“We inherited an economy in crisis”: President Nasheed
02 May 2010, 6:15 PM
The Maldives faced the worst economic situation of any country undergoing democratic transition, according to World Bank statistics for the last 50 years, President Mohamed Nasheed has said.
In his address at the 16th SAARC Summit last week, President Nasheed said the global recession hit the domestic economy hard at a time when the country was “still adjusting to the recent shift from authoritarianism to democracy”.
While the transition has been “smooth, secure and stable” in the first 18 months of democratic governance, said Nasheed, the new administration inherited “an economy in crisis”.
“In the years leading up to the 2008 presidential elections, the former administration went on a spending spree that almost bankrupted the country. Public expenditure was at a peak of 64% of GDP in 2008,” he said. “We took over a budget where 70% of government revenue was spent on public sector wages. Our administration inherited a huge national debt. Our deficit in 2009 was set to be at 33% of GDP.”
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