An Islamic sultanate until 1968, the Maldives is an archipelago of 1190 small coral islands or atolls (a word derived from the local Dhivehi language), set in the Indian Ocean southwest of India. The islands, none of which rise above 1.8 m (6 ft.), are protected by encircling reefs or faros. Only 200 are inhabited. Tourism has grown in recent years, though vacation islands are separate from settled islands.

It is believed that the islands were inhabited as early as 1500 B.C.E. Aryan immigrants arrived around 500 B.C.E. The islands were then discovered by Arab traders. The people, who are all Sunni Muslims, live on only 200 of the 1190 islands. About 25% of the total population live on the island capital of Male'. It is estimated that 12,000 guest workers from neighboring Sri Lanka and India work in the Maldives. The country's newfound prosperity has seen the emergence of a commercial elite.

Strengths

Boom in tourism. Thriving fishing industry, especially tuna. Shipping. Clothing. Coconut production. Economic reforms since 1989 have eased import restrictions and encouraged foreign investment.

Weaknesses

Too dependent on fluctuating tourist industry. Growing trade deficit. Skilled labor shortage. Small manufacturing base. Cottage industries employ 25% of workforce; little scope for expansion.

Politics in the Maldives is the preserve of a small group of influential families. Most were already dominant under the sultanate. Formal parties with ideological objectives are virtually nonexistent, politics being organized around family and clan loyalties.

Former president Ibrahim Nasir abolished the premiership in 1975 and substantially strengthened the presidency. The main figure now is Maumoon Abdul Gayoom, a wealthy businessman who has been president since 1978. His brother-in-law, Ilyas Ibrahim, is regarded as his main rival.

A young Westernized elite has increased the pressure for political reform. Under a constitution effective since 1998, rival candidates may seek to be parliament's presidential nominee; only one name then goes forward for popular endorsement in a referendum.

The Maldives is a long-standing member of the NAM. The government continues to support it and rejects the view that it does not have a role to play in the post-Cold War world. The Maldives' international standing was enhanced in 1990, when it hosted the fifth SAARC summit meeting, held in Male'.

The British military presence ended in 1975, when troops were withdrawn from the staging post on Gan, in the Addu atoll. The Maldives follows a policy of nonalignment, but in 1988 called on India for military assistance to help suppress a coup attempt.

Natural resources include abundant stocks of fish, particularly tuna. Fishing, still carried out by the traditional pole and line method to help conserve stocks, employs over 20% of the working population. Coconut production is also important. All oil products and virtually all staple foods are imported.

Rising sea levels due to global warming and climate change threaten the islands, which have an average height of just 1.5 m (5 ft.). A sea wall has been built around the capital island.

Other environmental concerns are sewerage, waste disposal, and the mining of coral for building.

It is possible to walk across Male' island in 20 minutes. Interisland travel is mostly by ferry and traditional dhoni.

There is a lack of general equipment and facilities. Health care is less developed on the outlying islands.

Primary education has been improved. Secondary education is less developed in the outer islands; the first school outside Male' was opened in 1992.

The Maldives is a strict Islamic society. Narcotics crimes are heavily punished. Political prisoners are banished to outer islands. The judiciary and executive are closely linked.

Great disparities of wealth exist between the people who live in Male', and those who live on the more distant outer islands.

Tourism is the largest source of foreign exchange, accounting for almost 20% of GDP. The first resort was opened in 1972, and hotels financed by local and foreign capital have since been built on the uninhabited islands. There are now nearly half a million visitors a year.

The Maldives was a British protectorate from 1887 and gained its independence in 1965.

• 1932 First written constitution.
• 1968 Sultanate abolished. Declared a republic. Ibrahim Nasir elected as first president.
• 1978 Gayoom becomes president.
• 1994 Nonparty legislative elections.
• 1998 New constitution; Gayoom reelected for fifth five-year term.