Economizing in the best way...12 new cars

Maldives is going thorough one of the biggest setbacks of economics situations in the recent history. The prices are rising more than ever before. One thing for sure is that prices are increasing. Since I don’t know the real figure I will not say that our inflation is at this particular rate. However, according to IMF they forecasted it to be at 7% (IMF site); MDP says it is 9 %( MDP site) and the government put it as just an increase of 1.40 by June 2008(ministry of planning and national development website). Now which one is right? I leave it for you. My point is simple. There is inflation in Maldives and it is increasing.

If we don’t want to make another Zimbabwe case here, we need to be more responsible than we are. Zimbabwe already has a record inflation of over 165,000%, according to IMF. I am not saying that we are in such a situation. But are we going to act on now or will we also, make the same mistake of wait and see?

Very often we hear about economizing these days. But the question is, are we really doing it? I don’t think so. We did hear about a government announcement to cut back the cost where ever possible. The president and the government seniors did advice to stop spending wherever it can be done. In this case the teachers who were claiming for a better pay was given a nice excuse that there is no money. But within few days we did see the very colorful celebrations of the July 26th (Independence Day). As huge amounts were spent from both the government and the people, none seemed to be bothered about the economic status of the country. No one really seemed to be seriously thinking about the economic situation. Money politics is becoming the new fashion.

Yesterday, I was shocked to see the government announcement for a bid to buy 12 cars. This comes after government bought 11 cars already in this year. This is the biggest mistake from the side of a government. The concept of spending the money that is generated on luxury goods rather than the very much needed basic goods and services for the people. Very often this concept is seen as a sign of mismanagement of the economy. If then, where is the future of us and our economy, which is mainly based on the very vulnerable services sector???
Every single effort made will have an impact. Now my last question for you is…did you do your part?