The Malta Independent 4 August 2026, Tuesday
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Economic resilience through dialogue

Timothy Alden Sunday, 17 May 2020, 08:14 Last update: about 7 years ago

The COVID-19 pandemic has presented a challenge unprecedented in modern history for its scale and economic severity. It has been a learning experience as well, with a level of government involvement in the free market that would have been unimaginable mere months ago. In Malta, partly thanks to the historic agreement worked out between the government and the MCESD (Malta Council for Economic and Social Development), the IMF has said that the Maltese economy is expected to strongly recover from the effects of COVID-19 and will be the least impacted country in the EU. This showcases the efficacy of cooperation and dialogue between the private and public sectors. 

Indeed, the control measures introduced at the start of the crisis, such as social distancing and the closure of non-essential businesses, were recommendations made by the Malta Chamber of Commerce, Enterprise and Industry. Amongst other lessons, let us therefore draw one in particular from the crisis - that Malta's long term weathering of economic currents cannot happen through government working in isolation. Our relatively positive outlook is only a result of the widest possible engagement with all sectors of society and its representative bodies and communities. For us to exit this storm with a strategic advantage, dialogue and creative thinking must continue into the future until calmer waters are reached, and indeed even further into the future remaining an essential part of any government’s modus operandi.

It is indeed strategic planning which will position Malta favourably in the global market after this pandemic is over, and we must start to identify and anticipate future scenarios from now. Nature has taught us that to survive a crisis one must always adapt and evolve, and therefore innovate. Following the successful example of the agreement reached with the MCESD, government would be wise to take heed of the forecasting and initiatives already being done, which amongst other things, include the setting up of a Post Pandemic Strategic Group by the Malta Chamber. Planning for various potential scenarios in the months and years ahead, hand in hand with stakeholders, the Malta Chamber is preparing Malta to succeed in "the new normal".

Oftentimes, the government utilises its own resources to plan ahead without sufficient public consultation. Such public consultations, contrary to their purpose, are occasionally a token effort at worst, and the decisions would have already been taken behind closed doors. This is often a result of select interest groups having negotiated in private with the government to the detriment of the public. The initial plans become at best a waste of time, or if the government doubles down and forges ahead anyway, become at worst an action against the public interest. Last February, farmers at Magħtab protested the planned destruction of their land to make space for new waste facilities. Since then, as a result of this protest, government has presented revised plans which reduce the uptake of land by 70%. One therefore asks, why were consultations with the farmers and other stakeholders not held prior to the presentation of these plans to the public in the first place? 

A lack of genuine public consultation, empathy and collaboration lead to less desirable outcomes. Coupled with a failure to address longstanding issues due to political rather than practical realities, problems accumulate. However, as has been stated, this pandemic offers many lessons, such as demonstrating the efficacy of win-win solutions in Malta and that resilience can be achieved through dialogue and trust in the correct advice. Last February, the Malta Chamber presented a 59 point economic vision for Malta for the period 2020-2025, with emphasis on such crucial points as the need for Malta to emphasize quality over quantity. Any residents suffering from the many negative effects of overdevelopment, for example, may attest to the truth of that point in particular. The wider 59 point vision therefore calls for Malta to become a "sustainable island" which is ahead in terms of technology and innovation.

The path ahead to success is therefore clear. Past lessons have taught us the painful price to be paid for dilly dallying and straying from the public interest and from our values. If we do not learn from the mistakes of the past, and if we fail to take decisions which are in the interest of the entire country, rather than in the interest of a select few, then we shall suffer. Let us therefore continue to enjoy the spirit of dialogue and reform that has allowed Malta to minimise the negative effects the pandemic has had on society and the economy as a whole so far. As the President of the Malta Chamber, Perit David Xuereb, has stated, "On top of it all, we must make sure to best use this time of introspection to think and plan well ahead with a spirit of empathy and solidarity towards those members of society who may be facing difficulties and with the highest levels of ethics in everything we do. We must hold high our unwavering set of values that will enable us to build a stronger society for all." 

If we grow cold to such advice and turn inward once the pressure is off, stepping back from heeding consultation processes which have worked to Malta’s benefit so clearly during this pandemic, then we would be merely kicking the ball down the road and problems would rear their ugly head in the not too distant future. When we tread on others, and impact their lives negatively, we can expect resistance. It is human nature. Let us therefore plan for resilience. Resilience, however, can only truly be achieved through dialogue and listening to science and genuine expertise. It also requires having everybody on board and ensuring that nobody is left behind.

 

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