The Republic

Following a referendum in 1968 the sultanate was again abolished, Sultan Majeed Didi retired to Ceylon and a new republic was inaugurated. Nasir was elected president. In 1972, the Sri Tankan market for dried fish, the Maldives' biggest export, collapsed. The first tourist resorts opened that year, but the money generated didn't benefit many ordinary inhabitants of the country. Prices kept going up and there were revolts, plots and banishments as Nasir clung to power. In 1978, fearing for his life, Nasir stepped down and skipped across to Singapore, reputedly with US$4 million from the Maldivian national coffers.

A former university lecturer and Maldivian ambassador to the UN, Maumoon Abdul Gayoom, became president in Nasir's place. Hailed as a reformer, Gayoom's style of governing was initially much more open, and he immediately denounced Nasir's regime and banished several of the former president's associates. A 1980 attempted coup against Gayoom, involving mercenaries, was discovered and more banishment occurred. What had started as a forward-looking, reform-minded regime was already beginning to look very suspect.

Gayoom was re-elected in 1983 and continued to promote education, health and industry, particularly tourism. He gave the tiny country a higher international profile with full membership in the Commonwealth and the South Asian Association for Regional Co-operation (SAARC). The focus of the country's economy remained the development of tourism, which continued throughout the 1980s.

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