Undoing Decentralization: The Heavy Cost of Eliminating Atoll Councils

Just a few days ago, the Parliament took a decisive vote, with 75 in favor and just 12 against, approving a constitutional amendment to abolish Atoll Councils. This is a blatant reversal of decentralization since the 2008 Constitution established multi-tier local governance, and this sliding back on gains that have been made towards greater decentralization is a matter for grave concern and dismay. 

Allegations that Atoll Councils are an unnecessary strain on state budget and an additional, burdensome bureaucratic layer, made me reflect on my experience and understanding of Atoll Councils and their roles and functions. I would like to explore some examples based on personal observation. 

When I took on the role of CEO at the Local Government Authority in 2020, it was during the height of the COVID19 pandemic restrictions and measures across the country. Taskforces and response teams set up to facilitate basic services were aided greatly by Atoll Councils who undertook coordination tasks for months. Atoll Councils played a crucial role in preventing crisis situations and deserve to be acknowledged in the national effort during a most challenging time.

In 2021, I had the opportunity to attend the atoll level workshop on development planning organized by Noonu Atoll Council. Sessions focused on effective resource sharing for greater synergy between islands and state institutions within the atoll, prudent land use planning for equitable and fair opportunities for everyone, sustainable waste management and very importantly on greater digitalization initiatives to boost efficiency. Over the next couple of years I saw that it was not mere talk. They were exemplary in utilizing technology, resource sharing was prioritized in islands like N Maafaru, waste management is exceptional in N Kudafari, and while individual island councils had displayed remarkable leadership in attaining these successes, the Atoll Council has been an ever present and notable force lobbying for the rights of all of their islands, especially where resources such as uninhabited islands in the atoll were concerned.

In 2021 I also attended the Haa Dhaalu Atoll Vision Forum, with over a hundred participants from all the islands in H Dh. At this forum the island councils and Women’s Development Committees came together with representatives from all state institutions, civil society and even former island and atoll chiefs to discuss how they can work together to achieve their development objectives. I saw this translate into action over the next couple of years as well.

The same year, it was a pleasure to participate in the Ba Atoll Vision 2030 forum, a wonderful initiative of Baa Atoll Council. Kendhoo shared aspirations for food security, Goidhoo planned to be the ‘garden island’, Fulhadhoo for development that prioritized conservation, Thulhaadhoo for culture and heritage promotion, Kamadhoo for local tourism and tech friendly service provision, Kihaadhoo for sustainable waste management plans. Everyone had a vision, a clear idea of challenges and possible solutions derived from collective experiences of all the islands. This dialogue drove home the importance of islands within an atoll coming together to work on their issues and seek solutions as strong, unified unit. In March 2023 I joined the Vision 2030 review forum, and was able to witness several of these plans come together two years on, encouraged and supported by one another. I was overjoyed to join over 130 students in Fulhadhoo for a coral restoration project led by Baa Atoll Council and the Ministry of Tourism, witness Kihaadhoo’s wonderful strides towards sustainable waste management and Kamadhoo’s renowned local hospitality. Baa Atoll Council has remained a steadfast voice for all of them, advocating for greater autonomy and rightful claim to natural resources within the atoll. 

True leadership is seen in finding solutions even to the least talked about but often most damaging problems. Haa Alif Atoll Council identified that a lot of the administrative and audit issues arose from unfamiliarity with the Finance Act, relevant regulations and procurement processes. To ensure better financial management at all island councils of Haa Alif atoll, the Atoll Council convened an atoll level training workshop in 2022 not only to address this, but also facilitated automated HR and office management systems for all of the councils to reduce cumbersome paperwork and improve efficiency of council offices. The Atoll Council reported significant improvement in the months following the training.

I recall the admirable efforts of Shaviyani Atoll Council to promote greater self sufficiency among councils and WDCs of Shaviyani Atoll, particularly in organizing atoll level trainings focusing on seeking funds, preparing proposals and project management. In 2022 I had the pleasure of attending such an atoll forum and observed the dedication of an exemplary Atoll Council. Shaviyani Atoll Council had continued to lead the way in several fronts that they repeatedly and consistently won awards given by the LGA ranking councils that performed best in various sectors and overall. 

In 2022 Laamu Atoll Council introduced a public perception survey of the councils in the atoll by going door to door and getting public reviews, based on which they awarded the councils at the Laamaseelu Laamu Hahdhunmathee Awards. Attending the ceremony, I also noted the Atoll Council encouraged CSOs and individuals contributing to their communities through awards, grants and other means. Laamu Atoll Council also coordinated numerous, very well organized and well attended forums and trainings, most notably the Laamaseelu Laamu Mahaasinthaa, that brought together island councils, WDCs, schools, health centres, law enforcement agencies, other state representatives and CSOs together with policy makers which no doubt made remarkable impact moving forward.

It isn’t only in trainings and forums that we see the Atoll Councils perform remarkable feats. When the Ministry of Gender and Family (currently Ministry of Family and Social Development) was rolling out the IBAMA program which established informal community service networks in islands, Vaavu Atoll Council led the way in not only ensuring successful initiation but they became advocates for IBAMA and bastions for the system across the country.  There was never a meeting regarding IBAMA where the former Minister did not praise the dedicated support of the Atoll Council and emphasized the significance of their role, driving home the importance of engaged and enthusiastic leadership at Atoll level. 

My tenure at the LGA taught me one thing about Atoll Councils – the LGA does not have the resources to look into every single matter brought to the Authority’s attention and Atoll Councils can be relied on as an effective monitoring layer. This layer was so useful in fact, we initiated a monthly online Atoll Councils meeting, which resulted in smoother coordination, speedy solutions, and greater inter Atoll collaboration.

We had numerous discussions with the Civil Service Commission on establishing an administrative framework at Atoll Councils which enabled them to recruit lawyers, planners, auditors, conservationists and other technical expertise from diverse sectors. It was my understanding that in time Atoll Councils should ideally expand, and LGA in tandem, should become smaller as more roles and responsibilities were effectively decentralized, and more power devolved to island and atoll councils. Instead we now see their powers stripped and the creation of a Local Governance Ministry which, according to many councilors, has caused confusion for those involved in the local governance system and even international development partners and donors regarding overlapping mandates of the Ministry and LGA.

Government’s Rationale for Abolishing Atoll Councils

This hasty constitutional amendment to abolish Atoll Councils was justified as a measure to “streamline administration,” reduce layers of bureaucracy, and achieve fiscal savings. We only have to look at recurring headlines of widespread corruption, unchecked contracts, murky dealings of central government agencies to deduce that this argument is illogical. Available evidence, comparative fiscal analysis, and governance assessments indicate that the decision is unlikely to produce meaningful savings and will undermine local representation, regional coordination, and resilience planning. 

Abolition of Atoll Councils addresses the wrong problem. If fiscal consolidation and bureaucratic efficiency are the objectives, the Maldives must instead target the structural inefficiencies driving the State’s financial burden: an oversized Parliament, proliferation of political appointees, expansion of state-owned enterprises (SOEs) for political patronage, and systemic wastage through weak procurement and corruption. Removing Atoll Councils not only weakens the decentralization agenda but also misdiagnoses the loci of inefficiency.

To make matters more confusing, addressing The Kaaf Forum on 28 November, Minister Adam Shareef has stated that no employees of any Atoll Council will lose their jobs following this change. What costs the government will then be reducing seem to be unclear. If these offices were an unnecessary bureaucratic layer, what function they will proceed to perform is also unclear. 

Why Atoll Councils Matter: Governance, Equity, and Accountability at Risk

Atoll Councils historically facilitated equitable distribution of uninhabited islands and resources, harmonized atoll development plans, coordinated public health and environmental protection programs, aided in disaster preparedness and emergency coordination, and mediated between islands as well as with line ministries. These functions are not substitutable at the island level. Without an atoll tier, neighboring islands may operate in silos or resort to competitive claims, undermining coherent decision-making.

The 2008 Constitution envisioned a multi-tier local governance system designed to bring decision-making closer to citizens. Atoll Councils served as the intermediate body that aggregated community interests and enabled regional representation. 

The amendments to the Decentralization Act in 2019 further enhanced this vision by ensuring that the Atoll Councils were comprised of all the Island Council Presidents of the Atoll and led by an Atoll Council President elected through an atoll-wide vote. This guaranteed representation of every island at the Atoll Council, giving equal say to the largest and smallest islands alike. As a unified voice they were able to negotiate strongly, and this collective bargaining power of the islands will now be lost, leaving more decisions to whim and fancy of the central government.

Abolishing Atoll Councils risks fragmenting local governance by forcing individual Island Councils to deal directly with central ministries without a coordinating regional body. This creates administrative bottlenecks, especially for smaller islands with limited capacity to articulate their needs or navigate national systems. It also heightens inequity within atolls, as larger or more politically influential islands may gain disproportionate access to resources, infrastructure, and development opportunities.

The decision further weakens regional climate resilience and disaster preparedness, as effective emergency response, coastal protection, and shared waste management depend on coordinated atoll-level systems. Without Atoll Councils, central agencies face greater strain and may deliver slower, less integrated responses during climate-related shocks. At the civic level, communities lose an essential platform for collective representation in planning, budgeting, and resource allocation; concentrating decision-making power in the centre and reducing meaningful citizen participation in regional development.

A Distraction From the Real Fiscal Failures

Contrary to political rhetoric, Atoll Councils constitute a minor budget line. Their salaries, operational costs, and local administrative expenditures represent a fraction of the annual decentralized allocations. Their removal produces negligible financial savings relative to the broader state payroll. If the government seeks to reduce expenditure and redundant layers of authority, the biggest inefficiencies lie elsewhere.

Maldives maintains one of the highest MP-to-population ratios globally. The cost of a single MP, including salary, allowances, travel, committee operations, and long-term benefits, exceeds the annual expenditure of an entire atoll council. Rationalizing a leaner parliament would deliver meaningful savings without undermining local democracy.

Dozens of State Ministers, Deputy Ministers, and politically appointed advisors in ministries create overlapping portfolios and inflate administrative spending. Many of these positions are not essential to service delivery and exist primarily for political accommodation. Capping political appointments and transitioning to merit-based senior civil service roles would enhance efficiency and reduce public costs. Ironically there is a Ministry of Local Governance with an unjustifiable number of political appointees whose contribution to the local governance apparatus is unclear when the government had decided on abolishing Atoll Councils as imperative. 

State-owned enterprises, originally established for service delivery and strategic investment, have become politically inflated organizations. Widespread overstaffing, duplicate roles, and politically motivated hiring practices burden SOEs’ wage bills and increase public debt through government guarantees. Independent audits consistently flag operational inefficiencies, lack of productivity benchmarks, inflated procurement, and governance weaknesses in boards appointed for political alignment rather than competence. Reforming SOEs would yield far greater fiscal gains than eliminating Atoll Councils.

Just this month, the public has been in an uproar over opaque state contracting, which is often the cause for much financial drain. We can list inflated infrastructure tenders, misuse of contractor-financing models, irregular procurement at ministries and SOEs, unmonitored leases, and failure to enforce accountability at multiple administrative layers as things to be more concerned about before culling Atoll Councils to reduce the strain on state budget. Anti-corruption reforms, transparent procurement systems, and fiscal discipline would reduce wastage by billions, far beyond any savings achieved from abolishing Atoll Councils.

I extend my heartfelt congratulations to the current Atoll Council Presidents and Councilors for their remarkable dedication to decentralization and local governance as their terms draw to a close. I urge civil society, political parties, the media, and all advocates for local governance to raise their voices now in solidarity. Abolishing Atoll Councils will silence the collective voice of our islands and strip communities of their power to be heard and represented.

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