Maldives Overcoming the Challenges of a Small Island State Country Diagnostic Study

This report identifies four critical constraints to inclusive growth in the Maldives: (1) inadequate and poor quality maritime infrastructure that constrains connectivity, limits provision of basic goods and services, and results in high transport and logistics costs; (2) lack of professionals and highly skilled human resources, as evidenced by the low level of educational attainment and skills among the national labor force; (3) the high public debt and narrow fiscal space, which limit public investment in infrastructure and social services; and (4) weak financial intermediation that inhibits the development and expansion of micro, small, and medium enterprises (MSMEs), which are important for generating productive employment opportunities.