Prime Minister Joseph Muscat highlighted the creation of a Commonwealth Trade Financing Facility in Glasgow during the Commonwealth Business Conference, whilst also emphasising the importance of tourism in all Commonwealth states.
Speaking in Glasgow, the PM said: “Our commitment to jobs and growth is further testified in our offer to initiate a pilot mechanism among interested members, to help augment trade and investment finance particularly for small and vulnerable developing countries. Our firm belief in these values and in reaffirming our offer as outlined in the Kotte Statement on International Trade and Investment brings us to another important step. We are pleased to note that wheels have already been put in motion and preliminary discussions are ongoing geared towards the setting up of a Commonwealth Trade Financing Facility. This will provide the right framework to assist states in accessing finance, a critical component in kick starting the process and enhance economic development and growth, Dr Muscat revealed.
He is confident that such a new facility will be instrumental in promoting more broad-based trade flows involving small States of the Commonwealth and help further integrate them into the global economy. Although focused initially on enabling small States to gain better access to import finance, the facility will be enhanced to play a bigger role in supporting export growth and enhancing international competitiveness, which will stimulate the promotion of new investment projects, he added. “It will also help the banking systems in these countries acquire the relevant expertise to better meet international best practices, thereby benefitting from wider international acceptability and recognition. The provision of technical support will be a key feature towards the successful fulfilment of this objective”.
Dr Muscat emphasised that efforts will be made to give an international dimensionto this new Trade Finance Facility so that it will attract support from non-Commonwealth international development agencies, such as the International Finance Corporation and other important international players, thus adding to the resources provided by Commonwealth members themselves. “We firmly believe that this initiative is a concrete expression of our desire to promote solidarity and foster closer commercial links across the Commonwealth and beyond”.
Commonwealth needs to change
In order to achieve all the aforementioned goals, a stronger Commonwealth organisation is required, the Prime Minister stressed. “As I had the opportunity to discuss at a public lecture yesterday at the London School of Economics the Commonwealth needs to change. This organisation should be one which is based on commitment rather than history. It should be about the future, not the past. I believe that a stronger Commonwealth would be in a better position to focus on economic growth and development, leading to better trading among, and beyond, Commonwealth countries”.
The Commonwealth is a landscape of evolving economic trends where opportunities should constantly arise, where people can and should engage with one another to maximize the opportunities available to develop greater economic ties, the Prime Minister stated.
“A community of 53 states can only spell prosperity when its people interact in the right environment, with a mindset of building new bridges that will strengthen their investment channels. We firmly believe that trade, together with political will, sound governance and a solid educational framework can be instrumental in bringing about the necessary change to instil growth. Economic diversity within the Commonwealth does present its own set of challenges. Nonetheless, this must not faze us but should rather encourage the Commonwealth to increase its efforts in harnessing economic cooperation,” Dr Muscat stated.
Repercussions of the recession
The Maltese Parliamentary Leader discussed the repercussions of the recession, supposing that all countries have witnessed the challenges to varying degrees that are brought about by an economy struggling to develop. “At the same time we have also witnessed what sound economic policies, good governance and education can bring about, where arid landscapes have flourished into communities where people’s standard of living have improved significantly, where previously unknown villages have been mapped due to ongoing economic activity. The historical ties among our countries can tell the tale and many of us present here can look back and remember how the scenario around us has been shaped by industry and trade”.
The Commonwealths historical ties were addressed, with Dr Muscat emphasising the deep rooted trade channels on which the Commonwealth countries have forged long lasting relations. “On a global level, they have been instrumental not only at a corporate level but also at government level”.
With the knowledge of strong historical ties, Dr Muscat believes that the Commonwealth economies will be driven to prosperous ground. “Taking stock of what we have learnt in the past with a view to create new investment opportunities for the future. The Commonwealth is uniquely placed to make this an ongoing success story for its members and for the organization itself”.
Prime Minister Muscat spoke of Malta’s trade policy and how over the past 40 years, the country has tried to facilitate trade and investment, seeking economic diversification with collaboration from key stakeholders in various industries. “We believe this has been an important driver of development coupled with internal policies to create synergy. This flexibility has helped us become more resilient during economic downturns. While acknowledging the difficult European economic climate, the Maltese Economy has managed to weather the difficulties while maintaining its focus on growth and jobs”.
Malta has sought to strengthen the bridges that are already in place with established industries, whilst also reaching out and building in new emerging sectors such as ICT, he explained. “I am a firm believer in the potential of ICT boosting economic growth through the nurturing of a highly-skilled workforce who in turn helps local businesses flourish and attract foreign investment. High-speed broadband infrastructure deployment is key to competitiveness. Countries should ensure that where broadband challenges are outstanding, a renewed effort is made to have such infrastructures in place”. He added that the Maltese government is working to make Malta a Wi-Fi state.
The Prime Minister mentioned the untapped potential that remains within the Commonwealth. “More must be done in the educational sector to ensure that our children and youth are harnessing the skills required to integrate better in emerging businesses, to remain valid within the current market and capitalize on the emerging trends. This will ensure that in the short to medium term, the leaders of tomorrow have been adequately trained and are able to adapt and keep up with this ever changing landscape in order to maximize the opportunities that arise”. One example given would be the widening scope of scholarships to encourage entrepreneurship, innovation and business studies, whilst stressing the need to capitalise on the benefits of networking with fellow Commonwealth peers.
The Prime Minister spoke about Malta and how the country can keep being competitive on several fronts. He mentioned Malta’s human resource, stating that Maltese wages are very competitive. Secondly is Malta’s geographical location between two continents. “We are a safe haven in a sea of uncertainty with economic problems in southern Europe and stability problems in Northern Africa,” the PM stressed. Malta is a country that is traditionally stable and will remain so. Thirdly, Dr Muscat mentioned the speed by which legislation can be made, meaning that when an investor comes to Malta with an idea, legislation can be drawn up quickly.
Tourism important to many Commonwealth countries
The topic of tourism was also mentioned, with the PM explaining Malta’s special interest in this area. “There are many economies in which the expenditure of international visitors and other travellers is an important source of foreign exchange earnings and one that contributes substantially to employment and capital investment in the economy”. Widening his perspective, the PM spoke about the importance of tourism for many Commonwealth economies, contributing 2.7 percent in the total Commonwealth GDP.
Concluding, the Prime Minister spoke of preparations for Commonwealth Summit (which he said will be called so as nobody understands what CHOGM stands for), are now in full swing and in the final stages of finalising detailed plans relating to thematic and policy issues as well as logistical preparations. “Malta attaches great importance to the Commonwealth and we believe that this Heads of Government meeting will be a watershed event in providing an opportunity for Commonwealth leaders to discuss important issues that impinge on the lives of all Commonwealth citizens. We are committed to ensure that trade remains high on the agenda as reflected in the key statements and discussions. I envisage a frank and open exchange of views between us and I look forward to welcoming you in Malta for a successful meeting”.