Malta turns 56. On the 21st of September of 1964, the country became independent after years colonised by various major powers.
Throughout its existence, Malta had a long and complex history which resulted in the island being ruled by a plethora of foreign rulers. Such rulers include the likes of the “Phoenicians, Romans, Greeks, Arabs, Normans, Sicilians, Swabians, Aragonese, Hospitallers, French, and British”.
Malta’s final ruler, Britain, granted Malta self-governance after Malta’s brave resistance to the Axis powers and loyalty to Britain during World War Two, which did allow for the movement for independence to grow more in popularity.
Malta declared independence from the British Empire and joined the Commonwealth of Nations in 1964 and declared itself a republic a decade later, known as Republic Day. In 1979, all British military presence was ended and in 2004 Malta joined the European Union.
Prior to the independence, just like prior to the end of the British naval base in Malta in 1979 and the entry to the EU, any doubt or anxiety about its future were counteracted by hope for a better tomorrow.
In any of those steps the politicians weren’t alone but had the people, the stakeholders and all those who made the dream as theirs because it inspired them, put the challenges behind them and sought to transfrom them in opportuntities.
Fast forward to 2020… and the country has no ‘significant’ milestone, except the one of hope to overcome the pandemic and the crisis brought about with Covid-19.
We are in the weeks preceding the announcement of the country’s budget. The task is never an unenviable task, but the challenges being presented this year for all Ministers and Chancellors around Europe are undeniably historical.
Unions, constituted bodies and other lobby groups have come up with their traditional wish-list of support measures, which this year understandably focus on shoring up an unprecedented economic crisis and supporting businesses and families in getting through these bleak months.
Yet, the budgetary process must not be solely about plugging the holes and making sure that we all get through the Winter. Rather, it should serve as the right opportunity to raise our heads, look to the future and start to map our vision for the country.
Prior to the pandemic, many had already expressed their doubts about the current economic model which rightly or wrongly focused on quick returns, such as the unlimited expansion of our construction industry, the importation of cheap foreign labour and dubious scheme related to residence and citizenship.
The Budget for 2021 provides the opportunity for the country to re-invent itself, ask itself where it want to go in this decade and emerge stronger than ever. And this would not be the first time in our history. All we need for proof, is a recent look at our history books.
Post-Independence, the British had quickly started to reduce their activity and some would say even interest in Malta, to eventually board their ships and leave the island by 1979. Our elders tell us about fears of famine as the Brits packed their bags. Yet Malta, was able in the space of a decade to build a number of new industries practically from scratch, including tourism and brought to our shores manufacturing businesses particularly in textile and food, and developed niche industries such as the maritime and freeporting activity.
The success of such industries was only to last ten-fifteen years at best, as the forces of globalisation pushed factories to the cheap labour locations in Eastern Europe and in further-flung corners of the world. At the same time, the offshore financial industry which had emerged, was not looked upon positively by international institutions such as the OECD and the European Union, which the Malta sought to join. Once again, within such a delicate scenario, Malta digged deep and thanks to the vision of its leaders attracted new niches of economic activity, such as remote gaming and financial services, while existing sectors such as manufacturing were upgraded to the higher-end, managing to attract important names in industries such as the pharma one.
The end of the first decade of the 21st century hit Malta hard once again, with a worldwide crisis bringing economies to their knees. Even here, Malta was recognised by its partners on the way it approached the crisis, identifying new niches such as aviation maintenance or the development of the digital games sector.
We are now at a similar juncture. The current health crisis will pass, but for the economy to rise from the doldrums, our leaders need to set the vision for its continued success. These may disheartening times, yet it is precisely the perfect opportunity to pave the way for a better tomorrow, because tomorrow is now and will be what we make of it.
