Final answer:
Island nations often lack resources and space, which hampers economic development, but countries like Japan and Singapore have overcome these issues through innovation and economic diversification. Singapore became a trade and finance center, while the Maldives invested in sustainable tourism and environmental protection.
Step-by-step explanation:
Challenges Faced by Island Nations and Their Solutions
Island nations often lack resources and have a limited land area, which can restrict their economic development. They traditionally rely on agriculture, fishing, and trade to sustain their economies. However, issues such as overfishing and increased population have led to a dependency on imports and aid. Some countries, like Japan, have managed to overcome these limitations through industrialization, technological innovation, and economic diversification. They have invested in high-tech industries, manufacturing, and services like tourism and finance, which are less dependent on local natural resources.
Singapore is another example of an island nation that has become economically prosperous. It became an economic tiger by transforming into a global finance and trade hub thanks to its strategic location, investment in human capital, and liberal economic policies. Singapore aggressively promoted foreign investment and fostered a favorable environment for doing business, resulting in rapid economic growth.
The Maldives has addressed environmental challenges by announcing plans for conservation and sustainable tourism, recognizing the critical role of environmental health in its economic future. The Maldives has also utilized revenue from tourism to invest in environmental protection initiatives, including coral reef preservation and waste management.