On the right track

The recent publication of the Global Competitiveness Index (GCI) by the World Economic Forum confirmed that Malta is on the right track when it comes to improving its competitive edge vis-à-vis other states at the international level.

Malta's upgrade from a ranking of 44th place last year to 39th place this year provides another indicator that the government is implementing a reform agenda that is already starting to pay dividends when it comes to creating a more conducive investment environment. The emerging picture is a clear one: that of a country that is able to adapt to the changing nature of the global political economy in such a manner that a more robust sustainable economy is created.

The positive GCI report coincides with the first National Reform Programme (NRP) progress report that provides an evaluation of Malta's track record when it comes to implementing the reform agenda we had introduced for the period 2005-2008.

Malta's NRP is the outcome of a very substantial public consultation with the five strategic guidelines selected being chosen after a lengthy marathon of interaction between the public and private sector. As a listening government, this style of continuous public consultation is a policy we will continue to adopt throughout the implementation of the NRP. It is essential that all stakeholders in the Maltese economy play an active role in such a reform process if introducing the fundamentals of a more competitive climate are to be attained in the short and medium term.

The five strategic guidelines of the NRP, namely, sustainability of public finances, competitiveness, employment, education and training, and environmental sustainability were selected as priority target areas in order to ensure that Malta's economy is better geared towards the increasing challenge of competition around us. The first NRP progress report confirms that significant progress has been registered in all five priority areas.

I am especially pleased by the fact that there is a consensus in our country that introducing the necessary measures to create a more vibrant economy is something we are carrying out because it is in our self-interest to do so. I believe that the fact that we have arrived at such a stage of political maturity is already a sign of our being able to adapt to the constantly changing geo-economic climate around us within the EU and the Euro-Med area.Unfortunately, sections of the media sometimes focus on the negative short-term side effects of the comprehensive reform agenda we are implementing without portraying an objective perspective of the agenda itself.

As the GCI demonstrates, Malta is registering sustainable growth as a result of the tangible reforms it has already carried out and thanks to the confidence that local and international investors continue to have in the future of Malta.

Highlighting the positive results being achieved on a regular basis is in itself a very important contribution to make, in such a process, as adopting such a positive attitude will boost the "feel good factor" that is a determining factor in such an exercise of transforming a country's economy.

Competitiveness finds its ultimate expression in the prosperity that countries can sustain over time. This is Malta's ultimate objective. It is an objective that the government is already achieving through a quite often low profile, but always consistent, reform process.

Mr Galea is Minister of Competitiveness and Communications.