Malta today is presenting two faces, sharply distinct from each other.
The first is of a country with an economy, which, in spite of restraints in the way of economic operators, is faring well beyond reasonable expectations. The second is of a society in which ethical standards are taking a nosedive, with the party in government giving the worst possible example in this direction.
What is generally considered unacceptable, on moral and ethical grounds, is gradually tending to become acceptable, sending values sliding down a slope that is getting deeper by the day.
The two faces are, as it were, operating parallel to each other, acting independently, but unless the downward trend in ethical standards is checked, sooner or later the trend is likely to make an impact on the economic face of the country.
The longer the government persists in pursuing lines of action – or, rather,inaction – that suggest it does not care less about ethical standards, the greater will the slide in values continue to erode society’s moral fibre. This will be Labour’s legacy if the trend is not reversed.
Malta is riding the crest of the wave insofar as economic performance is concerned. Indicators show the economy is continuing to make steady progress. The deficit is down, the debt ratio is narrowing, unemployment is lower and, although the rate of growth may slow down a bit, the outlook looks good.
As the European Commission said in its latest report about Malta, at 6.3 per cent, the real gross domestic product growth last year was “significantly above expectations”. The main driver of this growth was investment in machinery and equipment related to the large-scale energy plant.
This is all very well and good, but, since Malta will not build a power plant every two years, future expansion would have to be sustained through other projects and, more importantly, through existing productive sectors and other economic activity.
According to the Finance Minister, the government plans to keep injecting public capital into major projects. While this will help keep the economy in a healthy state, sustaining a regular reasonable growth rate over the long term may not be so easy, though, through careful planning and enterprise, the country may well continue to build on the success it is achieving now.
Frittering away much energy on unnecessary controversies and holding back from doing what is considered morally right, as the government is doing in the wake of revelations in the Panama Papers, can only shift the focus away from other important matters. Greater attention should be given to the needs of the manufacturing industry and to efforts to bring about greater efficiency. It looks as if the idea of creating a maritime hub is about to start taking shape with the conclusion of talks with a company interested in developing part of the former Malta Shipbuilding yard into an oil rig servicing centre. If developed into a fully-fledged line, a maritime servicing industry will be complementary to the aviation maintenance sector. The initial investment into the project is of €55 million.
The airport operating company is also making further headway in its expansion plans. More investment in this direction, and other new lines of economic activity, will help sustain growth but, at the same time of doing this, the country must recover moral values.
Malta is bound to suffer if it is seen as a location where doing what is unacceptable is considered the norm. A wrong perception is not easily rubbed off.