Statement of Maldives
Twenty-seventh Session of the Governing Council
Rome, 18-19 February 2004

Distinguished Governors,
President of IFAD,
Ambassadors,
Representatives of International Institutions,
Honorable Delegates,
Distinguished Guests,
Ladies and Gentlemen,

Let me join previous speakers in expressing our gratitude to the Government of Italy and IFAD for the excellent manner in which this important meeting has been organized.

Honorable Chairmen,
May I congratulate you on your election as the Chairperson of this Session of the governing council? I wish you well in our shared endeavors in this session and offer you our full cooperation.

Mr. Chairman,
Poverty in Maldives differs from that in many other developing nations, mainly because a large segment of our 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 per 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.

There is a high tendency to migrate towards the capital Male’ in search of jobs. Access to education in the English medium is an even greater incentive for island families to send several of their members to the capital, which can no longer accommodate this massive trend. The existing pattern of population scattered across nearly 200 islands – 40% of which have less than 500 residents or fewer means that makes the cost of infrastructure creation, extraordinarily high. Additionally, our survival is also related to global parameters over which we have little or no control: the impact of climate change on the low-lying archipelago, albeit unpredictable under the current parameters of scientific evidence, is already manifesting itself in many ways.

Mr. Chairman,
Maldives, an island state, shares many of the concerns of Small Island Developing States in the area of sustainable development. Like many other island states, since the well-being of our nation is so intimately tied to the wealth of our natural resources and environment, we are fully committed to the protection of our environment and rational utilization of our natural resources. However, there is little we can do to protect our environment from threats such as global warming and sea level rise, which are to a large extent caused by the actions of others.

Mr. Chairman,
The unprecedented socio-economic development that we experienced during the last two decades means we may be soon graduating from the LDC status. Graduation will certainly have implications on our economic performance, especially by the loss of significant EU tariff preferences on our fish exports. Sudden withdrawal of such preferential treatment upon graduation could retard our development. It is, therefore, imperative that the international community recognizes the critical role of preferential trading agreements in the economic development of Maldives. I believe the international community cannot allow trade liberalization to bring in further inequity and jeopardize the future of Maldives in vital areas such as fisheries, a sector on which a large percentage of the population bases their livelihood.

To appreciate the importance of granting Maldives a special treatment that is commensurate with our intrinsic problems, one must remember the situation of economic vulnerability to natural disasters and adverse economic shocks we suffer from, in addition to the context of our environmental fragility.

Graduation from LDC status should see market access preferences preserved, not eroded. Such need is no luxury, but a prerequisite, for Maldives, for maintaining competitiveness and economic viability in response to the structural disadvantages resulting from remoteness and smallness. If we loose market access upon graduation, there is a real chance that Maldives will plunge back to LDC status. That Mr. Chairman would be a sad day for the Maldives.

Mr. Chairman,
Let me now very briefly mention our national plans for the future development of fisheries and agriculture in the Maldives. With regard to fisheries, the main policies that are being pursued are to diversify the fisheries sector to reduce the economy’s vulnerability to external shocks, to increase private sector participation in the fisheries industry through liberalization programs, to develop and manage the marine resources of the Maldives in a sustainable manner, and to ensure sustainable socio-economic development of rural fishing communities.

With regard to agriculture, the main policies include development of infrastructure and provision of institutional support to maximize economic and social benefits from ecologically sustainable agri-business, diversification of the agriculture sector through research and transfer of appropriate technologies and also increase private sector participation in the expansion and growth of agriculture. Agriculture product diversification and establishment of an efficient mechanism to bring locally produced agriculture products to the market are key strategies to achieve these policies.

In conclusion, let me take this opportunity to thank IFAD for the assistance it has rendered to the Maldives and the assistance we hope to receive in the future.

Thank you.