Our hidden reserves

We are in the season when the country's financial results for the past year are dissected and the projections for next year are debated in Parliament and analysed by the media.

Some find this public debate disappointing because it is often based on a short-term perspective of our economic life. They argue that the longer term prospects or our economy deserve a far more critical analysis. Our future prosperity, after all, depends on how we address the issues that will make us economically stronger, or weaker, in the next decade and beyond.

We enter the second decade of this millennium with formidable challenges to make our country more competitive in an economic environment based on free market principles. Yet, our politicians tell us that they want to preserve the social awareness that has characterised our society for so long and that has given us a quality of life that is among the best in the Mediterranean region.

Beyond the short-term financial indicators that will be dissected during the budget debate in Parliament, there are other ingrained realities that will affect our future prosperity. Let me discuss briefly some of the positive generic factors that are likely to work in our favour in the coming decade.

One of Malta's hidden reserves is our ability to survive difficult times through the sheer good management of our personal resources. The typical Maltese worker earns much less than most other European workers. Yet, he manages to save for a rainy day. He can often absorb shocks more effectively than a typical worker in mainland Europe. This resilience built on self sufficiency may be diminishing among the younger generations that are more inclined to make hay while the sun of flowing money shines.

Closely related to this great asset is our commitment to family values. Many foreigners believe that we pamper our children too much when we help them with buying their first homes, baby sit for them when they return to work, and acting as a bank of last resort when sudden financial crises hit our younger generation. Label it "pampering" or "inter-generational solidarity", but it certainly helps most young people start life on a good footing.

Our educational system provides excellent training to those students who come from well-balanced families that put the educational interests of their children at the very top of their life objectives. We produce some of the best professional people that exist anywhere in the world. Wherever our graduates go, they usually succeed in gaining the respect of everyone around them.

Our size is also a hidden resource that never gets quantified in any balance sheet, real or imaginary, that we scrutinise. We may complain that, because of our small size, we often feel claustrophobic. But in business, small can be very beautiful. Imagine the time we save in travelling to and from work when compared to workers in countries, like the UK and Germany, where most people often have to commute for a minimum of three hours every day.

Another social trait that gives us a competitive edge over other countries is our ability to get along well both among ourselves and with those who visit us. Despite our Mediterranean fiery temperament, we are quite tolerant. How else can one explain why so many tourists are prepared to put up with our shabby environment, simply because they admire our disarming ability to make them feel as part of our family?

Perhaps the strongest resource we have is our commitment to social justice being practiced in our society. Politicians may differ on whether to promote the concept of the "welfare state" or that of the "welfare society", but essentially they believe that in our society no one should be left behind simply because of unfortunate circumstances.

The big challenge ahead of us is how we can preserve this social solidarity in the context of an aging population that demands more social services, an economic environment that is making it more difficult to create sufficient jobs for the foreseeable future, and rising expectations on how the state should provide for our health, education, and social needs.

In my next article I will look at the contingent liabilities of our country because these are just as critical for our future.

jcassarwhite@yahoo.com