Malta is not currently a member of the Organisation for Economic Co-operation and Development (OECD), a body of 38 countries that collaborate to promote economic growth, prosperity, and sustainable development. Within the European Union, 17 out of 27 member states already belong to the OECD, while the EU itself participates actively in its work.

The Maltese government has expressed its intention to pursue full OECD membership. In fact, the 2022 electoral manifesto included a clear commitment for Malta to apply for accession, highlighting the benefits of having a voice in high-level policy discussions among the world's most developed economies. Membership would also signal a strong commitment to international best practices in economic and social governance.

Joining the OECD would represent another important milestone in Malta's political, social, and economic development. It could strengthen confidence among both local stakeholders and foreign investors by reinforcing the country's credibility and institutional standards. However, progress toward membership has so far been limited, and the reasons for this remain unclear.

Achieving this goal requires national alignment. Political divisions should give way to a coordinated effort to demonstrate that Malta meets the standards expected of OECD members. The country must avoid past missteps experienced during other major transitions and instead focus on strengthening its institutions, ensuring their independence, and upholding transparency and accountability in decision-making. A fair and level playing field for all stakeholders is essential, as is the ability to respond swiftly to shortcomings -particularly in areas that affect the business community.

Economic performance is often measured through Gross Domestic Product (GDP), which reflects the total value of goods and services produced within a country. While GDP remains a key global benchmark, it does not fully capture whether people's quality of life is improving. The OECD has placed increasing emphasis on broader measures of well-being, recognising that true progress extends beyond economic output.

Through its well-being framework, the OECD promotes a more holistic approach to policymaking - one that considers social, environmental, and long-term factors alongside economic growth. This perspective is particularly relevant as countries navigate ecological and digital transitions. It encourages governments to focus on improving citizens' quality of life, creating higher value-added employment, and adopting policies that deliver tangible benefits to society.

For Malta, embracing this model would mean evolving toward an economy that not only generates wealth but distributes it fairly. Growth without inclusion risks widening inequality and creating social divisions, potentially leading to instability. Sustainable progress depends on balancing economic success with social cohesion, ensuring that prosperity benefits both current and future generations.

Gejtu Vella

People & Industrial Relations Consultant Top of Form

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