In these past weeks, we had the Prime Minister Joseph Muscat and the Leader of the Opposition, Dr Simon Busuttil, giving us two diverse opinions on our economy. The Malta Independent reported the Prime Minister saying that Malta registered the highest rate of economic growth in EU. Dr Muscat went on to state that Malta had the third lowest unemployment rate in Europe, but then failed to state where jobs were being created. On the other hand, the Leader of the Opposition quoted official statistics and said that employment growth was only registered in the public sector.
The employment of persons within the public sector should not be a controversial issue. One needs to bear in mind that there are a number of government sectors that are understaffed, such as the judiciary and the police force. The people are crying out for more police officers in certain areas. Not a sufficient number of policemen are being assigned to cover some of the hottest areas in Malta.
Our health services too are desperately short staffed and this includes Mater Dei. I am also sure that there are government departments that are seriously in need of more employees. Therefore, the problem here is not with employment per se but which are those areas of the public sector that are increasing the work complement. The fear is that the government is employing persons in those areas which are already over staffed.
When a government is basing its economic prospects and job creations by providing jobs within its own already over staffed institutions, whether within civil service departments or sections within one of its Authorities, or public liability companies - the Government in question is only creating an economic dictatorship without any alternative. Historically, governments started to set up their own 'businesses' to create competition with the private sector. Originally, government never intended to be an alternative to private initiatives. It was only thanks to Marxism that this idea was turned upside down and Governments began to substitute private initiative. History proved that this economic model was a big failure.
Despite such a black historical record, governments are still toying with this idea under different guises. Any government that views any department or one of its authorities as a sort of employment agency for cronies is only compounding the country's problems. By becoming the sole driving force in job creation, the government in question clearly sends the message that it does not believe in the human spirit. This may sound paradoxical but it is the truth. By such actions, the government is telling its electorate that it has no faith in private innovation and potential. This may go against the same government's political rhetoric and beliefs, consciously or not, but the message remains the same, which is, that Government has no faith that innovation can come from the local sector and investment.
What this Government needs to do is not to create jobs within its own fiddly niches but to start taking radical decisions and do away with all the unwarranted bureaucracy that is hindering the small investor and our youngsters from starting up their own businesses and thus also create jobs. Incidentally, the reason why most new jobs are being created in the digital sector is not only linked to the fact that this is the technology of the future but also, because this field is not subject to any form of numerus clausus and what's more it requires the least number of permits to set up shop. One can even start from the comfort of one's own home.
It is time that government realises the need to do away with all those structures and institutions that are stumping economic growth. It must stop going for the soft option, which will only increase our public debt but does not solve the problem of unemployment. Each time that any Government goes for a 'soft' option, it is confirming its psychological inferiority.
Unfortunately, this element of psychological inferiority has been confirmed by the Prime Minister, when he acknowledged that Malta had a number of shortcomings, by stating (and here I am quoting TMI) " that there was considerable unfinished business in tackling bureaucracy, increasing efficiency and being more pro-active". But being pro-active means that first Government should have made the needed restructuring and then started to employ persons in those areas, which really lack personnel. As always happens in Malta, strategies are more often than not, implemented the wrong way round. Thus, the Prime Minister's arguments risk now to appear grandiose but unconvincing.
This can only lead to an increased frustration among those Maltese citizens who wish to be entrepreneurial. The bureaucratic incompetence and complacency of Governmental 'entities' are destroying the hopes of the upcoming generations.