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By Prof J K Sharma

Why is the Maldives a cause of increasing about India’s policy toward other nations and its
concern to India? Explain and comment. foreign policy priorities and its diplomatic operations.
India-Maldives relations are not at their best at the It is a voluntary program. The ministry would equip
moment. For a decade, Maldives government’s actions them with a standardised presentation to which they
are causing concerns in New Delhi as it has been losing may add their own variations and improvisations on
influence over the island nation. The Maldives is near the basis of their personal experiences. Hopefully,
all major trade routes of the Asian region. Its location students will not only learn about Indian diplomacy
in the Indian Ocean makes India constantly wary about but also about India’s place in the amity of nations, its
the international activity surrounding the Maldives global ambitions and maybe, they will also explore
because regional rival China has been increasing its possibilities of opting diplomacy as a career. A similar
influence over this strategically located small mid-ocean program was offered to the IAS officers which required
nation. The Maldives is close to the Gulf of Aden and them to revisit development in places of their first
the Strait of Malacca. Most of the energy supplies from posting and make recommendations. SAMEEP is
the Middle East are transported along these routes. abbreviation for ‘Students and MEA Engagement
And, the Maldives has signed a Free Trade Agreement Programme’.
with Beijing. This worries the Indian government. In
fact, the archipelago owes almost 70% of its debt to Only 4 major nations have higher bad loans
China. Financially, Maldives is now completely in than India. Consider the implications of bad
Beijing’s grip. India has genuine fears that the Chinese loans for Indian economy.
are encircling India with its vassals and this effort is The 9.85 per cent ratio of bad loans in banks has put
succeeding. As Sri Lanka’s decision to hand over the India in the group of those nations that have very
Hambantota port to China on a 99-year lease has caused high non-performing assets. The only major countries
some consternation in Indian diplomatic circles, so does with similar ratios are the troubled EU nations:
the Maldives’ Abdulla Yameen government inspires Portugal, Italy, Ireland, Greece and Spain — commonly
little confidence in India. It has shown scant regard for referred to as PIIGS. China, Argentina and Chile have
India’s security-related concerns, despite the country’s low ratios of 1-2 per cent. CARE, a rating agency, in a
professed ‘India First’ policy. report says India’s NPA ratio which excludes
restructured assets that are around 2 per cent higher
MEA launches SAMEEP to take Indian than NPA is among the highest of ‘high-NPA’ nations.
foreign policy to students across the Even among the troubled PIIGS, Spain has a lesser
ratio of bad loans compared to India. According to
country. What do you know about SAMEEP?
CARE chief economist Madan Sabnavis’ report, “The
External affairs ministry has asked all its officers on
seriousness of the NPA problem can be gauged by
leave to travel to their hometowns, and their alma mater
the absolute level of impaired assets in the system.
with the purpose of acquainting students with the
Ever since the RBI had spoken of asset quality
ministry’s work. The idea is to demystify the MEA and
recognition (AQR) in 2015, there was an increase in
familiarise students regarding how diplomacy is actually
the pace of recognising these assets. For the European
conducted. The foreign office is thus reaching out to nations, the bad loans are more of a legacy problem
educated youth of the country with a new programme whereas for us it is something that got recognised
called SAMEEP. The aim of SAMEEP is to take Indian only two years back…Indian banks started recognising
foreign policy and its global engagements to students stressed loans as NPAs only after former RBI governor
across the country. Raghuram Rajan introduced asset quality recognition
The ministry of external affairs is motivating its norms forcing banks to classify stressed borrowers
officers on leave to travel to their hometowns and as defaulters.”
particularly their alma mater in order to contact and According to Sabnavis, the NPAs have created a
interact with school and college students and tell them twin problem. First, they have rendered banks short

154 Competition Wizard March 2018