ADB: Inadequate transport system can derail growth

The Asian Development Bank (ADB) has said that the transport system in the Maldives is inadequate for enhancing connectivity among the atolls, and is a constraint that can derail economic growth.

This was stated in ADB’s report “Overcoming the challenges of a small island state – Country diagnostic study”, which was launched by Vice President Ahmed Adeeb today.

ADB has identified four critical constraints that can derail growth for the Maldives:

• A transport network that is inadequate for enhancing connectivity among various atolls

• A weak human capital and skills base

• The chronic fiscal deficit and increasing debt burden

• The high cost of and limited access to finance especially for micro, small, and medium investors.

Speaking at the ceremony held this morning to launch the report, Minister of Finance and Treasury Abdulla Jihad said that the report will help the government identify focus areas in the efforts towards development.

He said that the developmental challenges highlighted in the report, are obvious setbacks facing the Maldivian society today.

Work is ongoing to establish a National Development Strategy which will be completed before the end of the year and shared with ADB, said Jihad.

The ceremony was also attended by Minister of Economic Development Mohamed Saeed, senior officials of the government, and MPs.