Abstract:
The Maldives is a small island developing state,
heavily dependent on fisheries and tourism, which are major
sources of foreign exchange earnings and government revenue,
and which together account for about 40 percent of gross
domestic product. The success of these industries depends on
climatic conditions. This renders the country very vulnerable
economically and environmentally. The Least Developed
Country status of the Maldives is under threat because the
country has experienced relative economic improvements that,
ironically, have to a large extent been possible by virtue of the
support accorded to the Maldives as an LDC. This chapter
argues that the criteria used in assessing LDC status need to
be refined so as to give more weight to economic vulnerability.
The chapter also proposes that no country should be graduated
until the criteria are appropriately refined, so as to avoid the
risk that the country in question ends up worse-off in spite of
its economic successes.
