Many years ago, Communist countries used to implement central planning of the economy. All econmic sectors were centrally controlled by the state covering how much to produce and sell, when, where and to whom, how and where to acquire all inputs, what the price of “everything” would be…
Western politicians and economists derided this system as madness. Even with the best of intentions, it was impossible for any government to maintain such a total control. And indeed, planned economies were most inefficient, they weakened and came to the brink of collapse. Everywhere the general view became that only with the free market could people run an efficient economy, for the market allows the extremely complicated and enormous information which makes up economic affairs to be marshalled effectively.
However since the days of Communism, computer technologies and now artificial intelligence have made tremendous progress. They have reached a stage that opens possibilities for the manipulation and tracking of vast volumes of information. Does humanity now have the abilities and means to plan and run successfully a whole natiional economy from the centre? as well the entire global economy?
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GAVAZZI
Nothing has been said so clearly, but from what has been said it is possible to conclude why the Gavazzi enteprise decided to leave Malta. It all boils down to the tariff wars launched by the US Trump administration with the intention of bringing back industrial production to America. The claim that the Malta government could have done something to prevent this or the departure of Gavazzi is just puerile.
On the other hand, the development demonstrates how dangerous is the attitude which seems to have become prevalent in this country – that the economic upheaval created by Trump cannot much affect this country directly, as we do not have extensive commercial exchanges with the US. The direct economic impact of what is going on might be less here than on other countries, or eventually less than the indirect impacts (when the direct negative impacts on others with whom we do have close exchanges in turn has negative consequences on us). But the direct impacts are what we will likely experience first and that will happen with the sharpest effect.
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STARS
Short term accomodation rentals for holidays have spread widely across all European countries, Malta included. Everywhere, here too, they are triggering disquiet among residents, even as they bring economic benefits to the areas where they are situated due to the tourist activity they generate. There is still no clear compass as to how lines should be drawn between benefits and disbenefits.
Earlier this year, the Socialist and Democrat group in the European Parliament commissioned a study regarding the safeguards that could be introduced in the sectors of STARS, as such accomodation rentals are being called for short. The study has been practically ignored in Malta but it does give an interesting guide regarding how a new kind of oversight could be implemented in zones which have been getting burdened with STARS. It is done according to the experience of other Mediterranean destinations which have already experienced the inconveniences that increasingly numerous localities in Malta have been complaining about.