Today, at around 1230hrs, the Malta Police Force was informed that an accident had taken place in a private garage in Triq Raymond Caruana, Gudja. 

Police convened immediately on site and preliminary investigations showed that a 77-year-old man resident of Gżira had been crushed beneath a vehicle he was operating on.

Members from the Civil Protection Department convened on site along with a medical team, but the man was unfortunately pronounced dead on the scene a few moments later.

An inquiry has been opened as police investigations continue. 

#MaltaDaily 

In the 1970s, under the leadership of Dom Mintoff, Malta underwent dramatic changes in economic policies.

The controversial prime minister initiated a number of measures to reduce dependency on foreign goods.

One such measure led to the banning of certain imported goods, such as the much-loved chocolate. The new measure meant that the only option Maltese groceries offered was a locally produced brand of chocolate called Desserta.

Beyond the implications on chocolate lovers, this episode raises questions about economic policies and their impact. The ban is a case study in protectionism – an economic policy that restricts imports in an attempt to encourage domestic production.

This approached can be a double-edged sword. On one hand, it can potentially help a nation develop its industries and reduce economic dependency. On the other hand, it can limit consumer choice and potentially drive up prices.

 

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The people’s reaction

Faced with the chocolate ban, many Maltese refused to live in a world without their treasured treat. Smuggling operations blossomed, ferrying in more well known brands like Hersheys and Mars to the island.

According to the late Daphne Caruana Galizia, who regularly wrote about those times, strip searches on people arriving from Sicily became common practice. Breaking news to all our Maltese colleagues who still expect us to get chocolates to the office whenever we travel abroad: the ban has since been lifted.

Why?

The 1970s was a key decade in Malta’s economic history.

Independence was already a huge step in 1964, and Mintoff was adamant to phase out the island’s reliance on British military expenditure, which led to the withdrawal of British troops and navy in 1979.

Mintoff’s import controls and quotas were part of a wider strategy aimed to kickstart local industries by artificially eliminating foreign competition. Chocolate became a sacrificial pawn in this economic game.

Did it work?

This was a clear case of trying to strike a balance between consumer freedom and the island’s economy.

Most would agree that the economic principles of the time resulted in industrial growth and improved social welfare. On top of that, all this was done while maintaining low levels of public debt.

This situation, however, was the result of a wide array of factors, so whether the ban on chocolate was necessary and effective, remains up for debate.

What do textbooks teach us?

Economic textbooks and studies are quite mixed on whether or not trade protectionism might be beneficial for a developing economy.

On the plus side, trade barriers can protect jobs and domestic industries that have not yet reached economies of scale, increase government revenue through tariffs, and counter product dumping.

Should we reintroduce bans or tariffs?

Two possible answers:

1. No.

Economic textbooks also teach us that protectionism hinders competitiveness, innovation and economic growth, particularly in developed countries. It is also likely to result in higher consumer prices. 

2. We cannot.

Free trade agreements, a fundamental element of the European Union, make it impossible for a member to introduce such protectionist measures, even if we wanted to.

Mintoff’s chocolate ban was an interesting economic experiment which is unlikely to be repeated.

There are always lessons to be learnt from the past, particularly when we try to understand the economic and social backdrop of the time.

With this in mind, should a government ever prioritise macroeconomic goals over individual freedom?

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