Australia has an opportunity to strengthen its relationship with Maldives, a key strategic component in the Indian Ocean ramp-up. Australia and Maldives are worlds apart. But one ocean unites them. Australia is the largest country bordering the Indian Ocean, which acts as the connector for its most important trade routes to Asia. Maldives is the smallest, but plays a key strategic role in the region. With the Indian Ocean as an important trade zone for Australians, the country is also required to focus beyond the Pacific. China heavily influences Australian policy in the Pacific, but China’s ramping up of diplomatic and trade relationships in the Indian Ocean now requires Australia to shore up its relationships there too. The Maldives, meanwhile, is a nation stuck between the economic powerhouses of the region — India and China. This gives Australia a unique opportunity. Because of Canberra’s relationship with these bigger powers it can bolster its relationship with the tiny island nation and soothe tensions in the region. The focus areas for Australia to enhance its development and security relationship with Maldives is by strengthening cooperation in the areas of climate change, governance, human development and maritime security. During 2022-23, the budget estimate for Australian Official Development Assistance to Maldives accounted for AUD$2.8 million. Out of the AUD$211 million in two-way goods and services trade, AUD$147 million accounted for Australian exports including bilateral merchandise trade comprising Australian ships and boats, and food and beverage to the Maldivian tourism industry. By training over 700 Maldivians in Australia under its government sponsorships, Australia has, over the years, contributed to the increasing human development records Maldives has met today. The Maldives’ very existence is severely threatened by the march of climate change. A one metre rise in global sea levels could result in 80 percent of its land being submerged. In this fight Australia has played its part, despite sometimes confusing domestic politics around the topic. Apart from its contribution of AUD$3.8 million over 10 years (2013-2023) to the United Nations Development Program’s (UNDP) Integrated Governance Programme in Maldives, Australia has continued to support Maldives’ climate adaptation efforts including the AUD$2 million to World Bank-run Climate Change Trust Fund in Maldives from 2013-2018. Ocean is an important part of Maldives’ development and security. Australia’s contribution to building maritime security capabilities — including regional-level joint exercises, training and bilateral cooperation in military, search and rescue, maritime strategy, and maritime surveillance – has helped Maldives to strengthen its national and regional security engagements in recent years. May 2024 will mark one year since Australia opened its first resident High Commission in Malé, the Maldives’ capital. According to the Australian Government, the opening of the High Commission has “further deepened our friendship and reflects Australia’s increased engagement in the Indian Ocean region”. In the transactional world of foreign relations, Australia now views Maldives as increasingly relevant in the world of its interests and that of its allies. The historically strong Indian-Maldives relationship has been somewhat strained recently. Maldives was caught in the spotlight of geo-strategic competition when, between 2013-2018, the government of former President Abdulla Yameen decided to expand its economic ties with China to support its national development agenda. Malé signed investment agreements with Beijing to support mega-development projects including a bridge connecting the international airport with the second largest residential island, Hulhumalé. Other infrastructure projects included housing apartments on reclaimed land in Hulhumalé. While these engagements were seen by the then government as enhancing mutual development partnerships, the growth of China’s presence in Maldives was seen by India as a potential threat to Indian Ocean security. India’s anxiety grew as the Maldives’s partnership with China grew. In 2018, everything changed. Yameen’s successor, Ibrahim Mohamed Solih, reinstated an “India-First policy” leaning the country’s priorities for development and security cooperation to New Delhi. Maldives signed further development and security agreements with India including India’s funds to help address foreign debt (from China included) and aid further mega infrastructure projects including building a bridge to connect Malé, Villimalé and two other islands.
Aging Digest
How Australia can win hearts and minds in the Indian Ocean
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