85% of People Living in Atolls Drink Unsafe/Untreated Water

According to the 2014 Census, 85% of the people living in the atolls drink unsafe/untreated water.

Even though 100% households in the capital Male' are provided with treated piped water, the islanders depend on rainwater.

In addition to the main source of drinking water, there are many other socioeconomic indicators that show the Regional Disparity in the Maldives.

Regional disparity means unbalanced spatial structures in some region or in different regions. Regional disparities are manifested in different conditions of life as well as in unequal economic and development potential. A good example of spatial disparity is the contrast between urban and rural areas.




According to the 2014 Census, 85% of the people living in the atolls drink unsafe/untreated water. Even though 100% households in the capi...

Review 2016: US Trade Balance was $740 Billion in Deficit While China had $532 Billion in Surplus


The trade balance, also known as the balance of trade (BOT), is the calculation of a country's exports minus its imports.

When a country imports more than it exports, the resulting negative number is called a trade deficit. When the opposite is true, a country has a trade surplus.

Statistics for 2016 show that US Trade Balance was $740 Billion in Deficit While China had $532 Billion in Surplus. 

The trade balance, also known as the balance of trade (BOT), is the calculation of a country's exports minus its imports. When a c...

Keynes: Government confiscate an important part of the wealth of their citizens


Adam Smith: Your Labour is the Original Price that You Pay

Keynes: The political problem of mankind is to combine three things


Island Profile: GA Kolamaafushi

Kolamaafushi is one of the remotest islands in the Huvadhoo Atoll Uthuruburi (GA), being about 20 kilometres away from the closest inhabited island. The island is connected to the nearby Kolaa island by a narrow causeway.

Geographic Location:

Comparative Land Area (GA Atoll Islands):

Resident Local Population:

Literacy Rate (15-24 yo):

Sex Ratio (Females Per 100 Males):

Marital Status:
Posted by EconoMaldives on Saturday, March 18, 2017

Kolamaafushi is one of the remotest islands in the Huvadhoo Atoll Uthuruburi (GA), being about 20 kilometres away from the closest inhabited...

Time to Admit that Our Institutional Approach to Social Justice Has Miserably Failed


What did you observe in the last 02 decades?

An institutional approach towards the democratisation of the society has never given any fruit but divisions, instability and political turmoil.

None of our political parties are ready to seek alternative solutions. 

A new constitution and new sets of laws, separation of powers, establishment of independent institutions and introduction of multi-party system do not make the public better off. 

Our political parties and politicians are not aware of the factors responsible for the failure of the system. If they know, they are not ready to accept them. 

True. We have brought necessary institutional changes. We trust human beings. We trusted our people in responsible positions. But, we forgot that human beings by nature are corrupted by their greed. Laws are meant to break, either by hook or by crook. You are doing it. They are doing it. Just for one reason. 

You are NOT economically independent. 

Lack of economic independence is responsible for the failure of the institutional approach. 

But, still we keep talking about bringing institutional changes. Believe us, they have failed us once and we will continue to fail as long as we do not make our leaders and voters economically independent. But, how can we do it. 

Today, we talk about one judge, another corrupt deal, negligence of some institutions etc. It is not giving us any result because the replacement of the person with another does not change the level of greed in our substitutes. 

Therefore, let us change our focus. Let us talk more about:
  1. Creating job opportunities and Employment of youth
  2. Controlling Inflation
  3. Production of domestic goods and services and increasing Economic Growth
  4. Export promotion, import substitution and reducing Balance of Payments deficit
  5. Equal distribution of national income and wealth etc
Unless these economic topics take headlines in mainstream politics and media, we can not change the greed of the people to get immediate personal benefits through authority and power.

Therefore, let us change our agenda. Let us talk more about Economic Independence. 

What did you observe in the last 02 decades? An institutional approach towards the democratisation of the society has never given any...

Keynes: Level of thirst for wealth brings about changes in the code of morals


Market Economy

Market Economic System is an arrangement where all the economic questions are answered by the price mechanism. Examples include; USA, Hong Kong, South Korea etc.

Market Economy is also known by the following names;

·         Market Mechanism
In the Market Economy the basic decisions about the allocation of resources are determined by the market forces of demand and supply.

·         Free Enterprise Economy
In the Market Economy economic activities are free from government controls.

·         Capitalist Economy
Market Economy is so-called due to the rights of ownership and control of resources possessed by individuals.

·         Laissez Fair Economy.

Features of Market Economy

1.    Private Property Right
In a market economy, individuals have the right to own and dispose of real assets. They also have the right to get income from those properties in the form of rent, interest and profit.

2.    Freedom of Choice
In a Free Market Economy;
·         Individuals are free to setup in business for themselves.
·         Producers are free to respond to the consumer preferences.
·         Workers are free to enter and leave occupations.
·         Consumers are free to spend their income as they wish.

3.    Self Interest
Market Economy encourages people to do what is best for them.
·         Firms try to maximize their profits.
·         Workers try to maximize their earnings.
·         Consumers try to maximize their satisfaction.

4.    Profit Motive
The main aim of production is to maximize profit.

5.    Price Mechanism
Price mechanism refers to the process by which prices are determined by the market forces of demand and supply.

In a Laissez Fair Economy, resources are allocated by the price mechanism. When demand for a particular good increases, it will become more scarce and its price will increase. As it becomes more profitable firms will use more resources for its production. When the demand for a particular product falls its price falls and it becomes less profitable. Few resources will be used for its production now.

In a Market Economy changes in price act as a signaling device to producers and consumers causing them to change their plans.

6.    Consumer Sovereignty
Consumer Sovereignty refers to their ability to determine what is produced by means of their purchases. Under Free Market Economy, producers will produce only those goods which are demanded by consumers. Hence, the consumers are treated as “uncrowned kings”.

7.    A very Limited Role for the Government
The government has very few economic functions to perform in the Market Economy. It maintains defense and justice in the country.

Advantages of Market Economy
1.    It quickly responses consumer wants. It is the decisions of consumers that influence production.
2.    Consumers get a wide range of goods. Producers are encouraged to produce what consumers want due to the existence of Freedom of Enterprise.
3.    Profit motive encourages the use of better methods of production. It would reduce the costs of production and prices.
4.    Economic Agents like consumers and producers have more freedom of choice.
5.    It encourages competition between firms leading to greater efficiency.
6.    Foreign Investment is encouraged due to lower government intervention.

Disadvantages of Market Economy
1.    The existence of private property right and profit motive enables some people to acquire excessive market power leading to greater inequalities in the distribution of income and wealth.
2.    Factors of Production will be employed only if it is profitable to do so.
3.    Market Economy is subject to booms and slumps. It creates uncertainty.
4.    Capitalist Economy does not fully take into account the social costs and social benefits.
5.    It does not provide public goods and merit goods.
6.    Goods and services required by the poor may be under produced due to their lack of purchasing power.
7.    Free Enterprise Economy may encourage the consumption of harmful goods.
8.    There is no guarantee that everyone who wants a job will be able to get a job.
9.    Market dominations by giant firms limit competition and exploits consumers.



Market Economic System is an arrangement where all the economic questions are answered by the price mechanism. Examples include; USA , Hong ...

Housing Affordability 2017: The 10 Most Expensive Cities To Live In


Based on the international surveys and observations with regard to the cost of housing and affordability, these 10 cities are found to be the most expensive cities to live in.
  1. Hong Kong City, Hong Kong (China)
  2. Male', Maldives
  3. Sydney, Australia
  4. Vancouver, British Columbia
  5. Aukland, New Zealand
  6. San Jose, USA
  7. Melbourne, Australia
  8. Honolulu, Hawaii
  9. Los Angeles, USA
  10. San Fransisco, USA 

Based on the international surveys and observations with regard to the cost of housing and affordability, these 10 cities are found to ...

Kim Kardashian is Good at Statistics Too


Reality television star Kim Kardashian has tweeted a statistics chart which shows the number of Americans killed annually by immigrants.

The chart shows that 02 Americans were killed by jihadist immigrants as compared to 11,737 Americans killed on 'Being shot by another American'. 
Earlier, US President Donald Trump banned visitors to USA from seven Muslim-majority nations.

Reality television star Kim Kardashian has tweeted a statistics chart which shows the number of Americans killed annually by immigran...

US Carried Out More Than One Half of World Nuclear Tests


Statistics on the number of nuclear tests carried out by individual countries show that the United States of America carried out more than one half of all the nuclear tests carried out in the world.

1. US: 1,032
2. Russia: 715 
3. France: 210 
4. UK: 45 
5. North Korea: 4 
6. India: 3 
7. Pakistan: 2
8. Israel: NA

Statistics on the number of nuclear tests carried out by individual countries show that the United States of America carried out more th...

Why the Right is Right?




Meet the Wealthiest 10 People in the World



List of Richest 10 People in the World:

1. Bill Gates
Net Worth: $75 B
Source of wealth: Microsoft

2. Amancio Ortega
Net Worth: $67 B
Source of wealth: Zara

3. Warren Buffett
Net Worth: $60.8 B
Source of wealth: Berkshire Hathaway

4. Carlos Slim Helu
Net Worth: $50 B
Source of wealth: telecom

5. Jeff Bezos
Net Worth: $45.2 B
Source of wealth: Amazon.com

6. Mark Zuckerberg
Net Worth: $44.6 B
Source of wealth: Facebook

7. Larry Ellison
Net Worth: $43.6 B
Source of wealth: Oracle

8. Michael Bloomberg
Net Worth: $40 B
Source of wealth: Bloomberg LP

9. Charles Koch
Net Worth: $39.6 B
Source of wealth: diversified

10. David Koch
Net Worth: $39.6
B Source of wealth: diversified

List of Richest 10 People in the World: 1. Bill Gates Net Worth: $75 B Source of wealth: Microsoft 2. Amancio Ortega Net Worth: ...

Majority Parents of Lower Secondary Students in Male' Schools are Tenants


According to the latest statistics, there are 22,194 students studying in Male'. Among them, 8,504 students are non-Male' students and 208 students are foreign students. 

At Lower Secondary Level (Grade 8, 9 and 10), majority of the students are from Atolls. 

According to the latest statistics, there are 22,194 students studying in Male'. Among them, 8,504 students are non-Male' stud...

Five of the Ten Largest Islands in Maldives are in the North

Growth of Maldives Annual GDP Per Capita Under Different Presidents

According to the World Bank statistics on GDP per Capita of individual countries, Maldives has shown significant improvement in the growth of its annual GDP per Capita.


Statistics show that:
  1. Annual GDP per Capita increased, on average, by US$ 198 (MVR 3050) during the 30 year of President Maumoon Abdul Gayoom's presidency.    
  2. President Mohamed Nasheed's 3 years in power had contributed, on average, US$ 223 (MVR 3439) per annum.
  3. Under Mohamed Waheed Hassan Manik's 2 years of ruling, first year (2012) was almost stationary but significant spending for 2013 election led to growth of GDP per Capita, on average, by US$ 307 (MVR 4734) under his rule.
  4. Under President Abdulla Yameen, the annual GDP per Capita had increased, on average, by US$ 615 (MVR 9483) per year. 

According to the World Bank statistics on GDP per Capita of individual countries, Maldives has shown significant improvement in the growth...

07 Ways to Make Your FuraMale Apartment Feel Like Home


According the recent statistics, Male' population is 62,000 people but there are more than 150,000 people living in FuraMale. It basically means that 2/3 of FuraMale residents are living in rented apartments and we do not have to tell anything about the rent because the tenants know it better.

1. Clean it
In a perfect world, your landlord or the previous tenant will make sure it’s sparkling, but we all know it’s not a perfect world. So be ready to do a little dusting.

2. Get the bathroom setup
Nothing says “new apartment” like a curtain-less shower, so hang one up ASAP. Then stock the bathroom with towels, a bath mat, hand soap, body wash, and toilet paper.

3. Plug in a few lamps / lights
Because overhead lighting rarely sets the right mood.

4. Get your Internet setup
Is there anything that makes you feel more relieved once you’ve moved into a new place? No. No, there is not.

5. Go to the nearest grocery store and get the essentials
Having staples like ketchup, mustard, peanut butter, milk, cereal, and salt and pepper will help you shake off that sad empty-fridge feeling. (And it’ll make all the takeout you’re ordering taste that much better!)

6. Take a stroll around your neighborhood
Now is the time to see if it really is as charming as the rental listing made it sound.

7. Introduce yourself to your neighbors 
Not only is it nice, but it helps relieve those “But what if I die alone in my apartment and no one finds me so my cat ends up eating me?” fears. 
But, FuraMale lifestyle has made people distant from human values and no one cares about the rest of the people irrespective of whether one is your neighbor or not.

But there is an economic factor that will always tell you that you are still a tenant and hence can not make your FuraMale apartment feel like your Home.


PAY RENT:
Governments, made up of Capitalists and Landlords, build FuraMale from all taxpayers' money and make you Pay Rent. 

Can you still make your FuraMale apartment feel like Home?

This is not the time to make FuraMale your Home. Instead, this is the best time for the people from emerging Towns such as Addu (City), Fuvahmulah (City), GDh. Thinadhoo, L. GanFonadhoo, L. Isdhoo and Kalaidhoo, Th. Vilufushi, Dh. Kudahuvadhoo, Lh. Naifaru, Lh. Hinnavaru, B. Eydhafushi, R. Hulhudhuffaaru, HDh. Kulhudhuffushi, HA. Kela and people from islands with direct access to airports to leave Capital FuraMale. 

According the recent statistics, Male' population is 62,000 people but there are more than 150,000 people living in FuraMale. It ba...

Private Limited Companies


Features
v  Must use the word “Limited” or “Ltd” after its name
v  Can not invite the general public to buy its shares and debentures
v  Must have a minimum of two shareholders
v  Can have one or more directors
v  Can not transfer its shares freely
v  Need not to have trading certificate

Advantages
v  Shareholders have limited liability
v  There is no limit on the maximum number of shareholders
v  Death of a shareholder does not effect the life of the company
v  Need not to get trading certificate to commence business
v  It can have a minimum of one director

Disadvantages
v  It can not invite the general public to buy its shares and debentures
v  Shares can not be transferred freely
v  Relatively lower capital

Features v   Must use the word “Limited” or “Ltd” after its name v   Can not invite the general public to buy its shares and debentu...

President Erdoğan Has Significantly Reduced Turkey's Gross Debt

Recep Tayyip Erdoğan is a Turkish politician who has been the President of Turkey since 2014.
He previously served as the Prime Minister of Turkey from 2003 to 2014 and as the Mayor of Istanbul from 1994 to 1998.

Statistics show that Erdoğan has significantly reduced the Turkey's Gross Debt since he came to Power in 2003. 

Unlike Turkey, most of the economic powers are struggling with growing national debt. 

G20 Countries with Highest Government Debt, as a Percentage of GDP:
  1. Japan: 230% 
  2. Italy: 132% 
  3. US: 103% 
  4. Spain: 98% 
  5. France: 95% 
  6. UK: 89% 
  7. Canada: 86% 
  8. Germany: 75%

Recep Tayyip Erdoğan is a Turkish politician who has been the President of Turkey since 2014. He previously served as the Prime Minister ...

L. Gan Itself is Bigger Than the Combined Total Land Area of All Islands in Each of These 12 Atolls


Note: Male' is not included in calculating land area for Kaafu Atoll. Only inhabited islands are counted for the purpose of calculation.

Note: Male' is not included in calculating land area for Kaafu Atoll. Only inhabited islands are counted for the purpose of calculation...

Island Profile: AA Rasdhoo

Rasdhoo is an inhabited island of the Maldives. It is also the capital of the Alif Alif Atoll administrative division. As of September 2016 Rasdhoo island boasts 16 guesthouses. There is public ferry from Male' on Sunday, Tuesday, Thursday that thakes 3 hours.

Geographic Location:

Comparative Island Size (AA Atoll Islands):

Resident Population:

Literacy Rate (15-24 yo):

Sex Ratio (Females Per 100 Males):

Marital Status:
Posted by EconoMaldives on Wednesday, March 8, 2017

Rasdhoo is an inhabited island of the Maldives. It is also the capital of the Alif Alif Atoll administrative division. As of September 201...

Joint Stock Companies

Definition
A Joint Stock Company is an association of people who contribute towards a joint stock of capital for the purpose of carrying on business with the view to profit.

The stock of capital is divided into many small units called shares. People who buy these shares are known as shareholders. The company is legally owned by shareholders. They elect a board of directors to manage the business. The total profit is then distributed to all shareholders. Each part of profits paid to shareholders is called dividend.

Limited Liability
A shareholder’s liability for the debts of a joint stock company is strictly limited to the value of the shares he has agreed to buy. Once shareholders have fully paid for the shares, they have no further liability for the company’s debts.

Features of Joint Stock Companies
v  It has a separate legal existence from its shareholders
v  Shareholders are the owners of the company
v  Company is managed by board of directors
v  Shareholders have limited liability
v  There must be a minimum of two shareholders
v  Companies are regulated by Companies Act 1980
v  Profits of the company is divided among the shareholders in the form of dividend
v  A common seal is used to sign the important documents

Types of Joint Stock Companies
There are two types of Joint Stock Companies. They are;
1.    Private Limited Companies
2.    Public Limited Companies



Definition A Joint Stock Company is an association of people who contribute towards a joint stock of capital for the purpose of carrying o...

Debt Crisis


Functions of Central Bank


Central Bank 
Each country has a central bank. It is the leading bank generally responsible for overseeing the banking system acting as a clearing banker for the commercial banks and for implementing monetary policy. In addition, many central banks are responsible for handling the government’s budgetary accounts and for managing the country’s external monetary affairs, in particular the exchange rate. 

Functions of Central Bank 

1. It is the government’s bank 
It receives government’s income from taxation and makes necessary payments on behalf of the government. 

2. It is the banker’s bank 
Commercial banks keep accounts at the central bank and use them to settle debts between themselves. 

3. It manages the national economy 
It influences the rate of interest and the amount of bank lending to achieve the objectives of the government. 

4. It is the sole note issuing authority 
In the UK Bank of England issues notes and its satellite Royal Mint issues coins. 

5. It is the lender of last resort 
It helps the commercial banks when there is a shortage in the banking system. 

6. It holds the official stocks of foreign currency and the gold reserves. 

Money Supply 
Money supply refers to the amount of money in circulation in an economy. The government tries to control the money supply for several reasons. The size of money supply is an important determinant of the level of spending in the economy and its control is a particular concern of monetary policy. An increase in money supply raises consumer spending and hence inflation. A fall in money supply reduces investment and hence economic growth. Therefore, the central bank has to adopt various policies to eliminate the drawbacks. 

1. Changes in the Bank Rate 
Bank rate is the rate of interest charged by the central bank on its loans and advances given to the commercial banks. A rise in bank rate reduces lending power of commercial banks and so does money supply and vice versa. 

2. Changes in the Rate of Interest 
Rate of interest is the cost of borrowing. Any changes in the rate of interest will influence consumer borrowing which in turn affect consumer spending. A rise in the rate of interest makes borrowing expensive. It reduces borrowing and hence money supply. On the other hand, a fall in the rate of interest makes borrowing cheaper. It raises borrowing and hence money supply. 

3. Changes in the Cash Reserve Ratio 
Cash reserve ratio is the proportion of commercial bank’s total assets that it keeps in the form of highly liquid assets to meet the day-to-day currency withdrawals by its customers and other financial commitments. The central bank can influence the cash reserve ratio of commercial banks to control the monetary base of the economy. 

4. Open Market Operations 
It refers to sale or purchase of government treasury bills and bonds as a means of controlling the money supply. Selling securities will reduce money in circulation. Buying securities from the general public will increase money in circulation. 

5. Special Deposits 
The central bank has the power to order commercial banks to make payments into a special account at the central bank. Payments into these special deposits reduce the commercial banks’ supply of liquid assets. It reduces their ability to lend and create bank deposits. Release of these special deposits increase commercial banks’ cash reserves. 

6. Making Directives 
The central bank also has the right to issue instructions to the commercial banks regarding their lending activities. It can request them to restrict certain types of lending when necessary.

Central Bank  Each country has a central bank. It is the leading bank generally responsible for overseeing the banking system acti...