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National Trade Data Bank
ITEM ID     : ST BNOTES MALDIVES
DATE        : Oct 28, 1994

AGENCY      : U.S. DEPARTMENT OF STATE
PROGRAM     : BACKGROUND NOTES
TITLE       : Background Notes - MALDIVES

Source key      : ST
Program key     : ST BNOTES
Update sched.   : Occasionally
Data type       : TEXT
End year        : 1992
Date of record  : 19941018
Keywords 3      :
Keywords 3      : | MALDIVES

US DEPARTMENT OF STATE
BACKGROUND NOTES:  MALDIVES

OFFICIAL NAME:   Republic of Maldives

PROFILE

Geography
Area: 298 sq. km. (115 sq. mi.) spread over 1,200 islands; twice the
size of Washington, D.C.  Cities: Capital-Male (pop. 52,000). Terrain:
Flat islands. Climate: Hot and humid.


People
Nationality: Noun and adjective-Maldivian(s). Population (1988):
200,000. Annual growth rate (1977-85): 3.2%. Density: About 664 per
sq. km. (1,721 per sq. mi.). Ethnic groups: South Indians, Sinhalese,
Arabs. Religion: Sunni Islam. Languages: Dhivehi; many government
officials speak English. Education: Years compulsory-none.
Attendance-primary, 61%; secondary, 19%. Literacy-93%. Health:
Infant mortality rate-108/1,000. Life expectancy-53 yrs. Work force
(60,000): Agriculture, fishing, manufacturing-60%. Services and
government-40%.

Government
Type: Republic. Constitution: June 4, 1964. Independence: July 26,
1965.

Branches: Executive-president, cabinet. Legislative-unicameral Majlis.
Judicial-High Court, 8 lower courts, 19 atoll courts.

Administrative subdivisions: 19 atolls and capital city.

Political parties: None. Suffrage: Universal adult.

Central government budget (1987): 39% of GDP.

Flag: A white crescent centered in a green rectangle on a red field.

Economy
GDP (1987): $95 million. Annual growth rate (1987): 9%. Per capita
GDP (1987): $494. Inflation (1987): 23%.
Domestic economy (1987): Tourism (17% of GDP); fishing (16% of
GDP); agriculture (11% of GDP); industry (6% of GNP).  Trade
(1987): Exports-$35 million: fish products, garments. Major
markets-U.S., Thailand, Sri Lanka. Imports-$74 million: manufactured
goods, machinery and equipment, food products. Major
suppliers-Singapore, Thailand, India.
Official exchange rate (1988): 8.6 rufiyaas=U.S.$1.

Fiscal year: Calendar year.

Aid received (1987): $13 million. Primary donors-World Bank, UN
Development Program, Saudi Fund, Kuwaiti Fund, Japan, Norway.
U.S. aid (1987)-$500,000.


Membership in International Organizations
UN and some of its specialized and related agencies, South Asian
Association for Regional Cooperation (SAARC), Colombo Plan,
Commonwealth, Group of 77, Nonaligned Movement, Islamic
League, Asian Development Bank, Organization of the Islamic
Conference (OIC).


GEOGRAPHY
The Republic of Maldives is located in the northern Indian Ocean. Its
capital, Male, is an island about 2.6 square kilometers (1 sq. mi.),
670 kilometers (415 mi.) southwest of Sri Lanka. The Maldives are a
chain of 19 atolls extending 764 kilometers (502 mi.) from north to
south. The archipelago is 120 kilometers (74 mi.) wide at its widest
point. Its southern tip is 644 kilometers (400 mi.) from Diego Garcia.

The atolls comprise 1,200 coral islands, which seldom exceed an
elevation of 2 meters (6 ft.) above sea level. No island is larger than
13 square kilometers (5 sq. mi.). Tropical vegetation varies from
grass and scrub to dense groves of fruit trees and coconut palms.

The climate is equatorial, hot and humid, with little daily variation. The
average temperature is 27 C (80 F), with a relative humidity of 80%.
Most of the area is subject to the "wet" southwest monsoon
(May-October) and the "dry" northwest monsoon (December-March).
Annual rainfall averages 254 centimeters (100 in.) in the north and
281 centimeters (150 in.) in the south.


PEOPLE
Of the 1,200 islands, 202 are inhabited.  The population is scattered
throughout the country, with the greatest concentration on the capital
island, Male.  Only four islands have a population of more than
3,000.  Although most islands are uninhabited, absence of potable
water and arable land limits population expansion.

The earliest settlers were probably from southern India, speaking
languages of the Dravidian family.  They were followed by
Indo-European speakers from Sri Lanka in the fourth and fifth
centuries B.C.  In the 12th century, sailors from Arab countries and
East Africa came to the islands.  Today, Maldivian ethnic
consciousness is a strong blend of these cultures, reinforced by
religion and language.

Originally Buddhists, Maldivians were converted to Sunni Islam in the
mid-12th century. Islam is the official religion and that of the entire
population. Strict adherence to Islamic precepts and close
community relationships have kept crime under control.
The official language is Dhivehi, an Indo-European language related
to Sinhala, the language of Sri Lanka. The writing system, like Arabic,
is from right to left, although the alphabets are different. Vocabulary
is overwhelmingly Maldivian.

Some social stratification exists on the islands.  It is not rigid, since
rank is based on varied factors, including occupation, wealth, Islamic
virtue, and family ties. Members of the social elite are concentrated
in Male.


HISTORY
The early history of the Maldives is obscure. According to Maldivian
legend, a Sinhalese prince named Koimale was stranded with his
bride, daughter of the king of Sri Lanka, in a Maldivian lagoon and
stayed on to rule as the first sultan. The islands were governed as a
sultanate from 1153 to 1968 with only two exceptions-15 years of
Portuguese rule in the 16th century and a short-lived republican
government in 1953.

Over the centuries, the islands were visited and influenced by sailors
from countries on the Arabian Sea and the Indian Ocean littorals.
Mopla pirates from the Malabar Coast (present-day Kerala State in
India) harassed the islands. In the 16th century, the islands were
plagued by Portuguese raiders, who eventually were driven away by
the warrior-patriot Muhammad Thakurufar Al-Azan. Although
independent for most of its history, Maldives was ruled by Portugal
from 1558 to 1573 and were a British protectorate from 1887 until
July 26, 1965.
On November 11, 1968, the sultanate was abolished, and the
country assumed its present name. Ibrahim Nassir, prime minister
under the sultanate, was president from 1968 to 1978. He was
succeeded by Maumoon Abdul Gayoom, who was elected president
in 1978, 1983, and 1988.

A 1956 bilateral agreement gave the United Kingdom the use, for 20
years, of Gan (in Addu Atoll) in the far south as an air facility in return
for British aid. The agreement ended in 1976, shortly after the British
closed the Gan air station.
In April 1987, high tides that swept over Maldives, destroying much
of Male and nearby islands, prompted high-level Maldivian interest in
global climactic changes, including the "greenhouse effect."
On November 3, 1988, Maldives was rocked when Sri Lankan Tamil
mercenaries attempted to overthrow the government.  At President
Gayoom's request, the Indian military suppressed the coup attempt
within 24 hours.  In early 1989, 68 mercenaries and 6 Maldivians
implicated in the attempt were tried.


GOVERNMENT AND  POLITICAL CONDITIONS
A 1968 referendum approved the work of a special parliament, and
Maldives became a republic with executive, legislative, and judicial
branches of government. The constitution was amended in 1970,
1972, and 1975, and has been under revision since 1981.

The president presides over the executive branch and appoints the
cabinet. Nominated to a 5-year term by a secret ballot of the Majlis
(parliament), the president must be confirmed by a national
referendum.
The unicameral Majlis is composed of 48 members serving 5-year
terms. Two members from each atoll and Male are elected directly
by universal suffrage. Eight are appointed by the president.  A Majlis
member can be elected in the middle of a session and complete the
5-year term in the following session.

The Maldivian legal system, derived mainly from traditional Islamic
law, is administered by secular officials, a chief justice, and lesser
judges on each of the 19 atolls, who are appointed by the president
and function under the Ministry of Justice. There also is an attorney
general.
Each inhabited island within an atoll has a chief who is responsible
for law and order. Every atoll is administered by an atoll chief,
appointed by the president, who functions as a district officer in the
British South Asian tradition.

Maldives has no organized political parties. Candidates for elective
office run as independents on the basis of personal qualifications.


Principal Government Officials
President; Minister of Defense and National Security; Minister of
Finance-Maumoon Abdul Gayoom
Ministers
Atolls Administration-Abdulla Hameed
Education-Muhammad Zahir Hussain
Fisheries and Agriculture-Abdulla Jameel
Foreign Affairs-Fathulla Jameel
Health and Welfare-Abdul Sattar Moosa Didi
Home Affairs and Sports-Umar Zahir
Justice-Muhammad Rasheed Ibrahim
Planning and Environment-vacant
Public Works and Labor-Abdulla Kamaludeen
Tourism-Ahmed Mujathaba
Trade and Industries-Ilyas Ibrahim
Transport and Shipping-Abbas Ibrahim
Attorney General-Ahmed Zaki

ECONOMY
The Maldivian economy is based on tourism and fishing. Poor soil
and unavailable arable land limit agriculture to a few subsistence
crops. Traditional industry consists of boatbuilding and handicrafts,
while modern industry is restricted to a cannery and a few garment
factories and consumer products.

Fishing employs about one-third of the labor force. Production was
more than 60,000 metric tons in 1988, most of which was skipjack
and yellowfin tuna. More than one-half of the annual harvest is
frozen, canned, or dried and exported to Thailand, Sri Lanka, and
other countries.

In recent years, Maldives successfully has marketed its natural
assets for tourism - beautiful beaches on small coral islands, blue
waters abundant with tropical fish, and glorious sunsets. Since the
first resort was established in 1972, 58 resort hotels have been
developed-each on its own island-with a capacity of about 7,300
beds. The number of tourists-mainly from Europe and Japan-visiting
the Maldives increased from 1,100 in 1972 to 155,758 in 1988. To
facilitate tourism, Male International Airport has been expanded to
accommodate wide-bodied aircraft. In early 1989, six international
airlines-as well as charter companies-serviced Male.
Maldivians traditionally have been good sailors. The national carrier,
Maldives National Ship Management Ltd., operates a fleet of about
13 vessels-down from nearly 40 in the early 1980s-serving many
worldwide destinations.

In 1987, Maldives had a balance-of-trade deficit of $39 million.
Because of large earnings from tourism, however, the current
account was in balanced.  Import duties, taxes on tourism, and
foreign grants are Maldives' largest sources of revenue.

Inflation was high, at 23%, chiefly because a major currency
devaluation in 1987 led to increased import prices.   Preliminary data
for 1988 show the cost of living declining.

Four factories-three on the site of the former Royal Air  Force Base
on Gan Island-export apparel to the United States. A fish canning
factory also has become a source of foreign exchange.

Over the years, Maldives has received economic assistance from
multinational development organizations, including the UN
Development Program (UNDP) and the World Bank. Individual
donors, including Japan and European and Arab countries, also
have contributed. The United States has furnished assistance
through the PL 480 program, most recently in 1987.


FOREIGN RELATIONS
Maldives follows a nonaligned policy and is committed to maintaining
friendly relations with all countries. Maldives has a UN mission in
New York and an embassy in Sri Lanka.  India, Sri Lanka, the
Palestine Liberation Organization, and Pakistan currently maintain
resident embassies in Male. The United States, West Germany,
Bangladesh, and France have consular agencies in Male under the
supervision of their embassies in Colombo. The UNDP has a
representative resident in Male. Many countries have nonresident
ambassadors accredited to the Maldives, most of them based in Sri
Lanka or India.

U.S.-MALDIVIAN RELATIONS
The United States has friendly relations with the Republic of Maldives.
The U.S. Ambassador and most embassy staff in Sri Lanka are
accredited to Maldives and make periodic visits. The U.S. consular
agent in Male provides limited consular assistance to U.S. visitors.
The United States supports Maldivian independence and territorial
integrity and publicly endorsed India's timely intervention on behalf
of the Maldivian Government during the November 1988 coup
attempt. U.S. naval vessels have regularly called at Male in recent
years.
U.S. contributions to economic development in Maldives have been
made principally through international organization programs.
Although no aid agreement exists between the two countries, the
United States has indirectly funded training for Maldivian civilians
abroad. The United States also trains a small number of Maldivian
military personnel annually. The United States provided $2.75 million
in wheat through the PL 480 Program from 1985 to 1987 and
donated $25,000 in disaster relief during April 1987 high tides.


The U.S. Consular Agency in Male is located at Mahdu Edurage,
20-05 Violet Magu, Henveru, Male (tel. 322581, telex 66028).

TRAVEL NOTES
Customs:  Visas are not required of foreigners who stay up to 30
days. Unlimited amounts of foreign currency may be taken into or
out of the country. Visitors wishing to convert rufiyaas into dollars
upon departure must have proof that the rufiyaas were obtained for
dollars. The import of pork and alcohol is prohibited.

Health:  Medical facilities are adequate by Third World standards.
Male has a modern 48-bed hospital, and there are medical rescue
services in the atolls. Valid immunizations against yellow fever may
be required; check latest information. All islands except Male pose
a malaria risk.
Telecommunications:  International telephone, telegraph, and telex
services generally are reliable. Telephone service within Male is
adequate, but the service connecting Male to the resort islands is
sometimes erratic. Male is 10 hours ahead of eastern standard time.

Transportation:  Six airlines service the Maldives. Boats are the
primary means of transport between the islands. Limited taxi service
is available in Male.

Tourist attractions:  Maldives have some of the world's most beautiful
beaches, excellent snorkling, scuba diving, wind surfing, and fishing.

Further Information
These titles are provided as a general indication of material published
on this country. The Department of State does not endorse unofficial
publications.


Hockly, Thomas William. The Two Thousand Isles-A Short  Account
of the People, History, and Customs of the
       Maldive Archipelago. London: 1935.

Maldives Ministry of External Affairs. The Maldive Islands. Colombo:
Gunasena, 1952.

Maloney, Clarence. People of the Maldives Islands. Bombay:
Longman Orient, 1980.

Maldives Ministry of Planning and Development. Statistical Year Book
of Maldives (annual). Male: Government of the Maldives.

Heyerdhal, Thor. The Maldives Mystery. Bethesda, Md.: Adler &
Adler, 1986.

Available from the Superintendent of Documents, U.S. Government
Printing Office, Washington, D.C. 20402.

American University. Indian Ocean: Five Island Countries. Area
Handbook Series, 1983.


Published by the United States Department of State --  Bureau of
Public Affairs  -- Office
of  Public Communication -- Washington, D.C.-- February 1990
Editor:  Juanita Adams
Department of State Publication 8026-- Background Notes Series  --
This material is in the public domain and may  be reprinted without
permission; citation of this source is appreciated.

For sale by the Superintendent of Documents, U.S. Government
Printing Office, Washington, D.C.  20402