Regions and Countries

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p. 10 of 19 BACK | NEXT I. Country Performance Assessment II. Country Operational Strategy III. Sector Strategies A. Infrastructure B. Social Infrastructure C. Governance Dimensions of ADB Operations D. Gender Dimensions of ADB Operations E. Private Sector Operations IV. Regional Cooperation V. Donor Activities and Aid Coordination VI. Cofinancing and Catalyzing External Resources VII. ADB’s Operational Program VIII. Economic and Sector Work Program IX. Local Cost Financing

Country Assistance Plans - Maldives : III. Sector Strategies

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B. Social Infrastructure

1. Human Resource Development

31. Human resource development is a high priority, with two distinct goals: to sustain higher economic growth and to address regional disparities between the outer islands and the Malé region. The dearth of sufficiently skilled workers is a serious obstacle to achieving national development objectives, and continued efforts in human resource development will be required to reduce the dependence on expatriate labor and save foreign exchange. The strategy for human resource development needs to further target quality improvement through curriculum development, expansion of secondary education and distant learning, and skill development through vocational training. The Government has taken steps to strengthen the education system, with particular emphasis on improving the capacity of the postsecondary education system. Through the ongoing Postsecondary Education Development Project,¹⁷ ADB is assisting the Government in strengthening the management and expanding the output of the postsecondary education system by improving the seven existing technical institutes under the Maldives College of Higher Education (MCHE).

32. Postsecondary Education Development (Phase II) is planned for 2002, to be prepared by a PPTA in 2001, focusing on outreach programs to the atolls to ensure that education and training become available to students on the atolls. The Government emphasized that both secondary and postsecondary education need to be further developed to address critical skill shortages to meet the urgent need for key economic and social sector developments in the atolls as part of the country’s regional development plan. In this respect, an ADTA for Tertiary Education in Outer Atolls is also included in 2002, providing support for development and implementation of outreach tertiary education programs for the atolls. The newly established Tertiary Institute for Open Learning is expected to especially benefit from the institutional capacity building support provided under the ADTA.

33. With limited land, natural resources, skilled labor and capital, Maldives has been seeking ways to take advantage of science, information and technology to promote sustainable economic growth while reducing dependency on tourism and fisheries. The ongoing TA for Science and Technology Masterplan¹⁸ has been supporting the Government to develop a science and technology masterplan which would provide a strategy and action plan for the country’s science and technological development, and to strengthen the capacity of the newly established Ministry of Communication, Science and Technology. Provision for investment support for Information Technology Development in both Malé and the outer atolls has been made in 2001 following completion of the TA for Science and Technology Masterplan by the end of 2000. The development of information network would support the development of a modern economy with increased focus on services industry, and especially, it would improve public sector management efficiency, transparency, and accountability, and facilitate the Government’s decentralization programs to empower local decision-makings in support of regional development. The development of information network would improve public information to build consensus and ignite community pressures to promote responsible behavior towards the environment.

2. Regional Development

34. Regional disparity between Malé and the outer islands has continued to be a key development issue. The average per capita income differential between the Malé region and poorer outer islands is estimated at 3:1. In addition, there is also a marked discrepancy between Malé and the outer islands in the availability of physical and social infrastructure such as schools, markets, health care facilities, sanitation and energy. The rapid growth of the population in Maldives has increased the urgency for the provision of a broad range of economic and social infrastructure in the outer islands. The wide dispersal of the population inevitably raises the costs in providing these services. Meanwhile, it is recognized that an excessive development focus on the Malé region will constrain future growth. Therefore regional development is considered to be a key factor in easing the development pressures on Malé and at the same time addressing equity concerns.

35. The Government acknowledges the recent assistance extended by ADB in promoting regional development in the northern and southern regional development centers.¹⁹ Under the Regional Development Project, a program to develop a northern development region and a southern development region including establishment of two Regional Development and Management Offices (RDMOs) in the two regions will be implemented. Overall progress of the ongoing Project has been satisfactory, and construction for the two permanent RDMOs buildings, one in the northern development region and one in the southern development region, will be completed in 2000. However, the RDMOs are already in operation in a rented accommodation since the commencement of the Project in May 2000.

36. Following the Government’s strong request to start early preparation of a second phase regional development, focusing on development of the northern central and southern central regions, a PPTA for Second Regional Development has been included in 2001, which would enable the Government to seek co-financing opportunity from other donors based on the investment proposal. A loan project is planned in 2003, following satisfactory progress of the ongoing Regional Development Project.

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