| here he seemed inclined to make arbitrary decisions without
carefully calculating the costs and benefits. the choice of investment
projects and trade policy were adversely affected as a result. his succes-
sor, mifsud bonnici, took a more pragmatic approach. |
| by the 1971 election
the church had assumed a neutral stance, which may partly explain the
gain in labour votes. the dispute that broke out between the labour
government and the church in the early 1980s over church property and
church-run schools and hospitals (discussed below) probably affected
the voting in the election of 1987.
during the transition to independence and in the first decade after
independence, malta concentrated on providing infrastructure and fis-
cal incentives for manufacturing industries and tourism and on encour-
aging emigration. after the 1971 election victory the labour government
assumed an active entrepreneurial role. malta severed its remaining
economic ties with the united kingdom and adopted an independent
foreign exchange policy. it also tightened its economic controls and
launched a series of social reforms. |
high priority was therefore given to obtaining financing from
foreign sources to replace the revenue from military bases; to promoting
local productive activity; and to providing employment, at home or
abroad, for maltese workers. attention also turned to the need for social
services, a need made urgent by the rapid, war-triggered transformation
of malta from a traditional to an egalitarian society. colonial office asked a committee headed by sir
wilfred woods to a) estimate the amount of war damage malta had
suffered, which was to be compensated by the government of the
united kingdom, (b) suggest how to improve social standards in malta,
and (c) suggest how the government of malta could increase its revenue
to cover ordinary expenditure (united kingdom 1946). the subsequent
report estimated that private property had suffered war damage totaling
£26. the assistance needed to repair the damage to private and
public property and to improve schools, hospitals, water, and electricity
was reckoned at 42. |
sir wilfred also recommended that malta introduce an income
tax and a private property tax and that it eliminate subsidies to public
utilities. schuster to report on the economic position of
malta, to suggest ways of increasing government revenue, and to pro-
pose what form eventual assistance from the united kingdom might
take (schuster 1950).
 sir george's report concluded that malta needed to
expand industry, rationalize agriculture, and promote tourism. it was
also important, the report noted, to improve infrastructure; to provide
industrial incentives in the form of protective duties, fiscal exoneration,
and training grants; and to conduct detailed studies to determine the
economic potential of various parts of the economy. the recommenda-
tions were not carried out for lack of finances.
in 1955 dom mintoff, as head of the labour government, called on
balogh and seers to devise a development strategy.3 their report, like
schuster's, called for infrastructural improvements and for the transfer
of relatively labor-intensive industries from the united kingdom to
malta. |
| an industrial estate needed to be established and facilities devel-
oped for training local technicians. unlike the two previous reports,
which clearly promoted emigration, the balogh-seers report argued that
emigration was costly to malta.6 million for emigration and training grants, to
which must be added the hidden costs of the brain drain-most of the
migrants were young and highly skilled.
the balogh-seers report estimated that to put the development pro-
gram into effect, malta needed capital grants of 3 million to 3.5 million
a year and a current budget support grant of 1. this
plan and the subsequent plans formulated by the nationalist govern-
ments consisted of a program for improving the infrastructure (to be
carried out by the government with assistance of foreign donors), a
package of investment and emigration incentives, and forecasts of
outcomes. |
| import substitution would be through a
protective tariff based on degree of , but planners
hoped to export-oriented industry as . new industrial invest-
ment would be through capital grants or ranging from
33.. .. |
| poems of forgiveness |