MVR 19b pension fund can fund island development: Inaz

Former Finance Minister and Pension Office Board Chairman Dr Ahmed Inaz has urged the government to use the pension fund for infrastructure development in the islands. 

Speaking at the launch of the World Bank's latest Maldives Development Update report at MNU Business School on Wednesday, Inaz said the challenges in bringing about development may seem large and looming.

However, Inaz has shared three main things he believes can be overcome.

The first thing Inaz said is to spend on infrastructure development projects using available funds such as pension funds, which are already used to raise money for the state budget.

“The approximate MVR 19 billion in the pension fund can be used, productively, as strategic investments for development in the atolls,” he said.

However, it is important to build a culture of saving among the public by finding ways to save for the future when using the funds, he said. He believes that the government should take the first step in this regard.

He said additional funds should be created to raise funds for the projects.

In his speech, Inaz noted the second way to overcome the obstacles to infrastructure development, is to conduct research to find strong and sustainable ways to implement projects. For example, he believes that major institutions such as the National University and Islamic University could conduct such research in collaboration with private colleges.

"What is happening now [I think] is that the islands are taking Male as an example of a development model. If there is a big harbour in the city, the islands need a big harbour or they an airport," he said.

As a final point, Inaz mentioned that development projects should be implemented with a political cycle in mind. When islands look at the city as a model of development, Inaz's speech suggests that projects are implemented without thinking beyond a political term.

"What happens every five years is that the projects implemented by the previous government are ignored. There is no strategic plan," he said.

Inaz said political parties should work together to bring about development and councils should be empowered.

If the whole point of politics is to serve and develop a nation, then politicians must ensure that political division does not become the cause of a nation’s downfall.