The President of the Malta Employers Association, Arthur Muscat, opened Pandora’s Box when he crossed swords with Professor Edward Scicluna the other day.

Professor Scicluna had expressed his considered view, based on official statistical data, that Malta was facing probably the worst recession in recent decades.

Muscat reacted with the statement that: “We are used to politicians saying that everything is white or black to suit their agenda, but it is a great pity that valued qualified economists end up making partisan statements”.

Whether Mr Muscat happens to have his own particular agenda is a matter which is open to speculation – it is not the point at issue. What is at issue is whether or not it is fair to brand as “partisan” an academic economist who speaks his mind on a subject he is fully qualified to discuss.

In a small place like Malta, where everyone seems to be huddled close to the parish pump, there may be a tendency to treat academics with suspicion – perhaps because, on the whole, they do not display civic spirit and venture beyond the Olympian heights at Tal Qroqq.

Search for the Truth

Economics in particular is considered to encroach on politics. In fact, it does. The role of universities is to chase the truth in every sphere of life – even in the murky waters polluted by politics.

There will, of course, be little pygmies who will always scream “politics” and try to read all non-existent motives and hidden meanings in the work of economists.

I recall the time, way back in l976, when an expatriate econometrician, working at the University of Malta (Professor M.M. Metwally), raised the mother and father of a storm with the publication of a detailed study on The Structure and Performance of the Maltese Economy.

His outspoken views were far from appreciated in official quarters, in those days when the euphoria of state capitalism was at its apex. The hostile, even aggressive, reaction unleashed at that time left a bad taste in the mouth and soured the academic environment. The spectacle of qualified academics performing in the hurly-burly of everyday social and political life in these islands is the exception rather than the norm – which is a pity and Malta’s loss!

Would it not be at once stimulating as well as rewarding if Malta could benefit from half a dozen academics of the likes of Professor Scicluna to stir our stagnant economic waters?

Strategic thinking

The need for strategic thinking within the context of fast-changing, world market structures has been long overdue.

A respected columnist in another section of the press, Joe Vella Bonnici, recently pointed the way (The Times, 26 July). He wrote in some detail to demonstrate that education tourism is one business activity which market forces continue to indicate as potentially rewarding for our country. He specifically expressed his firm belief that Malta can become the centre of medical excellence in the Mediterranean.

This is but one variation of the many themes advanced by Professor Metwally almost 30 years ago.

Professor Metwally advanced the view that an analysis of his detailed study seemed to suggest that it was not in the best interest of the economy to lay too much emphasis on manufacturing, and in particular to develop this sector at the expense of others. He advanced five cogent reasons in support of his point of view.

Limits to industrialisation

His main point was that industrialisation in the Malta context has its limitations, although any successful move towards expanding the manufacturing sector should be both encouraged and praised.

He suggested development through home-based export services, including, among others, tourism, which has higher economic multipliers than exports; the attraction of permanent settlers from Northern countries interested in retiring in a temperate climate; and the further development of conference tourism. “Why does not Malta try to become the Geneva of the Mediterranean?” he asked.

Professor Metwally focused on the suggestion that Malta has the potential to offer valuable intangible services in terms of education.

This is how he put it. “If Malta succeeds to establish an international university on its soil to offer courses to all citizens of the world in fields which do not require too much materials (eg arts, social sciences, business studies, non-biological sciences) this could be a great achievement.

What would be needed is the services of world-known, pre-eminent professors to attract students from all over the world who believe that the payment of a fee to learn under distinguished academics in a democratically neutral, well situated, well civilised country with the necessary infrastructure, is a worthwhile investment.”

Lost opportunities

The last proposal advanced in that study related to the establishment of an international financial centre with money resources flowing in and out of the country, enabling Malta to gain interest on invested funds.

Professor Metwally’s hope that these suggestions were followed up by intensive scientific research was only partially realised. Some of his forward-looking proposals were ground-breaking and Malta would have been a better place by now if the prospects they held forth had been vigorously exploited at the right time in a professional manner.

It is never too late to learn. One of the most important lessons which has yet to be assimilated is for the government – any government – to make better use of our academic resources when it comes to drawing up and implementing our economic blue-prints.

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