Neo-liberalism and its impact on the financial framework of the Maltese public sector

Abstract

This long essay attempts to examine Neo-Liberal thinking in the light of globalisation, new public management and "financialisation". While some authors claimed that the Neo-Liberal strategy enhanced overall economic growth, others debated that it had limited effectiveness as an engine for economic growth whilst others alleged that this approach was a stratagem to restore class dominance especially after World War II. From the rigorous research conducted, the author of this long essay concludes that the Neo-Liberal approach, putting aside its drawbacks, succeeded in bringing about major reforms in the Maltese Public Sector and in the Maltese Financial Market. Today Malta boasts of having a strong and competitive financial sector, which weathered relatively well the world financial crisis that hit planet earth like a furious and livid meteorite. The success of the financial sector was mainly attributed to the quality of the regulators such as the Central Bank of Malta (CBM) and the Malta Financial Services Authority (MFSA) amongst others. To date thee-gaming sector employs more than 2,000 employees and boasts good and smart regulations protecting both players and operators. The researcher combined the use of both qualitative and quantitative research methods to collect information, statistics and facts through various techniques mainly observational, interviewing, and secondary sources. The interviews undoubtly enabled the researcher to explore the challenges in a natural and innate policy environment. Most of the focus of this long essay was directed towards exploring the establishment of the Maltese Financial Framework in relation to Neo-Liberal thinking and the use of New Public Management practices. Moreover, this study helped the author in fulfilling his understanding of the Maltese Public Sector Financial Framework Strategy and on how to improve management practices related to finance. The concept of a fully-fledged accrual accounting system is inevitable and further development of a risk awareness culture is indispensable. Another vital issue is the updating of the current Financial Administration Act (FAA) according to today's exigencies for greater transparency and accountability within the Maltese Government financial operations.