Bad economic advice

Nothing could synchronise and illustrate better than the Times of Malta issue of October 6 the outrightly bad, and totally lacking in creativity and lateral thinking advice, which the present government’s economists are giving to their masters. It is advice which shows itself as totally unaware of the true content of the terms ‘investment’,  ‘sustainability’ and ‘economies of scale.

Consider in that issue:

‘Malta needs more marinas’, page 1. Was it really a minister’s pronouncement or was it advice from his economists? If the latter, then it shows disdain for Malta’s innate limitations for balancing the needs of the local citizens (swimming, local boat owners’ berthing, natural environmental beauty, etc.) and wanting to continue living their present ways-of-life.

After the Marsascala U-turn, doesn’t this type of thinking also go to show that Malta can only take so much by way of moneyed yacht owners simply because it is a country with a limited number of bays and inlets? Indeed, create land-reclaimed new pontoon areas offshore in Malta’s open seas (or away from the bays as has been done for the fish-farming clique) or charge much more for berths existing in the present marinas while improving services to them. But it should be a simple and categoric no to new marinas, anywhere in Malta and Gozo. Even posh yachting is an economic activity which – in the case of a small country – has limited economies of scale benefits.

Is it only Clyde Caruana who has his head screwed on the right way in government? Photo: Matthew Mirabelli

‘Pristine sheep farm valley being turned into commercial project’, page 1. When will government’s economists, and its PA planners, accept and advise the government that,  over time, turning more land, which is presently committed to agricultural activity will only benefit speculators’ and importers’ pockets at the expense of ever-decreasing local agricultural production? Simply kowtowing to more building and construction applications is bad for the economy.

‘Change needed in economic development plan’, page 3. Which national economic plan? Is there one which has been formally communicated to the nation? (Don’t dare blah-blah to me about the hype in electoral manifestoes or ministerial interviews.)

Indeed, the finance minister is totally right in saying that “…we now need to ensure that there is a shift in our economic development plan because we cannot continue going on in this way… We cannot expect that this country can continue following the same plan as it did over the past decade, otherwise we will see…”! Eureka, eureka. Or is it only Minister Clyde Caruana who has his head screwed on the right way in the government? 

‘Skills survey to pave way for economic shift’, page 3. Which economic shift? Will it be announced to the nation formally? In what document? When? On whose advice will it be constructed? And discussed with who? Or will the run-in to the next elections be considered as the best time for this?

There is indeed more in that issue showing this present dearth of needed good and creative economic thinking.  Isn’t all of this, and indeed more, indicative and supportive of the present factual position that:

much present political and paid economists’ advice is totally wrong because it is simply more of the deleterious same for the future, making the country a worse place to both live in and/or visit;

there is a big dearth of innovative, creating and lateral thinking in the present breed of the political class (in totality) and its advisers;

the presently free and open market philosophies as currently being practiced are not only totally capitalist and anything but socialist,but also show and prove that the government’s reticence to intervene and regulate is only reaping the worse fruit ever over the medium to long term for the islands.

Of course, most politicians and decision-makers will only continue to think and act in terms of the short-term five year political cycles.

John Consiglio – Birkirkara

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