Is it not ironic that at the same time that one report classifies Malta high in a prosperity index, figures released by the European Union’s statistical agency show that almost a quarter of the island’s population is at risk of poverty or social exclusion?
Both may be correct for, while the first report measures prosperity on a broad set of measures, not just on economic growth, the Eurostat figures concentrate on the number of people at risk of poverty. Since, quite naturally, the prosperity index does take into account the performance of the economy, which, as is well known, is doing well, the direct financial benefits do not seem to be percolating down to the lowest levels of society.
In fact, according to the EU figures, the number of people at risk of poverty or social exclusion grew by a staggering 20,000 since 2008, reaching 24 per cent of the population. In 2008, the figure stood at 80,000. The reasons for this have often stirred much discussion but it would seem that progress is not matching the pledges being made for greater efforts to reduce the figure.
People classified at risk of poverty are those facing income poverty, the severely materially deprived or those living in households with very low work intensity.
Yet, as measured by a prosperity index done by Legatum Institute, Malta ranks among those classified in the first 30 countries, placing 23rd out of 142. The index identifies eight main pillars of prosperity: economy; entrepreneurship and opportunity; governance; education; health; safety and security; personal freedom and social capital.
In terms of economic growth, the island is doing well, though there are some underlying problems that require greater national attention. One interesting result is that the Maltese live for longer than many other nationalities, with an average life expectancy of 80. This is 10 years beyond the global average. Not bad at all.
What makes the Maltese live longer? It is probably the climate, the Mediterranean diet and good health education. Whatever it is, this is a good point for Joseph Muscat to take up when he is selling Maltese passports abroad.
It is not surprising either that the prosperity survey finds that the island scores below average when it comes to the ease of opening a new business. Other surveys have reached the same conclusion. One in particular, the World Bank ‘Doing Business’ report, places Malta really down in the overall ‘ease of doing business’ index.
Again, this is an area where progress is slow. Only the other day, a prominent member of a business organisation complained that, though some headway had been made in some respects, bureaucracy was still causing many obstacles.
Another unsurprising low score is that of trust in the judiciary. Only 38 per cent said they trusted magistrates and judges, 15 per cent below the global average. Few of those who have had the misfortune of having to appear in court have words of praise for the judiciary. This is not just because of the time that is unnecessary lost in the slow working systems in place at the law courts but also because of the unfavourable impropriety perceptions that resulted from the bribery cases of some judges a few years back.
The Maltese are better off than most in terms of safety and security. There were times when the situation was even better in this regard.
While the fact that Malta places high in the prosperity index may be considered gratifying, the EU figures on poverty are disheartening.