On Independence Day, Archbishop Charles Scicluna again did not mince words. He fears that the country’s economic growth is creating new forms of economic disparity, with an oligarchy of the super-rich on one side and workers unable to afford the rent for their homes on the other.
The observation came a day before the National Statistics Office published the poverty levels in the country in 2015. There were different interpretations to those figures, the most optimistic coming from the Prime Minister who applauded the ‘drop’ in poverty. Joseph Muscat had promised to eradicate poverty when elected in 2013. With a stunning 85,288 people at risk of poverty or social exclusion, this country has a long wait ahead until the socialist government delivers on its pledge.
The Archbishop’s choice of the word ‘oligarchy’ is very telling. ‘Oligarch’ was commonly used when referring to the rise of super-rich Russian businessmen who emerged in the wake of the dissolution of the Soviet Union. It was not a term of endearment.
Strangely, while oligarchy rose in Russia because socialism fell, here in Malta it is a socialist government that created the right environment for its rise. The high economic growth experienced by this country, which has benefitted many, has favoured a few much more. And there lies the Archbishop’s concern.
Naturally, Mgr Scilcuna couched his words within the context of the Church’s rich Catholic social teaching that made its first mark with the landmark encyclical Rerum Novarum in 1891. It was the Church’s reaction to the Industrial Revolution and the rising socialist ideology. Other encyclicals came later to build a formidable legacy.
Promoting the principle of the common good in politics, Mgr Scicluna said: “The attainment of the common good is the sole reason for the existence of civil authorities.” The very legitimacy of any government is based on the common good. And, given the realities of politics and society today, it is a tall order.
The Archbishop mentioned in particular rising rents, wages and the “savage laws of demand and supply”, which, he said, are reducing many people to situations without hope and without a secure future. It is a terrible indictment on a country that prides itself with wide-ranging social services, free healthcare and a free education system.
The way out is not easy. To maintain current economic growth, foreign workers are being brought in. This, in turn, is leading to increased demand for accommodation and rising rent prices. Many are making good money but economic growth is not reaching everyone and 85,288 at risk of poverty is not a small number to leave by the wayside.
The solutions are political and they are certainly not easy. Putting controls or brakes will face immense opposition. Enough to mention the Malta Developers’ Association’s reaction to the idea of rent controls, warning even of “economic disaster” if that were to happen.
There are hard choices that need to be made. It is not a case of advocating for the redistribution of wealth in ways that stifle growth and private sector initiative. It rather calls for a rethinking of economic policy, of looking at the common good and not statistics, of ensuring a decent standard of living for Maltese families, described by the Archbishop as “the basic cell of society”.
The country needs an economy with soul.