The visiting Maldives President, Mohamed Nasheed and his Acting Minister of Finance and Treasury, Mahmood Razi had a discussion with the Indian Finance Minister, Pranab Mukherjee on this issue here on Thursday when the latter called upon the former.

According to sources, The Malvides President is likely to meet the Indian Prime Minister, Dr Manmohan Singh in the early hours of Friday and a formal announcement of India’s new line of credit to the Maldives is likely to be made. The Indian Minister of State for Environment and Forests, Jairam Ramesh will also call upon the visiting Maldives President. Apart from the finance minister on Thursday, the External Affairs Minister, SM Krishna and the Chairperson of the ruling UPA coalition, Sonia Gandhi called upon the Maldives President.

President Nasheed will share with the Indian Prime Minister his country’s experience in eradicating poverty which has gained legitimacy in the region as a result of the Maldives graduating from a least developed country (LDC) to a developing country.

President Nasheed is on a visit to India on an invitation of South Asia Centre for Policy Studies (SACEPS). Inaugurating the World Conference on Recreating South Asia : Democracy, Social Justice and Sustainable Development, he said : “It is only a democracy, and a liberal capitalist system, which can deliver broad-based sustainable growth and development.”

He reiterated the government’s commitment to promote democracy and economic freedom to ensure sustainable development of the Maldives.

He said liberal democracy, economic freedom with a strong social safety net were fundamental prerequisites for the development of any country. President Nasheed’s words are important in the context of the recent growing upsurge in the Arab world for democracy.

“This is certainly the formula that we are following in the Maldives,” he added.

Speaking on building a successful democracy, the President said successful democracies were more than just separation of powers and right to vote.

He said, “successful democracies must protect the freedoms that allow people to thrive.”

President Nasheed underlined the need for “strong political parties, a flourishing civil society and a fearless press” to protect the core freedoms of the people.

Nobel Laureates Dr Amartya Sen of India and Muhammad Yunus of Bangladesh were among the notable speakers at the conference.

Immediately after assuming office after being democratically elected, President Nasheed had visited India in December 24, 2008. India had extended standby credit facility to the Maldives to alleviate its national budget deficit and the dire economic situation then faced by that country. India assisted the Maldives in setting up of the Indiria Gandhi Hospital, Faculty of Engineering Technology and Faculty of Hospitality and Tourism Studies.