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SOCIAL AND ECONOMIC SITUATION

The population is estimated at 245,910 in 1994, which is scattered over 200 inhabited islands. The remainder of the country's islands are uninhabited, with the exception of 64 islands developed as tourist resorts. About 26 percent of the nation's population resides in the capital city, Male. The population has also achieved an ideal growth rate. The annual average rate is 3.4 percent at which the country's population at the turn of the century is expected to be around 300,000.

Despite the fact that Maldives lack land based natural resources it has achieved rapid economic growth during the last decade. Since 1987, the average annual growth rate in the economy has exceeded 9.0 percent, which could be a remarkable performance by international standards. Such performance has being achieved mainly via global markets of fish and tourism services. The growth and developments in these contributed indirectly to other sectors such as agriculture. Agriculture sector grew at an average rate of 3.7 percent per annum during 1994-1996, however, its contribution to GDP declined due to the fact that sectors like tourism construction etc., are growing at a much faster rate (table 1). In addition some agriculture/forestry products, such as coconut/coconut parts, firewood, timbers used for local construction and building etc. are not included in the GDP figures. Hence, it could be argued that the importance of agriculture/forestry to the overall economy could be more than the estimated value added.

Table 1 - Gross Domestic Product by Sector of Origin (1994-1995), in %

Sector

1994

1995

Gross' Domestic Product

100

100

Primary Sector

21.6

20.4

Agriculture

8.0

7.7

Fisheries

11.8

11.0

Coral and sand mining

1.8

1.7

Secondary Sector

15.3

15.5

Construction

9.1

9.3

Manufacturing

6.2

6.2

Tertiary Sector

63.1

64.1

Distribution

19.1

19.3

Transport

6.6

6.7

Tourism

17.5

18.4

Real Estate

4.3

4.3

Services

6.3

6.5

Government Administration

9.0

8.9

Source: Ministry of Planning, Human Resources & Environment

Maldives has never exported any forestry products, however, historically the country has had a good natural cover of forest trees and was self sufficient in forest products. Currently the country is experiencing severe shortages of forest products, mainly as a result of population pressure and unsound land use practices as well as developments in fishing industry and marine transport. Majority of sectoral needs of timber are met from imports' around US $97 million worth of timber products was imported during 1994 (Table 2).

Maldives has felt the need to strengthen forestry and thus the Government has stressed the importance of forest cover and encouraged tree planting on the islands. It is formulating a policy programme to promote conservation and sustainable management of the country's tree resources. A national body is formed to advise the Government on forest rehabilitation and management and is particularly keen to promote planting of species of timber, fuel wood, and improved varieties of fruit trees.

The type of agriculture usually practised is shifting cultivation. Land is cleared by a farmer and often a few years of cropping, it is abandoned and new blocks of land is selected for clearance from area set a side for agriculture. Thus wood lots lands are converted for cropping. Coconut trees are used in agroforestry systems providing shelter and shade go crops and gardens as well as nut crops, timber and other uses.

In the Maldives all lands belong to the State. In the inhabited islands apart from the backyard garden, islanders are given communal field crop land free of charge for the cultivation of annual crops. These lots however, do not remain with the same grower every year; hence little is done to maintain and improve them. The islanders also have access to the community forest lands in inhibited islands and uninhabited islands itself are leased out to individual of agriculture & tourism development. However, uncertainty of land tenure is a major obstacle to the promotion of tree growing. Very recently, a more secure system of leasing land has been adopted i.e. renting of uninhabited islands for a fixed term of not more than 20 years, and this will encourage tree planting and will develop sustainable land use systems through out the country.


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