Water Scarcity Via the Adaptive Capacity of Its Political Economy

Total Page:16

File Type:pdf, Size:1020Kb

Water Scarcity Via the Adaptive Capacity of Its Political Economy THE ABILITY OF THE MALDIVES TO COPE WITH FRESHWATER SCARCITY VIA THE ADAPTIVE CAPACITY OF ITS POLITICAL ECONOMY by Jayne Millar Occasional Paper No 44 Water Issues Study Group School of Oriental and African Studies (SOAS) University of London September 2002 LIST OF TABLES Table 1. Maldives population numbers and predictions. 24 Table 2. Improvements in rates of infant mortality and life expectancy at birth in the Maldives. 25 Table 3. Fisheries sector – key indicators. 34 Table 4. Changes in the structure of the Maldives economy 1987-1999 (%). 35 Table 5. Tourist arrivals, average length of stay and number of tourist resorts in the Maldives 1992-1999. 38 Table 6. Sources of Water Use on Tourist Islands. 42 1 LIST OF FIGURES Figure 1. Representation of Turton and Ohlsson’s basic hypothesis showing how water scarcity generates an adaptive response. 12 Figure 2. Model showing the transition from supply-sided phase to demand management phase in a political economy. 13 Figure 3. The five paradigms of water management. 15 Figure 4. Small island freshwater lenses. 23 Figure 5. Sources of drinking water by atoll (percentage of atoll population). 27 Figure 6. The five paradigms of water management. 30 Figure 7. Changes in the structure of the Maldives’ economy 1987-1999. 36 Figure 8. Contribution of tourism to GDP. 37 Figure 9. Tourist arrivals (000’s) 1992-1999. 39 2 LIST OF MAPS Map 1. The Maldives – country map. 22 3 ABBREVIATIONS ADB Asian Development Bank CIA Central Intelligence Agency GDP Gross Domestic Product HDPE High Density Polythene Tanks IWMI International Water Management Institute IWRM Integrated Water Resource Management LDC Less Developed Country MENA Middle East and North Africa MPHRE Ministry of Planning, Human Resources and Environment MWSA Maldives Water and Sanitation Authority NGO Non-Governmental Organisation SIDS Small Island Developing State UNCED United Nations Conference on Environment and Development UNDP United Nations Development Program UNEP United Nations Environment Program UNESCO United Nations Economic and Social Council UNESCAP United Nations Economic and Social Commission for Asia and the Pacific UV Ultra Violet VSO Volunteer Service Overseas WIER Water Is an Economic Resource WTO World Tourism Organisation 4 ACKNOWLEDGMENTS I am hugely grateful to my tutor, Professor Tony Allan, who sparked off my interest in water and water policy during his classes on the subject. He has been both encouraging and enthusiastic when teaching and supervising me over the past year. I am also grateful to Mr. Leon Miles, a VSO volunteer working with the Maldives Water and Sanitation Authority, for his email communications on water provision on local islands. These emails provided vital data to support my analysis, as did the information provided by the Ministry of Tourism in the Maldives and the emails from some of the island resorts. On a more personal note, I would like to thank my parents for providing unlimited emotional and financial support not just over the past year but also the previous twenty- four. Finally, I want to thank Dave Skinner for proof reading this dissertation and all the essays that preceded it throughout the year, and for supporting and putting up with me during all the stresses of the last year. 5 1 INTRODUCTION 1.1 Aims and Objectives of Study The aim of this dissertation is to examine the issue of environmental vulnerability, specifically freshwater scarcity, on Small Island Developing States (SIDS). The ability of SIDS to cope with freshwater scarcity via a strong political economy primarily fuelled by tourism will be discussed. Focusing on a case study of the Maldives, this study will show that being water short, a first order scarcity, is not important and that what is essential is the ability of the political economy to adapt to the scarcity. This will be shown using Turton and Ohlsson’s (1999) theory of ‘adaptive capacity’. Tourism has become the biggest economic sector on many SIDS, including the Maldives. Therefore, the successful management and control of resort development and tourist numbers is essential. In the Maldives, the government has enforced strict controls to ensure that tourism will remain a key contributor to the islands’ GDP. This in turn is helping the country avoid impacts of what resource analysts have termed ‘water scarcity and water poverty’ (Turton and Ohlsson 1999) 1.2 Outline Chapter 2, a literature review, will classify the literature used in this study and outline the theoretical framework that will be used in chapter 4. Chapter 3, methodologies, aims to provide a review of how the study was carried out and to outline the main difficulties and drawbacks. A description of both tourism and freshwater management in the Maldives will be provided in chapter 4. Tourist islands and local inhabited islands will be separately assessed. The types of freshwater available on both, and the alternatives to groundwater abstraction, will be quantified and evaluated. The allocation and management of the freshwater has been inspired by different policies and one of the purposes of the study will be to show when shifts in policy approach took place and to what extent these shifts fit with relevant social and political theory. A second purpose is 6 to show the willingness of the Government of the Maldives to move from a supply to a demand approach within water management. This study will also demonstrate how the government has adopted the belief that water is an economic resource and acknowledged its environmental value, in line with Allan’s (2001) model of the five water paradigms. Turton and Ohlsson’s (1999) theory of social adaptive capacity will be applied to the Maldives by examining the importance of tourism to the Maldives’ economy and also how economic benefits are contributing to the sustainable development of the whole country. Chapter 5 will conclude the study by outlining the main results. The remainder of this chapter will contextualise the study by examining the uniqueness of SIDS; why they must be considered as a ‘special case’ when discussing sustainable development, particularly in relation to water and tourism management. 1.3 The Uniqueness of SIDS As a group, SIDS are more vulnerable than any other group of developing countries to both environmental and economic shocks (Barbados Conference 1994). Chapter 17 of Agenda 21 (Rio 1992) refers to SIDS as a ‘special case’. Both in terms of the environment and development, they tend to be ecologically fragile and vulnerable, and they have very specific problems that need to be assessed when planning sustainable development. Their small size, limited resources, high population growth, low economic diversification, geographical dispersion and isolation all put them at a disadvantage (Gortazar and Marin 1999). Kaly et al. (2002) state that because of the small size of SIDS, their human and natural environments have limited capacity to absorb shocks. Further, the effects of hazards present in other areas of the world will be more pronounced and cause greater damage – for example natural disasters and global changes in trade and markets. Tourism was identified at the 1994 UN Barbados Conference on Islands and Small Island States as a strategic sector and the main driving development force for many island regions. Tourism is one of the fastest growing economic sectors in the world, and is 7 starting to become one of the leading economic sectors on many islands. Tourism’s economic achievements are usually set against a background of narrowly focused economies, limitations imposed on industry by relative isolation, high transport costs and the small-scale nature of most activities. Thus, there tends to be a dependence on imports. Agriculture has often been restricted by climate and soil conditions which restrict variety, and by shortages of chemicals and machinery (Lockhart 1997). Lockhart believes that it is for these reasons that measures to encourage the expansion of tourism have been prominent in the economic development plans of island states. Islands have found it relatively easy to attract tourists. The last 30 years have witnessed significant developments in air travel, the advent of low-cost charter flights and the growth of incomes in sending countries (Lockhart 1997). In many cases economic dependence on tourism is so great that some SIDS are very vulnerable to external shocks, such as recessions in sending countries, which decrease the amount of disposable income available for foreign travel. Briguglio (2001) refers specifically to the high degree of economic openness in SIDS; this renders these states particularly susceptible to economic conditions in the rest of the world. Kaly et al. (2002) claim that it is this greater vulnerability that sets SIDS apart from most other countries, and this in turn results in greater impediments to sustainable development. “Tourism has contributed much to the development of Small Island Developing States, and, as one of the only few development options for those small states, will continue to be very important. However, if not properly planned and managed, tourism could significantly degrade the environment on which it is dependent.” (Barbados Conference 1994) This statement made at the UN Barbados Conference highlights the fragile balance that characterises island tourist destinations. Few would dispute that indiscriminate tourism development can have devastating impacts. Pigram (1995) refers to tourism as a ‘resource based activity’, this means that it interacts with natural systems and has the capacity to initiate far-reaching changes on the environment. Most island tourism focuses on ‘sun, sea, sand’ beach tourism; this is dependent on the maintenance of pristine 8 environments, including beaches, reefs, lagoons and biodiversity. With so many island destinations for the consumer to choose from, islands must prove year after year that they are worth returning to. Notwithstanding these obstacles and concerns, islands generally embrace tourism as one of the best and, in some cases, the only development strategy available to them (Conlin and Baum 1995).
Recommended publications
  • Double Taxation Treaty Between Ireland and the Republic of South Africa
    Double Taxation Treaty between Ireland and South Africa The Government of Ireland and the Government of the Republic of South Africa, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and to promote and strengthen the economic relations between the two countries, Have agreed as follows: 1 Article 1 Persons Covered This Convention shall apply to persons who are residents of one or both of the Contracting States. 2 Article 2 Taxes Covered 1. This Convention shall apply to taxes on income and capital gains imposed on behalf of a Contracting State or of its political subdivisions, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and capital gains all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property. 3. The existing taxes to which this Convention shall apply are: a. in Ireland: i. the income tax; ii. the corporation tax;and iii. the capital gains tax;(hereinafter referred to as "Irish tax"); and b. in South Africa: i. the normal tax; and ii. the secondary tax on companies;(hereinafter referred to as "South African tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.
    [Show full text]
  • Introduction Historical Context
    INTRODUCTION China-Africa ties have expanded beyond trade and investment in extractive industries to engagement in telecommunications, infrastructure, manufacturing, finance, media, agriculture and peace and security issues. HISTORICAL CONTEXT While not as well documented as Africa’s links with Europe, China-Africa relations date back to the Ming Dynasty (1368-1644) when a series of expeditions reached East Africa under the command of Admiral Zheng He, at roughly the same time as the Portuguese were exploring Africa’s Atlantic coast. However, formal political relations were only forged during the early years of the founding of the People’s Republic of China (1949), which intersected with the first wave of African independence. The Five Principles of Peaceful Coexistence were originally established in 1954 by India’s prime minister, Jawaharlal Nehru, and the Chinese premier, Zhou Enlai. These principles rose to popularity during the 1955 Bandung Conference – which paved the way for the founding of the Non-Aligned Movement – and have become an important basis for China’s foreign policy and its relations with Africa and Asia. China’s support for Africa’s liberation also played an influential role in shaping the outcomes of newly independent states. 2015 is also 60 years since the 1955 Bandung Asian-African conference, a turning point of world history when for the first time representatives of the former colonised nations united and proposed alternatives to a world order dominated by superpowers. - Remarks by African Union Commission Chairperson, Nkosazana Dlamini-Zuma, 30 January 2015. …The relationship between ourselves and China is founded, as the Prime Minister reminded us recently, on four basic principles: treating each other sincerely and equally; consolidating solidarity and mutual trust; jointly pursuing inclusive development; and promoting inventive practical cooperation between our countries.
    [Show full text]
  • Sierra Leone and Conflict Diamonds: Establshing a Legal Diamond Trade and Ending Rebel Control Over the Country's Diamond Resources
    SIERRA LEONE AND CONFLICT DIAMONDS: ESTABLSHING A LEGAL DIAMOND TRADE AND ENDING REBEL CONTROL OVER THE COUNTRY'S DIAMOND RESOURCES "Controlof resourceshas greaterweight than uniform administrativecontrol over one's entire comer of the world, especially in places such as Sierra Leone where valuable resources are concentratedand portable.' I. INTRODUCTION Sierra Leone2 is in the midst of a civil war that began in 1991, when the Revolutionary United Front (RUF) invaded the country from neighboring Liberia.3 RUF rebels immediately sought control over one of the country's richest resources--diamonds.4 Since gaining control over the most productive diamond fields, the rebels have at their fingertips an endless supply of wealth with which to fund their insurgencies against the Government of Sierra Leone.' The RUF rebels illicitly trade diamonds for arms in open smuggling operations. 6 Diamonds sold by the RUF, in order to fund the rebel group's military action in opposition to Sierra Leone's legitimate and internationally recognized government, are called "conflict diamonds."7 1. WIulIAM RENO, WARLORD POLITICS AND AFRICAN STATES 140 (1998). 2. Sierra Leone is located on the west coast of Africa north of Liberia and south of Guinea. The country has 4,900,000 residents, almost all of whom belong to one of 13 native African tribes. Country: Sierra Leone, Sept. 3,2000, availableat LEXIS, Kaleidoscope File. One of the primary economic activities in Sierra Leone is mining of its large diamond deposits that are a major source of hard currency. Countries that predominantly import goods from Sierra Leone include Belgium, the United States, and India.
    [Show full text]
  • ICS South Africa
    Integrated Country Strategy South Africa FOR PUBLIC RELEASE FOR PUBLIC RELEASE Table of Contents 1. Chief of Mission Priorities ................................................................................................................ 2 2. Mission Strategic Framework .......................................................................................................... 4 3. Mission Goals and Objectives .......................................................................................................... 6 4. Management Objectives ................................................................................................................ 12 FOR PUBLIC RELEASE Approved: August 22, 2018 1 FOR PUBLIC RELEASE 1. Chief of Mission Priorities There are tremendous opportunities to broaden U.S. engagement in South Africa which stand to benefit both countries. Over 600 U.S. companies already operate in South Africa, some for over 100 years; furthermore, many of them use South Africa as a platform for operations and a springboard for expansion into the rest of Africa. South Africa is therefore the single most critical market hub to a population expecting to double to two billion people in the next 30 years. While some resentment of the United States continues from the apartheid era, there is also recognition of American activism that helped end apartheid. In polls, the United States is seen very favorably by every day South Africans, who respond positively to American politics, culture, and goods. South Africa’s economy is the most
    [Show full text]
  • A Truth Commission for East Timor: Lessons from South Africa?
    04 Jenkins (JG/d) 6/11/02 11:41 am Page 233 © 2002 OXFORD UNIVERSITY PRESS A TRUTH COMMISSION FOR EAST TIMOR: LESSONS FROM SOUTH AFRICA? Catherine Jenkins* ABSTRACT East Timor finally became an independent state on 20 May this year. In its continuing quest for justice for the victims of the many human rights violations that took place during the period of the Indonesian occupation, it has pressed its claim for an inter- national criminal tribunal and for criminal trials both in Indonesia and in East Timor itself. It has also established a Commission for Reception, Truth and Reconciliation, which has recently begun work. This paper considers what the East Timorese Com- mission can hope to achieve and examines whether any lessons should be drawn by it from the experience of the South African Truth and Reconciliation Commission. 1 INTRODUCTION At the end of May 2001, Thabo Mbeki, President of the Republic of South Africa, announced that the South African Truth & Reconciliation Commission [‘TRC’], established in 1995, would finally close its doors.1 A few days later, the results of a survey of 3,727 South Africans carried out by a Cape Town NGO2 revealed that 81 per cent of black South Africans had never eaten a meal with a white person; that 56 per cent of black South Africans thought whites were untrustworthy; and that just over half of black South Africans found it hard to imagine being friends with a white person. Truth and reconciliation commissions are now often proposed in con- nection with ‘nation-building’ projects, yet the results of this South African survey seem to suggest that some caution or circumspection may be appropriate.
    [Show full text]
  • Residence and Visa Program
    Malta Residence and Visa Program Malta has been a member of the European Union (EU) The Malta Residence and Visa Program (MRVP) was since 2004 and is a stable, neutral and highly respected implemented in 2015 under the Immigration Act (Cap. 217). country. Located in the middle of the Mediterranean Sea, The legal basis regarding the MRVP is contained in the the Maltese archipelago has risen to be one of Europe’s Malta Residence and Visa Program Regulations, 2015. leading investment locations, driven by its reputation for These Regulations allow duly qualified, reputable third stability, predictability and security. This has made Malta country nationals (non EU, EEA or Swiss nationals) and stand out among other global business and financial their families, who make a contribution to the economic centers. The island nation comprises of three islands: development of Malta, to be granted a Maltese Residence Malta, Gozo and Comino, with a total population of over Permit, allowing the individuals the right to reside, settle 400,000 inhabitants occupying an area of 316 km2. The and stay indefinitely in Malta, with free movement of travel national language is Maltese but the official languages of within the Schengen area. the country are both Maltese and English. Malta boasts an excellent climate, friendly people and a low crime rate. Requirements and are not married. Additionally, parents or grandparents of the main applicant or their spouse may also be included The main applicant must be at least 18 years of age to qualify in the application as dependents if they are not economically and must provide an affidavit declaring that from the date active and are principally dependent on the main applicant.
    [Show full text]
  • Download/Pdf/237086116.Pdf
    The Role of the Maldives in the Indo-Pacific Security Space in South Asia Written by Athaulla A. Rasheed This PDF is auto-generated for reference only. As such, it may contain some conversion errors and/or missing information. For all formal use please refer to the official version on the website, as linked below. The Role of the Maldives in the Indo-Pacific Security Space in South Asia https://www.e-ir.info/2021/02/09/the-role-of-the-maldives-in-the-indo-pacific-security-space-in-south-asia/ ATHAULLA A. RASHEED, FEB 9 2021 The signing of a defence agreement between the Maldives and the United States (US) in September 2020 was welcomed by India as a positive step towards regional cooperation (Rej, 2020). Historically cautious of extra-regional powers engaging in military and strategic activities in its Indian Ocean ‘backyard’, India has claimed a dominant role in terms of managing regional maritime boundaries. Located ‘barely 70 nautical miles away from Minicoy and 300 nautical miles away from India’s West coast, [and within] the hub of commercial sea‐lanes running through Indian Ocean (particularly the 8° N and 1 ½° N channels),’(Ministry of External Affairs, 2019a, p. 1) the Maldives occupies a critical strategic position in South Asia. A history of friendly ties and geographic proximity have ensured political trust, economic cooperation and coherent strategic polices between the two. Despite the historical bonds between these neighbours, their relationship took a sharp turn towards political uncertainty between 2013 and 2018 as a result of former Maldivian President Abdulla Yameen Abdul Gayoom’s pro-China policy (Rasheed, 2018, 2019, 2020).
    [Show full text]
  • Maldives 2019 Human Rights Report
    MALDIVES 2019 HUMAN RIGHTS REPORT EXECUTIVE SUMMARY The Republic of Maldives is a multiparty constitutional democracy. In September 2018 voters elected Ibrahim Mohamed Solih president. Observers considered the election mostly free and fair despite a flawed pre-election process, which was overseen by the former administration. Parliamentary elections held on April 6 were well administered and transparent according to local and international observers. Maldives Police Service (MPS) is responsible for internal security and reports to the Ministry of Home Affairs. Maldives National Defence Force (MNDF) is responsible for external security and disaster relief and reports to the Ministry of Defence. Civilian authorities maintained effective control over the security forces. Significant human rights issues included: allegations of torture by government authorities; significant problems with the independence of the judiciary; trafficking in persons; criminalization of same-sex sexual conduct; and the lack of a legal framework recognizing independent trade unions. The government took some steps to investigate officials who committed human rights abuses, including enforced disappearances, and established investigative commissions. Section 1. Respect for the Integrity of the Person, Including Freedom from: a. Arbitrary Deprivation of Life and Other Unlawful or Politically Motivated Killings There were no reports that the government or its agents committed arbitrary or unlawful killings. b. Disappearance There were no reports of disappearances by or on behalf of government authorities. The government took steps to investigate disappearances reported in previous years. MALDIVES 2 On September 1, the Presidential Commission on Deaths and Disappearances shared preliminary results from its investigation into the 2014 disappearance of reporter Ahmed Rilwan, noting that evidence indicated Rilwan was killed on a vessel at sea following his abduction.
    [Show full text]
  • Nationals of Bahrain, Kuwait, Oman, Saudi Arabia and U
    International Civil Aviation Organization STATUS OF AIRPORTS OPERABILITY AND RESTRICTION INFORMATION - MID REGION Updated on 26 September 2021 Disclaimer This Brief for information purposes only and should not be used as a replacement for airline dispatch and planning tools. All operational stakeholders are requested to consult the most up-to-date AIS publications. The sources of this Brief are the NOTAMs issued by MID States explicitly including COVID-19 related information, States CAA websites and IATA travel center (COVID-19) website. STATE STATUS / RESTRICTION 1. Passengers are not allowed to enter. - This does not apply to: - nationals of Bahrain, Kuwait, Oman, Saudi Arabia and United Arab Emirates; - passengers with a residence permit issued by Bahrain; - passengers with an e-visa obtained before departure; - passengers who can obtain a visa on arrival; - military personnel. 2. Passengers are not allowed to enter if in the past 14 days they have been in or transited through Bangladesh, Bosnia and Herzegovina, Costa Rica, Ecuador, Ethiopia, Georgia, Indonesia, Iran, Iraq, Malawi, Malaysia, Mexico, Mongolia, Mozambique, Myanmar, Namibia, Nepal, Philippines, Slovenia, South Africa, Sri Lanka, Tunisia, Uganda, Ukraine, Viet Nam or Zimbabwe. - This does not apply to: - nationals of Bahrain; - passengers with a residence permit issued by Bahrain. BAHRAIN 3. Passengers must have a negative COVID-19 PCR test taken at most 72 hours before departure. The test result must have a QR code if arriving from Bangladesh, Bosnia and Herzegovina, Costa Rica, Ecuador, Ethiopia, Georgia, Indonesia, Iran, Iraq, Malawi, Malaysia, Mexico, Mongolia, Mozambique, Myanmar, Namibia, Nepal, Philippines, Slovenia, South Africa, Sri Lanka, Tunisia, Uganda, Ukraine, Viet Nam or Zimbabwe.
    [Show full text]
  • Exceptional Experiences in Turkey Winter 2016
    exceptional experiences in Turkey Winter 2016 MALDIVES A DREAM HONEYMOON ISTANBUL A PROUD TEAM CONS & STYLES is approaching the year end, bright and sparkling while getting I ready to complete 2015 with flying colors. It has been a year of success stories, one after another, accomplished smoothly, effectively, and efficiently by our highly exquisite team members. One of the most glamorous celebrations of 2015, executed by the amazing , 6WHDPZDVWKHIDLU\WDOHZHGGLQJRID8.IDPLO\DWdÕUD÷DQ3DODFH.HPSLQVNL Istanbul. The magical spirit of this destination wedding was felt like a dream by 500 international guests from different parts of the world at every moment for three days. This glorious event was carried out through six different themed SDUWLHVDWPDJQLILFHQWYHQXHVRIWKH3DODFH Moreover, I&S with Turkish Airlines makes it possible to top a dream honeymoon in Maldives or other memorable holidays in various destinations of the world by stopping over in the magical city of Istanbul on the way back home. Turkish Airlines, world's 5th largest flight network, is now offering direct flights to Istanbul from many destinations in Asia and other parts of the world. Consequently, Istanbul, once a natural hub has become a logistic hub now. Why not enjoy the endless beaches of Asia and its gorgeous sun first, then with the scent of the ocean, come suntanned to Istanbul and combine two dream lands in a single trip to reach the ultimate level of joy. Experience the romance of Istanbul along the Bosphorus, where Asia meets Europe and indulge in the rich flavors of the Turkish cuisine as you witness the magnificent historical sites, connecting the east to the west.
    [Show full text]
  • Country Economic Review
    COUNTRY ECONOMIC REVIEW THE MALDIVES October 2002 2002 CURRENCY EQUIVALENTS (as of 31 October 2002) Currency Unit – rufiyaa (Rf) Rf1.00 = $0.078125 $1.00 = Rf12.80 ABBREVIATIONS BPT - business profit tax CPI - consumer price index EU - European Union GDP - gross domestic product GNP - gross national product LDC - least developed country MMA - Maldives Monetary Authority MIFCO - Maldives Industrial Fishing Corporation PRVT - property rental value tax SOE - state-owned enterprise US - United States WMA - Ways and Means Account NOTE In this report, “$” refers to US dollars. CONTENTS Page MAP EXECUTIVE SUMMARY i I. RECENT ECONOMIC DEVELOPMENTS 1 A. Growth and Employment 1 B. Fiscal Developments 9 C. Monetary Developments and Prices 12 D. External Trade, Balance of Payments, and Foreign Debt 14 II. SHORT- AND MEDIUM-TERM ECONOMIC PROSPECTS AND 17 POLICY ISSUES A. Short- and Medium-term Prospects 17 B. Key Policy Issues 18 APPENDIX This report was prepared by Hideaki Imamura, Programs Officer, Operations Coordination Division, South Asia Department. EXECUTIVE SUMMARY Since its independence in 1965, the Maldives has achieved commendable economic and social developments. While the country was one of the poorest in South Asia in the early 1970s, it now has the highest per capita income in the region. The average growth rate of 7.4% in the 1990s is impressive. The growth has been due mainly to the rapid development of tourism and related sectors. However, vulnerability of the economy remains a key concern. Until 2000, the Maldives’ economic performance was favorable, even though it showed a downward trend, partially due to the global economic slowdown.
    [Show full text]
  • Indonesia Economic Quarterly, June 2019 Oceans of Opportunity
    INDONESIA ECONOMIC QUARTERLY, JUNE 2019 OCEANS OF OPPORTUNITY FREDERICO GIL SANDER Lead Economist World Bank Indonesia Ayo bersih, bersihkan laut Kau akan nyaman tanpa sampah Di sekitarmu Pantai indah tiap hari Jangan suka buang plastik Senang hati kita bermain, bersihkan laut 2 Steady growth in turbulent times Photo credit: Ku Lari Ke Pantai trailer 4 Growth has been steady 7.0 6.5 6.0 5.3 5.5 5.2 5.0 5.1 5.1 4.5 4.9 4.0 3.5 3.0 5 Growth drivers shifted towards consumption... 7.0 6.0 Net exports 5.0 1.2 2.9 Gross capital 4.0 formation 1.4 3.0 Government consumption 2.0 2.8 3.0 1.0 Private consumption 0.0 -1.0 -1.0 Statistical discrepancy -2.0 2018 Q12019 6 ...in part due to election-related consumption Q12019, 17% Q2 2014, 22% 25% General elections: April 20% Presidential elections: Q1 2014, 23% July 9, 2014 17, 2019 15% Legislative elections: April 9, 2014 10% 5% Q42018, 11% 0% -5% -10% 7 Weaker machine, vehicle & equipment investment led to a slowdown in fixed investment growth Buildings & Structures Machine & Equipment Vehicles Other Equipments Cultivated Bio. Res. Intellectual Property 8 Investment 7 6 5 4 3 2 1 0 -1 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 8 The current account deficit improved in Q1 2019 due to a turnaround in the goods trade balance Goods Trade 6 Services Trade Income 4 Current account balance 2 0 -2 -4 -6 -8 -10 Mar-17 Sep-17 Mar-18 Sep-18 Mar-19 9 Slower imports of capital and intermediate goods drove down import growth..
    [Show full text]