Abstract
This article discusses the problems with development experienced by the Maldives through a political economy lens. It claims that key socio-economic areas like health, education and community-based activities such as local fishing have not developed to an extent it should have considering the success of national development achieved through the growth of the tourism industry since the early 1970s. Using theories of governance, development and inequality, this article forms a methodologically feasible theoretical framework to explain the phenomenon of unbalanced development or underdevelopment in the Maldives. It claims that development can coexist with underdevelopment in a society. This phenomenon of underdevelopment in the Maldives is assessed by observing economic performance of the tourism industry against the performances of other sectors including health, education and local fishing. Using a historical institutionalist method to political economy analysis, this article shows that the empirical evidence of underdevelopment in the Maldives, during the 1970s–2000s, can be equated to policy shortfalls associated with a weak governance system. It asserts that there is a notable connection between developmental problems and the system of governance in the Maldives that policy makers should take into account in the decision-making process
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