Monday, November 05, 2007

State welfare can lead to a crutch mentality

Maldives is hitting the election fever and political parties are positioning to appease the voters.

The Maldivian government has announced that it would increase the wages of the state employees in 2008 . Further measures include the government funding the books and stationary needed by all students from Grades 1 to 12. In addition, the fee for participating in the O' level and A' Level exams are to be paid by the government for those who can't afford it.

While we welcome a little benevolence from the Government, when the budget for 2008 is presented to the parliament, members will have to find out how this social welfare scheme is being financed. Who is paying for this handout? While many needy children will benefit from this programme, the rich don't need government handouts for their children for the rich are blessed with an abundance of wealth. Such schemes need to be designed to help the needy and to help them become self-reliant. While the social realities of our country make it necessary to help the needy through such programmes, it is also worth noting that most of the countries that practice such welfarism find that lifelong handouts is not the solution to the low income group. Such action tends to create a mentality of dependency on the those who are able to give. It is important to empower the people at the lower income levels, for them to have the self determination to help themselves. It is important to create the conditions and provide the incentives for such people to build up their own capability and to earn their living.

The main opposition party MDP has said the party will ensure all Maldivians benefit from tourism the mainstay of our economy, give more tourism jobs to Maldivians, open doors for Maldivians in the industry, and use tourism to strengthen the economy. MDP has also said it wants to dismantle the present patronage system by taxing the businessmen with corporation tax and introducing income tax and at the same time allow ownership of property rights. They will reduce import duties and remain committed to free market economics. MDP's detailed policies on health care, education, taxation and the economy will be made public only a month prior to the 2008 general election.

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