Address by

the Minister of Planning and National Development of The Republic of Maldives

Hon. Ibrahim Hussain Zaki

Geneva, 28 June 2000

Mr. President, Excellencies, Ladies and Gentlemen.

At the outset allow me to congratulate you Mr. President on your election. Permit me also to convey to the government and people of Switzerland on behalf of the members of my delegation and on my own behalf, sincere gratitude and appreciation for the general hospitality extended to us and for the excellent arrangements made for this important session.

I would also like to express our appreciation to the Secretary General and the Chairman of the Preparatory Committee for their vision and foresight in helping to chart a future course of action towards achieving sustainable social and economic development in the new millennium.

It is indeed a great honour and privilege for me to address the 24th Special Session of the United Nations General Assembly to review the implementation of the commitments of the World Summit for Social Development in a globalising world.

Mr. President,

The Maldives is a Small Island Developing State that looks on the world community with great expectations especially in addressing issues of poverty, social integration and employment promotion all of which have global dimensions.

In an increasingly globalising world, integration in to the world economy is not an option but a necessity. The Maldivian economy is based on two principle industries, fisheries and tourism, both of which rely almost totally on the international economy for their growth and development. They are also the largest employers and the source of livelihood for the large majority.

The external orientation of the economy and its narrow base renders the country excessively vulnerable to the vagaries of the international economy, which can have direct implications for the people's income and employment prospects. For countries such as the Maldives that rely on the international economy for securing all their basic needs, a free and fair international trading environment without protectionist measures of any kind, is essential in order to achieve sustainable economic and social development, today and in the future.

Mr. President,

In addition to external conditions, the Maldives also faces many constraints intrinsic to the country. We are a small island nation with a highly dispersed population that makes it difficult and costly to provide basic services and infrastructure. A shortage of both skilled and unskilled labour makes it necessary to rely on expatriate labour, which currently makes up over 27 percent of the labour force. Lack of natural resources, skilled labour and technology creates serious difficulties in diversifying the economy and reducing external dependence. In addition, the country's extreme vulnerability to environmental threats creates further cause for concern and alarm.

Despite these constraints, under President Maumoon Abdul Gayoom's dynamic leadership the Maldives has nevertheless, achieved impressive social and economic progress over the recent period where GDP growth has been sustained at around 6 per cent with low inflation. We have also been able to meet many of the regional and international social development targets. In addition, human resources development programmes are carried out and strategic options for national development are being sought to achieve greater economic diversification and increase overall competitiveness.

Mr. President,

We are at a critical juncture in our development history where important gains are being achieved in alleviating poverty, employment creation and social integration. It is imperative at this time to sustain the development process through increased investment and sound economic management. As such we believe that the proposed graduation of the Maldives from the list of Least Developed Countries is premature. The graduation from LDC status at this time would place the country at the risk of losing the gains that have been achieved. The country needs concessional aid and trade now as never before, in order to consolidate the gains we have achieved and launch the country on a path of self-sustained growth and development.

Mr. President,

The support and fullest cooperation of the international community is crucially important as we strive to overcome the difficulties and face the challenges of globalisation in the 21St century. It must be emphasized that greater efforts need to be made to meet the agreed ODA targets and to provide more concessional and grant assistance to Least Developed Countries to sustain development programmes and achieve stability and progress. Further, international cooperation and assistance would also be crucial in addressing the environmental problems facing Small Island Developing States such as the Maldives.

I believe the time has come to forge new partnerships in development where countries are recognized for their intrinsic vulnerabilities and appropriate structures are put in place to offer global solutions to global problems. For our part, I would like to reiterate our commitment at Copenhagen, to participate in and lend our cooperation to the global process of development and progress that is being forged at this distinguished gathering.

I Thank You