In London, Gonzi talks of growth and a rethink on capitalism

Prime Minister Lawrence Gonzi has spoken of the threat to people's dignity from economic, social, environmental and political crises and spoke for a rethink on the sustainability of capitalism. 

Addressing the Diamond Jubilee Commonwealth Economic Forum in London on Tuesday evening, Gonzi said rising unemployment, political unrest, growing inequality, and climate extremes were forcing leaders to find new forms of partnership and governance to deal with these challenges.

Speaking on problems that seemed far off from the usual speeches addressed at the home crowd, Gonzi spoke of youth unemployment as a key global concern.

"Joblessness around the world remains a key policy concern. This challenge is compounded by two worrying trends: youth unemployment is on the rise and joblessness is becoming chronic.  These intertwined effects will further reduce growth, strain public finances and negatively impinge on social order and cohesion," Gonzi told the CEF.

"It is this failure to create sustainable growth that prompts us to question the sustainability of capitalism. Whilst recognising the undisputable beneficial and creative power of market forces, we are forced to recognise their limitations."

Gonzi said market forces alone could not ensure a fair and just society, and said businesses and markets had to work for people and not the other way round.

"We need to create new models of growth and start talking more about job creation. We need a collaborative and multi-stakeholder approach whereby governments should act more as facilitators to businesses."

Gonzi also spoke of Malta having experienced growth rates that were faster than European averages, citing the third fastest employment growth rate, and of having attracted investment in the form of the $300 million Smart City internet city - so far still under completion.

"We continue to provide free healthcare and education - we pay a stipend to our students who continue studying, we provide scholarships and we are investing in new campuses for our students.  Our only resource is our workforce and we are investing heavily in nurturing and grooming our talent," Gonzi told delegates.