The world is in a constant state of flux. We notice this when listening to daily news: hearing about changes in governments and financial crisis, of war and new discoveries, of protests and multi- million investments.
These changes can be referred to in a multiple of names. One is creative destruction. Creative destruction is a process through which something new brings about the demise of whatever existed before it.
The term is used in a variety of areas including economics, corporate governance, product development, technology and marketing. In product development, for example, creative destruction is roughly synonymous with disruptive technology. One frequently cited example is the smartphone, which all but killed the market for regular cell phones.
This is widely accepted and there is little room for discussion. Whether we like it or not, material changes will take place.
When you are small in size, changes might have a much higher impact. For example, the decline in the textile industry in Gozo during the late 1990s and the early part of the 2000s left a substantial part of our labour supply emarginated. Their skills were deemed insufficient and inadequate to be transferred to new products and services.
However, being small also offers benefits. Higher flexibility and a more developed sense of adaptation can be key when faced with changes. But, these must be encouraged and nurtured. It is not enough to be completely subjective to the forces of changes. One must be pro-active, constantly looking for potential threats and opportunities. This role must be fulfilled by various parts, both on an individual level as well as on a macro level. The latter falls under the remit of the administration.
Unfortunately, in the past decade this pro-active role was not played by the administration. Instead of anticipating events, at least to a certain degree, and trying to explore new opportunities, the previous administration just tried to minimize the damage. By doing so, numerous opportunities were missed.
In today’s world, being a small nation does not exclude us from being innovative. There are great opportunities that if explored not only replace the manufacturing activities of the past but can offer a solid platform for the next two decades. They can offer employment opportunities to our young people and can also have several indirect impacts on other sectors.
Over the past two years, various initiatives and projects have been announced that will serve this aim. The medical school is a prime example of turning threats and weaknesses into opportunities. Once up and running, it will bring an influx of expertise to Gozo and the demand for services will register a significant increase. The rental business and the retail will largely benefit from this. It will also create the opportunities for new jobs and businesses.
Another example of the proactive mentality of this administration was the role it played to attract the RS2 to our island. This was a first step but a highly significant one. After 30 years, an important player in a growing sector has decided to start operating in Gozo. In such a line of business, a decision by a leading player serves to send the message that business can be done in Gozo.
But we are not done yet. A couple of weeks ago, it was announced that the Xewkija Industrial park in Gozo will be extended in a €16 million project co-financed through EU funds. The 5000 square metre extension will see the creation of Tal-Ħofra new premises for SMEs. Tal-Ħofra will be providing 15 SMEs to extend their present operations or to start a new business, while the ex MDP site will offer office space for the clustering of activities linked to financial and other service oriented economic activities in the first business park for Gozo.
Once completed, it will offer a platform that was absent in Gozo. By creating clusters, new business will be attracted to Gozo. A type of business that offers a high growth potential and can tap into the educational and technical expertise of the local workforce. Young and talented Gozitans will no longer be constrained to look beyond Gozo’s shores to find employment that match their ambitions. If they wish, they can achieve this in Gozo.
In the past three years, this administration has started by putting the macroeconomic environment in order. It was a necessary condition to foster competitiveness and attract new investments to our shores. Then, time and effort were dedicated to entrepreneurs. Unlike others, the Ministry regards this category as the driving force behind our economy and did not try to put entrepreneurs in a bad light but instead listens to their needs and goes the extra mile to help them invest in our island.
There are other projects in which a lot of hard work has been done. Some details still need to be trashed out before they can be announced. However, the latest announcement of the €16 million to be spent on the extension of the industrial park in Xewkija proves that the hard work is paying off. It is another deliverable which this administration is sure will make a difference to Gozo.
Dr Refalo is Minister for Gozo