Speaking at a function to inaugurate Malé Area of the Maldives National Defence Forces, President Mohamed Nasheed has said the government has decided to withdraw the bill on decentralization.

In a letter sent to the People’s Majlis today, the President’s Office informed the government took this decision in order to resolve the deadlock at the People’s Majlis over the bill.

According to the letter, the government will re-submit the bill to the People’s Majlis for its first session in 2010, after consultation with political parties and other concerned parties
In his speech at the MNDF function, President Nasheed defended government’s policy on decentralization.

The President said concentration of powers in Male’ had led to extreme congestion, while it also made life very difficult for the rest of the country because of lack of basic services.

“Unless we devolve these powers and distribute economic prosperity throughout the country, we cannot escape from the hardships of life both in Male’ and in the islands,” said the President.

He said it was the responsibility of the government to pursue decentralization in accordance with a manner agreed by all parties.

He said while he respected the main proposal by DRP, the government’s position was that electoral constituencies should be grouped for regional administration.

President said 54% of the people who voted in the Presidential election had backed MDP Manifesto which states the country will be decentralized through creating seven regions.

As the main reason for this policy, the President said economies of scale would only be possible through regionalization.

“It was impossible for a single island or atoll to develop in the manner in which a province could develop exploiting 40% of its income and natural resources,” said the President.

“Decentralized governance through regionalization will not be a win for any specific political party. In reality it will be a victory for the Maldives”.

In the bill, the government proposed to allocate up to 40% of the income earned at the provinces for its purposes.