Sixty years after economist Wolfgang Stolper first diagnosed Malta's economic challenges, structural issues he identified continue to affect the island's development, according to a panel discussion organised by the Faculty of Economics, Management, and Accountancy (FEMA) and the Central Bank of Malta. 

The event, which took place on November 6, 2024, in Valletta, marked the facsimile publication of the report by Quinque Publishers, titled "The Stolper Report: Economic Adaptation and Development in Malta."

Alfred Sant, former prime minister, took the initiative for the publication of the report.

Stolper’s 1963-64 UN-backed mission to Malta had been a critical exercise in economic foresight, recommending a bitter but necessary set of reforms: fostering a private sector, attracting appropriate foreign investment, and limiting extensive public sector employment. 

These strategies laid the groundwork for Malta's development path following its 1964 independence, supported by the Second Development Plan of 1964-1969.

Panelists, including former finance minister Tonio Fenech, Economics Professor Rose Marie Azzopardi, Acting Central Bank Governor Alexander Demarco, and Dr. Marie Louise Mangion from FEMA's Department of Politics, Policy, and Governance, revisited Stolper’s analysis.

Reflecting on Malta’s economic journey since independence, the panel underscored the enduring relevance of Stolper’s insights in navigating contemporary challenges and ensuring balanced, sustainable development for future generations.

While acknowledging Malta's economic progress, they highlighted structural weaknesses that continue to affect sectors like infrastructure and public services, causing strain in areas from transport to sewage treatment.

Concerns were raised over an "overheating" economy, exacerbated by subsidies and tax policies favoring rent-seeking income and construction over sustainable growth.

Panelists argued that such policies risked eroding quality of life in ways that GDP-centric metrics fail to capture.

In addition to economic strains, the University of Malta’s role in shaping a workforce relevant to the local economy—beyond the limited scope Stolper once critiqued as producing only "lawyers and doctors"—was a key focus.

The event was moderated by Prof. Godfrey Baldacchino, with Dr. Joe Schembri serving as rapporteur.