The Maldives and the World Bank have been connected since 1978. This country in South Asia has demonstrated success from World Bank arrangements since its introduction in '78. Over the past 41 years that this partnership has existed, the Maldives has garnered $295 million in support spread throughout 32 projects. Most projects have focused on the improvement and expansion of health and education programs in the country. Current concerns for the Maldives are shifting towards climate change, disaster risk reduction, and environmental sustainability.
Risks
Although the Maldives does not possess a significant amount of land or a large population, there are still many areas that need attention to ensure the safety of citizens and tourists, and the efficiency of the economy.
Terrorism
The Maldives are a popular vacation spot for couples, families, and anyone looking for a tropical getaway. Tourism is the largest source of revenue for the country. Most tourists are naive to the threat of terrorism in the country due to the rise of authoritarianism, religious conflicts, and domestic conflicts. The resort based islands tend to be safe areas for tourists, but rising terrorism concerns can have severe effects on the Maldives Economy as it is heavily influenced by tourism.
Natural Disasters
Natural disasters also pose a risk for infrastructure, human safety, and tourism in the Maldives. The 2004 Indian Ocean earthquake and tsunami is a prime example of this risk and the effects it can have on the country. The World Bank was a significant player in reconstruction and protection against natural disasters after this catastrophe. The Post Tsunami Relief and Reconstruction Project in 2005 provided $14 million to help the Maldives' rehabilitation efforts.
Climate Change
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The Maldives are made up of around 1,200 islands, of which only 200 are inhabited by humans. This makes the country highly susceptible to global warming effects such as rising sea levels. Many World Bank projects have focused on this threat including the Maldives Environmental management Project (2008), Sustainable Fisheries Resource Development Project (2017), and Maldives Clean Environment Project (2017). Climate change issues pose unique and vital problems for the Maldives which need to be acknowledged. Recent World Bank projects have displayed efforts to properly attend to these matters.
World Bank Projects
The Maldives has participated in 32 projects with the World Bank as previously mentioned. Historically the World Bank assisted in carrying out projects to promote tourism, improve education, and develop the private sector. The focus for projects in the region has shifted over time as the political climate changes and new problems arise. Currently the World Bank strategy for assistance in the Maldives revolves around three core objectives: promoting economic opportunities, building resilience to climate change, and strengthening fiscal sustainability. The most recent World Bank project in the Maldives, approved on July 1, 2019, involves increasing budget capability, strengthening policy framework, and preventing harmful effects of natural disasters and climate change.
Significant Projects
This table displays a list of the most important projects that have previously taken place, or are currently active in the Maldives ranging from commitments of $13.15 million to $20 million.
| Project | Approval Date | Commitment Amount in US Dollars | Objectives |
|---|---|---|---|
| Third Education and Training Project | March 16, 2000 | $17.60 million | Improve quality, access, and capacity of education |
| Post Tsunami Emergency Relief and Reconstruction Project | March 15, 2005 | $14 million | Support rehabilitation and reconstruction from damages suffered by 2004 Indian Ocean Tsunami |
| Maldives Environmental Management Project | June 10, 2008 | $13.15 million | Decrease environmental threats |
| Development Policy Credit | March 4, 2010 | $13.7 million | Support economic stabilization and recovery |
| Sustainable Fisheries Resources Development Project | April 11, 2017 | $18 million | Improve management of fisheries in the region |
| Maldives Clean Environment Project | June 23, 2017 | $17.5 million | Improve solid waste management |
| Enhancing Employability and Resilience of Youth Project | June 14, 2019 | $20 million | Improve skills and promote employment among the youth |
| Maldives First Fiscal Sustainability and Budget Credibility Development Policy Financing Operation | July 1, 2019 | $20 million | Improve policy framework to enhance sustainability of public finances and budget credibility |
Results
During the 1980s and 1990s the World Bank successfully helped boost the Maldives economy by implementing projects to increase tourism. The World Bank has also played a significant role in assisting the Maldives to increase foreign trade and speed up development. The long-term results of more recent projects remain unknown, but the short-term results look promising. There has been increased attention towards the growing concern of environmental concerns on these islands. Additionally the Maldives has seen a reduction in the fiscal deficit, thanks to the Ministry of Finance, and more sustainability projects. New projects are expected to be introduced in the coming years as the partnership between the World Bank and the Maldives continues to thrive.
References
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- "Overview". World Bank. Retrieved 2019-12-03.
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- "Development Policy Credit". World Bank. Retrieved 2019-12-09.
- "Sustainable Fisheries Resources Development Project (Fourth South West Indian Ocean Fisheries Governance and Shared Growth Project)". World Bank. Retrieved 2019-12-09.
- "Maldives Clean Environment Project". World Bank. Retrieved 2019-12-09.
- "Maldives: Enhancing Employability and Resilience of Youth Project". World Bank. Retrieved 2019-12-09.
- "Maldives First Fiscal Sustainability and Budget Credibility Development Policy Financing Operation". World Bank. Retrieved 2019-12-09.
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