Infrastructure in developing states : a case study : Malta

Abstract

There is no doubt, that Malta, has and is still passing through a phase of major infrastructural transformation. It can now vaunt of a new Airport network, a new functional power station, a fully digitalised Telecommunications local network, and Overseas direct dialling to practically the whole world. Water production although tripled has yet to meet the demand. There is a major drive for increased Information Technology and computerisation. It has already been declared by government that the development of infrastructure will be giving roads networks priority during the next couple of years. There is a drive to upgrade also tourism infrastructure for an up market tourism, and to cater for the increasing number of influx of tourists. The million mark per year which up to a few years ago was only a mirage is now a reality. The effects on the environment of this development is also being given due consideration and one main problem is the drainage contamination of the seas. This too will feature shortly in the infrastructural agenda. All these factors have directly at indirectly proved beneficial to the state of health of the Maltese economy. All economic indicators point towards a health economy. Unemployment both in figures and as a percentage of the labour population has reached the lowest levels in years. There is practically full employment and most people have a second job. As a result their income pet capita has doubted from 3300US$ in 1985 to 6600US9 in 1992. GDP growth has been maintained at high levels compared to bigger and mote developed nations both far and nearer to Malta. If withstanding the high level of spending by the Maltese there is still a culture towards saving and as result bank deposits have increased considerably. Exports have also increased in such a way as to bridge and decrease the imbalance of payments. And when one considers that this has been achieved by a micro date with a population of just over a third of a million, and during a period where everywhere else countries are facing a recession, the question therefore arises: was this the result of this major development? The answer to this question is attempted in this dissertation. It is the scope of the author to examine most of these facts and whether a small country like Malta should invest (if investment was needed) in state of the art (conditional to certain requirements) infrastructure, against the theory advocated by other that it is better td upgrade and refurbish already existing facilities since the expense tot new projects would leave an onus on economy with the burden of public debt for the financing to these projects. It is therefore hoped that this work gives a little more tight on an otherwise unexpired ground.