The key to growth as a nation

Although the term "competitiviness" is derived out of "competition" it says and carries much weight when applied to a nation's performance within all of its social and business sectors.

It is of paramount importance to a country's ecomomy, to its well-being and prosperity and to its overall delivery within its own borders and beyond.

Indeed, competitiveness is the ability to achieve success in international markets leading to better standards of living for all. It stems from a number of factors, notably firm strategies and a business environment that support innovation and investment, which, combined, lead to strong productivity growth, real income gains and sustainable development.

Unions, constituted bodies, entrepreneurs and several other main players within our country's economic dimension voice the vitality of being competitive.

The government completely agrees with this statement and, as such, while appointing for the very first time throughout the course of Malta's political history a minister directly responsible for competitiveness, has listed this issue as one of its top priorities.

However, this is a responsibility to be carried by all. Each and every one of us has to be the guarantor that, day by day, month after month, we mould competitiveness into a functioning term for our country. The process duration is never-ending as necessities and global requirements change continuously.

Several areas are vital indicators of competitiveness; the public service, national service providers, the private sectors, businessmen, industry, small and medium enterprises... the list is endless.

I do not believe in an implementation of policies which spreads its wings over all existing sectors and adopts an immediate radical change within its structure.

I believe, on the other hand, that by identifying and targeting the main pillars of provision of services we can adopt a revamp in its respective operations by implementing necessary changes, ultimately yielding the desired results.

The process is not an easy one and I am more than sure that criticism will be levelled on the field. I am sure that some will forcefully disagree but if we insist that being competitive is at the top of our national agenda then I am not afraid of grabbing the bull by its horns, addressing the issue and delivering results for the well-being of our socio-economic dimension.

Each and every sector contributes, in some way or another, to our overall competitiveness as a nation. Therefore, we have to focus on those essential services and sectors that would really, following the necessary reforms and implementations, reap the desired targets and not those that, theoretically, are beyond our national realities.

With this is mind, the reduction of bureaucratic practices will contribute to the overall level of competitiveness. Within several of our national structures, reforms have already taken place, and some are in the process of being carried out. We should not live in utopia and forget what has been done already. But change is needed on a daily basis, adapting ourselves to the daily necessities of an ever-changing world and this is precisely what the government has in mind.

The much-awaited port reform is currently under discussion. This is one of the main areas of internal services requiring urgent attention and change. This is what I mean by underlining sectors that are contributors to the domestic economy.

This reform will incorporate the various aspects of the handling of cargo and provision of services within our harbours, thereby facilitating the present working operations together with ensuring that the level of competitiveness of domestic ports be enhanced.

A number of studies involving all those concerned have been compiled. At the time of writing, roundtable discussions are being held, including with the Malta Maritime Authority.

The planned reform will follow that implemented a few months ago in the port pilots' sector and which was carried out in a very positive way. In this way, shipping activities will operate within a competitive harbour, resulting in further attracting new activities due to cost-effective operations.

The aim is for Malta to offer a high-quality service at a reasonable price. Our workers have already given proof of their capabilities. Within the health, education, economic and other sectors, our nation can boast of individuals who distinguish themselves within their respective fields. A few years after the widespread application of IT, we already have quite a few who have excelled in their work. The public service has made great strides ahead on all levels - Malta's process of screening and negotiations prior to our EU membership is a case in point.

Competitiveness is also vitally important towards attaining sustainable development, meeting the requirements of the present without diminishing the ability of future generations to meet their own needs.

Following EU membership, standards are another important area of consideration for local industry. Being directly responsible for the Malta Standards Authority, I am seeking to promote further the need of certification for the products and services we offer.

I am constantly striving towards creating an awareness of the issue as standards give us an edge within a competitive market, enabling us to offer local produce and services at the best possible quality. I have recently launched, together with the MSA, two new schemes offered by the EU certifying environmental-friendly standards.

The "growth competitiveness index", released by the World Economic Forum, gave Malta a very good placing as a newly acceding member of the European Union. It said: "Malta, which holds the highest ranking among 22 new entrants, fares relatively well in technology. Specifically, the government scores highly in its prioritisation of ICT and success in ICT promotion although it rates less favourably in terms of innovation".

Within this context, we are promoting innovation and investment in research and development, being one of the main drivers for industrial competitiveness.

Competitiveness is not a term to be used conveniently whenever the occurrence is felt. I believe we have already seen substantial achievements within our social, political and economic sectors and this has to go to the credit of those who have worked for them.

The European Union is working hard to achieve a competitive market built on internal harmony and a sound economy.

In Malta, we are doing the same. We are considering this priority as fundamental in the efforts to turn the challenges which lie ahead into achievements.

Mr Galea is Minister of Competitiveness and Communications.