Maltese Government efforts to attain economic viability (1964-1979)

Abstract

The period 1964-1979 is of particular relevance to the economic and political life of the Maltese Islands. The Year 1964 saw the birth of the politically independent Maltese nation, but at the same time economically heavily dependent on the expenditure generated by the British Services. Furthermore, British defence policy had spelled it out that the Military Base was going to be rundown and limited to a forward operating base, such that Maltese employment with the Services and UK Government spending will be substantially and consistently reduced. The only way to counteract the consequent recession of these adverse economic measures was to develop more aggressively other economic activities so as to compensate for the anticipated loss of jobs and foreign exchange. The need to diversify the economy became more clear when the March 21st, 1972, Agreement on the rent of facilities to Britain contemplated the total withdrawal of British troops and the termination of rent facilities by 31st March, 1979. This paper shall seek to expose the main initiatives and efforts undertaken by successive governments to attain a state of economic viability, especially in view of the diminution and eventual loss of income from the Military Base. The areas covered include the manufacturing, tourism and the public sectors.