The economics of resort workers earnings..
Hillary Clinton made a big fuss about it, a Bangladeshi financier earned Nobel price because of it, but what is it?
tic, tac, tic, tac, tic, tac…. time up..!
The answer is micro financing.
Although much ignored by the politicians, its micro finance which drives communities to success and prosperity. In developed countries these lessons were learnt the hard way and they understand the need to assist the small business owners (they call SBO ..) and there are various departments in governments set up to help and develop and to assist them.
Comparing the Small Business Owner to the average resort worker, there are very interesting parallels where money is concerned. Both make sacrifices to earn a living and both earn although differently. Suppose a small business owner in the island invests 20kRf and starts a small business. If all the goods in the shop were sold out in the course of 1 month (which will not happen) he would have made a profit of 1/5th of the value of his goods which would be 4kRf. Added to this are the worries of the bills and invoices, the registration fees and the weather which determines the supply of items from Male’ etc etc. However the same kind of money (or more!) can be made by the resort boy investing his bare hands and whatever was needed as qualification at the time he was hired in to job. A resort boy who earns 4kRf is indeed the same as the SBO who invested 20kRf to earn 4kRf. that is they create the same amount of wealth although the outflow of their money is different.
For the SBO whatever he earns as disposable income will immediately go towards finances of his family whilst the resort boy’s (or girl for that matter) monies take rather treacherous routes and is more diversified which leaves the vast majority of resort workers at the end of the month…(sad to say but…) virtually penniless or in our case ‘laari-less’. The average resort boy hailing from different islands of Maldives is just like an expatriate and a stay of 1 day in the expensive city of Male’ would dent a substantial hole in the pocket for an oversized rent of a room for 1 day to start with. Following accommodation comes food which is also overpriced, tasteless and thoughtless (that’s an addition..) served in cafe’s and restaurants which makes another substantial hole in the pocket.. Like wise goes the money for the resort workers and rarely if at all does money reaches their families back at home, hence the underdevelopment found on the islands.
(to be continued ..)