Maldives PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized PublicDisclosureAuthorized CountryEnvironmentalAnalysis TOWARDSAMORESUSTAINABLEANDRESILIENTBLUEECONOMY 2 Maldives CountryEnvironmentalAnalysis TOWARDSAMORESUSTAINABLEANDRESILIENTBLUEECONOMY ©2024TheWorldBank 1818HStreetNW,Washington,DC20433 Telephone:202-473-1000;Internet:www.worldbank.org Somerightsreserved ThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovernmentstheyrepresent. TheWorldBankGroupdoesnotguaranteetheaccuracy,reliabilityorcompletenessofthecontentincludedinthiswork,ortheconclusionsorjudgmentsdescribedherein,andacceptsnoresponsibilityorliabilityforanyomissionsorerrors(including,withoutlimitation,typographicalerrors,andtechnicalerrors)inthecontentwhatsoeverorforreliancethereon.Theboundaries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartoftheWorldBankGroupconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.Thefindings,interpretations,andconclusionsexpressedinthisvolumedonotnecessarilyreflecttheviewsoftheorganizationsoftheWorldBankGroup,theirrespectiveBoardsofExecutiveDirectors,andthegovernmentstheyrepresent. Thecontentsofthisworkareintendedforgeneralinformationalpurposesonlyandarenotintendedtoconstitutelegal,securities,orinvestmentadvice,anopinionregardingtheappropriatenessofanyinvestment,orasolicitationofanytype.SomeoftheorganizationsoftheWorldBankGrouportheiraffiliatesmayhaveaninvestmentin,provideotheradviceorservicesto,orotherwisehaveafinancialinterestin,certainofthecompaniesandpartiesnamedherein.NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesofanyoftheorganizationsofTheWorldBankGroup,allofwhicharespecificallyreserved. RIGHTSANDPERMISSIONS Thematerialinthisworkissubjecttocopyright.BecauseTheWorldBankGroupencouragesdisseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgivenandallfurtherpermissionsthatmayberequiredforsuchuse(asnotedherein)areacquired.Photographsfromothersourcesexcepted.TheWorldBankGroupdoesnotwarrantthatthecontentcontainedinthisworkwillnotinfringeontherightsofthirdpartiesandacceptsnoresponsibilityorliabilityinthisregard. ATTRIBUTION Pleasecitetheworkasfollows:WorldBank.2024.“Maldives:CountryEnvironmentalAnalysis.TowardsaMoreSustainableandResilientBlueEconomy”.WashingtonDC,TheWorldBankGroup. AllqueriesonrightsandlicensesshouldbeaddressedtoWorldBankPublications,TheWorldBankGroup,1818HStreetNW,Washington,DC20433,USA;e-mail:pubrights@worldbank.org. ExecutiveSummary Maldives’pastdevelopmentpathhasledtosignificantimprovementsinphysicalcapital(infrastructureandrelatedservices),andhumancapital(suchashealthandeducation).Overrecentdecades,theMaldiveshaswitnessedremarkableeconomicgrowth.Thenationdoubleditsrealincomepercapitawithina20-yearperiod,transitionedfromlowtomiddle-incomestatus,andsubstantiallyreducedpoverty.Thiseconomicgrowthpathwascomplementedbyconsiderableadvancementsininfrastructure–includingdevelopmentsinroads,harbors,andports,aswellasensuringwideraccesstoessentialutilitieslikeelectricity,water,sanitation,andtheinternet.From1966to2022,theMaldivesinaugurated17airportsand,achieveduniversalelectricityaccessby2014(from84%in2000),showcasingitssignificantgrowthinproducedcapital.Thecountry’shumancapitalhasalsoseenmarkedprogress,withnotableachievementsinkeyindicatorswithineducationandhealthcare.Forinstance,lifeexpectancymorethandoubledfrom1960to2020andchildmortalityandmaternalmortalitydrasticallydecreased.Ontheeducationside,educationalattainmenthassignificantlyincreasedoverthelastdecadesandmorethan9in10peopleareliterateinEnglish. 9 Maldives’pastdevelopmentpathhasplacedpressureonitsbluenaturalcapital(marineandcoastalecosystems).Inadditiontothecosttonaturalcapital,therehasalsobeenadeteriorationinfiscalanddebtstability,dueinpartstothefinancingoftheinfrastructureinvestments.Environmentaldegradationthreatenskeyeconomicpillarsliketourismandfishing.Moreover,naturalcapitalisthefirstlineofdefenseagainstdisastersandclimatechange,especiallysealevelrise.Againstthisbackdrop,theCEAoftheMaldivesdocumentsthemainsustainablenaturalresourceandenvironmentalmanagementchallengesandprovidesrecommendationsfortransitioningtoamoresustainable,resilient,andinclusiveBlueEconomy. Maldives’pastdevelopmentpathhasledtosignificantimprovementsinphysicalcapital,andhumancapitalbuthasplacedpressureonitsbluenaturalresources. NaturalCapital,andprimarilyBlueNaturalCapital, isthefoundationoftheMaldives’economy.The Maldivesisacountrywitharemarkablebiodiversity,with1100fishspecies,sharks,marineturtles,dolphins,whales,andalargevarietyofcorals,mangroves,andseagrasses. PhotoDescription:AnislandintheMaldives©WorldBank NaturalCapital,andprimarilyBlueNaturalCapital,isthefoun