Mr. Ryu Ki Jung, President of the Korean Federation of Small Business, and Distinguished Representatives of Korean Business Associations:
May I begin by expressing my appreciation for the very warm welcome that you have extended to me and to my colleagues and for the most kind words which you have just said. We are indeed grateful for your warm reception and kind hospitality.
I am happy that the bilateral relations between the Maldives and the Republic of Korea have progressed in recent years to our mutual satisfaction. While our two countries lie far apart and our national experience, both culturally and historically, differs greatly, the Republic of Korea is far from being unknown in our small island nation. The courage and resolution with which the people of this land have addressed themselves to the task of establishing and developing their state has won them rightful recognition and respect around the world. The creative energy and skill of the Korean people is renowned, and has resulted in an industrial growth rate that can only be described as remarkable.
Since 1962 when your first five-year plan was launched, your economy has grown at an average annual rate of over 8%, a national effort which has increased your gross national product twenty-five fold in the past twenty-two years. Nothing can better demonstrate the strength and the resilience of the people of South Korea than this.
I come from a country with limited material and human resources which some all too readily are wont to describe as “paradise”. While it is true that our platinum beaches, swaying palms and coral reefs have become an international attraction among people who seek to escape momentarily from the pressures of the modern world, it is also a fact that our geographical position has proved to be no insulation from the problems of contemporary society.
We too have been adversely affected by the continuing recession in the industrialised world at a time when we are faced with an urgent need to generate an economy capable of providing a better quality of life for our people. We realize that there is no substitute for self-reliance and we are happy that we have been able to achieve much with our own efforts and with our own resources. However, we do believe that as is the case in most developing countries our social and economic progress can be accelerated through collaboration with foreign development partners. Mindful of this, my Government has pursued in recent years policies to attract foreign investment in all ventures that in our assessment would contribute to a resurgence of our economy.
I would like to take this opportunity to confirm that we would welcome South Korean investment too in all feasible areas. Indeed, my Government would be happy to have the undoubted skill and initiative for which this country is so well known.
The Republic of Maldives is, as I have mentioned, a small country, but one in which, with the Government and the private investor working together towards a mutually beneficial destination, considerable gains can be made. Our economy is at present based on three major and well established activities - fishing, tourism and international shipping. During the period 1978 to 1982, the rapid development of these sectors, together with increased Government investment in social infrastructure, led to considerable economic growth. The gross domestic product is estimated to have increased in those years at an average annual rate of 10% in real terms.
Our strategy for strengthening the economy is two-fold; firstly, to further develop our major economic sectors and, secondly, to broaden the base of our national economy. Fisheries have constituted the backbone of the country’s economy for generations. It still remains the main occupation of our people, employing directly and indirectly about 45% of the labour force. The mechanization of the fishing fleet, some 1,300 dhonis, has led to a large increase in the national catch of fish in recent years. Two important projects for the development of the fishing industry are being implemented presently with concessional loans from the Kuwait Fund and the International Development Agency. In the tourism sector, bed capacity has increased three-fold in the last six years and a new tourism zone has been identified for immediate development. This is an area where foreign financing can contribute to the upsurge of our economy and at the same time guarantee a profitable return for the investors themselves.
One of the major obstacles that hinder the country’s economic development has been the traditionally narrow base of the economy. To solve this problem, we have adopted measures for the diversification of our economy and have embarked upon new industrial ventures. The two garment factories already in operation in the country manufacture ready-made clothes for the outside market and employ about 1,300 labourers and have led to an increase in our foreign exchange earnings. A new garment factory is in the final stages of completion.
We hope that the strenuous work we are engaged in despite the many hardships for the social and economic development of the Maldives and to attain a better standard of living for our people will be appreciated by our many friends abroad, especially by the more advanced countries of the Third World such as your own country, The Republic of Korea. I am sure that you share my sincere hope that as a result of this visit a new purpose and dimension will be given to the excellent relationship enjoyed by our two peoples.