has increased its engagement with Maldives
Figure 1. Maldives in Brief
in response to challenges in the Indo-Pacific, including
strategic competition between the People’s Republic of
China (PRC or China) and India, and the PRC and the
United States. Congress has enacted legislation supporting
the United States’ increased diplomatic presence in Malé.
Politics
Maldives is a unitary presidential republic with a
unicameral legislature, the People’s Majlis. Between 1978
and 2008, the country’s political scene was dominated by
President Maumoon Abdul Gayoom. During his presidency,
Maldives experienced periods of instability and repression
before embarking on a process of political reform in 2004.
Maldives adopted a new constitution in 2008 and has since
held multiparty presidential and parliamentary elections.
Some parts of civil society have expressed concerns about
the integrity of the democratic process. In September 2023,
Malé Mayor Mohamed Muizzu of the People’s National

Congress Party (NCP) defeated incumbent Ibrahim
Source: Maldivian Census 2022, Central Intelligence Agency World
Mohamed Solih of the Maldivian Democratic Party in a
Factbook, U.S. Department of State, U.N. Comtrade.
presidential election “assessed positively” by the European

Union Election Observation Mission. President Muizzu
Foreign Relations
assumed office in November 2023 for a five-year term. In
Since 2013, some analysts have noted intensifying
April 2024, Muizzu’s NCP won a parliamentary majority.
competition between India and China for influence in
Maldives. Maldives shares extensive ethnic, linguistic,
Economy
cultural, religious, and commercial links with India. In
Maldives is an “upper-middle-income country with a robust
1988, India intervened militarily to thwart an attempted
growth trajectory” according to The World Bank. In 2022,
coup in Maldives. Under former President Abdullah
the most recent year for which confirmed data are available,
Yameen Abdul Gayoom (in office 2013-2018), half-brother
Maldives had a gross domestic product (GDP) of $6.17
of Maumoon Abdul Gayoom, popular sentiment grew
billion. The Maldivian economy is concentrated in the
critical of India’s military presence in Maldives. The
service sector (73%), followed by industry and
resulting “India Out” campaign has since become a rallying
manufacturing (11%), and agriculture (5%). Tourism
point for some political groups. One day after taking office
accounts for approximately 30% of economic activity.
in November 2023, President Muizzu—who has sought to
Maldives registered over 1.8 million tourist arrivals in
diversify Maldives’ partnerships away from India—
2023, including from India (11%), Russia (11%), and China
officially requested India withdraw military personnel
(9%). In 2023, the largest sources of goods imports into
stationed in the archipelago. India complied with the
Maldives were India (16%), Oman (15%), and United Arab
request and replaced military with civilian personnel in
Emirates (13%). Its largest goods export destinations were
Maldives. Diplomatic rows between Maldivian and Indian
Thailand (54%), the United Kingdom (14%), and Germany
officials have strained bilateral ties further.
(8%).
Relations between Maldives and the PRC deepened during
In May 2024, the International Monetary Fund assessed that
Yameen’s presidency (2013-2018). Under Yameen,
Maldives “remains at high risk of external and overall debt
Maldives and the PRC agreed to several infrastructure and
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Maldives: Background and Issues Facing Congress
housing projects, as well as a free trade agreement. Some of
the medium term, rising sea levels would have dire social
these deals were financed with loans provided by the PRC.
and economic consequences.”
The Solih Administration (2018-2023) favored cultivating
ties with India. The Muizzu Administration has renewed
U.S.-Maldives Relations and
Maldives’ engagement with China. In January 2024,
Congressional Interests
President Muizzu made his first overseas trip as president to
U.S. engagement with the Maldives has increased since
Beijing. During the visit, Maldives and the PRC
2020, when the United States announced plans to open an
“exchanged” 20 agreements in areas including “grant
embassy in Malé. In July 2023, the Senate confirmed Hugo
assistance,” “social housing,” and state broadcasting. The
Yue-Ho Yon as the United States’ first resident ambassador
two sides also agreed on a five-year “action plan” to build a
to Maldives. Since the establishment of bilateral relations in
“comprehensive strategic partnership.” In March 2024,
1966, the U.S. ambassador to Sri Lanka concurrently served
Maldives and the PRC reached an agreement on military
as U.S. ambassador to the Maldives. U.S. Mission Maldives
assistance under which Maldives will “obtain the different
currently operates out of U.S. Embassy Colombo in Sri
forms of training required by the Maldives’ military, and
Lanka and “will focus on the establishment of a physical
[is] to be granted various non-lethal military equipment free
embassy in Maldives … to further strengthen the U.S.-
of charge,” according to Muizzu.
Maldives relationship.” The U.S. Department of State
requested $2.1 million “for operating costs of the planned
Muizzu has dismissed claims that he is “pro-China,”
U.S. Embassy in Maldives interim facility” in its
countering that he is “pro-Maldives.” Following his trip to
Congressional Budget Justification for FY2025.
Beijing, Muizzu asserted that Maldives is not “in anyone’s
backyard” and is an “independent and sovereign state.” He
In December 2023, U.S. Agency for International
also has stated that Maldives “is too small to become
Development Administrator Samantha Power led an official
embroiled” in a rivalry between China and India.
U.S. delegation to President Muizzu’s inauguration. In
January 2024, the Commander of U.S. Indo-Pacific
Religion
Command met with Muizzu in Malé, where they discussed
Maldives’ constitution designates Islam as the state
“mutual initiatives for bolstering national and regional
religion, stipulates that non-Muslims “may not become
security and sovereignty.”
[citizens] of the Maldives,” and includes adherence to the
Sunni school of Islam among “qualifications” for many
The United States has sought to “support Maldives’
higher offices. Per the U.S. State Department’s 2022 Report
ongoing democratic initiatives, economic development, and
on International Religious Freedom, “the law criminalizes
social and environmental ambitions,” according to the State
‘criticism of Islam’ and speech ‘in a manner likely to cause
Department. U.S. foreign assistance to Maldives is aimed at
religious segregation’” and “the penal code permits the
strengthening democratic institutions, civil society, fiscal
administration of certain sharia punishments, such as
transparency, maritime security, counterterrorism, and law
flogging, stoning, and amputation of hands.” In May 2021,
enforcement. Between September 2018 and October 2023,
former President Mohamed Nasheed—a vocal critic of
Congress appropriated $36 million in bilateral foreign
religious extremism—was injured in an apparent
assistance to Maldives. Over that same period, Congress
assassination attempt. Maldives authorities said Nasheed
appropriated more than $10.8 million in Foreign Military
“was targeted because the perpetrators believed he publicly
Financing to Maldives under the Bay of Bengal Initiative,
mocked and insulted Islam.”
in support of Maldives’ maritime security capacity. For
FY2024, Congress has appropriated $9.5 million in bilateral
According to the State Department’s 2022 Integrated
foreign assistance via P.L. 118-47.
Country Strategy for Maldives, “[m]edia reports continue to
indicate Maldives provided the highest number of foreign
In July 2023, the U.S. Department of the Treasury’s Office
fighters per capita to terrorist organizations, including both
of Foreign Assets Control added alleged Maldivian
the Islamic State and al-Qaeda.” According to the 2022
supporters of the terrorist groups ISIS and al-Qaeda—
Report on International Religious Freedom, “U.S. officials
including 18 alleged ISIS and ISIS-Khorasan facilitators
regularly raise concerns with Maldivian counterparts about
and two alleged al-Qaeda operatives, along with 29
the harassment of individuals and organizations
associated companies—to the Specially Designated
characterized as ‘irreligious’ and have urged the
Nationals List pursuant to Executive Order 13224.
government to formulate a long-term strategy to deal with
online hate speech and harassment of [nongovernmental
Congressional interest in Maldives has focused on the
strategic value of the country’s geographic position in the
organizations] and individuals, threats against individuals
targeted as ‘secularists’ or ‘apostates,’ and promote
Indo-Pacific. Section 5595 of the James M. Inhofe National
tolerance of religious traditions.”
Defense Authorization Act for Fiscal Year 2023 (P.L. 117-
263) requires the Assistant Secretary of State for the Bureau
Climate Change
of East Asian and Pacific Affairs to submit to the
Climate change is an “existential threat” to the islands that
congressional foreign affairs committees a report outlining
make up Maldives, according to the U.N. Development
a two-year strategy assessing the resources and activities
Program. According to a 2016 World Bank assessment,
required to achieve certain policy objectives in the Indo-
“the entire country could be submerged before the end of
Pacific region, defined explicitly to include Maldives.
the [21st] century as 80% of land is less than 1 meter above
sea level. With 42% of the population and more than 70%
Ricardo Barrios, Analyst in Asian Affairs
of critical infrastructure within 100 meters of shoreline, in
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Maldives: Background and Issues Facing Congress

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