WORKSHOP ON
COMPETITIVENESS STRATEGIES FOR SMALL STATES
Malta: 23-31 May 2011
Final Statement
The Training Workshop on Competitiveness Strategies for Small States was held in Malta
between 23rd and 31st May 2011, with participants hailing from small states located in various
parts of the world. A number of issues relating to national competitiveness strategies were
discussed including macroeconomic stability, the promotion of domestic competition and fair
trading, public sector efficiency, innovation and human resource development, globalisation
and the international trade negotiating framework, the role of the social partners and other
themes of particular interest to small states.
The participants at the workshop:
1. Recognised the special importance that a national competitiveness strategy has for the
economic development of small open economies in view of their high dependence on
exports, their inherent vulnerabilities and the consequent need to build resilience.
2. Recognised also that a national competitiveness strategy is multifaceted and includes
various components including:
a. good economic governance, leading to a stable and resilient macroeconomic
environment;
b. an efficient and transparent public administration;
c. an adequate and predictable legal environment;
d. well-developed
infrastructural
and
network
services,
particularly
telecommunications and transport;
e. policies that encourage education and investment in human capital, innovation,
and research & development;
f. policies that balance wage levels, productivity and taxation;
g. the fostering of social cohesion and social development;
h. the nurturing of entrepreneurial attitudes that take advantage of market
opportunities;
i. the putting in place of export credit insurance as a protective mechanism against
financial and economic loss;
j. private sector development and appropriate competition law and policy that
promote fair trading;
k. efficient trade facilitation systems and processes.
3. Recognised further that while the private sector should be the motor of
competitiveness, the state has an important backing role to play, especially for
providing institutional support relating to, amongst others, quality certification,
telecommunications, and marketing.
4. Identified the important contribution that foreign direct investment (FDI) can bestow
on the recipient country to build and sustain competitiveness and economic
development, but expressed the view that investment projects need to be selectively
appraised so as to ensure that the host country adequately benefits from such
investment.
5. Called upon the WTO to effectively recognise the special characteristics of small
developing economies so as to ensure a level playing field in multilateral trade
arrangements.
6. Expressed their gratitude and appreciation for the support extended by the
Commonwealth Secretariat, the Ministry of Foreign Affairs of Malta, the Islands and
Small States Institute of the University of Malta in the organisation of this Workshop.