Imperatives for survival

It cannot be said that Malta is on the front line of Western economic development but, by world standards, it is way ahead of the Third World.

Malta's industrialisation drive took off after World War II and its further economic development was spurred by the attainment of Independence in l964.

Malta's survival depends on its ability to earn its keep in a world of tough, intensifying competition. The quality of life attained by its industriousness is such that it cannot sustain itself on its internal market alone. It has to be onward-looking and export-oriented to tap more and more sources of foreign earnings.

In the global market, the world is our oyster. We have to reach out for it. There are prizes to be won if we do so successfully. There will be a price to pay if we fail.

This imposes stringent imperatives, which could only be ignored at our peril.

The first imperative is that Maltese businessmen must realise that they have no future if they concentrate on competing with one another for the local market in the hope that they can survive by getting fat at the expense of their Maltese competitors. If they stick to the tradition of cutting a bigger slice of the national cake or of eating collectively from the same plate, the nation's wealth would not increase. It would merely mean that the winners survive at the expense of the weak and that the resources that ultimately keep the economy going remain constant.

The answer is to enhance Malta's national wealth by seeking new markets and new sources of foreign earnings. This could be expedited if more foreign investment is attracted to these islands further to increase output for export to new markets. Productivity could also be increased with the help of new technology.

A second imperative is to increase Malta's competitiveness by reducing production costs by all available means. Malta's competitors come from all directions with the single intent of supplanting us from every market niche and of usurping every market advantage we have achieved at not inconsiderable cost.

This means that we must do away with all restrictive practices, government-induced costs and all other inefficiencies, which out-price our exports and services and, therefore, could dry up our earnings.

In the prevailing scenario, Malta could only keep its place in the sun if it manages to establish and to widen its bridgeheads in overseas markets. It has to do this in the teeth of competition.

In order to compete, it must cut down costs to the bare bones and hope to realise profitable returns that would pay for reinvestment and to enhance the quality of life of our people.

The challenge is formidable and calls for maximum concentration by all concerned.

One would have thought that these considerations would induce top-flight politicians on either side of the political divide to focus on this essential issue and not to relax, at least until we begin to see the light at the end of the tunnel.

So they should. But in the baroque or Byzantine politics of Malta, things take a different turn. Many politicians prefer to seek the applause of the adulatory faithful and delight in mud-slinging exercises designed to belittle or discredit their rivals.

Every day, charges and counter-charges are traded in Parliament and in the media to show that the other side is the devil incarnate. Politicians are egged on by their party machines. All of them continue to show an amazing exclusiveness in their horizons. New disclosures are greeted at the respective party headquarters with the same enthusiasm that erupted when General Gebhard von Blucher arrived on the battlefield at Waterloo!

The blunt fact is that some sound-bite, media-afflicted politicians are doing all they can to distract the attention of public opinion. This situation is not sustainable. Unless there is a change of attitude, something has to give.

The writing is clearly on the wall and public opinion is showing signs that it is becoming increasingly aware of the gathering storm and is already preparing to take cover. This is why in certain sectors stagnation has been creeping in.

When these worries meet the prospect of an impending earthquake, the result is a potent brew.

It is, to say the least, incongruous that, instead of hammering out immediate, result-oriented policies, some politicians are bent on distracting one and all by fomenting division instead of building bridges to encourage co-operation.

Everyone is in the same boat and the private sector has the highest stakes. It should take the initiative and cut across the miasma of prevailing impotence. The immediate problem is how to ignite the economic engine and to find ways and means to generate wealth, primarily by tapping new sources of earnings.

However formidable, the challenge is not insuperable given the political will.