Public corporations in a mixed economy

Abstract

It should be useful, at the start, to provide a short historical background about Malta for the benefit of the reader who is unacquainted with Malta. This is not intended to be an exhaustive introduction at all, but rather to emphasise those aspects of history which are relevant to the subject at hand, that is the part played by Public Corporations in the economic and social development since 1945 but particularly during the last two decades since Malta's independence in 1964. Laski has stressed this when writing, “The character of the modern state is the consequence of the history through which it has passed, and it would be unintelligible save in the light of that history.” We shall see that these bodies first emerged under British Rule and since then have followed a British pattern. Initially they started as a matter of expediency, then grew as a matter of policy and finally flourished as a spur to economic development underpinned by the creation of State industries and private enterprise. It is also important to grasp the idea of Malta's small physical size, its insular yet cosmopolitan nature, and its minute economy. The fact that Maltese society is mainly urbanised, its people European, Catholic, hardened by sieges and wars, who have managed to modernise their economy after being chained inexorably to a war economy for over four hundred years. This study will deal mainly with public corporations, but will also cover some other areas of public enterprise. An attempt will be made to treat the subject from the historical development, social and political aspects and to a lesser extent will touch on the economic problems involved although, for space limitations, in a rather summary fashion. […]