DEVELOPMENT

LDC Graduation

 TheMaldives is among the original list of 25 countries categorized by theUN in 1971 as least developed and deserving of special attention bydonor countries. As a small, resource poor country with limiteddevelopment prospects, the Maldives continued to receive significantofficial development assistance throughout the 1970s and 1980s.However, as per capita income increased several fold and social andeconomic indicators began to show consistent improvement, the Maldivesbecame eligible for graduation from the LDC list in 1997, subject tothe country continuing to perform well for the next three years.

However,in the year 2000, at the request of the Maldives, the UN decided todelay the graduation of the Maldives in order to ensure that graduationwould not result in the disruption of two decades of sustainedprogress, as graduation would end market preferences, close soft loanwindows, and reduce flows of official assistance. 

Accordingly,the UN formulated a framework for the smooth transition of graduatingcountries, and decided to graduate the Maldives in 2008, at the end ofa transitional period of 3 years. The decision was revisited again, inthe aftermath of the devastation caused by the Indian Ocean tsunami.The new arrangement is for the three year transitional period to runfrom 2007 to 2010.

In preparation for thegraduation, the Maldives began in 2006 to host an annual PartnershipForum with bilateral donors and multilateral aid agencies, to ensurethat adequate arrangements are in place for a smooth transition. At thesame time, the government is also making other arrangements and plansto increase domestic resource mobilization and to gear up to attractingmore foreign investment.

Despite these efforts,the Maldives, as a small and vulnerable country, would continue to workclosely with development partners to ensure that its developmenttrajectory is maintained, especially after the destruction caused bythe tsunami.

 
Doha Development Agenda

 TheMaldives is a founding Member of the World Trade Organization. TheMaldives believes that the successful conclusion of the DohaDevelopment Agenda launched at the Doha Round of trade negotiations isof great importance, particularly to developing countries withvulnerable economies. In this light, Maldives maintains that consensuson the parameters (modalities) for finalizing negotiations inagriculture and non-agricultural market access (NAMA) should bereached, and that the outcome should be mutually benefiting to bothdeveloping and developed countries.

Moreover,Maldives, being a small and vulnerable economy, it is important thatthe country has access to overseas markets. This is why the Maldivesholds important, the issue of special and preferential treatment andthe necessity of WTO remaining a rule-based organization.

Tsunami

InMaldives, the total damage from the 24 December 2006 Indian OceanTsunami disaster is estimated at around US$470 million, close to 62% ofthe country’s GDP, while the long-term impact of the disaster is stillunclear.  The overall financing requirement  for the tsunamirecovery programme is US$ 406 million.

Therefore,the Maldives is seeking assistance from the international community inthe form of grants, loans and technical assistance for its developmentneeds.