The Today Public Policy Institute, Malta’s only independent, non-political and non-partisan think-tank, of which I am the Director-General, recently presented a report entitled “A Strategy for Addressing the Nation’s Priorities” to the three party political leaders.
The aim of the document is to stimulate a public debate on the major issues that Malta’s political parties may wish to consider in the preparation of their own election manifestos. The document itself has been written in the form of an election manifesto and focuses on the key issues which it is felt that an incoming administration would need to tackle if it is to continue to ensure a better future for Malta’s citizens.
It was fascinating to see the way the Prime Minister and the Leader of the Opposition reacted to the report when I presented copies to them earlier this week. While both made all the right polite noises and, indeed, were supportive of many of the proposals, there seemed a distinct reluctance by both leaders to grasp some of the nettles which an objective assessment of this nature inevitably exposed, most especially those concerning the economy and our embattled welfare state. It would be tragic if a desire not to take the tough but necessary decisions for fear of losing votes were to replace the need for a bi-partisan approach to our most challenging problems.
“A Strategy for Addressing the Nation’s Priorities” is divided into two parts. Part I deals with the fundamental conditions for the achievement of the national objective of growth with equity, fiscal sustainability and the welfare state, while Part II sets out a range of issues related to the better governance of Malta. While both parts are of great relevance to what should happen in Malta in an ideal world in the years ahead, there can be little doubt that Part I – dealing with the economic conditions Malta (and Europe) is facing – drives the whole approach. It has been written in such a way as to expose the critical decisions on the economy, on education, health, pensions and social security which can no longer be avoided, and which willy-nilly dictate how Malta’s future will unfold.
The “Manifesto” underlines that Malta’s strategic economic objective should be to achieve sustainable growth based on further diversification and modernization and an equitable distribution of the wealth thus created. Economic policies should, therefore, be framed coherently with this overarching objective in mind. The external environment in which Malta’s small, trade-dependent economy will have to pursue this goal, however, promises to be extremely unfavourable. With most major trading partners expected to be close to, or in, recession this year and to achieve only minimal growth thereafter, export markets will become tighter, consumers more discerning, and competition commensurately sharper.
In such conditions, the generation of wealth, which is key to closing the income gap with our European peers will, therefore, require a domestic operating environment conducive to the production of goods and services for which there is a market abroad and at prices that buyers are willing to pay. Apart from the continued pursuit of fiscal consolidation and structural reforms designed to ensure a more cost-efficient use of human, financial and physical resources in both the private and public sectors, policies at the sectoral level should therefore be designed to converge on this unique objective, which is to remain internationally competitive.
This new reality requires a clear understanding of the issues. There is no escaping the fact that the ongoing crisis has put a premium on sound economic policies. In Malta, this situation must be faced with a degree of pragmatism sufficient to break with the old thinking best characterised by a rampant culture of dependency and clientelism, and to give birth instead to a new mindset whose hallmarks include the primacy of the common good, the pursuit of standards of excellence in all fields of human endeavour and of value for money in the use of resources, and the promotion of entrepreneurship, innovation and creativity. These are the premises upon which the policy proposals set out in our document are based. They also represent the gauntlet that has been thrown down to the political parties by the think-tank in the preparation of their own electoral manifestos. We, the public, should be suspicious of any party offering goodies that are not properly funded in their manifestos.
A more cost-efficient approach to the provision of public goods and services, whereby only those demonstrably in need would benefit, must be adopted. Access to social benefits, healthcare, higher education and subsidies should be streamlined through a combination of means testing and user fees (charging for services rendered). A critical reassessment of the existing benefits package should also be undertaken so as to distinguish between those that truly help to combat poverty and social ills and others that are not so effective in achieving the desired outcomes.
In addition, the benefits structure should be further refined with a view to making work pay and removing disincentives to enter the labour market. The next step in pension reform, the introduction of a mandatory and privately-funded second pillar, should be taken without delay.
Each part of the think-tank’s “Manifesto” contains a short background note which provides the factual context for the electoral proposals that a party in government might wish to consider. The report is extremely comprehensive and wide-ranging. It covers the fundamentals, such as public finance and welfare, employment and business, women in the workplace, the crucial issues of health, social security, pensions and education, while also making proposals for the better governance of Malta. These include such issues as the Constitution, justice and the rule of law, foreign policy and security, Gozo, tourism, the environment and cultural heritage, Valletta, transport, energy and water security, irregular immigration, sustainable development, fireworks, the public service, key public appointments, the arts and culture, freedom of speech and freedom of information, animal welfare, local councils, the electoral system, party financing, the electronic work-place, broadcasting and fairness in society.
While the Today Public Policy Institute does not claim any monopoly of knowledge, we have, I believe, highlighted what the challenges are, and how it would propose that an incoming administration might meet them. We very much hope that this reflection on national priorities will act as a checklist for the political parties and a platform on which they might build their own electoral manifestos. We also sincerely hope that citizens would use this opportunity to make their voices heard on the issues raised in this document so that politicians might take them into account. (Any person wishing to download a copy of the “Manifesto” can do so from our website: www.tppi.org.mt).
The challenges facing Malta over the lifetime of the next Parliament and beyond will be formidable.
Our document has highlighted as objectively and realistically as possible both the constraints and the national priority areas of good governance that need to be addressed if the next administration is to successfully navigate Malta through the economic, social, environmental and security rocks that lie ahead over the next few years. We hope the political parties will adopt them in their forthcoming manifestos.