Navigating between the superpowers

Maldives President Mohamed Muizzu is set to travel to India on a visit that is expected to help mend the delicate relationship between the two neighbours.

Maldives President Mohamed Muizzu. (Source: AP)

Through the ups and downs of history, Maldives and India have enjoyed a close, cordial and multi-faceted relationship. While Maldives regards India as its primary security partner, India sees Maldives as having a special place in New Delhi’s “neighborhood first” foreign policy.

However, this relationship is showing signs of "going downhill" due to differences in interests and disagreements in views in some cases, especially Mr. Muizzu's orientation of moving away from India's "sphere of influence" to engage with China.

After a visit to Beijing in January 2024, Mr. Muizzu made a statement that upset New Dehli, saying that “the Maldives will not be bullied” and that the country “is not a country in another country’s backyard.”

Nevertheless, the Maldivian-New Delhi relationship has not collapsed. On the contrary, the “near neighbor” factor has always shown its value, especially in the current debt situation of the Maldives. Official data shows that the Maldives’ external debt exceeded $4 billion in 2023, equivalent to 118% of the country’s gross domestic product and an increase of nearly $250 million compared to 2022.

In addition, next October is the deadline for Maldives to pay $25 million, part of a $500 million sukuk debt.

Muizzu’s visit to New Delhi has been described by the press as an opportunity for the Maldives to escape the threat of default. The Maldives Monetary Authority confirmed that it is discussing a $400 million currency swap with India, while additional long-term loans are also being discussed.

Navigating a path between the superpowers remains essential for the Maldives.

Source: https://baoquocte.vn/xoay-xo-giua-cac-sieu-cuong-286869.html