Strategic 
         Economic 
         Plan
         Republic  of Maldives
                               P
                         S
                            E
        Ministry of Planning and National Development
    S E P
      © Ministry of Planning and National Development 2005
      Excerpts from the publication may be reproduced in respect of any fair dealing for the purpose
      of research provided due acknowledgement is made.
      ISBN 99915-55-43-9
      Edited and Published by:
      Ministry of Planning and National Development
      Ghazee Building
      Male’ 20125
      Republic of Maldives
      e-mail: spr@planning.gov.mv
      website: www.planning.gov.mv
      Project Consultants:
      International Trade Institute of Singapore
      Printed by:
      Novelty Printers & Publishers Pvt. Ltd.
      Republic of Maldives
                                                                                                           S E P 3
                                    MALDIVES’ STRATEGIC ECONOMIC PLAN 
                    
                    
                   Contents                                                                                     3 
                   Abbreviation List                                                                            4 
                   Executive Summary 5 
                   Chapter 1 – Introduction 13 
                   Terms of Reference                                                                          13 
                   Framework of Study                                                                          13 
                   Methodology 14 
                   Overview of the Economy 16 
                   Economic Structure                                                                          16 
                   Trade Structure                                                                             21 
                   Vision 2020                                                                                 26 
                   Development Gap Analysis                                                                    26 
                   Chapter 2 – Existing Situation in Maldives 33 
                   Introduction 33 
                   General Strengths                                                                           33 
                   Existing Status of Key Economic Sectors                                                     34 
                        ƒ    Tourism Sector                                                                    34 
                        ƒ    Fisheries Sector                                                                  39 
                        ƒ    Agriculture Sector                                                                43 
                        ƒ    Garments Manufacturing Sector                                                     46 
                   Chapter 3 – Recommendations                                                                 49 
                   Introduction 49 
                   Economic Clusters for Focused Development                                                   51 
                   Expansion of Traditional Core Economic Clusters                                             53 
                        ƒ    Tourism Cluster                                                                   53 
                        ƒ    Fisheries Cluster                                                                 62 
                        ƒ    Agriculture Cluster                                                               70 
                   Development of New Economic Clusters                                                        74 
                        ƒ    Port and Logistic Services Cluster                                                74 
                        ƒ    Information Communication Technology Cluster                                      78 
                        ƒ    Offshore Banking and Financial Centre Cluster                                     84 
                   Development of Supporting Sectors                                                           89 
                   Development of Critical Supporting Policies                                                 91 
                   Conclusions 94 
                     
                   Annex 1 – Participants consulted for the development  
                                     of the Strategic Economic Plan (Phase 1)                                  96 
                                                                                              
                   Annex 2 - Reports reviewed By ITIS                                                          97 
                    
  4    S E P
                        ABBREVIATIONS USED IN THE REPORT
           ASEAN     Association of Southeast Asian Nations
           BOT       Build-Operate-Transfer
           CPF       Central Provident Fund (Singapore)
           DFI       Direct Foreign Investment
           EEZ       Exclusive Economic Zone
           EU        European Union
           FAO       Food and Agriculture Organisation
           FTA       Free Trade Agreement
           GDP       Gross Domestic Product
           HRD       Human Resource Development
           HRM       Human Resource Management
           ICT       Information and Communication Technology
           IDA       International Development Agency
           IFI       International Financial Institutions
           IT        Information Technology
           KBE       Knowledge-based Economy
           MIFCO     Maldives Industrial Fisheries Company
           MOFAMR    Ministry of Fisheries, Agriculture and Marine Resources
           MMA       Maldives Monetary Authority
           MNC       Multinational Corporation
           NIE       Newly Industrialising Economy
           OCAD      Office of the Commissioner for Aquaculture Development (Canada)
           OECD      Organisation for Economic Cooperation and Development
           OFC       Offshore Banking and Financial Centre
           PLS       Port and Logistic Services
           PPP       Public-Private Partnership
           SAARC     South Asian Association for Regional Cooperation
           SAPTA     South Asian Preferential Trade Arrangement
           SDF       Skills Development Fund
           SEP       Strategic Economic Plan
           SME       Small Medium Enterprises
           TOR       Terms of Reference
           UNDP      United Nations Development Programme
           WTO       World Trade Organisation