Maldives Maldives Background The Maldives were long a sultanate, first under Dutch and then under British protection. They became a republic in 1968, three years after independence. Tourism and fishing are being developed on the archipelago. Maldives Economy Tourism, Maldives largest industry, accounts for 20% of GDP and more than 60% of the Maldives' foreign exchange receipts. Over 90% of government tax revenue comes from import duties and tourism-related taxes. Almost 400,000 tourists visited the islands in 1998. Fishing is a second leading sector. The Maldivian Government began an economic reform program in 1989 initially by lifting import quotas and opening some exports to the private sector. Subsequently, it has liberalized regulations to allow more foreign investment. Agriculture and manufacturing continue to play a lesser role in the economy, constrained by the limited availability of cultivable land and the shortage of domestic labor. Most staple foods must be imported. Industry, which consists mainly of garment production, boat building, and handicrafts, accounts for about 18% of GDP. Maldivian authorities worry about the impact of erosion and possible global warming on their low-lying country; 80% of the area is one meter or less above sea level. Maldives Location Southern Asia, group of atolls in the Indian Ocean, south-southwest of India Maldives Flag red with a large green rectangle in the center bearing a vertical white crescent; the closed side of the crescent is on the hoist side of the flag
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