We have over the years sought to have a strong identity as Maltese. We have done this for political reasons (to achieve independence first and then to drive our foreign policy agenda); for social reasons (we are so small that any foreign influence of whatever nature could have a significant impact on our society) and for economic reasons (to maintain an element of control over our economic policies). Even during the EU membership negotiations, this issue of identity did feature high on the agenda both among those opposing membership and among those supporting membership.

Those supporting membership (and I was and continue to be one of those) have always felt that Malta's identity would get stronger within the EU, while the country would have benefited from being a member of an entity made up of 25 (soon to be 27) states. A number of the issues negotiated by Malta in the run-up to the membership is proof of this, such as the recognition of Maltese as an official language, the issue regarding work permits, the aspect related to VAT on food, and others.

The point is that, over the years, we have tended to link the issue of identity with the notion of the Maltese state. It is probably about time that we link the issue of identity with the notion of the Maltese nation.

This was a point that the Minister of Foreign Affairs, Michael Frendo, made in his speeches during his recent visit to Australia. There are a number of Maltese living in Australia (but also in Canada, the US and the UK), who describe themselves as Maltese because they can identify with our culture, but cannot call themselves Maltese because they do not have a Maltese passport. They are part of the Maltese nation but not part of the Maltese state.

The distinction between nation and state has been with us for decades and was quite an important issue after World War II. The best example is Yugoslavia, which was one state but incorporated several nations, each with their own identity (Serbs, Bosnians, Croats, Macedonians, Slovenes, etc).

The subject of relations with Maltese living abroad is part of the remit of the Ministry of Foreign Affairs, and rightly so. We associate Maltese living abroad with the days when several thousands of Maltese had to emigrate to earn a living, and seeking to maintain good relations with them is one way of telling them that the country has not forgotten them.

However, today, when we speak of Maltese living abroad, we cannot just talk of first-generation emigrants, but second- and also third-generation immigrants. Telling these persons that the country has not forgotten them is meaningless. This does not bind them with Malta.

I believe that the Maltese living abroad, whom we should consider as an integral part of the Maltese nation, should not be viewed only from a political or a social perspective but also from an economic perspective. They bring economic value to Malta in more ways than one.

Last year's visit to Malta by members of the Maltese-Australian Chamber of Commerce is a case in point. This is why Dr Frendo's assertion that we should focus more on the Maltese nation, rather than the Maltese state, is very apt. We have no need to prove anything to anyone as a state, but there is lots more that can be done as a nation.

We can refer to this as the Maltese diaspora; but then again we would be reducing the issue to a political one. From an economic point of view, we need to appreciate that we are talking of three categories of persons - those who left Malta and set up their own successful business which has probably been handed down to their children; those who left Malta, sought employment and settled down and those who are children of emigrants who are now employed in senior management positions in government or in businesses in the receiving countries such as Canada, the US and Australia or in countries in other regions such as the Far East.

In their own way all three categories can represent an important economic value for Malta. Those who set up their own businesses can source Maltese goods and services and possibly also invest in Malta. The way Ireland managed to attract investment from Irish-Americans is an example of how this can be done. Those who sought employment and settled down now have skills that can be transferred to Malta. On the other hand, those who fill senior management positions can influence decisions within their set-up to channel business to Malta as long as this makes sense.

I believe that there is a limit as to the extent to which we can attract second- and third-generation immigrants to Malta. They may come one day to see where their parents or grandparents lived and may like our country's quaintness. However, there is no limit to the extent that we can attract business thanks to second- and third-generation emigrants. If all it takes is to give them a Maltese passport, then let us be bold and do it. The identity of the Maltese nation needs to be much stronger than that of the Maltese state for economic reasons.