THE ABILITY OF THE MALDIVES TO COPE WITH FRESHWATER SCARCITY VIA THE ADAPTIVE CAPACITY OF ITS POLITICAL

ECONOMY

by

Jayne Millar

Occasional Paper No 44 Water Issues Study Group

School of Oriental and African Studies (SOAS) University of London

September 2002

1

LIST OF TABLES

Table 1. Maldives population numbers and predictions. 24

Table 2. Improvements in rates of infant mortality and life expectancy at

birth in the Maldives. 25

Table 3. Fisheries sector – key indicators. 34

Table 4. Changes in the structure of the Maldives economy

1987-1999 (%). 35

Table 5. Tourist arrivals, average length of stay and number of tourist

resorts in the Maldives 1992-1999. 38

Table 6. Sources of Water Use on Tourist Islands. 42

2

LIST OF FIGURES

Figure 1. Representation of Turton and Ohlsson’s basic hypothesis

showing how water scarcity generates an adaptive response. 12

Figure 2. Model showing the transition from supply-sided phase

to demand management phase in a political economy. 13

Figure 3. The five paradigms of water management. 15

Figure 4. Small island freshwater lenses. 23

Figure 5. Sources of drinking water by atoll

(percentage of atoll population). 27

Figure 6. The five paradigms of water management. 30

Figure 7. Changes in the structure of the Maldives’ economy 1987-1999. 36

Figure 8. Contribution of tourism to GDP. 37

Figure 9. Tourist arrivals (000’s) 1992-1999. 39

3

LIST OF MAPS

Map 1. The Maldives – country map. 22

4

ABBREVIATIONS

ADB Asian Development Bank

CIA Central Intelligence Agency

GDP Gross Domestic Product

HDPE High Density Polythene Tanks

IWMI International Water Management Institute

IWRM Integrated Water Resource Management

LDC Less Developed Country

MENA Middle East and North Africa

MPHRE Ministry of Planning, Human Resources and Environment

MWSA Maldives Water and Sanitation Authority

NGO Non-Governmental Organisation

SIDS Small Island Developing State

UNCED United Nations Conference on Environment and Development

UNDP United Nations Development Program

UNEP United Nations Environment Program

UNESCO United Nations Economic and Social Council

UNESCAP United Nations Economic and Social Commission for Asia and the Pacific

UV Ultra Violet

VSO Volunteer Service Overseas

WIER Water Is an Economic Resource

WTO World Tourism Organisation

5

ACKNOWLEDGMENTS

I am hugely grateful to my tutor, Professor Tony Allan, who sparked off my interest in

water and water policy during his classes on the subject. He has been both encouraging

and enthusiastic when teaching and supervising me over the past year.

I am also grateful to Mr. Leon Miles, a VSO volunteer working with the Maldives Water

and Sanitation Authority, for his email communications on water provision on local

islands. These emails provided vital data to support my analysis, as did the information

provided by the Ministry of Tourism in the Maldives and the emails from some of the

island resorts.

On a more personal note, I would like to thank my parents for providing unlimited

emotional and financial support not just over the past year but also the previous twenty-

four. Finally, I want to thank Dave Skinner for proof reading this dissertation and all the

essays that preceded it throughout the year, and for supporting and putting up with me

during all the stresses of the last year.

6

1 INTRODUCTION

1.1 Aims and Objectives of Study

The aim of this dissertation is to examine the issue of environmental vulnerability,

specifically freshwater scarcity, on Small Island Developing States (SIDS). The ability of

SIDS to cope with freshwater scarcity via a strong political economy primarily fuelled by

tourism will be discussed. Focusing on a case study of the Maldives, this study will show

that being water short, a first order scarcity, is not important and that what is essential is

the ability of the political economy to adapt to the scarcity. This will be shown using

Turton and Ohlsson’s (1999) theory of ‘adaptive capacity’. Tourism has become the

biggest economic sector on many SIDS, including the Maldives. Therefore, the

successful management and control of resort development and tourist numbers is

essential. In the Maldives, the government has enforced strict controls to ensure that

tourism will remain a key contributor to the islands’ GDP. This in turn is helping the

country avoid impacts of what resource analysts have termed ‘water scarcity and water

poverty’ (Turton and Ohlsson 1999)

1.2 Outline

Chapter 2, a literature review, will classify the literature used in this study and outline the

theoretical framework that will be used in chapter 4. Chapter 3, methodologies, aims to

provide a review of how the study was carried out and to outline the main difficulties and

drawbacks. A description of both tourism and freshwater management in the Maldives

will be provided in chapter 4. Tourist islands and local inhabited islands will be

separately assessed. The types of freshwater available on both, and the alternatives to

groundwater abstraction, will be quantified and evaluated. The allocation and

management of the freshwater has been inspired by different policies and one of the

purposes of the study will be to show when shifts in policy approach took place and to

what extent these shifts fit with relevant social and political theory. A second purpose is

7

to show the willingness of the Government of the Maldives to move from a supply to a

demand approach within water management. This study will also demonstrate how the

government has adopted the belief that water is an economic resource and acknowledged

its environmental value, in line with Allan’s (2001) model of the five water paradigms.

Turton and Ohlsson’s (1999) theory of social adaptive capacity will be applied to the

Maldives by examining the importance of tourism to the Maldives’ economy and also

how economic benefits are contributing to the sustainable development of the whole

country. Chapter 5 will conclude the study by outlining the main results.

The remainder of this chapter will contextualise the study by examining the uniqueness

of SIDS; why they must be considered as a ‘special case’ when discussing sustainable

development, particularly in relation to water and tourism management.

1.3 The Uniqueness of SIDS

As a group, SIDS are more vulnerable than any other group of developing countries to

both environmental and economic shocks (Barbados Conference 1994). Chapter 17 of

Agenda 21 (Rio 1992) refers to SIDS as a ‘special case’. Both in terms of the

environment and development, they tend to be ecologically fragile and vulnerable, and

they have very specific problems that need to be assessed when planning sustainable

development. Their small size, limited resources, high population growth, low economic

diversification, geographical dispersion and isolation all put them at a disadvantage

(Gortazar and Marin 1999). Kaly et al. (2002) state that because of the small size of

SIDS, their human and natural environments have limited capacity to absorb shocks.

Further, the effects of hazards present in other areas of the world will be more

pronounced and cause greater damage – for example natural disasters and global changes

in trade and markets.

Tourism was identified at the 1994 UN Barbados Conference on Islands and Small Island

States as a strategic sector and the main driving development force for many island

regions. Tourism is one of the fastest growing economic sectors in the world, and is

8

starting to become one of the leading economic sectors on many islands. Tourism’s

economic achievements are usually set against a background of narrowly focused

economies, limitations imposed on industry by relative isolation, high transport costs and

the small-scale nature of most activities. Thus, there tends to be a dependence on imports.

Agriculture has often been restricted by climate and soil conditions which restrict variety,

and by shortages of chemicals and machinery (Lockhart 1997). Lockhart believes that it

is for these reasons that measures to encourage the expansion of tourism have been

prominent in the economic development plans of island states.

Islands have found it relatively easy to attract tourists. The last 30 years have witnessed

significant developments in air travel, the advent of low-cost charter flights and the

growth of incomes in sending countries (Lockhart 1997). In many cases economic

dependence on tourism is so great that some SIDS are very vulnerable to external shocks,

such as recessions in sending countries, which decrease the amount of disposable income

available for foreign travel. Briguglio (2001) refers specifically to the high degree of

economic openness in SIDS; this renders these states particularly susceptible to economic

conditions in the rest of the world. Kaly et al. (2002) claim that it is this greater

vulnerability that sets SIDS apart from most other countries, and this in turn results in

greater impediments to sustainable development.

“Tourism has contributed much to the development of Small Island Developing States,

and, as one of the only few development options for those small states, will continue to be

very important. However, if not properly planned and managed, tourism could

significantly degrade the environment on which it is dependent.” (Barbados Conference

1994)

This statement made at the UN Barbados Conference highlights the fragile balance that

characterises island tourist destinations. Few would dispute that indiscriminate tourism

development can have devastating impacts. Pigram (1995) refers to tourism as a

‘resource based activity’, this means that it interacts with natural systems and has the

capacity to initiate far-reaching changes on the environment. Most island tourism focuses

on ‘sun, sea, sand’ beach tourism; this is dependent on the maintenance of pristine

9

environments, including beaches, reefs, lagoons and biodiversity. With so many island

destinations for the consumer to choose from, islands must prove year after year that they

are worth returning to. Notwithstanding these obstacles and concerns, islands generally

embrace tourism as one of the best and, in some cases, the only development strategy

available to them (Conlin and Baum 1995).

Areas of concern that need to be addressed are: energy, water, solid waste, waste waters,

emissions and effluents, integration with the landscape, environmental impacts and risks,

safety regulations, contractors and suppliers, and noises (Gortazar and Marin 1999). This

paper will focus primarily on freshwater management issues on SIDS.

Chapter 18 of Agenda 21 outlines the importance of water as a key resource in

sustainable development, and the importance of water quality. Perhaps most significant is

the Agenda’s statement of the need to integrate water into the national economy,

recognising it as a social and economic good. This recognition is vital for the satisfaction

of basic human needs, food security, poverty alleviation and the protection of ecosystem

functioning and application of economic instruments in its management. Kaly et al.

(2002) believe that successful environmental management will increasingly become the

basis for the success or failure of the economies and social systems of entire countries.

Kaly et al. (2002) list the main freshwater challenges as: water shortage, limited

groundwater, saltwater intrusion from-over extraction of lenses, limited surface water,

losses from distribution networks, drought and pollution. Some islands have no surface

water and depend on groundwater for their main source of supply – this is the case in the

Maldives; groundwater exists in the form of a freshwater lens floating on the heavier

seawater. Goodwin (1984) states that the freshwater lens is prone to pollution; often,

therefore, alternative water sources have to be found; for example rainwater harvesting,

desalination and water treatment and reuse. These will be discussed in more detail in

chapter 4.

10

For most SIDS water is a scarce resource that is vital for the development of tourism and

the local community. Tourism in particular tends to have high water consumption levels;

it is needed for drinking, domestic and recreational use, and UNESCAP (2001) notes that

holiday-makers tend to be extravagant with water. The International Conference on

Sustainable Tourism in SIDS in Lanzarote (1998), United Nations Economic Council

(1999) and The Hainan Declaration (2000) stated that there is therefore a need to

integrate planning for tourism with national water development and resource

management plans. Governments play a critical role through their institutional leadership,

guaranteeing stakeholder participation, establishing regulatory and policy frameworks,

the application of appropriate economic instruments, and monitoring environmental

quality. Private sector participation is also essential to promote and adopt

environmentally appropriate technologies and management practices (Hainan

Declaration). The declaration further states that it is important that local communities

understand that they are the primary stakeholders in the expansion and maintenance of a

successful tourist industry that should ultimately lead to improving their quality of life.

The UN Economic Council stated that the diminutive size of small islands means that

sustainable socio-economic development and the needed natural resource base, including

water resources, are interdependent. Thus, the management and use of freshwater

resources should be undertaken within an institutional framework that takes into account

linkages with the sources of potential impacts on those resources.

This study will now examine environmental vulnerability, specifically freshwater

scarcity, in the Maldives. It will argue that by prioritising the environment and promoting

good quality and sensitive tourism, the Maldives has strengthened its economy

sufficiently to overcome its first order resource scarcity with an abundant second order

adaptive capacity.

Chapter 2, a literature review, will provide a classification of literature used in this

dissertation. It will further discuss the theories that will be applied in chapter 4, put the

study in a wider development context, and outline the main reasons for carrying out this

study.

11

2 LITERATURE REVIEW

The purpose of this chapter is to briefly state the reason for undertaking this research and

to discuss the theoretical framework that will be used.

2.1 Reason for Undertaking Research

SIDS have special resource problems and specific freshwater resource problems. The

success with which a SIDS has solved its water resource problems by developing a strong

tourist industry in line with Turton and Ohlsson’s (1999) theory of ‘adaptive capacity’

has, as far a this study is aware, never been researched before. The economic success

from tourism and natural resource vulnerability of water makes SIDS a very interesting

case study to which this theory can be applied. The case study of the Maldives was

chosen because it is so heavily dependent economically on tourism and because it has

been relatively successful in overcoming a situation of water scarcity. Using the Maldives

as a case study, this study aims to discuss the importance of second order adaptive

capacity when dealing with a problem of first order natural resource scarcity.

2.2 Theoretical Framework

This study will apply two theories to the Maldives; Turton and Ohlsson’s (1999) theory

of ‘social adaptive capacity’, and Allan’s (2001) paradigms of water management. Both

are widely used within water policy writings. Allan’s research has focused largely on the

Middle East and North Africa (MENA), and Turton and Ohlsson’s work has been widely

applied to the water scarce countries of Southern Africa and MENA.

2.2.1 Social Adaptive Capacity

Turton and Ohlsson (1999) state that existing research tends to focus on water as a scarce

natural resource; they believe this to be misleading. Turton and Ohlsson believe a more

fruitful area of research to be the focus on the ability or inability of a social entity to cope

12

with the increasing demands caused by water scarcity; they believe that this will give a

far better insight into the dynamics at work within the context of social stability in

developing countries. The theory of social adaptive capacity will now be discussed.

Figure 1. Representation of Turton and Ohlsson’s basic hypothesis showing how

water scarcity generates an adaptive response.

Increasing levels Adaptive behaviour Water demand of water scarcity. by discursive elite. management coping strategies. resulting in in the form of 1st order natural 2nd order social Result. resource resource Turton and Ohlsson (1999 p3).

The concept of ‘adaptive capacity’ was developed by Ohlsson (1999). Ohlsson’s theory

suggests that a vital component of the overall resource base of a society is that society’s

‘adaptive capacity’. The adaptive capacity is the country’s ability to mobilise social

resources to cope with the lack of physical natural resource. Central to this theory is the

notion of first and second order resources. A natural resource scarcity can be regarded as

a ‘first-order scarcity’ (Ohlsson 1999). A society that does not have sufficient social

resources to cope with their first order scarcity has a ‘second-order resource scarcity’

(Ohlsson 1999); the result will be a situation of ‘water poverty’. Second order scarcity

can also be referred to as a lack of adaptive capacity. A society that does have sufficient

social resources to cope with a first-order scarcity has a ‘second-order resource

abundance’ or ‘structurally-induced water abundance’. Therefore, the central issue is the

ability or inability of a social entity to find the social tools with which to deal with the

consequences of the first-order scarcity (Turton 1999b).

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The simple model shown above outlines Turton and Ohlsson’s (1999) basic hypothesis.

The model shows that a situation of water deficit results in coping strategies by a

decision-making elite. The coping strategies adopted by the elite are allocative in nature

and aim to manage water scarcity. These decisions may change the balance of privilege

in society and so potentially cause conflict. Below, a more complex model shows the

transition from supply-side phase to demand management.

Figure 2. Model Showing the Transition from Supply-Sided Phase to Demand

Management Phase in a Political Economy.

Turton (1999b).

The transition to ‘water scarcity’ acts as the initial trigger to the decision-makers to

provide more water. Reisner (1993) calls this “the birth of the hydraulic mission”. It is

important to note that the hydraulic mission is the act of capturing and engineering water

from rivers. In the context of this study this era is of less relevance due to lack of surface

water bodies; however, it could be connected with mobilising water from freshwater

lenses and provision of water on a non-cost-recovery basis. Further along the trajectory

‘water scarcity’ becomes ‘water deficit’. ‘Water deficit’ is a situation where both quality

and quantity of water have deteriorated (Warner 1999 in Turton and Ohlsson 1999).

14

Turton and Ohlsson (1999) believe that at this point ‘water deficit’ triggers a demand-

side phase for a number of reasons. In the context of this study the two significant

triggers are, firstly, there are simply no alternative sources of water left to exploit, and

secondly, the birth of social conscience in the form of environmentalism - i.e. concern for

the levels of environmental degradation. A precautionary development strategy is

adopted in the form of demand-side management.

Turton and Ohlsson (1999) note that the birth of social conscience can be regarded as a

form of adaptive behaviour, acting as a check or balance to government policy of supply-

side management. Concern for the environment and more sustainable practices is vital for

a situation of long-term ‘water surplus’.

The results of Turton and Ohlsson’s research, when applied to MENA and Southern

Africa, show that social adaptive capacity is transformed in the course of socio-economic

development of a political economy (Allan 1997). Turton and Ohlsson’s (1999, Turton

1999a, 1999b and 1999c and Allan 2000), research has found that Zimbabwe, Namibia,

Yemen, Gaza and West Bank all have both water scarcity and social resource scarcity;

thus they lack the ability to move to a situation of resource security via the adaptive

capacities of their political economies. In contrast, Israel and South Africa have water

scarcity and social resource abundance; these two countries have been able to move to a

situation of resource security because of the strength of the adaptive capacity of their

political economies.

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2.2.2 The Five Paradigms of Water Management

Figure 3. The Five Paradigms of Water Management

1st 2nd 3rd 4th 5th

Pre

Modernity

Industrial

Modernity

Green

Reflexive

Economic

Reflexive

Political

Institutional

Reflexive

certainty uncertainty

Represents water use during the hydraulic mission

Represents water use after the shift from supply to demand

management during reflexive modernity

Adapted from Allan (2001 p317).

Allan (2001) has identified five water management paradigms; these are shown above.

The first paradigm refers to pre-modern communities and the second to industrial

modernity. During both, the idea that water was a free and abundant resource prevailed.

The second paradigm was when the “hydraulic mission”, mentioned in section 2.2.1 took

place. Water was captured and moved via huge feats of hydraulic engineering; a supply

side response. The final three paradigms of ‘reflexive modernity’ are of most relevance to

this study. Allan (2000) believes that the ideas underpinning industrial modernity were

challenged during the 1960’s and 1970’s. This questioning led to the reflexive responses

of the ‘reflexive modernity’ phase (Allan 2000). The era of reflexive modernity

16

represents the shift from supply to demand management that has been outlined in section

2.2.1.

The third paradigm is connected to the ‘birth of social conscience’ mentioned in section

2.2.1; it is inspired by environmental awareness and the green movement. In relation to

this study, the third paradigm is linked to awareness of the importance of the environment

for the development of tourism on small islands. The environment is often the biggest

asset available to SIDS’ economies and therefore must be maintained for sustainable

growth.

According to Allan (2000) the fourth paradigm was inspired by economists who began to

draw the attention of water users in the North to the economic value of water and its

importance as a scarce economic input. In making the transition from water as an open

access good to water as a public responsibility good with a cost of production, water is

given an economic value. Economic instruments are used to control and provide water

via cost recovery programs.

The fifth and final paradigm is based on the notion that water and allocation are political

processes (Allan 2000). For ‘integrated water resource management’ (IWRM) to be

achieved there is a need for more than mere recognition of the environmental and

economic value of water and planning (Allan). The approach must also include

community participation, full cost-recovery, appropriate technology, institutional and

capacity building programs and parallel programs in health education and sanitation

(Science and Technology Masterplan 2000). IWRM is an inclusive process that requires

the interests of civil society, government, NGO’s and the private sector in policymaking

discourse (Allan).

Allan’s (2000, 2001) research has shown that different countries are at different

paradigms. His research of MENA shows those countries such as Libya, Egypt, Turkey

and Sudan are still committed to the ‘hydraulic mission’ and remain in the second

paradigm. Developed countries such as Israel and the UK have moved into the paradigms

17

of reflexive modernity. Allan believes that any country’s position on figure 3 is a result of

constantly changing social, cultural, political, environmental and economic

circumstances. Allan (2000) believes that on the whole the South is still engaged in

‘industrialising mode’, which means control and capture of water. The North, by contrast,

argues for inclusion of economic and environmental priorities largely because it is

politically feasible to do so, whereas in the South decisions to implement an economic

and environmentally sound use of water remain a political minefield.

2.3 Academic Literature

One of the major problems of this study has been the lack of academic research

undertaken on the Maldives. The research papers that do exist have focused largely on

sustainable tourism planning and management in the Maldives (Inskeep 1991 and 1992,

Saeed and Annadale 1999, Saeed 1998). These papers have been important to understand

the extent to which the environment has become a vital and highly protected asset, and to

gain an understanding of the type of tourism and tourists that the Maldives are trying to

promote and attract. However, there was very little mention of the benefits of tourism to

the wider community, specifically its contribution to GDP and, therefore, social services.

Sathiendrakumar and Tisdell’s (1989) paper focused on tourism and the economic

development of the Maldives; its usefulness to this study was limited as it was written

over ten years ago, and over the last decade tourism in the Maldives has progressed and

developed. Sathiendrakumar and Tisdell concluded that local people in the Maldives do

not benefit from tourism; although it is true that employment in tourism is relatively low

this study will show that indirect benefits, particularly the provision of freshwater, are

widespread in the Maldives.

Vulnerability of SIDS is more widely addressed in academic literature. The focus is on

the importance of tourism for the economy and the environmental impacts that can result

from it (Goodwin 1984, Conlin and Baum 1995, Lockhart 1997). There is a lack of

literature on the indirect benefits, such as economic strength via tourism, that can in turn

18

deal with scarcity and vulnerability facing the island community; it is this area that this

study aims to address.

2.4 Official Reports and Assessments

Official reports and documents provide the vital economic and tourism statistics that will

show the strength of the Maldives’ adaptive capacity. The reports have been carried out

by the World Bank (1993, 1999, 2000, 2001), United Nations Development Program

(UNDP)(1998), Asian Development Bank (ADB) (1999, 2000) Ministry of Planning,

Human Resources and Environment (MPHRE) (1994), Republic of Maldives Science and

Technology Masterplan (2000), and the World Tourism Organisation (WTO) (1997). The

reports have come from a variety of different sources and produced similar results and

conclusions – that tourism is the strongest element of the Maldives economy, giving the

conclusions of this study more legitimacy.

Chapter 4 will apply the theories that have been discussed in sections 2.2.1 and 2.2.2 to

the case study of the Maldives. It will be shown that Turton and Ohlsson’s theory of

adaptive capacity can explain how the Maldives has coped with a situation of water

scarcity. Allan’s water management paradigms are useful to show the path that the

Maldives is taking to achieve water security and sustainable water management. The

next chapter, chapter 3, will provide methodologies and outline the limitations of this

study.

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3 METHODOLOGIES

3.1 Collection of Data

In order to explain the extent to which the Maldives has been able to respond to its

resource scarcity, via the country’s adaptive capacity, it is necessary to look at its

economic development; of particular interest is the contribution of tourism to GDP. The

figures used in this study have been taken from the World Bank’s most recent country

statistics, the Maldives’ National Development Plans, ADB and UNDP. Data on water

resources and the availability of drinking and domestic water, on both local islands and

tourist resorts, has been gathered from a combination of primary and secondary sources.

The secondary sources used were the World Bank, UNDP, ADB and Government of the

Maldives’ country studies. Primary data and discussions have been collected via email

communication between the author and a selection of tourist resorts – the Maldives Water

and Sanitation Authority (MWSA), the Ministry of Tourism and Mr. Leon Miles, a

Volunteer Service Overseas (VSO) volunteer working on water and sanitation projects on

the outer atolls. Some anecdotal information on water resources has also been obtained

via communication with Maldivians living on local islands.

3.2 Limitations of the study

There have been five main limitations of this study. Firstly, the initial enthusiasm of the

Ministry of Tourism and MWSA towards the study was encouraging and they seemed

keen to participate in discussions about the water and tourism sectors. However, the

information has not been provided as anticipated. Secondly, it has not been possible in a

study of this size to look at specific islands in detail, due to the sheer number of islands in

the Maldives. Therefore, the data used has, to a large extent, been of the country as a

whole and this has not highlighted the unique situations on some of the individual

islands. Thirdly, there is a lack of academic literature looking at the Maldives in general,

and particularly water provision on local islands. Fourthly, dependence on government,

20

World Bank and United Nations reports will no doubt have given this study a certain

bias. It was hoped that primary sources and communication with ‘real people’ would give

this study a balance, but, due to the limitations discussed above, this has not been

possible. Finally, financial and practical constraints have prevented any fieldwork being

carried out for this study. The main practical reason is that, although the Maldives has a

small land mass, the string of islands covers a huge geographical area, and thus data

collection would have been extremely time consuming (and would have required

personal access to a number of boats and sea planes!). Thus any information collected

from civil society was done via email and is purely anecdotal.

Chapter 4 will now apply the theories that have been discussed in sections 2.2.1 and 2.2.2

to the case study of the Maldives. It will be shown that Turton and Ohlsson’s theory of

adaptive capacity can explain how the Maldives has coped with a situation of water

scarcity. Allan’s water management paradigms are useful to show the path that the

Maldives is taking to achieve water security and sustainable water management.

21

4 ANALYSIS

The purpose of this chapter is to apply the theoretical framework, outlined in chapter 2, to

a case study of the Maldives. The chapter will begin firstly by outlining the natural

resource scarcity that exists in the Maldives. Secondly, it will discuss the evidence

suggesting that the Maldives has been able to achieve resource security. The final

sections will outline how the Maldives has been able to move from a situation of resource

scarcity to resource security because they have social adaptive capacity, thanks to careful

management of the environment and macroeconomic strength from tourism.

4.1 First Order Natural Resource Scarcity

4.1.1 Freshwater: Volume and Quantity

The Maldives consists of approximately 1,200 coral islands grouped in a double chain of

twenty-seven atolls (Map 1.). Most atolls are large, ring-shaped coral reefs supporting

numerous small islands. The islands’ average size is 1-2km square and they lie between 1

and 1.5 meters above sea level (Maldives Country Study 1994).

Islands such as these are classified as low small islands (Tsiourtis date unknown); this

means that they have flat topography and that groundwater is a major component of the

water balance. The Maldives is a chain of Coral Atolls, a layer of recent sediments on top

of older limestone. The upper sediments are of primary importance as freshwater lenses

are found in this layer due to the moderate permeability of the rock. Freshwater lenses

consist of a thin lens of freshwater floating on denser salt water (Barbados Conference

1994) (Fig. 4). Due to increasing demands from population growth – particularly on the

capital Male’ – saltwater intrusion and pollution of groundwater from release of sewage,

industrial effluent and poor agricultural practices, the Maldives can no longer rely on

freshwater lenses to satisfy their freshwater needs (Kundzewicz 1998). The Maldives has

no surfacewater, thus methods to meet demands for freshwater are limited to the

remaining groundwater development, rainwater harvesting and desalination (Science and

22

Map 1. The Maldives

ADB 2000 (p1)

23

Technology Masterplan 2000). The lack of surface water or usable groundwater has put

the Maldives in a situation, referred to by Turton (1999c) as ‘water scarcity’.

Figure 4. Small Island Freshwater Lens (exaggerated vertical scale)

UNEP Sourcebook of Alternative Technologies for Freshwater Augmentation in SIDS

(2001).

4.1.2 Population Increase

No more than 200 of the islands are inhabited, 70% have less than 1000 inhabitants and

one third have less than 500 people (UNDP 1998). By far the most densely populated

island is Male’, the capital, which in 1991 had a population density of around 33 203

persons per square kilometer (National Development Plan 1994).

The total population of the Maldives is 310 764 (CIA 2001). Table 1. shows population

growth from 1985 and the projected numbers for 2005. The acceleration in the rate of

24

population growth is due to a reduction in the crude death rate which has resulted from

improvements in primary health care and social service provision (National Development

Plan 1994). The current statistics and projections in table 1 show that the population will

have increased by 67% between 1990 and 2005.

Table 1. Maldives Population Numbers and Predictions

YEAR TOTAL

POPULATION

1985 180 088

1990 213 400

1995 253 000

2000 301 000

2001 310 764

2005 357 000

Adapted from Republic of Maldives National Development Plan 1994-1996. (1994 p3+4)

and CIA World Fact Book (2001).

This growth will have important implications for public expenditure in the social sectors

(National Development Plan 1994). With regard to water provision, Allan (2001) states

that water requirements are as follows:

Drinking 1m³ per person per year.

Domestic 100m³ per person per year.

*Food 1000m³ per person per year.

(*The Maldives has limited agricultural potential on land and therefore there are no documented conflicts

between water for food production and water for domestic and drinking purposes. This study will focus on

drinking and domestic water.)

The 2001 UNESCAP report states that the population of the Maldives has consistently

enjoyed rising living standards. The report suggests that this is because the government

25

invests revenue generated from tourism in social development and other

community/infrastructure projects. The Asian Development Bank (ADB 1999) Country

Economic Review stated that government spending on social services increased

substantially during 1990-1997, from about 33% of its total expenditure in 1990 to 40%

in 1997. Both reports believe that without tourism, the government’s ability to spend on

such programs would be highly restricted. Table 2 provides further evidence of this; the

infant mortality rate has dropped significantly in the space of 10 years, and life

expectancy at birth is steadily rising. The reasons for these improvements are due, in part

at least, to a government commitment to expenditure on water and sanitation. The 1994

MPHRE report suggests that improvements in water and sanitation have greatly reduced

the outbreaks of water-borne diseases such as typhoid and cholera (Table 1 shows

population increases).

Table 2. Improvements in Rates of Infant Mortality and Life Expectancy at Birth in

the Maldives

YEAR INFANT MORTALITY

RATE (per 1000 live

births)

LIFE EXPECTANCY AT

BIRTH.

1985 census 121 50

1990 census 88 56

1995 census 72 60

1998* - 62

*1998 data taken from separate source: The Republic of the Maldives Vulnerability and Poverty

Assessment 1998 (p47).

Adapted from Maldives – A Country Assistance Strategy World Bank Report no.21301

(2000 p7).

The next section (4.2) will outline the government commitment and expenditure to water

provision, and the types of groundwater alternatives provided. Sections 4.3 and 4.4 will

discuss the existence of the second order adaptive capacity that has made this

commitment and expenditure possible.

26

4.2 Resource Security

It has been mentioned in section 4.1 that the Maldives has a first order natural resource

scarcity; basic resources, such as land and water, are in short supply. Because of the lack

of surfacewater, all islands are dependent on groundwater in the form of freshwater

lenses, however these are easily depleted or contaminated – thus the availability of usable

water is very limited. These problems, together with the rapidly rising population,

discussed in section 4.1.2, make the meeting of basic human needs of sufficient usable

drinking and domestic water a serious challenge. However, there is evidence that the

Government of the Maldives has made freshwater availability a priority and has gone

some way to meeting that challenge of resource security. The 1993 Environmental Action

Plan stated that in 1977 the number of people with access to safe water was around

39.8%, by 1990 this number had increased to 61.1%, and statistics from UNDP (1998)

report state that by 1998 this number had risen to 91% of the total population and 88% of

atoll population1. The mission of the Maldives Water and Sanitation Authority (MWSA)

is:

‘Provision of appropriate low-cost water and sanitation services based on a demand-

driven, effective and uniform implementation strategy.’

Science and Technology Masterplan 2000 (p58).

The recognition that water management should be demand driven shows a shift from

supply driven management, common in the first and second paradigms of Figure 3,

shown in chapter 2. In the Maldives this shift is evidenced in the move from open access

groundwater to cost-recovery measures of rainwater harvesting and desalination. Central

to the demand driven response is acknowledgement that water is an economic resource

(WIER). In line with Ohlsson’s (1999) model, the threat of water deficit discussed in

4.1.1 and rapid population growth (section 4.1.2) acted as the initial trigger to the

decision-makers to supply more water. This demand-side response was the result of two

further triggers. Firstly, there was no groundwater left to exploit due to pollution and

overexploitation, and secondly, there was an awareness of the need for cost-recovery and

1 Statistics for atoll population exclude Male’.

27

environmental protection. The latter will be discussed in section 4.3. The Maldives has

developed four main sources for acquiring drinking and domestic water; these are shown

in Figure 5 and will be discussed below.

Figure 5. Sources of Drinking Water by Atoll

(Percentage of atoll population)

UNDP Republic of Maldives Vulnerability and Poverty Assessment 1998 (p49).

4.2.1 Rainwater harvesting

Rainwater harvesting involves intercepting water from the environment via tanks. Water

is therefore withdrawn from the hydrological cycle and prevented from entering and

replenishing groundwater lenses. This is not a cause of concern in the Maldives as so

much of the groundwater is polluted and cannot be used. The Maldives is fortunate to

have regular and substantial rainfall. Collection and use of rainwater dates back to the

early 20th century when groundwater sources became contaminated. It wasn’t until the

1970’s and 1980’s that rainwater harvesting became popular; it was then that people

made the link between contaminated groundwater and disease (Science and Technology

Masterplan 2000). There were serious cholera and shigella outbreaks in the late 1970’s

28

and this prompted the government to invest and promote rainwater harvesting (Science

and Technology Masterplan). This investment included the construction of steel tanks

with a storage capacity of 9900 cubic meters, for public use, as well as 1154 private

rainwater tanks. The private tanks (2.5, 5 and 10 cubic meters) were provided on cost

recovery basis, payable over five years.

The government has continued to make rainwater harvesting a priority, aiming to provide

at least 2 litres per person per day. The provision of additional rainwater tanks was

highlighted as a priority in the 1994-96 National Development Plan published by

MPHRE (1994). All islands have been provided with a number of rainwater tanks

holding at least 10 cubic meters (Author communication with VSO volunteer 2002). This

policy has facilitated the shift from groundwater to rainwater (UNDP 1998). Since 1994

the program has used high-density polyethylene tanks (HDPE) instead of cement.

According to the Science and Technology Masterplan (2000), more than 2914 HDPE

tanks with a total capacity of 14 520 cubic meters have been distributed free for

community use. There has also been investment in 1588 HDPE tanks to households on a

cost recovery basis; the cost is paid back over a number of years (Author communication

with MWSA 2002).

88% of the population use and have access to rainwater for drinking – most on a cost-

recovery basis – therefore this is now more widely used than groundwater for drinking,

which reflects the shift from supply to demand management. This example illustrates

Allan’s (2001) model – the shift to reflexive modernity. The 1998 UNDP survey called

this a considerable improvement. However, there are three main problems with rainwater

harvesting. Firstly, lack of storage facilities, secondly, contamination of the tanks which

leads to the pollution if water is not treated (UNDP 1998) and thirdly, evaporation rates

are up to 6mm per day (National Environmental Action Plan 1993). The UNDP study

showed that 70% of the atoll population drinks untreated rainwater.

A further problem is that the tanks distributed for community use do not have any means

of achieving cost recovery. Therefore the facilities get polluted and misused more readily

29

than if islanders feel they have an investment to look after. There is a top-down approach

and lack of community participation on these very rural islands resulting in no financial

stake and no sense of ownership. The failure to include community participation and cost

recovery in all areas will make moving to the fifth and final paradigm of IWRM in

Allan’s (2001) model impossible.

4.2.2 Wastewater treatment and re-use

Wastewater treatment and re-use is a more recent development in the Maldives.

According to the Science and Technology Masterplan (2000) it is not a high priority. This

is due to the expense, and to public health concerns of using recycled water. Wastewater

treatment is a huge potential resource for the Maldives in the future.

4.2.3 Desalination

Desalination is ‘new water’; it is not taken from the environment like rainwater or

groundwater and an infinite source exists for utilisation. Desalination plants use the

reverse osmosis technique to produce freshwater from clear seawater. The capital, Male’,

and its neighboring island, Villingili, both highly populated, have desalination plants and

a piped household water supply. Male’ got a desalination plant in 1985, and today it

produces 5000 cubic meters per day. By 1998 there were 11 000 connections to

customers in Male’ at a cost of US$4.64 per cubic meter; this is not subsidised and makes

a profit. The desalination plant on Villingili produces 1000 cubic meters per day at a

similar cost (Science and Technology Masterplan 2000 and author communication with

MWSA and VSO volunteer 2002 ). Desalination is thought to be too expensive for most

of the small islands; however there is one exception – Kadholhudhoo in Raa Atoll. Here

the government has installed a desalination plant because the island is so highly

populated; it is 200 meters by 200 meters and is populated by almost 4000 people. The

plant has a single tap bay and people are charged a fixed price of US$0.12 per 10 litres to

fill up a container. The plant was donated; therefore the tariff only covers the cost of

production (Author communication with MWSA and VSO volunteer 2002). Although the

Maldives has had success with desalination, the country is at a disadvantage, as it does

not have power stations on hand to provide the energy required.

30

4.2.4 Groundwater

The problems of groundwater availability and contamination have already been

discussed. Groundwater, although scarce and hazardous, is still relied upon by much of

the rural population during the dry season, from January to March, when stores of

rainwater may have run out.

The Maldives suffers from a first order natural resource scarcity. Therefore these

individual water requirements have been met not via the environment, but instead, via the

political economy of the Maldives. The next sections will discuss the adaptive capacity of

the Maldives, specifically, the importance of careful management of the environment and

also the importance of tourism to the economy.

4.3 Green Reflexive: The Importance of the Environment

Figure 6. The Five Paradigms of Water Management

1st 2nd 3rd 4th 5th

Pre

Modernity

Industrial

Modernity

Green

Reflexive

Economic

Reflexive

Political

Institutional

Reflexive

certainty uncertainty

Represents water use during the hydraulic mission

Represents water use after the shift from supply to demand

management during reflexive modernity

Adapted from Allan (2001 p317).

31

Of the five paradigms of water management in Allan’s (2001) model (Fig. 6), the final

three, outlining the era of reflexive modernity are currently relevant to the Maldives. This

section will discuss the first reflexive period, green reflexive. The Maldives, although

still a less developed country (LDC), has managed to put the environment, specifically

the importance of water, firmly on the political agenda. This is possible because the

Maldives has a strong dependence on its environment, its primary and only major

resource.

The economy of the Maldives is essentially maritime and marine-based; maintaining the

quality of these resources is therefore vital. The government has made the population

aware of the economic benefits for the whole country of protecting the environment, via

tourism and, to a lesser extent, fisheries. Turton and Ohlsson (1999) refer to this as ‘the

birth of social conscience’. In doing so, the Maldives has managed to concentrate on

quality tourism which, in economic terms, has benefited the country sufficiently to solve

their problems of water poverty.

The Maldives has been relatively politically stable since gaining independence from the

UK in 1965. Even though the traditional way of life in the Maldives has a very low

impact on the environment, the country is environmentally very vulnerable, particularly

given the rapidly rising population (Table 1.) and the expansion of, and increasing

economic dependence on, tourism. According to the Maldives National Environmental

Action Plan 1994, the government had not made the environment a priority until extreme,

or emblematic, events put the environment on the political agenda. The extreme flooding

events in Male’ in 1987, the increased pollution of aquifers and general decline of

environmental quality in some areas of the country all contributed to this. MPHRE (1994)

stated that the 1987 flood event served as a warning and strengthened the then gradual

process of environmental awareness and management. The major priority for the

government now is the protection of the environment. The government has recognised

the environment’s importance for sustaining economic growth and ensuring livelihoods

for the Maldivians (World Bank 1999). The National Environmental Action Plan (1994)

recognised the principle of sustainable development and it aimed:

32

‘To help the Government of the Maldives to maintain and improve the environment of the

country, including the marine and ocean area contained within the Exclusive Economic

Zone, and to manage the resources contained therein for the collective benefit and

enjoyment of present and future generations.’

(The National Environmental Action Plan 1994. In Ministry of Planning, Human

Resources and Environment 1994 p45.)

The government has progressed cautiously with sound environmental planning and

management. The government established the National Commission for the Protection of

the Environment. In terms of freshwater, it is clear that the Government of the Maldives

sees water as an environmental resource. One of the directive principles of the Action

Plan is:

‘The continuous assessment of the state of the environment within the country, including

the impacts of man’s activities on land, in freshwater, in lagoons, reefs and ocean and

the effects of these activities on the quality of the human environment’.(p45).

Despite the government’s enthusiasm on paper for its commitment to careful

environmental management, many of the planned activities have been hampered by

financial and manpower constraints. There is only a limited number of trained personnel

and an absence of indigenous environmental expertise (MPHRE 1994). However,

environmental education and awareness have been given a high priority on television and

radio, and printed materials are distributed in the atolls. There is also much active

participation of various NGO’s within the environmental field. There are encouraging

signs that more and more projects are taking the environment into account in the initial

planning stages (MPHRE 1994).

The next section will discuss the macroeconomy, specifically tourism and the importance

of its careful management via strict environmental controls. Freshwater management on

tourist resort islands will also be evaluated.

33

4.4 Second Order Resource Abundance

4.4.1 The Macroeconomy

The ADB report (1999) states that the economy is narrowly based on two industries,

tourism and fisheries, due to scarce mineral resources and limited agricultural potential.

Significantly, the dominance of fishing within the agricultural sector has limited any

possible competition between agricultural and service sectors for scarce water resources,

as fisheries are dependent on the sea. Allan’s (2001a) model, when applied to grain

producing countries (MENA), showed that these countries found shifting the focus of

their economies from water intensive crops to service sector in order to achieve more

‘returns to water’ (Allan 2001a), very difficult. In MENA agriculture is embedded in

thousands of years of discourse and belief systems. The Maldives will never have to

make this shift as fishing will not threaten to deplete scarce freshwater resources.

Tourism and Fisheries must be carefully managed to decrease the economic vulnerability

of the country. Historically, the Maldivians have created a seafaring nation and fishing,

although now in decline, still represents a major sector of the economy (Table 3).

Fisheries have seen their contribution to total GDP drop from 14% to 9.5% between 1992

and 2000 (Science and Technology Master Plan 2000). Depressed world tuna prices in

recent years have had a major impact on the sector, as well as an aging work force and

over-exploitation of marine resources. Table 3 shows the decline in the Maldives’

fisheries from 1989-1999. Fisheries remain the second most important sector of the

economy; tourism is the most important.

34

Table 3. Fisheries Sector – Key Indicators

YEAR SHARE OF GDP

(%).

FISH EXPORTS

(millions of US$)

No. ACTIVE

FISHING

VESSELS.

1989 15.7 34.7 1542

1994 11.8 36.7 1776

1995 11.0 37.0 1669

1996 10.5 48.7 1626

1997 9.9 58.2 1578

1998 9.7 58.4 1271

1999 9.8 39.3 1206

Republic of Maldives Science and Technology Masterplan 2000 (p3).

The World Bank in its 2001 Country Assistance Evaluation and ADB Country Economic

Review (1999), both stated that it has been the rapid growth in the tourist industry that

has driven the Maldives’ economy over the past decade; this is shown in table 4 and

figures 7, 8 and 9. The consistently high growth rates have stimulated growth both in

other areas of the service sector and the secondary sector. The ADB called tourism the

‘backbone’ of the country’s economy. The other parts of the service sector which have

significantly increased are transportation and distribution; the expansion of both is linked

to the strength of tourism. The secondary sector, construction and electricity, have seen

much smaller but nonetheless steady increases; between 1996-97, the construction

industry grew by 10% per annum and then recorded a 17% growth increase in 1998 as

tourist resort development increased (Science and Technology Masterplan 2000). The

Maldives Science and Technology Plan states that without the pattern of resort islands to

justify the infrastructure of the telephone and fuel oil delivery systems and to lower

transport costs, availability of telephone services and energy would be much less

developed or provided at a much greater cost to Government or consumers.

35

Table 4. Changes in the structure of the Maldives’ Economy 1987-1999 (%)

YEAR PRIMARY

SECTOR

SECONDARY

SECTOR

SERVICE

SECTOR*

TOURISM

1987 29.3 13.8 56.9 17.2

1988 28.3 13.9 57.8 17.3

1989 27.2 14.1 58.7 17.5

1990 25.8 14.2 60.0 18.1

1991 25.5 14.6 59.9 17.4

1992 23.7 15.0 61.3 17.7

1993 22.4 15.3 62.3 17.1

1994 21.5 15.4 63.2 17.8

1995 20.5 15.6 64.0 18.4

1996 19.8 15.8 64.4 19.1

1997 18.6 17.0 64.3 19.3

1998 17.6 17.6 64.3 19.3

1999 17.4 17.4 64.5 19.3

2000 16.9 18.3 64.8 18.7

*Tourism is part of the service sector; this also includes transportation, real estate and government

administration.

Adapted from Maldives Country Assistance Evaluation, World Bank Report no. 21770

(2001 p14), The Republic of Maldives Science and Technology Master Plan 2000

(Chapter 2 p3 and Chapter 8 p2) and Republic of Maldives National Development Plan

1994-1996 (1994 p11).

36

Figure 7.

Constructed with data from table 4.

The tax base in the country is narrow, primarily consisting of import duties and tourist

taxes. Tourist bed-tax and lease rent on resort properties account for more than one-

quarter of total government revenue (Science and Technology Masterplan 2000). All

tourist resorts are required to pay US$6 per tourist per night. This tax is paid directly to

the government by the resort, therefore indirectly by the tourist, every month (Author

communication with resorts 2002). In 1998, 15% of total revenue since 1993, tax

revenues on imports and tax receipts on tourist arrivals had risen due to the tourism

sector’s success (Science and Technology Masterplan 2000). With reference to import

tax, some of the food and much of the drink consumed on tourist islands is imported, as

are televisions, desalination plants etc. Therefore the increase in tourism in the last two

decades is going to have a knock-on effect, resulting in increased government revenue

from collecting import tax on equipment for resorts. Taxes from imports and tourism

account for 48% of government revenue (Science and Technology Masterplan 2000).

Changes in the Structure of the Maldives Economy 1987-1999 (%)

0

20

40

60

80

1987

1989

1991

1993

1995

1997

1999

Year

% C

hang

e

Primary Sector

Secondary Sector

Service Sector

37

Figure 8.

Constructed with data from Table 4.

The Science and Technology Masterplan (2000) describes the Maldives’ economy as

‘highly dualistic’. The Plan states that there is a relatively underdeveloped domestic

sector and less than adequate institutional, financial, legal, accounting and administrative

structures. But, positively, there is a highly developed enclave tourism sector, which is,

directly or indirectly, responsible for over 65% of foreign exchange earnings. There is no

doubt that tourism and its multiplier effects, through imports, taxes, employment in

construction etc., has more than significantly contributed to the economy in the Maldives,

and filtered down providing funds for basic services for the population. However, the

decline of fisheries has made the Maldives dependent on one major sector; this decreases

the economy’s ability to absorb shocks, for example global changes in trade and markets

that would decrease the number of people able to afford a holiday or to invest there. For

example, the Maldives noticed a decline in tourist numbers post September 11th (Ministry

of Tourism Official Web Site 2002).

4.4.2 Growth of Tourism

The Maldives possesses very special physical attributes, which cater for tourists seeking a

remote but comfortable location with sun, beautiful beaches and marine life. According

Contribution of Tourism to GDP (% )

1617181920

1987

1989

1991

1993

1995

1997

1999

Year

% T

ouri

sm

Con

trib

utio

n to

Ec

onom

y

38

to Saeed and Annandale (1999) Maldivian tourism entered the international scene in the

early 1970’s. The first two resorts were opened in 1972 and there were only 1000 tourists

per year. The first decade was 1972-1982 and tourism tended to be unplanned and located

on islands around Hulhule Airport, the only entry point to the islands. The expansion of

the runway at Hulhule Airport in 1981 opened up the Maldives to direct charters from

Europe delivering a large number of tourists. By the end of this first decade there were 44

operational resorts (Saeed and Annandale). The second decade, 1982-1992 saw the

addition of 36 new resorts, and by 1996 there were 73 resorts in operation. By 1999 there

were 85 resorts in the Maldives; these figures are illustrated in table 5 and figure 9. The

majority of tourists come from Europe, specifically Italy and Germany.

Table 5. Tourist Arrivals, Average Length of Stay and Number of Tourist Resorts in

the Maldives 1992-1999

YEAR

TOURIST

ARRIVALS

(000’s)

AVERAGE

LENGTH OF

STAY (days)

TOURIST

RESORTS

(number)

1992 253.9 8.4 69

1993 241 8.7 69

1994 280 8.4 73

1995 314.9 8.5 73

1996 338.7 9.0 73

1997 365.6 9.0 73

1998 395.7 8.8 79

1999 429.7 8.7 85

Adapted from Republic of Maldives Science and Technology Master Plan 2000 (Chapter

8 p 2)

39

Figure 9.

Constructed with data from table 5.

Inskeep (1992), refers to the physical configuration of tourism development in the

Maldives as highly unusual. Each resort, varying in capacity from six to one hundred and

fifty rooms, occupies a separate island. The resort islands are accessible only by boat

from the international airport and Male’, the capital. Tourism policy has dictated that

resorts should be established on uninhabited islands to reduce possible socio-cultural

impacts and because islands are generally too small to contain both resorts and villages.

Each of the resort islands must be totally self-contained, responsible for providing their

own infrastructure, water supply, sewage and waste disposal, boat dock and living

facilities for employees.

4.4.3 Tourism Policy and Planning

The ADB (1999) report states that a key factor of the Maldives’ economic and social

progress has been the sound management of the economy, an element of which is the

protection of the environment for sustainable economic growth.

Tourist Arrivals (000's)

0

100

200

300

400

500

1992

1993

1994

1995

1996

1997

1998

1999

Year

Num

ber (

000's

)

TouristArrivals

40

The first formal initiative to plan future tourism development was in 1980 when the

Department of Tourism and Foreign Investment commissioned Dangroup International to

carry out a Maldives Tourism Development Plan which covered 10 years (Saeed and

Annadale 1999). This plan provided some ideas for development; however, Saeed and

Annadale believe that most tourism planning and management has resulted from

government initiatives. The 1994 Barbados Conference stated that the Maldives’ tourist

industry is dependent upon the maintenance of environmental quality. The Ministry of

Tourism has therefore established regulations controlling aspects of environmental

quality on resort islands. The government policy has been to expand tourism to achieve

economic benefits, in a systematic manner of staged development (Saeed and Annadale).

The government has made plans and regulations based on monitoring development and

refining and discarding plans based on experience gained from previous types of

development. It was because of government initiatives that resorts are restricted to

uninhabited islands and are responsible for providing their own connections and supplies

of water, sanitation etc, mentioned in the previous section.

Such close government scrutiny and control is possible as the government owns all the

islands and allocates them for resort use under a long-term lease agreement with the

resort developer. The resort developer pays an annual rent to the government for the

island. In the last decade, government policy has encouraged developers to upgrade

resorts to cater for the wealthy tourist. Strong government involvement in planning and

regulation of tourism has included various measures to protect and conserve the

environment – essential for the existence of any tourism in the Maldives. This includes

environmental impact assessments; environmentally unsound practices associated with

solid waste disposal and sewage releases have been stopped, and there are restrictions on

the number of buildings and the types of materials that can be used to build them. Saeed

and Annadale’s (1999) report concluded that the Maldives has developed a suitable form

of tourism which has not generated any serious irreversible environmental impacts. The

Maldives has managed to avoid non-sustainable exploitation of natural resources

(Ministry of Tourism 1997).

41

According to the 1997 report published by the Ministry of Tourism, the government is

aware of the potential of the tourism industry. This awareness has made the government

cautious regarding tourism expansion. They have been aware of the dangers of flooding

the markets with tourist products, leading to the deterioration of the quality of services.

Current government plans include expanding tourism further than just the Male’ and Ari

Atolls, proposals that for every resort island one should be left as a reserve, and a review

of current standards – establishing even stronger, more enforceable rules for

environmental protection (Science and Technology Masterplan 2000).

4.4.4 Water Management on Tourist Resorts

The protection and proper management of the environment requires the adoption of

greener technologies. In relation to water, the government has produced strict guidelines.

Saeed (1998) states, that there has been a move away from using groundwater as a

resource in tourist resorts. This is largely due to the exhaustion of the freshwater lenses

used before resorts were required to be upgraded by the government. Other reasons

include the pollution of existing lenses with sewage due to the close proximity of

pollution sources to the surface, and saltwater intrusion (Saeed). Tourist islands are

entirely self-sufficient; there is no conflict between locals and tourists for water

resources. It is illegal for tourist islands to import water from other inhabited or

uninhabited islands; this situation minimises the conflict for water between locals and

tourists so common on other small islands, for example Zanzibar (Gossling 2001). The

resorts rely on a combination of technology in the form of desalination plants and UV

treatment, rainwater collection and imported bottled water from other parts of Asia. Table

6 outlines the results of a survey conducted via email with a selection of tourist resorts in

the Maldives. It shows the various sources of water for activities on tourist resort islands.

42

Table 6. Sources of Water Use on Tourist Islands

TOILETS SALTWATER

SHOWERING DESALINATED WATER

COOKING DESALINATED WATER

WASHING DESALINATED WATER

DRINKING (tourists) BOTTLED WATER

DRINKING (staff) RAINWATER (treated)

GARDEN RAINWATER (tank)

Data compiled from email communication between the author and a selection of resorts

in the Maldives (2002).

4.5 Summary

The purpose of this chapter was to apply the theoretical framework, outlined in chapter 2,

to a case study of the Maldives. The chapter began firstly by outlining the natural

resource scarcity that exists in the Maldives. Secondly, it provided evidence of the

current situation of water security. The final sections outlined how the Maldives has been

able to move from a situation of resource scarcity to resource security because of its

social adaptive capacity. The social adaptive capacity of the Maldives has depended on

careful management of the environment, for both tourism and local water provision, and

macroeconomic strength achieved from tourism. The central role of government

environmental policy and planning for both tourism and water policy has been critical to

the success, as was also discussed.

The next chapter will conclude the study. It will discuss the extent to which the

framework provided insights and explanation in the Maldives case study. The main

results of the research will also be discussed.

43

5 CONCLUSION

Firstly, an assessment will be made of the success or failure of the theoretical framework

that has been used. Secondly a summary of the main findings will be outlined, and

finally, the findings will be linked back to the issues of SIDS and vulnerability.

5.1 Success/Failure of Application of Theoretical Framework

Chapter 2, a literature review, outlined both Turton and Ohlsson’s (1999) theory of

adaptive capacity and Allan’s (2001) theory of water management paradigms. Chapter 2

noted that both theories have been applied to large countries, such as MENA and

Southern Africa, with major rivers whose economies are focused on water intensive

crops. In these cases the ‘adaptive capacity’ has involved the ability of the economy to

shift from low value water intensive crops to either high value crops or movement out of

agriculture into industry; thus achieving ‘high returns to water’ or ‘more crops per drop’

(IWMI2 mission) /more jobs per drop’ (Allan 2001). The Maldives, by contrast, has no

significant water intensive agriculture and no surface water bodies. However, the crux of

the theory is concerned with the ability or inability of a social entity to cope with the

increasing demands caused by water scarcity by looking to the macroeconomy. The

Maldives has provided an interesting case study of a SIDS that has both a situation of

natural resource scarcity and a strong macroeconomy; therefore, Turton and Ohlsson’s

theory was both appropriate and successful when applied to the Maldives.

Allan’s (2001) water management paradigms, although providing a useful tool, have not

transferred as well to a SIDS case study. The theory has been constructed with countries

with large surface water bodies in mind. The first and second paradigms are of little

relevance to this study as they are largely concerned with the ‘hydraulic mission’,

capturing rivers via ‘feats of engineering’ (Reisner 1993). SIDS, specifically the

Maldives, do not have any major rivers or surface water bodies and agriculture has

2 International Water Management Institute.

44

focused on fisheries not water intensive crops. The paradigms of reflexive modernity,

specifically green reflexive and economic reflexive, have been relevant to this study of

the Maldives. The ease with which the ideas of water as an environmental and economic

resource have been adopted has been uncharacteristic for a developing country. As will

be discussed below, this was due to recognition by the government and civil society of

the huge importance of the environment to economic growth. These points will be further

expanded below.

5.2 The Maldives – From Water Scarcity to Water Security

This study has applied Turton and Ohlsson’s (1999) theory of ‘adaptive capacity’ and

Allan’s (2001) paradigms of water management to a case study of the Maldives. Chapter

4 has outlined the results and shown that the Maldives has been able to achieve water

security via the strength of its economy, specifically receipts from tourism. This is called

‘adaptive capacity’ (Turton and Ohlsson). Central to this success has been the

acknowledgement, by both the Government and the people of the Maldives, of the

importance of protecting the environment. Changing the dominant sanctioned discourse

of supply-side environmental exploitation to environmental protection has not been as

difficult on small islands as in regions such as the Middle East, where the dominant

discourse is for the continuation of the hydraulic mission because of the importance of

water-intensive crops. Particularly in the Maldives, the government has stated the

importance of tourism and therefore protection of the environment for the economy. The

dependence of the economy on tourism and the success of development from this gave

the decision-making elite legitimacy to use coping strategies that protect the environment.

This decision-making was also helped because the livelihoods of agriculturists did not

have to change, in order to decrease groundwater usage, as fishing is not water-intensive.

Water shortages in the Maldives relate to inadequate availability of the small volumes of

water needed for drinking and domestic purposes. Allan (2002) believes that both

technology and trade can provide solutions for water supply deficiencies. The former has

been the main solution in the Maldives. The latter has been used to a lesser extent on

45

tourist islands in the form of bottled water. The key to this discussion has been that it is

the strength of the political economy that prevents or enables communities to access this

‘supplementary’ water. Therefore, it is the inability of poor communities to access

technology and trade that consigns them to water poverty (Allan 2002). Although the

Maldives has a situation of physical water scarcity, it has been shown that it does not lack

the technical and economic capacity to access freshwater, and therefore, has avoided

water poverty.

Turton and Ohlsson (1999), refer to first order scarcity – the physical shortage of water –

and second order scarcity – the existence of a social adaptive capacity. Social adaptive

capacity has enabled the Maldives to access the aforementioned technology and trade.

Turton and Ohlsson believe that the existence of the second order social adaptive

capacity is more important than the absence of the first order scarcity. This study of the

Maldives has demonstrated that, firstly, water shortages do not have to mean poor

economic outcomes. Secondly, tourism has strengthened the Maldives’ economy

sufficiently to enable the government to put freshwater availability high on the agenda

and to finance technology to alleviate the scarcity; this is the allocative role of the people

in power. Turton and Ohlsson (1999) refer to this situation as ‘structurally induced water

abundance’. The adaptive capacity of the Maldives’ political economy is the critical

interceding variable between water scarcity and water deficit. As water is both a vital

resource and a human right, it is in the political interest of any government to provide an

infrastructure to cope with the scarcity.

46

Representation of Turton and Ohlsson’s basic hypothesis showing how water scarcity generates an adaptive response

Increasing levels Adaptive behaviour Water demand of water scarcity. by discursive elite. management coping strategies. resulting in in the form of 1st order natural 2nd order social Result. resource resource Turton and Ohlsson (1999 p3). The Maldives, making the transition from groundwater to cost-recovery rainwater

harvesting and, to a lesser extent, desalination, is going through a transition from supply

to demand management. Water is being transformed from an open access resource to a

public responsibility good – an economic good with a cost of production. (Ohlsson 1999).

Ohlsson believes that pivotal to demand management is the concept of efficiency and

putting a price on water; economic tools are used to manage water. The MWSA has gone

some way to achieving this, via cost recovery programs on household tanks and

desalinated water.

Chapter 4 outlined the relative success of the Maldives in coping with a situation of water

scarcity. The country’s ability to move with relative ease into the first two reflexive

paradigms reflects the move from supply to demand management. However, to date, the

Maldives has been unable to progress into the final paradigm - political/institutional

reflexive or integrated water resource management (IWRM). This is because of the top-

down approach to decision-making, the lack of multistakeholder participation and no cost

recovery on community rainwater tanks.

5.3 Vulnerability of SIDS

SIDS are both fascinating and unique economies. The 1994 Barbados Conference stated

that they are more vulnerable than any other group of developing countries to both

environmental and economic shocks. They have fragile and vulnerable natural

47

environments, they are small in size, with limited resources, isolation, high population

growth and – of particular importance to this study – they are often hugely economically

dependent on tourism. Therefore, the protection of the natural environment is key to their

economic survival in terms of being able to continue to attract tourists. The provision of

freshwater is a challenge to SIDS governments. Many SIDS depend on small freshwater

lenses that are prone to pollution. Therefore, the threat of water scarcity, and even water

poverty, is a real one. By using a case study of the Maldives, this study has aimed to

show both the importance of the environment and tourism for SIDS and how these two

assets can overcome problems of freshwater scarcity.

48

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WEB SITES

www.presidencymaldives.gov.mv

www.visitmaldives.com/intro.html