Development, development policy and governance in the Maldives: A political economy perspective
PDF

How to Cite

Development, development policy and governance in the Maldives: A political economy perspective. (2015). The Maldives National Journal of Research, 3(1), 29-51. https://doi.org/10.62338/7b3ety03

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

PDF

References

Acemoglu, D. (2003). Root causes: A historical approach to assessing the role of insitutions and economic development. Finance & Development, 40(2), 26.

Acemoglu, D. (2009). Introduction to modern economic growth. Princeton: Princeton University Press.

Acemoglu, D., Johnson, S. & Robinson, J. A. (2001). The Colonial Origins of Comparative Development: An Empirical Investigation. American Economic Review, 91(5), 1369–1401.

Acemoglu, D. & Robinson, J. (2012). Why nations fail: The origins of power, prosperity, and poverty. New York: Crown Publishers.

Acemoglu, D. & Robinson, J. A. (2002). The political economy of the Kuznets curve. Review of Development Economics, 6(2), 183–203.

Adger, W. N., Huq, S., Brown, K., Conway, D. & Hulme, M. (2003). Adaptation to climate change in the developing world. Progress in Developing Studies, 3(3), 179–195.

Anand, S. & Ravallion, M. (1993). Human development in poor countries: On the role of private incomes and public services. The Journal of Economic Perspectives, 7(1), 133–150.

Anand, S. & Sen, A. K. (2000). Human development and economic sustainability. World Development, 28(12), 2029–2049.

Ashby, N. J. & Sobel, R. S. (2008). Income inequality and economic freedom in the U.S. states. Public Choice, 134(3–4), 329–346.

Asian Development Bank. (2009). Asian development outlook 2009: Broadening openness for a resilient asia. Retrieved from http://www.adb.org/sites/default/files/ADO/2009/MLD.pdf

Barbier, E. B. (2005). Natural Resource-Based Economic Development in History World Economics: Journal of Current Economic Analysis and Policy, 6(3), 103 - 152.

Bell, S. & Hindmoor, A. (2009). Rethinking governance: The centrality of the state in modern society. Port Melbourne, Victoria: Cambridge University Press.

Bell, S. (2011). Do we really need ‘Constructivist Institutionalism’ to explain institutional change? British Journal of Political Science, 41(4), 1–24.

Bertocchi, G. & Canova, F. (2002). Did colonization matter for growth? An empirical exploration into the historical causes of Africa’s underdevelopment. European Economic Review, 46(10), 1851–1871.

Bowman, K. S. (1997). Should the Kuznets Effect be relied on to induce equalising growth: Evidence from post-1950 development. World

Development, 25(1), 127–143.

Clark, D. A. (2006). Development studies in the twenty-first century. In D. A. Clark (Ed.), The Elgar companion to development studies (pp. xxvi–xxxix). Cheltenham: Edward Elgar.

Colantonio, E., Marianacci, R. & Mattoscio, N. (2010). On human capital and economic development: Some results for Africa. Procedia Social and Behavioral Sciences, 9, 266–272.

Department of National Planning. (2004). Vulnerability and poverty assessment 2004. Retrieved fromhttp://planning.gov.mv/Downloads/vpa/vpa2_book.pdf.

Department of National Planning. (2005). 25 Years of Statistics. Retrieved from http://www.planning.gov.mv/publications/25yearsstats/foreword.htm

Department of National Planning (DNP). (2008). Maldives at a glance. Retrieved from http://planning.gov.mv/en/images/stories/publications/mag/feb2008.pdf

Department of National Planning. (2010a). Expatriate employment by industry and nationality, 1997–2008. Retrieved from http://www.planning.gov.mv/statistics_archive/30_Years/Employment/3.3.htm

Department of National Planning. (2010b). Fish production by type and utilisation:1971–2008. Retrieved from http://www.planning.gov.mv/statistics_archive/30_Years/Fisheries&Agriculture/8.2.htm

Department of National Planning. (2010c). Gross domestic product estimates by industry, 1984–2008. Retrieved from http://www.planning.gov.mv/statistics_archive/30_Years/National_Accounts/15.1.htm

Department of National Planning. (2011a). Employed population 12 years and over by industry, occupation and sex, census 1990 , 2000 & 2006. Retrieved from http://www.planning.gov.mv/statistics_archive/30_Years/Employment/3.9.htm

Department of National Planning. (2011b). Student enrolment in government schools of Male’, by level,1995–2006. Retrieved from http://www.planning.gov.mv/statistics_archive/30_Years/Education/6.3.htm

Department of National Planning. (2011c). Summary of gross domestic product (GDP) estimates for 2001–2013. Retrieved from http://

planning.gov.mv/publications/GDP/2011/Publication%20-%20GDPprod-current-2003%20rebased%20series.pdf

Garretsen, H., Roberts, M. & Tyler, P. (2011). Geography and development. Cambridge Journal of Regions, Economy and Society, 4(2), 157–162.

Gerring, J. (2005). Causation: a unified framework for the social sciences. Journal of Theoretical Politics, 17(2), 163-198.

Government of Maldives. (1979). Tourism Act. Maldives: Government of Maldives.

Government of Maldives. (2007). Education for all, mid-decade assessment: National report Maldives. Retrieved from http://planipolis.iiep.unesco.org/upload/Maldives/Maldives_EFA_MDA.pdf.

Government of Maldives & Dangroup. (1983). Tourism development plan. Male’: Department of Tourism and Foreign Investment.

Haddad, L., Hossain, N., McGregor, J. A. & Mehta, L. (2011). Introduction: Time to reimagine development? IDS Bulletin, 42(5), 1–12.

Henderson, V., Shaliz, Z. & Venables, A. J. (2001). Geography and development. Journal of Economic Geography, 1(1), 81–105.

Humphreys, P. (1986). Causation in the social science. Synthesis, 68(1), 1-12.

Kanbur, R. (2000). Income distribution and development. In A. B. Atkinson & F. Bourguignon (Eds.), Handbook of income distribution (Vol. 1, pp. 791–841). The Netherlands: Elsevier.

Kanbur, R. & Zhang, X. (2005). Fifty years of regional inequality in China: A journey through central planning, reform, and openness. Review of Development Economics, 9(1), 87–106.

Kelejian, H. H. & Robinson, D. P. (1997). Infrastructure productivity estimation and its underlying econometric specifications: A sensitivity analysis. Papers in Regional Science, 76(1), 115–131.

Khalifa, S. & Hag, S. E. (2010). Income distribution, economic growth, and development as a threshold. Journal of Economic Development, 35(2), 23–36.

Kohn, M. (2009). Economic development and growth: A survery. Cato Journal 29(2), 237–246.

Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45, 1–28.

Kuznets, S. (1966). Economic growth and structure: Selected essays. London: Heinemann Educational Books Ltd.

Kwon, R. (2011). How the legacy of French colonization has shaped divergent levels of economic development in East Asia: A time-series crossnational analysis. The Sociological Quarterly, 52(1), 56-82.

Lall, S. V. & Yilmaz, S. (2001). Regional economic convergence: Do policy instruments make a difference? The Annal of Regional Science, 35(1), 153–166.

Layard, R. (2010). Measuring subjective well-being. Science, 327(5965), 534–535.

Li, X., Ahluwalia, S. & Qiang, D. (2012). Lessons in public sector reform from China. Paper presented at the conference of the InternationalResearch Society for Public Management, Rome. Retrieved from http://siteresources.worldbank.org/EXTGOVANTICORR/

Resources/3035863-1289428746337/Lessons_PSR_China.pdf

Loxley, J. (2004). What is distinctive about international development studies? Canadian Journal of Development Studies, 25(1), 25–38.

Maldives Country Review. (2008). Economic overview. Retrieved July 22, 2012, from CountryWatch database.

Maldives Inland Revenue Authority. (2011). GST (goods and services tax). Retrieved from http://www.mira.gov.mv/gst.aspx

McGregor, J. A. (2007). Researching wellbeing: from concepts to methodology. In I. Gough & J. A. McGregor (Eds.), Wellbeing in Developing Countries: From Theory to Research (pp. 316–350). Cambridge: Cambridge University Press.

Meier, G. M. & Rauch, J. E. (2005). Leading issues in economic development. New York: Oxford University Press.

Ministry of Education. (2007). Education for all: mid-decade assessment: National report. Retrieved from http://unesdoc.unesco.org/

images/0018/001819/181903e.pdf

Ministry of Planning, Human Resources and Environment. (1998). 5th National Development Plan 1997–2000. Male’: Government of Maldives.

Ministry of Planning and National Development. (2007). 7th National Development Plan: Creating new opportunities. Male’: Government of Maldives.

Ministry of Tourism. (2003). Second Tourism Master Plan. Male’: Government of Maldives.

Ministry of Tourism, Arts and Culture. (2006). Tourism yearbook 2006. Male’: Government of Maldives.

Ministry of Tourism, Arts and Culture. (2008). 35 years of tourism. Male’: Government of Maldives.

Ministry of Tourism, Arts and Culture. (2010). Tourism yearbook 2010. Male’: Government of Maldives.

Ministry of Tourism, Arts and Culture. (2011). Tourism yearbook 2011. Male’: Government of Maldives.

Ministry of Tourism, Arts and Culture (2009). Tourism yearbook 2009.Moore, M. (1993). Decline to learn from the east? The World Bank on ‘Governance and Development’. IDS Bulletin, 24(1), 39–50.

North, D. C., Acemoglu, D., Fukuyama, F. & Rodrik, D. (2008). Governance, growth and development decision-making. Washington:

The World Bank. Retrieved from http://siteresources.worldbank.org/EXTPUBLICSECTORANDGOVERNANCE/Resources/

governanceandgrowth.pdf

Pearce, D. (2006). Environment and development. In D. A. Clark (Ed.), The Elgar companion to development studies (pp. 164–167). Cheltenham: Edward Elgar.

Peters, B. G. (1999). Institutional theory in political science: The new institutionalism. New York: Pinter.

Power, M. (2003). Rethinking development geographies. London: Routledge

Qizilbash, M. (2006). Human development. In D. A. Clark (Ed.), The Elgar companion to development studies (pp. 245–250). Cheltenham: Edward Elgar.

Ranis, G. (2006). Human development and economic growth. In D. A. Clark (Ed.), The Elgar companion to development studies (pp. 250–256). Cheltenham: Edward Elgar.

Ranis, G., Stewart, F. & Ramirez, A. (2000). Economic growth and human development. World Development, 28(2), 197–219.

Rasheed, A. A. (2014), Historical Institutionalism in the Maldives: A Case of Governance Failure. The Maldives National Journal of Research, 2(1), 7-28

Reinert, E. S. (2007). How rich countries got rich ... and why poor countries stay poor. London: Constable and Robinson Ltd.

Sachs, J. D. (2005). The end of poverty: How we can make it happen in our lifetime. London: Penguin Books.

Schipper, L. (2007). Climate change adaptation and development: Exploring the linkages: Working paper 107. Retrieved from http://www.preventionweb.net/files/7782_twp107.pdf

Seers, D. (1969). The meaning of development. International Development Review, 11(2), 2–6.

Sen, A. K. (1985). Well-being, agency and freedom: The Dewey lectures 1984. Journal of Philosophy, 82(4), 169–221.

Sen, A. K. (1990). Development as capacity expansion. In K. Griffin & J. Knight (Eds.), Human development and the international development strategy for the 1990s (pp. 41–58). London: Macmillan.

Sen, A. K. (1999). Development as freedom. Oxford: Oxford University Press.

Sen, A. K. (2006). Human development index. In D. A. Clark (Ed.), The Elgar companion to development studies (pp. 256–260). Cheltenham: Edward Elgar.

Shakeela, A. (2010). Tourism education and local employment as factors contributing to the sustainable development of tourism in SIDS: The case study of the Maldives. (Doctoral thesis, University of Queensland, Brisbane, Australia).

Stevens, M. & Gnanaselvam, S. (1995). The World Bank and governance. IDS Bulletin, 26(2), 97–105.

Stewart, F. (1985). Planning to meet basic needs. London: Macmillan.

Stiglitz, J. E., Sen, A. & Fitoussi, J.-P. (2009). Report by the commission on the

measurement of economic performance and social progress. Retrieved

from http://www.stiglitz-sen-fitoussi.fr/en/index.htm

Szirmai, A. (2005). The dynamics of socio-economic development: An introduction.

Cambridge: Cambridge University Press.

Tam, H. (2008). An economic and political Kuznets curve? Public Choice, 134, 367–389.

Teh, L. C. L. & Sumaila, U. R. (2013). Contribution of marine fisheries to worldwide employment. Fish and Fisheries, 14(1), 77–88.

Teskey, G., Schnell, S. & Poole, A. (2012). Getting beyond capacity – Addressing authority and legitimacy in fragile states. Paper presented at the Conference of the International Research Society for PublicManagement, Rome. Retrieved from http://siteresources.worldbank.org/EXTGOVANTICORR/Resources/3035863-1289428746337/Irspm_FCS_ACL.pdf

The brain business. (2005, September 8). The Economist. Retrieved from http://www.economist.com/node/4339960

Thomas, C. (2001). Global governance, development and human secury: Exploring the links. The World Quarterly, 22(2), 159–175.

United Nations Development Programme. (1994). Human Development Report. Retrieved from http://hdr.undp.org/en/reports/global/hdr1994/chapters/.

United Nations Development Programme. (2012a). About the Maldives. Retrieved from http://www.undp.org.mv/v2/?lid=130

United Nations Development Programme. (2012b). Origins of the Human Development Approach. Retrieved from http://hdr.undp.org/en/humandev/origins/

United Nations Development Programme. (2014). Maldives Human Development Report Retrieved from http://www.mv.undp.org/content/maldives/en/home/library/poverty/maldives_human_development_report_2014/

United Nations Educational, Scientific and Cultural Organization. (2011). World data on Education. Retrieved from http://www.ibe.unesco.org/fileadmin/user_upload/Publications/WDE/2010/pdf-versions/Maldives.pdf

United Nations Children’s Fund. (2011). South Asia. Retrieved from http://www.unicef.org/infobycountry/southasia.html

von Braun, J. & Webb, P. J. R. (1988). The impact of new crop technology on the agricultural division of labor in a West African setting. Economic

Development and Cultural Change 37(3), 513-534

World Bank. (2007). MALDIVES: Joint staff advisory note on the poverty reduction strategy paper. Retrieved from http://siteresources.worldbank.org/INTPRS1/Resources/Maldives_JSAN-PRSP(Dec4-2007).pdf

World Bank. (2009). World Bank–ICT at-a-glance: Maldives. Retrieved from http://devdata.worldbank.org/ict/mdv_ict.pdf

World Bank. (2014). What is governance? Retrieved from http://web.worldbank.org/archive/website01020/WEB/0__CON-5.HTM