Our country’s political atmosphere does not forebode well for the future. However, our GDP, not taking into consideration the national debt, is doing seemingly well thanks to our past well-planned initiatives that today are the mainstays of our economy.
These include the services sector, financial services, banking, insurance, financial technology, tourism – a vital pillar for our economy, gaming and online gaming, and professional services – legal, accounting and consulting. Information and communications technology are sectors that are growing rapidly and contribute to economic diversification.
Industry and manufacturing with niche areas such as pharmaceuticals, electronics, aerospace components have been very successful. Ship registration and the maritime and aviation sectors are also doing very well. All the above today account for 85% or so of our GDP.
It is also interesting to note that these economic sectors were in place before 2013, and all were flourishing thanks to Malta’s respected international standing and right economic decisions. Credit should be given to our nation’s prime ministers, presidents and civil servants who worked heartily and honestly and with foresight for our island and its people.
We Maltese accomplished great things in a short period of time from September 21, 1964. But what we have done is not enough and together we can accomplish more and greater things.
None of the above required a populist, personalistic leader. The rise to power of such a person in 2013 is strange considering that we had a strong financial foundation, low unemployment and the global financial crisis had ended.
Above all, Malta, together with Germany, Sweden and Poland were the only countries that managed to weather the global financial crisis [2007- 2008] that resulted in severe economic downturns around the world, especially in Europe and the US.
The effects of this crisis lasted for several years with global economies experiencing recession, high unemployment and slow recovery. No country was entirely immune from the global financial crisis.
Malta weathered the crisis well thanks to its strong diversified economy, fiscal discipline and well managed banking sector.
Malta has no oil revenues to support its economy. Hence our success to avert economic disaster was possible only thanks to economic sectors that worked hard under the stewardship and leadership of then prime minister Lawrence Gonzi.
Malta had a robust rigid constitution and institutions that have safeguarded our democracy back in time when populist ideas seemed to threaten to asphyxiate liberal pluralism.
In 2013, Malta’s flag was flying high, tall and proud. We had no financial crisis, no hyperinflation, no looming threat of massive financial losses, no suffering population. Malta did not need a saviour.
A mix of internal factors must have contributed to a change of heart by a large sector of the Maltese electorate: 25 years of Nationalist Party rule leading to political fatigue; loss of contact with the people; too many huge political decisions which had long been coming and were carried out in too short a time.
The closure of the dockyard, the public transport overhaul, liberalisation of our hiring services sector, strict financial rules and the general political atmosphere led to a call for a change of government.
Populism can pose serious threats to democracy- Josie Muscat
Now, Malta is experiencing the results of its personalistic leadership, which has also given us the opportunity to realise which institutions require strengthening to prevent the ever-rising possibility of populist strangulation of our democracy.
Our robust constitution and institutions headed by upright civil servants and our proudly independent judiciary have been our champions against populist assault of our democracy.
Populism can pose serious threats to democracy. Populism evidently challenges democracy. We must be proud and jealous of our democracy. We must strengthen our institutions. We must regain our international standing. Since 2013, Malta suffered the biggest drop in its liberal democracy score.
We need to create a firm institutional framework with resilient checks and balances, enshrined in a rigid, sacrosanct constitution. Our institutions need to pose pervasive hindrance to the imposition of executive hegemony.
We must ensure that liberal pluralism continues to enjoy great resilience and enormous strength.
In summary, to further strengthen our vital institutions, I would suggest that, once we now have a president elected by a two-third parliamentary majority, our police commissioner, chief electoral commissioner, commander of the Armed Forces of Malta, the head of the Broadcasting Authority and the head of the Planning Authority should be chosen by and be under the direct responsibility of the president and approved by a two-thirds majority in parliament.
This will ensure the support of a broad cross section of the population and parliament and, above all, strengthen our vital institutions to further defend our democracy and liberal pluralism.
However, budget measures, policies and the running of each department will remain the responsibility of the respective minister answerable to parliament.
The heads of institutions so chosen will not change with a change of government. They must serve their five years of tenure. The rest of the members of such institutions are liable to change.
May this contribution serve to stimulate a wider discussion as to what changes in our constitution are necessary. That may result in either party to include in their electoral manifesto. Changes that will finally serve to strengthen our institutions and make them a bulwark against any attempt to weaken or asphyxiate our democracy.
Let’s begin with a determination to reach a lasting rigid positive solution for our country. A tiny island but a shining example to the world, for its moral courage and determination for a lasting democratic republic and liberal pluralism. Malta is a great nation. Let us just prove it. Let us keep it great.
If the above meets your approval, please support the cause. Feel free to disagree. Pick up your pen.
Josie Muscat, a former politician, is the chairperson and founder of Saint James Hospital.