In a "solemn" ceremony at midnight on Saturday, the Maldives government took over control of the Male international airport from GMR, an Indian company, that had made the largest-ever FDI investment in the tiny island country in the Indian Ocean. On Thursday, a Singapore court of appeal had ruled that the Maldives had the right to take back its airport.
The Maldives government does not have the wherewithal to manage and run this airport. Having done a Dabhol on GMR, they are likely to scare away other international investors who might feel vulnerable to rampaging Islamists who might turn against international deals. It is, therefore, not inconceivable that the Maldives could turn to the only other country that has deep enough pockets to absorb all this. Welcome, China.
The current coalition in Male supporting Mohamed Waheed is a hodgepodge of Islamic parties that thrive on an anti-India platform, some of it indigenous, much of it, observers say, inspired by Pakistani elements and allegedly funded by money from certain sections in Saudi Arabia.
Waheed has also shown that the anti-India plank is a perfectly successful political one. Scalping a big company like GMR can be expected to keep the Islamists to his side and produce political results in the next elections.
09/12/12 Indrani Bagchi/Economic Times
