Trends in the economic geography of Malta since 1800

Abstract

The main fact which emerges from this consideration of economic trends in Malta since 1800 is that the Maltese economy has become less and less capable of self-sufficiency. The decline in Malta’s balance of payments has been examined in Section C, Chapter 2. The serious nature of the present situation is indicated by a visible trading deficit of almost £23 millions (1957), which was more than 90% of the value of retained imports. The trends of the various sources of Maltese income have also been examined. These trends have indicated that since 1800 the basis of Maltese income has ultimately rested on the purely fortuitous geographical factor of situation. This situation has at different periods had certain strategic and commercial advantages which the Maltese have turned into cash. Income derived from local resources and industry (i.e. agricultural produce and manfactures) has always been very small. As has been indicated in Section C, Chapter 1, the value of commercial advantages of Malta has fluctuated. There have been periods during which Malta benefited, either through direct trading or by providing shipping facilities such as bunkering, but these periods have been exceptional rather than normal. The idea held by many Maltese during these periods, that the prosperity was permanent, was a delusion. [...]