Background

In 2012, Maldives earned a milestone in its development by graduation from UN’s least developed countries, recognizing as a Small Island Developing Nation. Despite the 2004 Indian Ocean Tsunami and the 2008-2009 Global Financial Crisis which severely affected the tourism and the wider economic activity, Maldives has continues to expand its per capita GDP. However, the GDP expansion is becoming less inclusive with urban poverty and economic inequalities rising.

The country’s high Human Development Index of 0.717 in 2017 turns to low human development of 0.549 when adjusted to inequalities. Youth unemployment keeps rising, with women bearing the brunt of unemployment, given their low labor market participation of 42.9 compared to 82.1 for their male counterparts.

To reverse this worrying situations, a fiscal discipline to reign in the macroeconomic imbalances should be instituted by the Government. Moreover, economic diversification is needed to reverse declining trends in fishery and food export sectors, by improving the related infrastructure of sea transport and energy to not only expand the production and processing capacity of fish and food but also to diversify these sectors.

It is important that the Government scale up its efforts to make growth more inclusive, through high tertiary and vocational training, increased female and youth labor market participation, and improve the quality social services such as in health, and waste management.

Hence, selective interventions through Government policies are essential to alter the current structure and offer better prospects for economic growth, leading to economic diversification.

Since the country is dependent on tourism services and fisheries as the two main drivers of growth, the need to diversify the economy on a sustainable footing is imperative, as there is a very young cohort of population coming into the job market who require and demand jobs of interest to them.

Industrialization in Maldives

Maldives has not had an industrial policy up until now. The country has over the years, implemented several national development plans of seven year duration.

In 2013 a diversification strategy was developed, but little progress on direct implementation of the key aspects in the strategy were carried out so far. In the early 2000’s a Diagnostic Trade Integration Strategy was also formulated to improve the trade related service delivery in the country.

The national economic development policy agenda is based on the diversification of the economy to achieving sustainable growth and reduced vulnerability from external shocks. The strategic economic development policies are supportive of tourism fisheries and agriculture development.

The agriculture sector has developed several policy documents such as an Agriculture Development Master Plan (ADMP) with the assistance of FAO, a Commercialization Plan assisted by ADB, and a national forestry policy assistance by FAO. At the same time, fisheries sector development is geared towards promoting export and trade, building infrastructure and strengthening research and development.

A strategic analysis regarding the prospects of the fisheries sector in Maldives was formulated based on a series of outlook studies prepared with the assistance from the World Bank and FAO.

Furthermore, to diversify the tourism sector, the Fourth Tourism Master Plan (4TMP) was introduced from 2013 to 2017, focusing on innovations for the tourism industry to respond to challenges brought by diversity and competition. It undertakes to resolve human resource constraints (heavy reliance on foreign labour) and re-brand Maldives as an emerging Asian destination.

With the advent of multiparty democracy in the country from 2008 onwards, it is the manifesto promises of the ruling party that takes prominent in economic development matters and these promises are the main developmental policies being implemented. SO, key operational strategies need to be put in place to implement key manifesto pledges of the government.

In the absence of written development goals, well-planned, systematic policies to achieve broader strategic development and economic transformation of the country is required, in order to achieve the envisioned direction for the country and ensure that it remains on the right and sustainable trajectory.

Rationale

Even though Maldives has graduated into a Middle Income Developing Country, there is little diversification of the economic base and the country is reliant on tourism sector and its related activities such as transport and communications, and on the fisheries sector as its main export products.

In order to address key issues facing the country, namely economic vulnerability, income inequality, high unemployment rates among youth and women, achieving Sustainable Development Goals (SDGs), addressing the increasing trade deficit, diversifying the export base, increasing foreign direct investments, addressing burgeoning public debt, the Government needs to come up with the policies for the economy to be put on a more sustainable growth footing that is more resilient and addresses internal and external shocks.

As a forward looking nation, on the cusp of moving into the upper income developing country category, the country needs very clear, holistic vision and a collaborative multi-sectoral strategy to aid economic transformation, improve and diversify the narrow export base, improve and diversify the narrow export base, improve the production capacity and as a strategic platform, to attract investment from abroad.

Considering the above challenges, through UNDP Maldives, the Government wishes to seek technical assistance to avail the services of policy experts to assist in the formulation of a long term Industrial strategy, to alter the production structure and diversify the economy into a future where the strategic economic directions will address the issue of resilience in the economy, by building on the existing strengths, while embracing new opportunities, develop new export sectors, build new capabilities to address the inherent challenges arising out of a rapidly globalizing economy where technology is starting to hold a dominant role.

Duties and Responsibilities

The scoping study must take into consideration, the work that is being carried out by the Ministry of Planning with regard to the five year development plan. The industrial policy of the country should add, complement and be not in conflict with the national development plans and development strategies being prepared by sector ministries.

Taking into consideration how development planning functions are carried out and executed nationally, the Government is needed to formulate an ambitious but practical and realistically achievable industrial policy to carry out the next phase of economic diversification and transformation targets for the country.

The formulation of the national level industrial policy shall be based on an initial scoping study undertaken in consultation with public and private sector stakeholders.

The objective of the scoping study would be to understand how Maldives should approach the development and formulation of an industrial policy to address the development challenges of the country, particularly alteration of the productive structure in the economy, and understand the parameters and areas that should be included or covered in the National Industrial Policy.

A gendered lens should be employed throughout the study and policy formulation to ensure systemic and social inequalities are taken into account.

Through such an industrial policy, strategic direction is required for the Government taking into consideration the new Government national vision, on macro as well as micro level management of the economy, employment and in areas of investment.

In carrying out the scoping study, related policies that are complimentary to make an industrial policy relevant to the needs of the country and can be successfully implemented, shall be identified by in the scoping study.

As part of the scoping study, necessary research and assessment needs to be carried out to ascertain whether the following complimentary studies/policies are required.

1. SME Policy (Focusing on Agriculture, Fisheries and Tourism Sectors
2. A trade policy that will complement Industrial Policy
3. An investment policy to compliment an Industrial Policy
4. A competition policy to address issues related to an industrial policy
5. Education policy that will complement and contribute to the success of an industrial policy
6. Labour Policy to address employment and migration management issues
7. Tax Policy to address issues that may arise or hinder the implementation pf an industrial policy
8. Ensure alignment to the National Development Plan being created by the Ministry of National Planning and Infrastructure.

The lead consultant will be completing the study on his/her own and will manage a a team comprising of local consultants focused in the areas of education and labour, and tax policy.

Expected Outputs and Deliverables

Initial Scoping study

• Inception mission for the scoping study covering stakeholder consultations and desk review (10 days)
• Draft report (within 5 days of completion of inception mission)
• Compilation of comments from stakeholders upon completion of the draft (3 days)
• Finalised scoping report with comments incorporated (within 2 days)

Formulation of the Maldives Industrial Policy

• Detailed mission for relevant stakeholder consultations, data gathering and research  covering at least 5 atolls of Maldives (40 days)
• Draft  report of National Industry Policy with consolidated sections from local consultants (within 20 days of completion of field work)
• Validation Workshop (upon completion of the draft) (5 days)
• Final Draft of the Maldives Industrial Policy with comments incorporated (within 15 days)

Institutional Arrangement

The expert will report to UNDP Maldives CO RR and will be supervised by Senior Economic  Advisor (Sri Lanka and Maldives) and will be further supported by the ARR Resilience and Climate Change and respective Programme Officers. A briefing and debriefing meeting will be organized with UNDP senior management at the beginning and end of assignment.

Duration of the Work

Following recruitment, the work will take place from the period 15 July – 15 December 2019. The scoping study should take place within the 1st  month, followed by the completion of the work proper on the Industrial Policy to be completed over the next 4 months.

Duty Station

The required work will take place over TWO separate missions to the Maldives.

A 10 working day mission to the Maldives Country Office focusing on initial stakeholder consultations, data collection analysis for the scoping study

The Work Proper, which is the development of the Industrial Policy paper will entail roughly 40 working days in the field and the balance from the consultant usual duty station.

Duration of Initial Contract

Following recruitment, the work will take place from the period 15 July – 15 December 2019. The scoping study should take place within the 1st  month, followed by the completion of the work proper on the Industrial Policy to be completed over the next 4 months.

Evaluation Method and Criteria

Technical Criteria for Evaluation (Maximum 70 points)

• Criteria 1 : Relevance of Education – Max 10 points
• Criteria 2 : Relevance of experience in the development of studies and industrial policies carried out in the past 5 years – Max 20 points
• Criteria 3: demonstrated in-depth understanding of Industrialization, industrial clusters development and diversification, commercially oriented development studies, or related disciplines.  – Max 20 points
• Criteria 4: Assessment of approach/methodology to assignment. – Max 20 points

Only candidates obtaining a minimum of 49 points (70% of the total technical points) would be considered for the Financial Evaluation.

Competencies

• Strong interpersonal and communication skills;
• Strong analytical, reporting and writing abilities skills;
• Openness to change and ability to receive/integrate feedback;
• Ability to work under pressure and tight deadlines;
• Comprehensiveness knowledge of Industrialization, industrial clusters development and diversification, commercially oriented development studies, trade and investment and competion policies.
• Outstanding communication, project management and organizational skills;
• Demonstrates integrity and ethical standards;
• Good understanding of the development and institutional context or Maldives and other SIDS and Ocean states.
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability.

Required Skills and Experience

Educational Qualification

• University Master’s degree or PhD (preferred) in the area of Industrialization, industrial clusters development and diversification, commercially oriented development studies, otrade and investment and competion policies.  

Experience

• A minimum of 10 years of work experience on, and demonstrated in-depth understanding of Industrialization, industrial clusters development and diversification, commercially oriented development studies, trade and investment and competion policies.
• Proven track record of working on studies and industrial policies carried out in the past 5 years.
• Relevant work experience in advisory services in an international or national organization that has allowed her/him exposure to a range of successful industrial development programmes or alternatively:
• Alternatively, senior person with a minimum of 10 years of experience in policy advice, industrial research, and coordination of major industrial development programmes or development corridors preferably in a developing country with demonstrated success.
• Understanding of formulation of national plans, sector strategies and regional industrial economic models would be an advantage.
• Familiarity with bureaucratic requirements in a national and/or regional government ministry as well as exposures to coordination of development programmes will be an advantage.

Language requirement

• Fluency of English language is required;

Price Proposal and Schedule of Payments

Consultant must send a financial proposal based on Lump Sum Amount. The total amount quoted shall be all-inclusive and include all costs components required to perform the deliverables identified in the TOR, including professional fee, travel costs, living allowance (if any work is to be done outside the IC´s duty station) and any other applicable cost to be incurred by the IC in completing the assignment. The contract price will fixed output-based price regardless of extension of the herein specified duration. Payments will be done upon completion of the deliverables/outputs and as per below percentages:

• Deliverable 1 [Inception report based on desk review and stakeholder consultation on the scoping study]: 20% of total contract amount
• Deliverable 2 [Final Scoping  report]: 30% of total contract amount
• Deliverable 3 [Inception report on the Industial Policy based on field work and consultations ]: 40% of total contract amount
• Deliverable 4 [Final evaluation report with comments incorporated]: 10% of total contract amount

In general, UNDP shall not accept travel costs exceeding those of an economy class ticket. Should the IC wish to travel on a higher class he/she should do so using their own resources.

In the event of unforeseeable travel not anticipated in this TOR, payment of travel costs including tickets, lodging and terminal expenses should be agreed upon, between the respective business unit and the Individual Consultant, prior to travel and will be reimbursed.

Documentation required

Interested individual consultants must submit the following documents/information to demonstrate their qualifications. Please group them into one (1) single PDF document as the application only allows to upload maximum one document:

• Letter of Confirmation of Interest and Availability using the template provided in Annex II.
• Personal CV or P11, indicating all past experience from similar projects, as well as the contact details (email and telephone number) of the Candidate and at least three (3) professional references.
• Technical proposal, including a) a brief description of why the individual considers him/herself as the most suitable for the assignment; and b) a methodology, on how they will approach and complete the assignment.
• Financial proposal, as per template provided in Annex II. Note: National consultants must quote prices in Maldivian Rufiyaa

Incomplete proposals may not be considered.

Annexes

• Annex I - Individual IC General Terms and Conditions
• Annex II – Offeror’s Letter to UNDP Confirming Interest and Availability for the Individual IC, including Financial Proposal Template

For any clarification regarding this assignment please write to zeeniya.ahmed@undp.org