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This article considers the possible measures that the Maldives should consider in order to develop its not yet fully matured economy. Today, government intervention to reduce or diminish market failure takes many forms: direct controls, government regulation, government subsidies, taxation of negative externality engendering goods, etc. However, it has been strongly suggested that for a developing country such as the Maldives, "and given that there is no one perfect model of state involvement in the economy, effective and well managed Public Enterprises need to play a vital and integral role of the national economy." Further solutions for market failure in the Maldives are also discussed.