Economic Profile of Maldives

The Maldives is an archipelago of 1,192 small coral islands. Of the 200 inhabited islands, one third have fewer than 500 inhabitants. The extremely dispersed and fragmented population of about 370,000 people (a third of which is said to live in the capital Male) makes the development problems of the Maldives unique. In addition, the survival of the country’s low-lying islands is threatened by the constant rise in sea levels due to global warming.

Buoyant average GDP growth of up to 6 – 8 per cent year over the last decade driven by investment in the tourism sector with low levels of inflation until recently has been a distinctive feature of the economy in recent years. Significant progress has also been achieved in human and social development over the past two decades.  Credible macroeconomic and public investment policies as well as a largely favourable external environment has facilitated this progress, lifting the Maldives from being one of the 20 poorest countries in the 1970s to one that shares many characteristics of a lower middle-income country today.

The small size of its economy, which is largely dependent on tourism and fisheries, makes the Maldives vulnerable to external shocks as witnessed by the economic recession following the tsunami of December 2004. In spite of the relatively low death toll after the tsunami, the country’s economy was badly shaken. Financial damage was estimated at 62% of GDP or $470 million, aggravated by a non-tsunami budget deficit of approximately $80 million in 2005 due to a significant fall in revenue from tourism.

The country lacks land based natural and mineral resources; as a result virtually all economic production is highly dependent on imports, creating a heavy dependence on foreign exchange earnings. Intensive agricultural production is limited because of the poor quality of soil (porous, deficient in nitrogen and potassium) and the limited availability of fresh water. All staple foodstuffs, basic necessities and items for the tourism industry are imported.

National Trade Policy Coordinating Committee (NTPCC)

The National Trade Policy Coordinating Committee (NTPCC) was established with the approval of the President’s Office in May 2009. The Committee, chaired by Minister of Economic Development, is composed of 15 members representing10 government trade related ministries/departments/agencies and the Maldives Chamber of Commerce. At the government level, the membership of the committee is mainly composed at the Permanent Secretary Level. Current members include;

- Minister, Ministry of Economic Development
- Deputy Minister, Ministry of Economic Development
- Permanent Secretary, Ministry of Economic Development
- Permanent Secretary, Ministry of Finance and Treasury
- Permanent Secretary, Ministry of Health and Family
- Permanent Secretary, Ministry of Tourism, Arts and Culture
- Permanent Secretary, Ministry of Human Resources, Youth and Sports
- Permanent Secretary, Ministry of Housing, Transport and Environment
- Permanent Secretary, Ministry of Fisheries and Agriculture
- Permanent Secretary, Ministry of Civil Aviation and Communication
- Permanent Secretary, Ministry of Foreign Affairs
- Senior Official from Attorney General’s Office
- Offical from Maldives Chamber of Commerce and Industries

The objectives of establishing the NTPCC include;

• Establishing regular and transparent procedures for co-ordinating economic/trade policy implementation across sectors;
• Consult and seek advice from affected stakeholders in the formulation of economic/trade related policies;
• Support development of coherent and cohesive  economic/trade policies across government and economic sectors;
• Formulate strategies and detailed policy interventions to achieve broader economic and trade policy objectives; and
• Raise awareness on economic and trade issues among the wider public and the stakeholders from various institutions.

Role and functions of NTPCC
• Co-ordinate, advice and make recommendations on economic and trade policy issues and monitor implementation of economic/trade policy interventions.

SME Development Council
Decision to establish a Small and Medium Enterprise (SME) Development Council was made by the Cabinet on 20 October 2009. The Council will be composed of 11 members with Minister of Economic Development acting as the Chairman. Other members included in the in the Council are:

1. Minister of Fisheries and Agriculture
2. Minister of Tourism, Arts and Culture
3. Minister of Human Resources, Youth and Sports
4. Minister of Finance and Treasury
5. A civil society member to represent women entrepreneurs
6. A civil society member to represent fishing industry
7. A civil society member to represent agriculture industry
8. A civil society member from tourism industry
9. A civil society member to represent information and communication industry
10. A member from an environment related civil society organisation
11. A civil society member to represent construction industry

Main roles of the SME Development Council include formulating plans to achieve the goals outlined in the government’s election manifesto regarding the development of SMEs. The Council also will ensure that the programmes planned for the growth of SMEs contribute towards achieving government’s broader economic policy objectives.

The Council’s role include establishing a standard to define small and medium enterprises, and overall coordination, monitoring and evaluation of all the programmes undertaken in the Maldives for the growth of SMEs. The Council will also advise on the establishment of an SME bank in Maldives.




About Maldives

NATIONAL SYMBOLS OF THE MALDIVES

National Flag

maldives-flag.jpgThe colors green, red and white characterize the Maldivian National flag: The green rectangle, which represents the innumerable palm trees, the life source of the islands, is surrounded by red, the blood of the nation’s martyrs who sacrificed their lives for the nation, and is dominated by a white crescent in the centre, the symbol of Islamic faith.

 

National Emblem

maldives-emblem.bmpThe crescent, a star, a coconut palm, two national flags and a banner with the traditional title of the state “ Ad–Dawlat Al–Mahaldheebiyya” (“The State of the Maldives”) represent the National emblem.

 

 

 National Tree

Mcoconut_palm.jpgaldivians have done the beneficial coconut palm justice by declaring it the National Tree in 1985. All parts of it can and are used; there is no waste. Its leaves/branches are used as material for the roofs. The product, cadjan, is widely used for roofing the bungalows at the newly built resorts. The branches are also used for making local brooms, essential for the daily sweeping of the roads and yards in the islands. On special occasions you can admire huge fish or other objects and decorations made out of these branches – an art form in itself.

The fruit itself is an essential part of Maldivian cuisine, the juice of a young fruit “kurumba”, is a delicious, refreshing drink. The ripe coconut is used with dried fish, in short eats or as coconut milk. Coconut shells are a good source of fuel keeping a fire burning for a long time and on the islands you can still find specially made irons heated by these shells.

 

National Flower

rose.jpgThe pink rose was declared the National Flower in 1985. It is a rare beauty – just like the country it represents.

Culture

Culture

The beautifully carved tombstones in some of the old cemeteries and the fine stone carving of the Hukuru Miskiiy in Male’ bear witness to the intricate skills of Maldivian stone carvers of the past. Maldivians are deft craftsman producing beautifully crafted pieces mostly out of what is available locally. Although many of the skills have been passed on from generation to generation and lives on even today.The art calligraphy has strong connections with the Islam. Old and new mosques display beautifully penned versus from the Holy Quran. The Islamic Center exhibits some of the finest samples of the work of modern calligraphers in the country.

While many crafts have become obsolete, others have found new life with the advent of tourism. The production of ornaments from tortoise shells and black coral once valued by visitors has now ceased completely because of the growing careness among the public on the need to preserve the environment.
Wooden Lacquer Ware

Perhaps the most distinctive of the Maldivian handicrafts, these are almost exlclusively produced in Thulhaadhoo in Baa Atoll. Liye Laajehun as it is called in Dhivehi involves the process of shaping and hollowing out pieces of wood to form beautifully crafted boxes, containers and ornamental objects. Made from the local funa, (Alexandrian laurel) which grows abundantly throughout the country, they come in various shapes and sizes; small pillboxes, vases of various sizes to round and oval plates with lids. These elegant pieces are lacquered in strands of red, black and yellow resin and delicately carved with flowing flowery patterns.

Mats

Beautiful red mats are woven throughout the country, the most famous of which are those that are woven by the women of Gadhdhoo in Gaafu Dhaalu Atoll. Thundu Kunaa as they are known in Dhivehi ranges in size from that of a place mat to a full size single mattress. The women of Gadhdhoo collect the reeds called haa from the nearby island of Fioari. They are dried in the sun and stained with natural dyes, the colour varying from fawn to black. These mats with their intricate abstract designs are woven on a handloom according to the imagination and skill of the weaver.

Boat Building

Although the tools used in the building of dhonis have changed, little has changed of its basic design. As in the past, the boats are still being built without a documented plan. The design and symmetry of the boat emerges as the boat is being built.

Imported hardwoods are used in the place of coconut wood, which was used in place of coconut wood, which was used in the past to make the hull. Copper rivets are used to hold the planks together instead of coir, which was used for the purpose even half a century ago. The square sail made of coconut fronds gave way to a triangular lateen sail. Even though this is still considered essential and is carried on board, it is used only during emergencies or to ease the strain of the engines. Almost all Dhonis are driven by diesel power.
Dhonis are mainly used for fishing and provide the livehood for a large proportion of the population. Others are modified to be used for transportation of passengers.

A dhoni may be as small as 10ft. (3 m) used mostly to travel across short distances or to traverse the shallow waters of the lagoon. Islanders often use these ferry across to nearby islands for firewood. The average fishing dhoni used to be around 10 metres (33 feett), however the new generation fishing vessels can be twice the size or even larger. The basic design of dhonis has proven to be seaworthy as it has been tested and tuned for centuries. Even the luxury cruise vessels that are built in the country uses the same basic hull design and can be as long as 30 meters (100 feet) or more.

Bodu Beru
Bodu Beru is the most popular form of music and dance in the country, enjoyed by the young and the old, men and women. There is a Bodu Beru troupe in almost every inhabited island and is regularly played at special functions and festivalss.
The musical instruments used in Bodu Beru consist of three or four drums and a variety of percussion instruments. The drums are made from hollowed coconut wood and covered on both ends with manta ray skin or goat hide. A lead singer chants the lyrics and a chorus of 10 to 15 follows as they clap to the beat of the drums. The rhythm build as the song continues until it reaches a frenzied crescendo.
As the rhythm picks up, dancers come out from amongst the troupe swaying to the rhythm. As the beat becomes faster the dancers leap and jerk to the beat as if in a trance. Onlookers join in the clapping and dancing. Old men, suddenly catch a stray rhythm and throw themselves into the arena. To wild applause from the crowd they gyrate and grimace in their dance, passing on to the young what they have learnt from their forefathers. According to some historians Bodu Beru was introduced to the country in the early 19th century by African slaves. During the reign of Mueenuddeen I these slaves were liberated and sent to Feridhoo in Ari Atoll. It is believed that bodu beru spread out from there to become one of the most popular forms of entertainment in the country.

Thaara

Thaara also holds a special place in local entertainment. Two lines of men attired in white sit on the ground and sing beating hand drums while others dance between them. Thaara is believed to have been introduced from the Middle East in the seventeenth century. Today Thaara is only played at national events.

Dhandijehun

Dhandijehun is another form of entertainment, which is popular throughout the country. This is mostly performed to celebrate festive events such as Eid and other national occasions.

Bandiyaa Jehun

Bandiyaa Jehun is a more popular form of dance performed by young women. The women carrying metal water pots stand in two lines facing each. They sing and dance to melodious tunes while taping the rhythm on the pots with rings worn on the fingers.

Although western pop and Indian music is quite popular today, traditional forms of music and song that have been passed down to us by our ancestors survive. Raivaru, farihi and bandhi are all unique styles of singing that are still practiced by people around the country.




Environment

Environment

The Maldives attaches great importance to the protection of the environment. From climate change, to sustainable development, to natural disasters such as the 2004 tsunami, environmental factors have a significant impact on the fortunes of rich and poor countries alike.

The Maldives, being a Small Island Developing State with a fragile and vulnerable environment has strongly advocated and called for the protection of the environment at various international meetings. Moreover, the Maldives actively engages in implementing the outcomes of such meetings such as the Mauritius Declaration.

The Maldives also encourages all States to ratify the Kyoto Protocol on Climate Change, and supports and calls for international cooperation for a stronger global environmental regime.

Within the SAARC region, too, the Maldives has actively campaigned for greater attention to environmental concerns. In addition to hosting several ministerial level conferences to address various aspects of regional co-operation to advance environmental protection, the Maldives also hosts the SAARC Coastal Zone Management Centre.

Environmental protection remains a major focus of collaboration with international development partners. The Male Breakwaters and Sea Wall project, funded through Japanese government grant assistance, under which coastal defences have been built around the island of Male’, the capital, home to over one-third of the population, cost nearly US$ 70 million. What saved the capital from destruction when the tsunami swept through the entire archipelago was this coastal ring.
The tsunami recovery programme includes the innovative concept of Safe Islands, with higher elevation, flood proof shelters, coastal defences, and conservation features.

History

history

The latest archaeological evidence suggests that the Maldives islands were first inhabited in around 1500 BC. It seems likely that the islands were first permanently settled by Aryan immigrants who are also believed to have colonised Sri Lanka at around the same time. Subsequent migrations at regular intervals, from Southern India and Sri Lanka, served to further expand the population of the Maldives.

Documented contact with the outside world began around 947 AD when Arab travellers began visiting the islands. Arab and Persian traders soon began arriving in large numbers, attracted to the Maldives by the abundance of pearls, spices, coconuts, dried fish and, in particular, cowry shells (which were accepted currency from Africa to China until the sixteenth Century). These traders profoundly influenced Maldivian society and culture, with perhaps their most significant impact being in the religious sphere – the Maldives officially converted to Islam in 1153 AD.

After the conversion to Islam, rulers of the Maldives islands came to be called Sultans. King Koimala was renamed Sultan Mohammed-bin-Abdullah and his Maley dynasty ruled the Maldives for 235 years under 26 different Sultans. Maley rule was followed by the Hilali dynasty which held sway for over 170 years under 29 different Sultans. It was during Hilali rule (and in particular the reign of Sultan Kalhu Mohammed) that foreign powers were first invited to the Maldives to establish diplomatic and commercial relations – thus opening up the “pearls of the Indian Ocean” to the outside world.

However, the Maldives was to discover that the interests of foreign powers are rarely benevolent. In the mid-16th Century, Portugal invaded the Maldives and defeated Sultan Ali VI, the last ruler of the Hilali dynasty. Portuguese rule lasted for 15 years until they were eventually defeated by one of the Maldives’ greatest national heroes, Mohammed Thakurufaan. The dynasty established by Mohammed Thakurufaan – the Utheemu dynasty – was to rule the Maldives for the next 127 years (under 12 different Sultans) until the early 18th Century when foreign powers again began to turn covetous eyes on the islands. This time the threat came from the south coast of India from where the Raja of Cannanore dispatched a Malabar raiding party to attack Male. Although Maldivian forces eventually repelled the Malabar forces, the Utheemu dynasty collapsed and was replaced by the Huraage dynasty under the leadership of Ghazi Hassan Izzaddeen (which prevailed until 1968).

After the Malabar attack, the Maldives established diplomatic relations with Sri Lanka – an alliance that continued throughout the latter’s Dutch and then British colonial periods. In 1887, the Maldives became a British Protectorate and remained so until 26 July 1965. On 11th November 1968, the Sultanate was replaced by an independent Republic of Maldives.


Geography

Geography

The Maldives is a chain of 1,190 small islands stretching across the equator to the south west of Sri Lanka. The 1,190 islands – of which only 200 are inhabited – form an archipelago of 26 natural atolls (groups of neighbouring coral islands). Each of the 26 atolls that make up the Maldives is enclosed by a coral reef cut by several deep, natural channels and a lagoon.

The Maldives archipelago stretches 823 km north to south and 130 km east to west. Over 99% of the Maldives is made up of the sea: only 0.331% (115 square miles) of its 34,750 square mile surface area is dry land.

Together with the Lakshadweep Islands to the north (formerly part of the Maldives, now part of India) and the Chagos Islands to the south, the Maldives form part of a vast submarine mountain range, on the crest of which coral reefs have grown.

How the islands actually formed is something of a mystery. The theory that has most support was first suggested by none other than Charles Darwin in 1842 (after he had studied similar atolls in the Pacific and Atlantic Oceans). Darwin’s theory suggests that the islands were formed when volcanoes rose from the sea and coral reefs grew around their edges. The volcanoes subsequently sank back into the sea leaving the coral reefs to circle a shallow water-filled lagoon. Islands than formed when currents and tides swept dead coral and other organic debris into the lagoons which in turn became filled-in and were eventually colonised by plants and trees.

The islands that make up the Maldives are very small (most can be walked across in 10 minutes; only a few are longer than 2 kilometres) and low-lying (they rarely reach more than six feet above sea-level). This makes them particularly vulnerable to sea erosion. In 1812 and again in 1955, devastating gales destroyed many northern islands, while in 1987 the capital, Male, was flooded by a severe storm. If, as some scientists predict, global sea levels continue to rise as a consequence of global warming, it will pose a particular risk to the Maldives.


Health and Education

Health and EducationEconomic growth in the Maldives has been accompanied by impressive progress in the social field – most notably in the areas of health and education – resulting in improvements in the living standards and quality of life of all Maldivians.

In the health field, infant mortality has been reduced from 120 per thousand live births in 1978 to just 12 in 2005, while maternal mortality has been reduced from around 500 per hundred thousand live births in 1990 to just 78 in 2003.On both counts the Maldives is well on course to meet the Millennium Development Goals of “reducing by two-thirds, between 1990 and 2015, the under-five mortality rate” and “reducing by three quarters, between 1990 and 2015, the maternal mortality rate”. Regarding infant mortality, the UN noted in its MDG Country Report for the Maldives in 2005 that “during the last 10 years the Maldives has achieved commendable progress in reducing child mortality relative to other least developed countries. It is highly likely that the Maldives will achieve the MDG target”. Regarding maternal mortality, the MDG report stated that “the Maldives appears to have already achieved the MDG target 6 to reduce maternal mortality. The policies which contributed to this achievement include: providing easy access to services for all groups of people; focusing on awareness creation on high-risk pregnancies; antenatal and postnatal care; all pregnant women to receive minimum of three antenatal check-ups; and all deliveries to be conducted by trained personnel”.

The health status of the Maldivian people with regard to communicable diseases has also improved markedly. The Maldives’ emphasis on preventative health – particularly immunisation – has resulted in the near elimination of polio and tetanus. Moreover, no cases of diphtheria and whooping cough have been identified within the last decade. Among other communicable diseases, malaria has been eliminated and diarrhoeal diseases brought under control. Leprosy and filaria are also shortly expected to achieve zero transmission. As a consequence of these achievements, the Maldives is well on course to meet the Millennium Development Goals on disease control, with the UN’s MDG 2005 report concluding that “notable achievements have been made in the control of communicable diseases in the Maldives”.

As a consequence of these achievements, life expectancy in the Maldives has seen massive improvements over recent decades, increasing from 48 years in 1978 to 72 years in 2005.

Despite these successes, the Maldives continues to push for even higher standards. The Government of Maldives considers that the enjoyment of the highest attainable level of health is a basic right of every citizen. Therefore, in order to further improve health in the Maldives the Government has, in consultation with all partners in health development, identified priority areas for further attention. These areas are tuberculosis, AIDS, reproductive health, heart disease, respiratory diseases, thalassaemia, hypertension, drug abuse, cerebro-vascular disease, kidney disease and cancer. In addition, the promotion of healthy lifestyles has become a priority – with the aim of reducing the burden of diseases in the community, and enabling early detection of preventable diseases, health problems and their complications. The initiatives that have been undertaken to discourage smoking are a good example.

In order to achieve these results, the Government continues to invest heavily in health care provision. For example, over recent years, the physical health infrastructure has expanded considerably. The 200-bed Indira Gandhi Memorial Hospital (IGMH) has been built, a 50-bed private hospital opened, regional hospitals have been modernised, and a number of atoll health centres up-graded. Two more regional hospitals, a public health laboratory, a rehabilitation centre and more atoll health centres will be constructed shortly.

Similarly impressive progress has been achieved in the field of education.

The Maldives is well on track to achieve the Millennium Development Goal of universal primary education by the year 2015. The UN states that “all indicators for this goal are well on track. Over the last 15 years public expenditure has been targeted to expanding primary education and by 2004 primary education was available on all 199 inhabited islands with a net enrolment ratio of 100% for both boys and girls”.

Student enrolment in the Maldives has increased from 73,642 in 1992 to 104,214 in 2004, with a broadly equal split between males and females (51,309 female pupils and 52,905 male). Moreover, the distribution of school places also shows a good geographical balance between the capital, Male (29,307 pupils) and the various atolls (74,907 pupils) – demonstrating that education is available to all children in the Maldives, no matter where they live.

In terms of the number of schools and teachers, the Maldives also scores well. In 2004, across the 20 atolls plus the capital Male, there were 57 schools of more than 500 pupils and 261 schools of less than 500 pupils. Serving these schools were 5,239 teachers (3,248 trained; 1,991 untrained – these figures do not include head teachers, deputy head teachers or administrative staff), giving a student-teacher ratio (for trained teachers only) of 32.09.

The result of this investment in education is that the literacy rate in the Maldives now stands at 98%. Both the literacy rate and the school enrolment rate of the Maldives are comfortably the highest in the South Asia region.





Economy

EconomyThe Maldives is an archipelago of 1,190 small low lying coral islands spread over 34,750 square miles of ocean. Dry land (i.e. the islands) only constitutes 0.331% (115 square miles) of the country’s total surface area. The country’s population of around 298,000 is distributed widely and unevenly across the 200 islands that are permanently inhabited. Only 4 islands host a population of over 5,000 people; while 77 islands (39%) have a population of between 1,000 and 5,000 and 118 (59%) have a population of less than 1,000.

These unique geographic and demographic characteristics pose major development challenges for the Maldives (e.g. social service provision, transport infrastructure development, access to markets). Yet despite these challenges, the Maldives has achieved an incredible level of economic growth and development over the past twenty years. A strong private sector-led economic performance has enabled the country to achieve an average growth rate of 9 percent since 1978, with the result that the Maldives now has the highest per capita GDP ($2,401 in 2004) in South Asia (up from approximately $800 in 1984).

As a result of this impressive economic performance, on 20 December 2004, the United Nations took the decision to officially graduate the Maldives from Least Developed Country (LDC) status. While the Maldives was initially proud of this accomplishment (it was the first time an LDC had graduated in this way), this pride turned to concern four days later when the Asian Tsunami decimated the Maldives and its economy. As a consequence of the Tsunami, in mid-2006, the UN decided to extend the Maldives LDC status until 1 January 2008, at which time a three-year transition period for graduation will commence.

Tourism and Fisheries

The Maldives economy is mainly driven by, and is dependent on, two economic sectors: tourism and fisheries. The contribution of agriculture to the economy has declined in recent years, while considerable uncertainty surrounds the future of the textile industry due to the liberalisation of the multilateral textile quota system.

Tourism is the single most important economic sector in the Maldives (the tourism sector consistently contributes over 33% of national GDP) and is the linchpin of the country’s economic success story. The number of tourist arrivals grew sharply between 1992 and 1999, from 212,800 to more than 430,000 (about double the size of the Maldives’ population). Bed capacity expanded accordingly, from 8,500 in 1992 to more than 15,000 in 1999. The tourism sector is also a big employer – in 1999, 12,124 locals (14% of the work force) and 10,068 foreigners were employed in the sector. Moreover, tourism is extremely important in terms of its contribution to Government revenues: in 1999, total receipts from tourism equalled $52.75 million.

The fisheries sector is the Maldives biggest exporter and also the biggest source of employment. Over 20% of the Maldives labour force is employed in the fisheries sector and, importantly, most of this employment is based around outlying islands (i.e. outside of Male) and is thus a primary source of rural income. Earnings received by local fishermen reached $12 million in 1999. The fisheries sector also supports other industries such as boat building and maintenance.

The major markets for Maldivian exports (2004 figures) are the US (26.5%), Thailand (23.5%), Sri Lanka (12.3%), Japan (11.7%) and the UK (10%). The value of Maldives exports to these countries and other countries increased from US$ 49.6 million in 1995 to $122.4 million ($181 million if re-exports are included) in 2004.

Sustainable development

The Maldives’ robust economic performance over the past twenty years has in-turn allowed the country to invest in its social development. Since 1978, infant mortality has been reduced from 120 per thousand live births to just 14, while life expectancy has increased from 48 years to 72 years. Impressive progress has also been achieved in the field of education: the literacy rate in the Maldives now stands at 98%, the highest rate in the South Asia and Indian Ocean regions. All of these achievements will help to ensure that progress in the Maldives is sustainable in the long-term.

Moreover, the Maldives’ economic success story has not been achieved at the expense of the environment. The Maldives understands well the beauty but also the fragility of its natural environment and has taken a wide range of measures to protect and conserve the local ecosystem – measures which have received considerable praise from the international community.

Beautiful but vulnerable

However, despite this success story, the Maldives economy remains particularly vulnerable. This vulnerability stems in particular from the country’s unique geography (i.e. lack of land, small size of most islands, large distance between atolls), from its demographic character (i.e. small, widely dispersed population groups), from the narrow focus of its economy (which is heavily dependent on just two sectors – leaving it at risk to external price shocks), and from environmental challenges (e.g. the threat of changing sea-levels). As a consequence, in July 1999, H.E. President Gayoom announced the “Vision 2020″ plan for the country’s future economic and social development. The Maldives Sixth National Development Plan, designed to lay the policy foundations for achieving Vision 2020, places particular emphasis on reducing the country’s economic fragility by “diversifying and expanding the economy [through] the further development of existing industries and by exploring new economic activities, while ensuring the sustainability of physical and natural resources”.

Tsunami

The Asian Tsunami of 26 December 2004 caused damage and destruction on a nationwide scale in the Maldives. Over one-third of the population was directly impacted, while some 29,000 people had to leave their homes. Economically, the damage wrought by the Tsunami was huge – total losses were calculated at $470 million or 62% of GDP, while the Maldives faces a budget deficit of around $94 million for 2005.

Although the Maldives is now well on the path to economic recovery following the Tsunami – the vast majority of tourist resorts are again open for business, tourist numbers have largely recovered, fishing boats have been repaired – it will take a considerable amount of time before the economy reverts to its former health. This unfortunately means that there is now a risk that the Maldives will miss the UN’s Millennium Development Goals – Goals that it had previously been well on course to meet.


Useful Links

The President’s Office
Ministry of Foreign Affairs
Ministry of Tourism, Arts and Culture
Maldives Tourism Promotion Board (MTPB) 
Department of Immigration and Emigration
Maldives Customs Service
Maldives Police Service
Maldives Airports Company Ltd. 
Liveaboard Association Maldives (LAM)
Maldives Association of Tourism Industry (MATI)  
Maldives Association of Travel Agents and Tour Operators (MATATO) 
Maldives Association of Yacht Agents (MAYA)  
Maldives Government Tourist Information Office (MGTIO)  
Maldives Tourism Development Corporation (MTDC)