Validating our economic vision
In 2021, the government launched Malta’s 10-year economic vision for public consultation, a muchneeded initiative. Given the dynamics involved, any economic vision cannot be cast in stone and needs to be considered as somewhat of a moving target.
Setting our sight up to 2031, the proposed vision is based on five pillars: sustainable economic growth, infrastructure, education, good governance and the environment.
In seeking to measure our progress on the five pillars, there inevitably remain several unanswered questions. Today, we are questioning the sustainability of our economic growth, with increased talk on the need for a new economic model.
We are also questioning aspects of our education, with pressing skills shortages, apart from a now structurally-tight labour market. On good governance, we are not exactly exemplary and, likewise, with respect to the environment, with continued concerns, notably those related to our overly rapid urbanisation.
Furthermore, there remains a need for clarification in several other areas. Precisely which economic sectors are we prioritising and have we formulated specific vision-aligned strategies for these sectors? How are we combining the needed skills with our economic ambitions? How are we improving our investment profile and attractiveness based on this vision?
This is not to say that there has not been progress in various areas, apart from the need to objectively recognise the challenges that the pandemic brought about as well as Malta’s greylisting.
Two years since its launch, has this vision started to give us that added focus for a transformational mindset aimed at the attainment of our ambitions?
Articulating our ambitions within an economic vision is directed to help us navigate global trends, which will change the way we live and work, as our population ages while technology advances and we transition to a zero-carbon economy. There will therefore be new jobs, new investments and new opportunities created but, likewise, there will be new pressures and challenges.
As a small and open economy, the effect of these trends is amplified by their interconnected nature, and with our small home market, prosperity is underpinned by our level of international economic activity, rendering us more vulnerable to external shocks.
We all want to establish Malta as a great place to live, work and invest and, therefore, we need to aim for an economy which is resilient, skills-centric, innovative and internationally well-connected.
This proposed economic vision is certainly a step in the right direction, yet, we need to better propel our efforts and follow through if we want to register more tangible progress.
The success of our economic vision is not solely dependent on the government and business leaders also need to do their part. Sadly, we are being exposed to contrasting statements that risk sending confusing messages on the direction and overall credibility of our vision.
In contrast to his cabinet colleagues, the finance minister seems to be on a different page every time he very rightly calls for caution on government expenditure and distances himself from a much-hyped construction-centric economic model.
Furthermore, one notes the very distinct perspectives recently depicted by business leaders, such as that of the Malta Chamber’s outgoing president compared to that conveyed by the president of the Malta Developers’ Association.
To succeed in delivering our vision, there is need for a strategic framework to follow up on, with established directional guidelines and clear yardsticks of measure, along with a staggered road map.
Our economic vision needs to aim at further strengthening accountability that supports policy coherence and continuity and better orients the government towards the set objectives.
We need a long-term overarching strategy which fully considers any economic, social and environmental intergenerational issues which go beyond the scope of electoral cycles. And there is a need of a permanent forum that aligns the government and all stakeholders.
We need to focus on delivering an economic vision alongside an action plan. Indeed, as the saying goes, “Vision without action is a daydream. Action without vision is a nightmare”.
We do not want to end up with an academic exercise devoid of substance.
“We need an economy which is resilient, skills-centric and innovative
Norman Aquilina is group chief executive at Simonds Farsons Cisk plc.