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                                             Maldives

                                   Country Partnership Framework

                                           April 26, 2016

                                           Chair Summary

       The Executive Directors discussed the joint IDA/IFC/MIGA Country Partnership
Framework (CPF) (IDA/R2016-0053[IFC/R2016-0077, MIGA/R2016-0016]) for Maldives for
FY16-19, and welcomed the collaboration of the three World Bank Group entities in its
preparation.

       Directors commended the Maldives Authorities for sustaining high rapid growth over the
past two decades which has resulted in the eradication of extreme poverty and hunger, and in
remarkable achievements in education and health services. At the same time, Directors
acknowledged the challenges the Maldives faces as a small, dispersed, multi-island economy and
underscored the need to diversify the economy, address resilience to climate change, contain high
levels of fiscal deficits and worsening debt sustainability, and to build state and institutional
capacity.

        Directors expressed support to the CPF noting that it is firmly rooted in the priorities
identified in the 2015 Systematic Country Diagnostic (SCD) and were aligned to both the
Government’s manifesto and sector strategies and the Bank’s twin goals. They supported
prioritizing employability and building stronger linkages across the economy to allow for more
Maldivians to secure employment and stressed that engagement at the policy dialogue/reforms
level was necessary.

        Directors appreciated the focus on climate resilience and environmental sustainability
given the role of Maldives’ natural assets to the country’s key growth driver, luxury resort-based
tourism. They encouraged concerted efforts to enhance implementation capacity in general and to
improve public financial management and reforms in key areas of expenditures, such as social
protection. They appreciated the significant challenges to private sector development, stressed the
need for further policy dialogue, and noted IFC’s and MIGA’s intention to do more in the Maldives
as opportunities arise for public private partnerships in infrastructure, and for impactful tourism
projects, among others.

       Directors stressed the importance of extending analytical and advisory services to small
MICs, and where the capacity is constrained like in the Maldives, to speed up planned support
while effectively coordinating with other partners to mobilize more resources.

        Finally, Directors supported a comprehensive approach to mitigating implementation risks
given the capacity concerns in the Maldives and urged the Bank to work closely with the IMF and
other partners to help the Maldives monitor and manage its own public debt.

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*This summary is not an approved record.