Mr Chairman,
Distinguished Governors,
President of IFAD,
Ladies and Gentlemen,

It is a great honor for me to address this Twenty-fifth Anniversary Session of IFAD Governing Council. At the outset, let me join previous speakers in thanking the President of IFAD, Mr Lennart Båge, and his staff for the excellent preparations and arrangements made for this important meeting.

Hon Bungaran Saragih may I congratulate you on your election as the Chairperson of this auspicious Anniversary Session of the Governing Council. I wish you well in our shared endeavours in this session and offer you our full co-operation.

Like many other small island developing states, Maldives too face a number of constraints in seeking to fit into the global economy while managing our environment sustainably. Our population is small and dispersed over two hundred islands, scattered in the vast Indian Ocean. As a result our markets are small, our natural resource base is narrow, fragile and prone to disruption by natural disasters. We depend for foreign exchange on tourism and a small range of fishery product exports, and we have limited local capital for productive investment. Even today, the economy of Maldives is heavily dependent on just two main industries (fisheries and tourism) for the country’s fiscal revenues, foreign exchange earnings, employment and growth. Despite these limitations, during the last two decades Maldives has achieved remarkable progress in terms of economic and social development. Yet, it has long way to go in sustaining development and eliminating poverty. The true fact is that the 270 000 people of Maldives remain extremely vulnerable both environmentally and geographically and there is considerable poverty in the outer atolls as well as in Male, the capital island.

Poverty in Maldives differs from that in many other developing nations, mainly because large segment of population is highly susceptible to external global shocks and has limited ability to effectively manage risk. Up to 42% of Maldivians live on less than Rf 15 daily (USD 1.17) barely over the international poverty line of USD 1 a day, with 22% subsisting on Rf 10 (USD 0.83). Large non-income disparities exist in terms of perceived and actual access to social services and other opportunities. The existing pattern of population scattered across 200 islands – 40% of which have less than 500 residents, means that cost of infrastructure creation is extraordinarily high

Distinguished Governors,
Ladies and Gentlemen,

Poverty in Maldives is multi dimensional and to tackle this complex problem no single solution or strategy will suffice. Economic growth alone will not eradicate poverty in Maldives, nor isolated social sector development will be enough to eradicate poverty. What is therefore needed in Maldives is well-prioritized but balanced and comprehensive approach addressing multi challenges of growth and development.

Small island States like Maldives are not only vulnerable in relation to natural disasters; such as the impact of climate change on the low archipelago. They are also vulnerable to the increasing pressures posed by the process of globalization, which widens the gap between developed and developing countries. Globalization and liberalization have combined to increase markedly the volatility of incomes of countries like Maldives.

Distinguished Governors,
Ladies and Gentlemen,

If Maldives is to achieve poverty reduction in successful manner, it is critical that the international community addresses our limitations and vulnerabilities and facilitates our integration into the regional and world economy. We require assistance in improving our competitiveness, market access, diversification of our economy and our capacity for effective participation in multilateral trade through specific provisions and measures.

Before I pass on to the next speaker, I would like to express our gratitude to IFAD for the assistance and the role it plays in the development of our national capacity in economic and social sectors. Over the years, its effort to improve the quality of life of the rural population through development projects had momentous impacts. I do hope that the Maldives and IFAD can work together in combating poverty, which we so desire.

Thank you.