“Of the people, for the people, by the people, with the people.” How many times have we heard this mantra from politicians. How may futile attempts have we seen for it to be fulfilled?

Malta has been transformed and one often feels that the arc was bending towards progress. We now live longer, wealthier and healthier lives. A generation of young people has seized opportunities that their grandparents could not even imagine, making it to tertiary education in record numbers. Women and families have benefitted greatly from educational expansion and workplace opportunities, thanks to various government reforms such as tax incentives and free childcare centres.

However, the local and international systems that have been built seem to be creating winners and losers, at times failing to keep pace with the new realities confronting families and individuals from different social strata.

For the first time in 15 years, the Labour Party has seen a decline in its voting share. Whether this was caused by the inevitable vicious political cycle has yet to be determined. For years, we have been so focused on the present that we neglected to think about the future.

Since the pandemic, Maltese society has shifted its core priorities from personal prosperity to overall well-being. The mantras of L-Aqwa Żmien and il-Futur Sabiħ were no longer being envisaged by the people.

Now, more than ever, is the right time to evaluate our past, understand the present and plan for the future, including the roles we want to play in international fora.

The devolution of much- needed reforms undertaken by the government in the last 10 years shaped a society for the modern age. Deeper is the question of where the country wants to be now. This narrative is often evoked nostalgically by parts of the right to describe modern Malta, an island that punches above its weight, that was once ruled by the British empire and saw its natives leaving their mother country for better opportunities abroad and has now become the hub of economic migrants.

Nostalgia has come to characterise much of what is left too, conjuring images of the bygone days of tight-knit communities who heroically and collectively endured poverty.

The promised economic prosperity of a decade ago has largely been delivered. Yet, this prosperity has also altered the relationship between the electorate and politicians.

Financial independence and opportunities have led people to move away from dependency on politicians, potentially causing the political apathy we observe today.

In Europe, data shows that as GDP per capita and education levels rise, voter turnout declines. Hence, political parties and ministers might be victims of their own success, entering into relationships with major players for potentially higher rewards but at the cost of their connection with the electorate.

What comes next? We need to understand the people’s needs and craft a plan that is for, of, by and with the people. That is the essence of democracy. We should aim to plan an agenda for Malta that matches societal ambitions, measured by unorthodox tools such as well-being indices, the health of our children, the strength of our communities, housing affordability, the dignity of our workforce and families and our environmental stewardship.

The effect of economic progress is big enough. Yet, it seems that the benefits are no longer being valued, or else the costs of economic growth are outweighing them. They could be fading away due to lack of governance, rapid change, or cost of living. Swing voting and the rise in the price of eggs seem to be positively correlated.

The social benefits that the government has been handing out to individuals are no longer as greatly appreciated as before. The marginal utility of such benefits is now constant, if not diminishing. Yet, it is hard to imagine life without such monetary assistance.

Political parties and ministers might be victims of their own success- Daniel Curmi

As humans, we often only value something once it is gone. This is evident in our longing for the tight-knit communities of the past which have evaporated because of various societal changes.

Such assistance would not have been possible without flexible government finances. Despite this, we must understand that societal needs and preferences are always changing and such behaviour is not always rational.

We must make choices, sometimes regretting them later. Such is the issue of overpopulation. Has economic growth been caused by population growth? Or did economic growth cause population growth? Is there reverse causality?

We should let statistics help us answer that but use our self-consciousness to understand the implications of such an answer. Whereas before there was a general acceptance that economic migrants were necessary for economic development of the country, the rapid growth of the phenomenon has caused mumblings in the local population. Mumblings that if left unchecked could result in xenophobia, eroding social cohesion and undermining the potential of enhancing common welfare.

One option is to transit to a capital-intensive economy, especially with the rise of AI. This transition might result in challenges for low-skilled workers, especially given the arguments put forward that the provision of education has failed, potentially leading to higher redundancy rates and increased inequality, creating winners and losers.

What is required is a better-educated and upskilled workforce empowered to adjust its sails as they navigate the sea of change around us.

Theoretically, we could build an economy around environmental security, acknowledging that climate change threatens the future of our planet, resetting the approach of the last years and taking overdue action to rebuild economic security for Maltese people and the place we call home.

There is a lot of talk of sustainable economic growth. The 1987 United Nations Brundtland Commission defined sustainability as “meeting the present needs without compromising the ability of future generations to meet their own needs”. This implies an equilibrium in welfare across generations.

On the contrary, the primary objective of economic growth is to enhance welfare. This raises the question of how two seemingly conflicting policies can coexist.

The answer to this apparent contradiction is left for you to contemplate… perhaps it lies in irrationality.

Adjustments in our systems are long overdue. Communities are driven by shared goals and collective investment, enabling change when it seems impossible.

History has always demonstrated that resilience is one of the core values of our country. This resilience is only possible through the perseverance and evolution of Maltese individuals, who instinctively understand that we can accomplish more together than we can alone.

Daniel Curmi is an economist.