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Rural poverty in the Republic of Maldives

Maldives has no significant poverty, according to an assessment carried out in 2004 by the government with the support of the World Bank and the United Nations Development Programme (UNDP). Between 1997 and 2004, the number of persons living with incomes below one dollar a day fell from 8,000 to 2,000, less than 1 per cent of the population.

But some segments of the population remain vulnerable. Compared to neighbouring countries, income distribution in Maldives is relatively unequal. Between 1997 and 2005 there was a noteworthy increase in inequality between Malé, the capital island, and the atolls. During that period the median per capita income per day in Malé increased from 1.7 times to 2.3 times the income of people living in the atolls. 

The islands that comprise Maldives are widely dispersed and have a low population density. This increases the cost of living, including transport costs, and the cost of delivering essential social and administrative services to people in the outer, remote atolls.

Who and where are the country’s disadvantaged people?

Although the overall incidence of poverty has decreased, some vulnerability persists, and poverty remains high on many farming and fishing islands. Islanders in the northern part of the country have particularly low incomes, and migration of at least one member of the household is a common coping strategy in those areas.

Rural women in general and particularly women who are heads of households are more vulnerable to poverty. They own few, if any, assets and they cannot obtain credit. Women on the islands rarely travel outside their atoll. They are primarily in charge of caring for the home and family, cooking, farming, fish processing and collecting firewood and other necessities. Their role in fishing and marketing of fish is negligible. Inter-island trading by women is virtually non-existent and income-generating activities are limited to rudimentary and small-scale enterprises. Although women make a significant contribution to household income and food security by carrying out practically all fish processing and agricultural activity, their contribution of unpaid labour for the family is taken for granted.

Why are they disadvantaged?

In rural areas of disadvantaged islands, incomes are low because of inadequate production, under-utilized fisheries resources, a lack of value chain development and inadequate credit for small-scale producers and enterprises.  Production is low because of the scarcity of land and water, unsuitable farming practices and the lack of support services.


Source: IFAD