The Ministry of Finance has signed two grant agreements totaling USD 34 million from the World Bank for the Sustainable and Integrated Labor Services (SAILS) Project and the Digital Maldives for the adaptation, decentralisation and diversification project.
The Government has signed on July 4th, a grant agreement, that will provide USD 24 million for the Sustainable and Integrated Labor Services (SAILS) Project. The project would be implemented jointly by the Ministry of Economic Development and Maldives Pension Administration Office with the goal of strengthening the adaptability and employability of Maldivian workers - by establishing a sustainably financed unemployment insurance scheme and integrated labor market services.
Ever since the COVID-19 outbreak severely disrupted the job market and left many without jobs, plans have been underway since last year to implement an unemployment insurance program. Before the pandemic, an unemployment insurance program may not have seemed all that popular, but as a result of the increased number of people who lost their jobs due to the pandemic, it has become clear that such a program is crucial because it would protect jobless people from poverty and prevent them from having to sell their own assets to make ends meet.
Employers and employees will both contribute to the unemployment fund as they do to the pension fund with the introduction of this scheme. However, unlike the pension fund, the unemployment fund will provide workers with a safety net and offer counseling, job service assistance, training, and coaching to assist job seekers.
The World Bank had also conducted a survey to determine the viability of implementing an unemployment insurance program in the Maldives in order to proceed with the plans.
A USD 10 million grant agreement was also signed for the "Digital Maldives for the adaptation, decentralisation and diversification" project, which aims to assist the government in fostering competition in the broadband market by regulating and modernising the national identification system to ease online services and transactions.
By monitoring emissions, implementing cutting-edge technology, and utilising current data more effectively for policymaking, this initiative will also improve climate-related data and analytics.
This project is to be implemented by the Ministry of Environment, Climate Change and Technology in partnership with the Communication Authority of Maldives, National Centre for Information Technology, and Department of National Registration.
“The World Bank is pleased to support the people of Maldives with these two grants we have signed today. This financing will help the government protect workers from future economic shocks and help those who have lost their jobs during the COVID-19 pandemic get back into the job market, it will also help harness the power of digital technologies to help protect the Maldives’ magnificent marine ecosystem on which so many Maldivians and their economy depend.” -Faris. H. Hadad-Zervos, the World Bank Country Director for Maldives, Nepal and Sri Lanka
The difficulties many Maldivians have using digital platforms due to slow internet speeds, especially on islands away from the capital city, would hopefully be alleviated by this effort. This kind of development will also help Maldivians offer and receive services safely online.
In addition to this, the project would also undoubtedly help improve with the data being gathered for projects such as the waste management project as well as the sustainable energy development projects and assist the Ministry in their aim in taking action towards becoming a more sustainably developed country.
