‘An economy for the People’ is a working document, recently releasedby the Nationalist Party.

Unfortunately this document was overshadowed by two high powered meetings, the Valletta Summit and the CHOGM.  A tiff in the House and the Opposition’s walk-out in protest also took centre stage.The recent terrorist attacks and brutal killings in France continued to reverberate, as the civilised world was, and still is,stunnedby the atrocities.

Competing with such high profile news,the working document ‘An Economy for the People’has as yet not reached the widest of audiences.  The PN strategy group should make every effort to push the document in the public domain. Attracting constructive feedback from different quarters should help the PN form a better understanding of society and the people’s future economic and social aspirations. 

I am confident thatleading stakeholders and other interested groups will take the opportunity to delve into the document, seek clarifications, air their views, and make recommendations.The document is primarily aimed to stimulate a national debate. Rarely does the opportunity arise for most of the leading stakeholdersto step back and look at the broader economic picture, the longer-term and overall dynamics, and the prospects of a future economy.To my mind the initiative must, by definition, be a contribution to the cause of social justice.

The working document is launched in a world-wide context of great uncertainty, insecurity and fear that the direction of change in the world of work is getting away from, not towards, the achievement of social justice.

Malta is not any different from most countries. The Joint Employment Report, published in Brussels at the end of last week, flagged Malta ashaving registered the third largest increasein the number of people at-risk-of-poverty among the 28 EU member states. This clearly demonstrates that the benefits of a flourishing economy are not percolating towards people atriskofpoverty.

A two-tier society is gradually and silently taking shape. The middle-class is not climbing the economic ladder; on the contrary it is dwindling as more are slipping closer to the trap of at-risk-of poverty.        

ThePN working document presupposes that economic transformation ensures that there is a fairer distribution of wealth. Fairer distribution of wealth can only be achieved through tailor-made social measures designed to assist people. Moreover, in the creation and distribution of wealth, good governance remains one of the cornerstones that helps eradicate inequalities in society.    

Divided into 20 sections, the working document has 145 proposals with policy points and anchor measures. Although these should provide a sound basis for a healthy discussion on the economic future of Malta, I am taking the liberty to add somerecommendations. 

It is broadly recognised that we are living in a fast-changing economic environment and, in this regard,the working document acknowledges this and accepts that it has to be regularly updated to ensure that it remains valid. Rightly so, the working document aims to, as early as possible, identify future value-added economic areas suitable for our economic sustainability.  The document cannot remain static; it has to change with the times and economic exigencies.

World-wide economic goalposts are continuously shifting, and thus our agility to make snap changes is of the outmost importance.  An ability to change and take corrective measures to tapnew economic niches at the very earliest should be considered as a requisiteto ensure economic success.

There is no room for complacency.In a fastchanging economic world, local and foreign entrepreneurs and investors will not look favourably at Malta unless we are quick to respond.      

What is lacking in the economic working document is the need to address the current employment legislation. The current Employment and Industrial Relations Act dates back to 2002 and needs urgent updating to support a flexible labour market.The current employment and industrial relations legislation should dovetail in an economy which is changing.

Meaningful social dialogue at all levels, including at the Malta Council for Economic and Social Development, should be the axis for any economic plan. The participation of employers’ and entrepreneurs’ organisations, trade unions and civil society is necessary to achieve economic success.From experience in industrial relations, I can attest that the wider the ownership of economic strategies, the higher the rate of success.  

Education, life-long learning, tourism, agriculture, fisheries, and crafts were either skimmed over or completely omitted from the working document. These should be looked into.

The document fails to call to attention that the demarcation lines between the policymakers and those responsible for implementation need to be re-designed. Over the years there was too much over-lapping and blurring between the policy maker and the administrative arm, leading to the privileged few with access to the corridors of power and the rest. A level playing field that facilitates the business community to create and support an economy for the people is a must. Moreover, government must ensure that it is accessible to all.

The document falls short from identifying the methodology by which generated wealth will percolate to reach different strata in our society.The notion that if the economy is doing well then those vulnerable will also receive their fair share should be resisted. It does not work that way. 

The maximisation of the human potential is important to achieve economic success, thus every effort should be made to assist people obtain the highest level of professional or vocational qualifications. Nonetheless, it has to be recognisedthat a sizeable portion of our society do not manage to get any qualifications. These too should be helped to maximise their potential.

It is encouraging that the documents clearly states that Government should provide the necessary economic infrastructure but should never become a player. It is pertinent that if an economy for the people is to prosper, then the beefing up of independent institutions is required.

The working document aims to revitalise the economy with more value-added, productive employment. Hopefully, after due consideration, this will be adopted as the national economic policy for the people.

 

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