Profit, people, purpose: Rethinking Malta’s economy?

Imagine this: Malta’s bustling Republic Street, the heart of our capital, filled with shoppers and tourists, yet not a single car in sight. Instead, electric buses and bicycles glide silently along the cobblestones, while rooftops bristle with solar panels. This isn’t a dystopian dream, but a vision of what our economy could look like if we dared to rethink our priorities.

From ‘Fat Years’ to Austerity

Malta’s economy has been on a rollercoaster ride. The ‘fat years’ of the late 2000s and early 2010s saw rare growth, fueled by construction, finance, and iGaming. But the 2017 austerity measures, coupled with the COVID-19 pandemic, have forced us to question our economic model. Is it time to shift our focus from profit to people and purpose?

Profit: The Maltese Way

Malta’s economic success story is undeniable. From 2004 to 2007, our GDP per capita almost doubled. But this growth has come at a cost. Inequality has risen, with the top 1% capturing a larger share of the wealth. Our environment has suffered too, with air and noise pollution increasing, and our once-pristine coastline now marred by construction.

our economy is heavily reliant on a few sectors. iGaming contributes around 12% of our GDP, but its future is uncertain. The European Union’s new digital levy could hit the industry hard, and stricter regulations are looming. So, what happens when the music stops?

People and Purpose: A New Economic Model

Enter the concept of ‘Doughnut Economics’, popularized by economist Kate Raworth. It’s not about maximizing profits, but meeting the needs of all people within the means of the planet. In other words, it’s about creating an economy that works for everyone, not just the few.

Locally, this could mean investing in green energy, creating sustainable jobs, and promoting social entrepreneurship. It could mean turning our attention to sectors like healthcare, education, and cultural tourism, which not only boost our economy but also improve our quality of life.

Take the example of the Old Mill in Birkirkara. Once a derelict eyesore, it’s now a thriving hub for creative industries, thanks to a public-private partnership. This is the kind of innovative thinking we need more of.

Rethinking Our Priorities

Rethinking our economy isn’t just about economic growth. It’s about creating a society that values fairness, sustainability, and well-being. It’s about asking ourselves: what kind of Malta do we want to live in, and what kind of legacy do we want to leave behind?

It won’t be easy. It will require bold leadership, public engagement, and a willingness to challenge the status quo. But as we’ve seen time and time again, Malta is a nation of innovators and dreamers. If we can put a man on the moon, why can’t we create an economy that works for everyone?

As Maltese economist Joseph Cuschieri puts it, “We need to move away from the ‘more, more, more’ mentality. It’s about quality, not quantity. It’s about creating an economy that’s sustainable, inclusive, and resilient.”

So, let’s reimagine our Republic Street. Let’s reimagine our economy. Let’s reimagine Malta.