Malta's changing pattern of trade, 1959-1968 : historical implications

Abstract

In the late 1950's Malta was in the process of remodelling its economy after centuries of complete reliance on the realization of its strategic value. Malta's unique position in the Mediterranean had been the source of its past wealth as a fortress economy , and had been the most important determinant of its economic structure. For many years the island had been a fortress to the Knights of St. John as a naval base and the population could rely for its livelihood on invisible exports in order to obtain the necessary foreign exchange to finance imports. Production was confined to cottage industries. Exportation was limited to cotton, but in the 19th century it dwindled as competition from Egypt grew real. Thus, population to live on on servicing the Order-mainly retail trade and the galleys of the Order. The large unemployed labour force was put to construction industry, that is, on such projects as of cities and Auberges. During the Order's stay, the Island exhibited little economic change and little scope for an industrial revolution. Scope for industries was non-existant, only luxury goods and ornamental commodities were provided for by the Maltese artisans. Thus filigree , silver and gold ornaments were in great demand. Lace by females was also an important aspect of Maltese workmanship.