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Maldives


Area:
90,000 square kilometres (only 1% land)
Population: 400,000 (2004 estimate)
Capital City: Malé (population approx 80,000 )
People:Ethnically homogenous, Maldivians have South Indian, Sinhalese and Arab roots.
Languages: Dhivehi, though English is widely spoken on resort islands and in Malé
Religion(s):100% Islam (Sunni Muslims). It is illegal to publicly practice any other religion.
Currency: Rufiyaa, divided into 100 larees
Major political parties: Political parties are not allowed to operate in the Maldives. Election is on an individual basis
Government: Independent sovereign Republic with a presidential system of government
Head of State: His Excellency President Maumoon Abdul Gayoom
Foreign Minister: Dr Ahmed Shaheed MP
Membership of international groupings/organisations: Member of 59 international organisations including the following: The Commonwealth, SAARC, UN, WHO, Organisation of Islamic Conference (OIC) and the Non-Aligned Movement.
Geography

The Republic of Maldives, lying about 420 miles south west of Sri Lanka, consists of a chain of 26 natural coral atolls comprising some 1,190 islands. 200 of these islands are inhabited, 87 are designated tourist islands, and 20 are industrial islands. The islands are small: the capital Malé is an area of under 2 square kilometres, and the highest point above sea level in the Maldives is 2.4m.

The Maldives was seriously affected by the tsunami on 26 December which killed 83 people and virtually destroyed 14 inhabited islands, three of which have been permanently abandoned. 5% of the population lost their homes, 12,000 people were displaced, 8% of the fishing fleet sustained damaged, and a quarter of the resort islands closed for repairs. The International Monetary Fund, which recently approved US$6.3 million in emergency assistance for the Maldives, estimates that net losses to the balance of payments will be US$160 million in 2005, and that total reconstruction costs will be almost 50% of the GDP.

Population

The population is approximately 400,000. Over 40% of the population are under 15 years old. The growth rate is 2.86%. Malé is home to 27% of the total population. Around 80% of islands have less than 1000 inhabitants.

Tourism

There are a total of 208 tourist establishments offering 18,765 beds. There are 87 tourist islands. The average length of stay is 8.5 days. There were some 560,000 tourists in 2004, and the annual growth rate averages 8%. One quarter of the tourists come from Italy, over 16% from the UK, 14% from Germany and 9% from Japan. The number of UK tourists has risen substantially in recent years (approx. 94,000 in 2003).

As of the beginning of March 2005, 14 resorts remained closed following the tsunami. These are expected to reopen following renovation work.

History

Maldives was an independent Sultanate from 1153 until the Portuguese invaded in 1558. They ruled for a short span of 15 years until overthrown in 1573. On December 16, 1887 the Sultan of the Maldives signed a contract with the British Governor of Ceylon turning the Maldives into a British protectorate. The Maldives gained independence on July 26, 1965 and became a republic on 11 November 1968. It joined the Commonwealth in 1982.

Education

The literacy rate is almost 100%, with schools following the British system of education. There are government, community and private schools. Over 30% of teachers are expatriates. Over two-thirds of the total number of pupils are enrolled in primary education. There are many islands with few inhabitants;38% of schools have 100 pupils or less, and 70% of schools have 300 pupils or less. There are 21 schools in Malé, with 316 other schools spread over the other 20 administrative atolls. Of the 5,239 teachers, over 30% are expatriates. The overall teacher to student ratio is 1:20, however 22% of permanent teachers are untrained.

Politics

Under the current constitution which came into effect in January 1998, the President is Head of State, Head of the Government, Commander-in-Chief of the Armed Forces and of the Police of the Maldives, Head of the Judiciary, and is the supreme authority to propagate the tenets of Islam. Political parties are not allowed in the Maldives and candidates are elected on a personal basis in local constituencies.

The legislative authority is exercised by the People's Majlis, consisting of 50 members. Two members are elected from each of the 20 atolls and Male', and eight are appointed by the President.

President Gayoom has been in power for over 25 years, and has generally been a popular figure in the Maldives. His government has had a good record of social and economic development. In 1989, President Gayoom embarked upon a gradual process of reform and democratisation of the Maldives' traditionally autocratic political structures.

Under the Maldivian Constitution, only Sunni males over the age of 35, and not married to a foreign national can stand for election as President. Nominations are put before the Special Majlis (constituent assembly) who vote for one. The name of the candidate with the most votes is then put to the public vote. If the majority vote for the candidate, he is elected President. President Gayoom was re-elected for a sixth successive term in October 2003 with a 90% in favour vote, making him the longest serving President in the Commonwealth.

After riots in Malé in September 2003, following the death of a prison inmate allegedly as a result of guard brutality, President Gayoom set up a Human Rights Commission (see Human Rights), and identified five strategic areas of action. These were strengthening democratic institutions and processes of governance, placing emphasis on establishing an inclusive government, streamlining public service and increasing productivity, instituting modern management practices and strengthening the role of the family.

At the opening of the People's Majlis (Parliament) in February 2004, President Gayoom announced that he intended to convene a People’s Special Majlis (a constituent assembly) to draft amendments to the constitution aimed at further strengthening democracy. The Special Majlis, for which elections were held in May 2004, is made up of members elected directly, all members of the People's Majlis and the Cabinet, and presidential appointees.

In a speech made in June 2004, President Gayoom proposed wide-ranging constitutional reforms to develop and strengthen democracy in the Maldives. These included creating the right to establish political parties, a greater separation of powers, establishing the office of Prime Minister, limiting the terms of President to two of five years each and allowing women to stand for the presidency. These ideas, together with suggestions sent in (at the President’s invitation) by the Maldivian public are to be discussed by the Special Majlis.

Following pro-reform demonstrations in Male' on 12 and 13 August 2004 (which ended in violence), the Maldivian authorities declared a state of emergency and arrested some 200 people including 10 members of the Special Majlis. Following allegations of mistreatment of detainees, representatives of the EU called on the Foreign Minister to express their concern.

The state of emergency was lifted on 10 October but some of the members of the Special Majlis remained in detention until the end of the year when President Gayoom in his New Year's speech that all charges against those involved in the August demonstrations would be dropped. A general election was held on 22 January 2005. A significant number of pro-reform candidates were elected including some supporters of a self-exiled opposition party, the Maldivian Democratic Party (MDP). The Special Majlis reconvened on 16 February.

ECONOMY

The major industry is tourism, accounting for more than one third of the GDP. The traditional fishing industry now only accounts for 6%, although it remains an important part of the economy through its employment and exports (mainly tuna). Major imports include machinery and electrical items, mineral products, textiles, processed foods, vegetable products and vehicles. The principal import sources for the Maldives in 2002 were Singapore (25.6%), Sri Lanka (15%), United Arab Emirates (14.5%), India (6.7%) and Malaysia (5.7%).

The Maldives principal export destinations in 2002 were the US (51.744%), Sri Lanka (16.2%), Thailand (9.3%), Japan (7.6%) and the UK (4.6%). Over half of the total exports are marine products - canned and dried fish (54%), the majority of the rest of the Maldives exports are apparel and accessories.

The Maldives is currently to graduating from the UN's LDC (Least Developed Country) status, a process which will take several years.


Basic Economic Facts

GDP: US$ 715 Million (2004)
GDP per head: US$ 2,509 (2004)
GDP growth: Prior to the tsunami this was predicted to be 6%, following the tsunami the 2005 forecast is 1%.
Average Inflation: 6.8% (2005 forecast)
Major Industries: Tourism (32.6% of GDP) and Transport & Communications (16.4% of GDP)
Major trading partners: USA, Sri Lanka, Thailand, Japan, UK, Singapore, United Arab Emirates, India, and Malaysia.
Total exports: US$ 152 million (2003)
Total imports: US$ 470 million (2003)
Exchange rate: 12.8 Rufiyaa = 1 US$, 24.6 Rufiyaa = £1 Sterling (March 2005)
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