GREEN JOBS from a SMALL STATE PERSPECTIVE. CASE STUDIES from MALTA. Saviour Rizzo (Ed)

GREEN JOBS FROM A SMALL STATE PERSPECTIVE. CASE STUDIES FROM MALTA. Saviour Rizzo (ed)

Green Jobs from a Small State Perspective. Case studies from Malta. Saviour Rizzo (ed) The Green European Foundation is a European-level political foundation whose mission is to contribute to a lively European sphere of debate and to foster greater involvement by citizens in European politics. GEF strives to mainstream discussions on European policies and politics both within and beyond the Green political family. The foundation acts as a laboratory for new ideas, offers cross-border political education and a platform for cooperation and exchange at the European level.

Published by the Green European Foundation Printed in Belgium, December 2011

Coordination: Nighat Urpani Text revision: Ralph Cassar and Nighat Urpani Production: Micheline Gutman

Cover picture: © shutterstock Printed on 100% recycled paper

The views expressed in this publication are those of the authors alone. They do not necessarily reﬂect the views of the Green European Foundation.

This publication has been realised with the ﬁnancial support of the European Parliament. The European Parliament is not responsible for the content of this project.

This publication can be ordered at: Ceratonia Foundation – http://www.alternattiva.org/ceratonia-foundation.php [email protected]

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Table of Contents

Foreword – Nighat Urpani and Claude Weinber 5

List of Contributors 6

Chapter 1. The Parameters of a Green Sustainable Economy 7

Saviour Rizzo (editor in chief)

Chapter 2. A Civil Society Perspective of Sustainable 10 Energy Policy and Green Jobs in Malta as a Small EU State

Michael Briguglio, Maria Brown, Diana Aquilina

Chapter 3. The Artisan: A Sustainable Entrepreneur 20

Leonie Baldacchino, Christine Cutajar

Chapter 4. Older Persons and Green Volunteering: 33 the Missing Link to Sustainable Future?

Marvin Formosa

Chapter 5. The Green Industry’s Potential to Drive 44 Local Innovation in the Manufacturing Sector: Malta a case Study for a Smart Specialisation Strategy in Eco-innovation

Andre Damato

Chapter 6. Basic Income: How it Fits in the Policy 55 Framework for Green Jobs

Vivan Storlund

[5]

Foreword Nighat Urpani (President, Ceratonia Foundation) and Claude Weinber (Secretary General, Green European Foundation)

The economic turmoil and the financial crisis nature of work in European societies, focusing faced by most of the European Union Member on the nature and quality of the green jobs that States can represent an opportunity to address are created in sustainable economies. Questions the needs of the time by embarking on the eco- such as how to create employment strategies logical transformation of current production and that foster a better work-life balance, increased consumption models in our societies. This trans- gender equality and allow for more emphasis on formation of the economy will entail a transfor- leisure time, community participation and family mation of Europe’s employment strategies. Many life are a central part of this endeavour. of the jobs which are likely to be in demand in the future may involve tasks and require abilities dif- This collection of articles focuses on the Europe ferent from those being demanded today. This is 2020 Strategy to create new skills and employ- why we have to discuss the needed changes to ment opportunities and its relevance for Malta, the labour force and to analyse the prerequisites as one of the smallest Member States of the EU. for the creation of green jobs, as well as the char- The publication was preceded by a conference on acteristics of these jobs. the topic with academia and civil society organisations, and thus it constituted a good opportu- The European Commission’s “Europe 2020” strat- nity to start discussions about green employment egy to create a smart, green, inclusive and high strategies. As reforming the labour market, as employment economy in the next decade is an well as creating new green jobs is a resource ambitious project that could be successful if cer- intensive process, Malta was chosen as an exam- tain conditions are fulfilled. The competences of ple of a small state, without extensive financial, or Europe’s workforce must be enhanced through natural resources that would facilitate this trans- the appropriate educational measures. At the formation. We find it a worthwhile case study that same time, the new impetus to produce higher constitutes an example for other Member States. quality, more innovative and sustainable products has to be embedded in a regulatory and supportive One of the basic ideas of Green policy is that framework to remain competitive in the globalised an efficient use and a sustainable production of market economy. energy are key elements for securing our common future as they will restructure our economy The Green European Foundation (GEF) has been and guarantee social inclusion and security. working extensively for the past three years on These new, renewable energy sectors are also a Green New Deal for Europe – a comprehen- labour intensive. If Europe is to retain a strong sive response to the current economic, financial, economy and to remain competitive and innova- social and environmental crisis. The Green New tive in the global market, it needs to ensure that Deal puts forward a set of reforms at micro- and its education and training structures provide macro-economic levels aimed at ensuring high training in key competences. Ongoing dialogue levels of prosperity and well-being. The creation between training providers and industry repre- of decent employment and re-thinking the role sentatives must be created and maintained. Not work plays in our societies are central parts of claiming to have found any ultimate responses to this response, and thus need to be thoroughly the above indicated issues, the Green European addressed. This is how the project “Green Jobs Foundation and Ceratonia Foundation are happy from a Small State Perspective” developed by to have raised some questions to help steer the GEF with the support of Ceratonia Foundation discussions around the type of jobs that need to in Malta came about. The project discusses the be created to facilitate a sustainable future. [6] Green Jobs from a Small State Perspective. Case studies from Malta.

List of Contributors

Diana Aquilina lectures Sociology at the Lifelong Degree at the University of Malta in Creativity and Learning Centre in Blata l-Bajda. Her main research Innovation. Recognising the beauty of nature and interests are environmental issues including envi- the impact of our society she is determined to ronmental politics. She has carried out research as promote sustainable development as a way for part of her B.A. (Hons.) and M.A. thesis on the eco- the future. Her present focus is on artisans and logical impact of the introduction of plastic bottles their unique role in the economic sustainability of on Maltese society and on the controversy of the societies. Sant’Antnin Recycling Plant in Marsaskala. Andre Damato is a computer scientist by profes- Leonie Baldacchino is currently reading for a sion. He holds a Bachelors degree in Information PhD in Entrepreneurship at Warwick Business Technology and a Masters degree in Creativity and School (UK), as well as lecturing on entrepre- Innovation. He currently works within the local neurship, creativity and innovation at The Edward private educational sector as a school coordinator. de Bono Institute, University of Malta. She is He is active in Żminijietna, Leħen ix-Xellug, a local involved in the coordination and organisation of left–oriented think thank focusing on economic, various entrepreneurship-related incentives at environmental and political affairs. the University. Marvin Formosa lectures in social gerontology Michael Briguglio lectures at the Department and sociology at the University of Malta and is a of Sociology of the University of Malta. He is cur- visiting lecturer at the United Nations International rently reading for a Doctorate in Sociology on Institute of Ageing. His primary research interests EU Accession and Civil Society Empowerment: are older adult learning, social class dynamics the case of Environmental NGOs in Malta. His and social exclusion on which he has contributed research interests include Environment, Social to many edited books and journals. Policy and Politics, and he has published work in these areas. Michael is also the chairperson of Saviour Rizzo (Editor) as a former director of Malta’s Green Party, Alternattiva Demokratika. the Centre for Labour Studies at the University of Malta has been involved in various programmes Maria Brown lectures in Sociology at the University and projects related to employment relations. of Malta, as well as Systems of Knowledge at His publications include the National Background Giovanni Curmi Higher Secondary School. She is Paper on the Restructuring Process in Malta pursuing her studies at doctoral level with a dis- which was submitted to European Commission sertation on community empowerment and critical Employment, Social Affairs, “Evolving Industrial education. She contributed with her research work Relations in Malta” (Agenda 2003 – co-authored) to the EU FP6 Includ-ED Project. Research interests “The Dual Worker Family in Malta” (CLS-FES include education, work, social policy and research 2006) and peer reviewed articles related to the methods and she has published in these areas. world of work.

Christine Cutajar studied at the Universities Vivan Storlund studied law at the University of of Malta and Padova in Italy, where she obtained Finland. She is an independent researcher and her first degree in Psychology. Recent,ly she has freelance journalist. Her main fields of research completed an EDE (Ecovillage Design Education) are working life and civil society especially in course in Findhorn Foundation in Scotland., relation to economic, social and cultural rights which incorporates the principles of sustainable as well as social justice. With regards to work, development for transition towns and design for her focus is on work that does not fit the narrow sustainability. She is currently following a Master premises of labour law, mainly artistic work. [7]

Chapter 1. The Parameters of a Green Sustainable Economy Saviour Rizzo

At the polls the Greens may not have succeeded in piled on a national and international basis. Green getting the necessary quota of votes to allow them jobs still do not feature in any of the categories of to share power with the major political parties. the jobs listed in the Statistical Classification of Nevertheless they can be heartened by the fact Economic Activities in the European Community, that the principles underlying the policy of a green referred to as NACE (Nomenclature des activités economy, which they have been vocally espousing économiques) wherein jobs are categorized into since their inception, have seeped in mainstream 99 different codes each of which comprises vari- politics. Indeed the focus on this issue marks a ous sub-sections of economic activities. paradigm shift in the political scenario. From the foregoing one may conclude that there In their public speeches politicians and policy is a lack of a political will to address the issue. makers speak very favourably about the green But blaming the political class for their failure to sustainable policy. They may even express their invest in the green economy and/or to promote its commitment to the principles underlying its underlying principles raises the question about implementation such as the de-carbonization of the role of civil society. It has to be emphasized the economy, the protection of the eco system and that environmental governance promotes collab- biodiversity and the preservation and/or restora- oration among diverse parties in order to develop tion of environmental quality. In their eagerness creative and effective solutions to environmental to convince us of the genuineness of their beliefs problems, as well to generate commitment to the or to substantiate their argument they make a outcomes that are achieved. The engagement of number of statements which by and large express civil society actors, primarily NGOs, has become the following sentiments: an accepted aspect of environmental governance in democratic society. In some areas related the state of the environment is linked to the to environmental issues such those “not in my quality of life; backyard” type, environmental activism takes the a healthy and sustainable environment is form of opposition to activities which are believed considered to be crucial to development and to be harmful to society. competiveness; we have to put our society on the path which is In the area of green policy there is no scope for cleaner and more energy efficient. this type of opposition. The promotion of green jobs tends to be proactive in nature and hence the If serious efforts have been made to take concrete activism in this regard by environmentalist groups measures aimed at translating these statements has to be collaborative in spirit rather than con- and their underlying principles into viable strat- frontational. The green party in Malta, Alternattiva egies we would by now have been experiencing Demokratika (AD), has been engaging in this type green collar job inflation. This has not happened of environmental activism aimed at creating green and even the most ardent supporter of green jobs. The same cannot be said about the other energy will admit that it is very unlikely to happen environmentalist movements. This does not of in the near future. In spite of the wide consen- course imply that they are insensitive to the pro- sus which the principles underlying the green motion of green jobs. What it does however imply economy have generated, the deep structural is that in their lobbying they have not shown the and systematic reform which is needed for their same level of sensitivity and have not been vocal implementation has still not been made. Rather about this issue to the same extent as AD. I would than being perceived as the ideological tools to even dare say it is not very high on their agenda. a restructuring of the economy in a socially responsible way, these principles, to many poli- Of course they are not being accused of being ticians, smacks more of tokenism and political in a total state of oblivion about the issue of correctness. Indeed a review of green policy, on a green jobs and its correlation to sustainable micro and macro level of the economy, reveals a development. The data emanating from the qual- wide gap between rhetoric and reality. This can be itative survey conducted by Briguglio, Brown and confirmed by the way labour statistics are com- Aquilina (Chapter 2) reveals that the key persons [8] Green Jobs from a Small State Perspective. Case studies from Malta.

involved in the Maltese civil society are aware of Another valuable human resource which through and knowledgeable about the potential of a green its proper utilization can give a valid contribu- policy to create jobs and improve the quality of tion to the goals of a green policy is the elderly. life. They are also aware of the constraints, such Formosa (Chapter 4), on the basis of an in depth as the diseconomies of scale, inherent in a small, interview of five older persons active in voluntary island, sovereign state that can pose problems work with environmentalist organisations, argues to the implementation of green policy. However that Maltese society is not making proper use of they do not believe that these constraints should this resource. At a time when the demographic act as a deterrent. In other words if our politi- statistics show that in Malta the persons aged 60 cal class really believes in the implementation and over in 2010 represents 23 per cent of the total of an economic sustainable policy they have to population and the projections clearly indicate an look for innovative means and exploit the mate- increasing trend for the next fifty years, this mis- rial and human resources available in the island. management of human resources is a searing Consultative and participative process, in which indictment of contemporary society. The policy as active players in Maltese civil society they options and strategies to address this issue being should be actively involved, would, according to recommended by Formosa can go a long way to these key persons, make the implementation of improve the utilization of this human resource. this policy more effective and successful. What these three papers imply is that we have to The paper by Baldacchino and Cutajar (Chapter 3) be resourceful and innovative in the formulation tends to corroborate this view since they main- and implementation of a sustainable green pol- tain that these constraints rather than acting as icy. Damato (Chapter 5) goes to the core of this a deterrent could act as a stimulus for crafts- issue by looking at the possibilities of the Maltese manship and sustainable entrepreneurship. economy through innovative measures and prac- This assertion is made in the context of the tices to generate green jobs in the manufacturing valuable contribution which can be made by industry. Damato’s paper focuses on the various the artisan to the holistic values of sustainable facets and sectors within this industry which can development. As a small island lacking natu- contribute to value added economic activities and ral resources Malta depends on the importation at same time generate green jobs. It is argued of raw material. By using the material avail- that the limited economies of scale can be a seri- able, the local artisan would contribute to the ous constraint to the manufacturing industry of reduction of the products which are imported a small country in the sense that it sets limits to and in so doing could act as a model of a sus- the room of manoeuvrability which is needed for tainable entrepreneur. The authors argue that eco-innovative initiatives. To provide more space craftsmanship can “increase the resilience of for an innovative entrepreneurial climate, that is a society by preserving and enhancing the pool so vital for the creation of green jobs, we need of local knowledge and skills”. By engaging in to remove or simplify the compliance regulations a lively debate about this issue and providing some that entail high operating costs. very insightful perceptions, the two authors drive home the point that we should not let ourselves But green jobs, Storlund argues in her paper be subsumed by the forces of globalisation. While (Chapter 6), is not just about innovation but acknowledging the impact of these forces and the also about the challenges to the conventional need to cope with them to maintain the viability of economic theory of pay. Whether by default or our economy we should also think and act locally. design this knowledge-based economy operat- This is not simply an exercise to protect our indig- ing in a globalised market has increased rather enous culture but should also be an integral part than decreased the number of low-paid jobs. of the sustainable green policy. In a highly liber- Drawing on the work of Joseph Stiglitz, Storlund alised, economic market characterized by mass argues that a green policy has to be built on the production and cut-throat competition the sur- principles of equity and fairness. The thread vival and sustenance of craftsmanship call for of the argument in this paper is that if green is some protective measures. That is one of the pol- the qualifying criterion for work in a sustainable icy options recommended to our policy makers by economy, a policy of a basic income could attract the two authors. more people to work in the green industry. Chapter 1. The Parameters of a Green Sustainable Economy [9]

As contemporary society is grappling with new have been made to expand the service industry problems and challenges related to its habi- notably in the Financial Intermediation sector tat and environment these five papers enable which has been registering significant increases us to reflect and look critically at ourselves. in gainful employment. To make this shift to the The analyses and the recommendations made service industry and high value economic activ- by the authors of these five papers do not offer ity the Maltese economy had to go through a a patented solution to the contradictions of this restructuring process which brought changes in society. They however enable us to engage in a the occupational structure. What this implies is lively debate that offers us practical insights of that although the external and internal drivers for how society ought to be. This ideal can serve to economic change in Malta may have some pecu- show the terrain which needs to be covered to liar features, by and large they are not dissimilar achieve the aims of a green sustainable economy. to those found in other European countries. In The more the policy approximates to that ideal other words in the Maltese economic and political the more effective and successful it is judged scenario there are more forces of convergence to to be. The ideals expressed in these five papers rather than divergence from that of the European may thus offer some parameters for this ongo- mainland. Thus the road map that has to be ing debate about the feasibility of policy options designed and followed towards a green economy related to a sustainable economic development. need not be much different from that of other European countries. Given that these parameters are based on the experiences of the smallest country among the In constructing self reliant models of develop- EU member states, doubts may be cast about ment the necessary variables among different their relevance to European countries. Such economies tend to be more general rather than doubts may not turn out to be well founded. It idiosyncratic. The challenge is to delineate which should be stressed that however small in size functions and capacities are necessary and adapt and population Malta may be, it qualifies as a the lessons in the context of the pre-existing mature exponent of development in the glo- conditions and the economic and political exigen- bal village. Indeed it has all the trappings and cies. This is what the papers attempted to do. By characteristics of large nation states. Like other highlighting the contradictions inherent in Malta, developed and developing countries it managed they may make a valid contribution to the stimu- to build a thriving manufacturing base consist- lation of awareness of important current trends ing of a clutch of foreign-based, export-oriented that offer opportunities for a new approach to the firms. In line with the trends in Europe this sec- policy of sustainable development and economic tor has been registering a continuous decline. To restructuring across Europe. make up for the loss of jobs in this sector efforts [10] Green Jobs from a Small State Perspective. Case studies from Malta.

Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State Michael Briguglio, Maria Brown, Diana Aquilina

Abstract Small states share characteristics that present Sustainable energy policy and its potential to cre- special development challenges (The World Bank, ate green jobs in Malta, as seen from the point of 2000, p. 1). These include the presence of small view of Maltese civil society, provides the basis for local niche markets, insularity, indivisibility and a critical analysis of the development of environ- diseconomies of scale (ibid.). Furthermore, remote- mental policies in Malta. The discussion is based ness, susceptibility to natural disasters, limited on data emanating from a qualitative type of survey institutional capacity, limited diversification and conducted among the key persons involved in the openness, access to external capital and poverty main organisations representing the Maltese civil are also listed as major threats to small states (The society. What emerged from this data is that there World Bank, 2000, pp. 2-3). is a high level of awareness among members of Maltese civil society about the need to create more The fate of these small states is often tied to their green jobs and the formulation of an effective role as platforms for the needs of international policy of sustainable development. Respondents capital. However much they try to exploit the pow- stressed the challenges inherent in a small ers and jurisdiction which they possess in order island sovereign state suffering from peripheral- to attain self reliance, they might still be forced ity and insularity. However while acknowledging to play this role. The models which act as refer- these constraints, respondents expressed a high ence point for their development are the large degree of optimism about the implementation of nation states on which they depend for invest- an effective green policy. They maintain that part ment, consultancy and the specialisation needed of the solution lies in devising innovative practices for infrastructural and economic projects. This by means of which Maltese policy makers would culture of dependency is also visible in initiatives exploit Malta’s geographical position and har- aimed at sustainable development in a small ness all possible material and human resources. island sovereign state such as Malta. However to achieve such a goal the process has be consultative and participative. The provision of sustainable energy is a major challenge for Malta, the smallest EU member SMALL STATES, GREEN JOBS state. Malta has the highest energy dependency AND SUSTAINABLE ENERGY: rate in the EU and one of the highest rates of THE NEED FOR A GREEN NEW DEAL tonnes of oil consumption equivalent per inhabit- ant in the EU (Eurostat, 2010, p. 560-2). It occupies Small States: Definition and Challenges the last position in the EU rating as regards share of renewable energy within final energy consump- There is no single all-encompassing definition tion (ibid p. 575). This paper aims at providing a of a small state. However, various researchers critical appraisal of policy making in Malta in the use population size as an indicator to define a field of sustainable energy and its potential to cre- state as small, medium or large (Bernal, 1998 as ate green jobs. cited in The World Bank, 2000, p. 3). For example, the Commonwealth Secretariat defines small Defining green jobs states as “countries with a population of 1.5 million or less” (http://www.thecommonwealth.org/ Angelov and Vredin Johansson (2011) com- Internal/180407/). Hence, as per definition, EU pare various official and academic definitions of small member states include: Malta with a pop- green jobs. These range from jobs within indus- ulation of 0.4 million, followed by Luxembourg tries that aim to minimise environmental impact (0.5 million inhabitants), Cyprus (0.8 million) and through a range of environmental policies to Estonia (1.3 million) (http://europa.eu/about-eu/ a more restrictive definition that comprises jobs countries/index_en.htm). within the green sectors of the economy. Hence, there may be varying interpretations of the contribution of green jobs to the economy. Angelov Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State [11]

and Vredin Johansson suggest that the green tions. We therefore need to analyse the quality of jobs definition of the United Nations Environment green jobs, and not simply the quantity (Angelov Programme (as cited in ibid.) is more appropri- and Vredin Johannson, 2011, p. 252). This view ate than that of others such as Eurostat, as the emphasised by the European Green Party (Pierini, former “also focuses on industries and jobs that 2010, p. 12), was endorsed by the European aim at mitigating a specific environmental prob- Parliament (2010), following the adoption of lem, like de-carbonising the economy” (Angelov the report by Green MEP Elisabeth Schroedter & Vredin Johannsson, 2011 p. 247). This defi- (http://www.europarl.europa.eu/sides/getDoc. nition includes all “work in agricultural, do?pubRef=-//EP//NONSGML+REPORT+A7-2010- manufacturing, research and development 0234+0+DOC+PDF+V0//EN&language=EN). What (R&D), administrative, and service activities that the foregoing implies is that a green policy has contribute substantially to preserving or restor- to strike the ideal balance between the social, ing environmental quality”. (UNEP, 2008, p. 3). environmental and economic development. The basis of this balance should be a sustainable and Green jobs in relation to the wider socially just organisation of the entire economy economic, political and social contexts that optimises employment potential, creates gender equality and faces skill requirements through In Malta, a 2007 study was conducted by the appropriate education and training. Employment and Training Corporation (ETC) which analysed employment figures in a restricted Angelov and Johansson (2011, p. 264) conclude manner, namely in the “environmental goods that: and services industry” (such as waste management). Its conclusion was that this growing sector “Greening the economy will unequivocally employs around 3% of the labour force and con- have three effects on employment: jobs will tributes around 2% to Gross Domestic Product be created, substituted and eliminated. It is (GDP) (http://www.greenjobsmalta.com/down- important to know, therefore, what types of loads/ETC%20Report.pdf). More recently, the draft jobs will be lost and created in order to help National Environment Policy of Malta calls for the people adapt and to determine what sort of creation of green jobs. Without providing specific (re)training is necessary.” details, it calls for the increase of such jobs by 50% by 2015, for the preparation of a Green Jobs The creation of jobs in the sustainable energy sec- strategy (and a corresponding training strategy) tor is one of the objectives that the EU has set in by 2012, and for the setting up of an incubator for order to address the global financial crisis, cli- green industries by 2014. The Policy says that rel- mate change and the rise in oil prices. Sustainable evant stakeholders will be consulted in this regard. energy refers to a number of approaches to and (OPM, 2011, p. 30). features of energy consumption such as “efficiency of the use of resources” (Fücks in Schreyer & Mez, The backcloth of this Maltese policy making 2008, p. 7); supporting citizens in their energy is the projection made by the United Nations consumption practices (ibid.) such as increasing Environment Programme (cited by the GEF, 2009, equal distribution of energy sources (Hochfeld et p. 32), which estimates that wind and solar energy al., 2010, p. 16) and fulfilling the “bulk of energy will create around 8 million jobs in a 20-year demands” through renewable energy sources period. Ernst & Young (ibid.) estimate the exist- (Fücks in Schreyer & Mez, 2008, p. 7), particularly ence of 3.4 million full-time direct and indirect as a contribution to the local climate (ibid.). jobs in Europe in 2004, 2.3 million of which are in pollution management and 1 million of which are Green jobs and the sustainable in resource management. energy sector

These projections and their fulfilment have of The sustainable energy sector includes all jobs course to be viewed with cautious optimism since related to all renewable energy industries; construc- the creation of green jobs is uneven and has to be tion of energy efficient buildings (Schepelmann, seen in wider economic, political and social con- Stock, Koska, Schüle & Reutter, 2009, pp. 24-35) texts. For example, strict environmental policy may and retro-fitting of existing buildings to improve lead to the shifting of employment opportunities their energy efficiency (Barbier, 2009, p. 9). It has to less developed countries with more lax regula- been argued that job-creation potential of the [12] Green Jobs from a Small State Perspective. Case studies from Malta.

sustainable energy sector is difficult to estimate only be attained under unfavourable conditions” accurately and that many studies overlook addi- (Fücks in Schreyer & Mez, 2008, pp. 8-10). tional costs, such as tax (Schepelmann et al., 2009, p. 22). It is also predicted that “as renewable indus- Respective policy in this regard should not be a tries mature, they will increasingly be marked by “first-aid industrial policy” (Hochfeld et al., 2010, difficult issues of competitiveness, trade rules, and p. 21) but a proactive, preventive, competitive wage differentials that are already familiar topics in approach with broader social goals (ibid.) such as other industries” (UNEP, 2008, p. 9). “equity…between all countries as well as between social groups within countries” (Steiner, Somavia, The point that is often made and has already Penalosa & Ryder in UNEP, 2008, p. 7). Amongst been emphasised in this text is that a sustaina- many proposed features, when it comes to green ble energy policy is a tool to fight climate change jobs, proposals include training programmes, (ibid., p. 15; Schreyer & Mez, 2008, p. 9). This ral- research fellowships and exchanges schemes lying cry is relevant to the European Union, as it (Schreyer & Mez, 2008, p. 11); combining a sus- has declared its intention of decreasing its reli- tainable energy economy to financial services, ance on oil, gas, uranium and their market prices information technology and e-commerce since (Schreyer & Mez, 2008, p. 9) and lowering energy the latter are of “substantial importance” particu- sources import-dependency (ibid.). Moreover, larly to small states’ economies (Commonwealth the 2007-2008 global recession was identified as Secretariat/World Bank Joint Task force on Small a clear sign that the production methods of the States, 2000, pp. 45-46) and “the principle of geo- twentieth century have become passé (Hochfeld graphical return…(whereby)…value of projects, et al., 2010, p. 16). Indeed,“a knowledge econ- investments…are distributed according to indi- omy and a green economy” feature amongst vidual member states’ contributions” (Schreyer & recommendations to overcome the recession Mez, 2008, p. 11). and unemployment. Thus, a policy on sustainable energy that embraces the growth of green Collaboration between EU countries to exploit jobs does not imply falling back on the last resort member states’ potential for sustainable energy but rather being at the forefront of economic will particularly affect small states that are rich and social development through a cutting-edge in solar energy (Fücks in Schreyer & Mez, 2008, industry (Schreyer & Mez, 2008, p. 9) given that p. 8) thus reducing their geographical vulner- “the microeconomic development of eco-indus- ability to insularity, isolation and dependency on tries is positive and promising” (Schepelmann et fossil fuel and nuclear energy (Schreyer & Mez, al., 2009, p. 32). For instance “renewable energy 2008, p. 10). Another projected consequence of generates more jobs per unit of installed capac- the policy would be that, as in past conventions ity, per unit of power generated and per dollar and treaties, not all member states are likely to invested” (UNEP, 2008, p. 6). join immediately (Schreyer & Mez, 2008, p. 10), hence a period of transition and negotiations is A sustainable energy policy in the EU foreseen. Small states also have the potential for strategic sustainable energy entrepreneurial alli- Like the industrial revolution and the accompa- ances to overcome limitations of size and human nying radical changes that have occurred (Fücks capital (Hochfeld et al., 2010, p. 15). In this con- in Schreyer & Mez, 2008, p. 7) the Green / Third / text, small EU states and candidate countries Efficiency Industrial Revolution can be the cause have the potential to become hubs for the pro- of “a comprehensive upheaval” (Hochfeld et al., duction of sustainable energy with related social 2010, p. 14). Hence, the need for a well-educated (e.g. welfare), economic (e.g. growth) and politi- and computer literate workforce; new technolo- cal (e.g. EU enlargement) effects. gies that can support EU 2020 targets; common action and transnational research involving pilot Within such a context, the European Greens projects and common research institutions; are amongst the main promoters of green jobs, locating decentralised renewable energy sources through the framework of the Green New Deal. mapped on an intelligent European electricity A main goal in this regard is the shift towards grid and the application of the principle of sub- sustainable energy production, until 100% use sidiarity – whereby supranational communities of renewable energy is reached in 2050. This come into play only when “objectives cannot be would create new employment opportunities attained fully at the local or national levels, or can whilst enhancing European competitiveness, Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State [13]

energy security, and cutting down CO2 emissions, mental and social crises (http://europeangreens. amongst other improvements (Pierini, 2010, p. 7). eu/greennewdeal/). It is also being promoted by The European Greens believe that during the others such as the Green European Foundation process, a minimum of 20% renewable energy is (GEF), Environmental NGOs, the New Economic to be reached within the EU by 2020, whilst CO2 Foundation and the United Nations (http://www. emissions are to be reduced by 40% in the same gef.eu/about/structure/). period, compared to 1990 levels. Concurrently, a European energy supergrid should be created As a policy framework, the Green New Deal (ibid., p. 8). In this regard, the EU has opted for combines stabilisation in the short term with a less ambitious 20 per cent reduction of CO2 longer-term restructuring of the financial, taxa- emissions and 20 per cent renewable energy, tion and energy systems. While it is international amidst criticism from Greens and Environmental in outlook, it requires action at local, national, NGOs for being too weak and for being too leni- regional and global levels (GND Group, 2008, ent on carbon offsets (http://www.planetark.org/ p. 3). It is designed to address the contempo- wen/50953). In this context, Malta requires to rary and future threats confronting society and produce 10 per cent of energy from clean renew- to restore stability to our financial, political and able sources by 2020. This includes energy from ecosystems through a “joined-up thinking” (GND transport, electricity, heating and cooling (MEPA, Group, 2008, p. 6).

2010, p. 31). Malta was also obliged to limit CO2 emissions increase by 5 per cent by 2020 (http:// The Green New Deal rests on three important pil- eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri lars. Firstly, it addresses the re-regulation of the =OJ:L:2009:140:0136:0148:EN:PDF). financial markets which works toward sustainable economic development. The second pillar These projections mark a shift in the medium and rests on the environmental and social restructur- long term aims of policy making on a macro and ing of society, driven by measures that address micro level. The “Green New Deal” policy frame- climate change, education, social justice as well work, which is a trade mark of this shift will be as green industrial policy. The third and last dealt with in the following section. pillar focuses on the renewal of the social contract between the North and South divide and The Green New Deal between the rich and poor countries (Bütikofer and Giegold, 2009, p. 9). The idea of the Green New Deal is partially inspired by the USA’s “New Deal” political frame- The Green New Deal targets state investment in work that was realised in the 1930s by President consumption and production activities which not Roosevelt as a state response to the biggest only produce goods and services, but also pre- recession in human history, which consisted of vent, limit, minimise or correct environmental a “growing unemployment, a decline in the eco- damage to water, air and soil, as well as prob- nomic production and a drastic increase of public lems related to waste, noise and eco-systems debt” (Szwed, 2011, p. 7). At that time, however, (GND Group, 2008, p. 10). It offers a 10 year action the New Deal did not give priority to ecologi- strategy to protect the global climate, propose cal policy, but focused on social and economic new economic dynamism, promote new justice issues. In other words, environmental policy was and create sustainable jobs. It also presents itself not an element of activism of any country at that as an opportunity to tackle the present global cri- time (ibid.). ses by embarking in a “common effort” (Bütikofer and Giegold, 2009, p. 36). Hence the Green New The Green New Deal, on the other hand, con- Deal presents a concrete framework for world sists of a number of policies that are aimed economic recovery, whilst creating green jobs in to address and solve the threats posed to the the process. natural world, the global economy and our livelihoods by a triple crunch that is the financial It is against the background of this global econ- crisis, climate change and high oil prices (GND omy that this study tries to explore the viewpoints Group, 2008, pp. 1-2). The European Green Party of Maltese civil society about the importance is promoting the Green New Deal through macro- and incidence of green jobs in Malta. One of the economic, financial and social policies aimed at scopes of the investigation in this study is to promoting alternatives to the economic, environ- see whether key players involved in civil society [14] Green Jobs from a Small State Perspective. Case studies from Malta.

have the tendency to fall in the dichotomy trap of society. It is to be noted that the combined mem- defining sustainable energy as either a last resort bership of the two trade unions taking part in this which has to be lumped or a phenomenon of the survey, namely GWU and UĦM , amount to more latest development. Given the scant reference to than 80% of the total number of registered union- small states in the EU literature this academic ised members in Malta. exercise may hopefully fill a part of this lacuna. DATA ANALYSIS METHODOLOGY The Small States’ Context The method used to collect data for this analysis was elite interviewing which consisted of a The literature review of this study pointed out qualitative research survey conducted to a select the various development challenges such as group of key persons involved in the main organi- remoteness, small local niche markets and dis- sations representing the Maltese civil society. On economies of scale which small island states the basis of their relative experience and com- such as Malta has to face (The World Bank, 2000, mitments these key persons are considered to be pp. 1-3). However, rather than being considered experts in their respective fields. as drawbacks, these challenges are seen by the participating entities in this research as an oppor- Elite interviewing is characterised by a situation tunity to obtain more environmentally friendly in which the respondents are chosen because measures which are less damaging to the social of their high levels of knowledge of the subject and natural environment. In fact, UĦM’s inter- matter under discussion and their general intel- viewee stated that if the Maltese Government lectual and expressive abilities (Burnham et al., seriously addresses these challenges to create 2004). According to Beth L. Leech (2002, p. 663 as green jobs, this sector can become one of the cited in Burnham et al., 2004), “elite interviewing main sources of employment on the Maltese can be used whenever it is appropriate to treat a islands. This point was corroborated by the respondent as an expert about the topic in hand.” GWU’s interviewee who stated that the benefits Catherine Marshall and Gretchen B. Rossman of green jobs would (1999, p. 114 as cited in A. Zammit, 2002) claim that one of the advantages of elite interviewing “far outweigh any traditional job losses as is that “elites respond well to inquiries about better paid jobs will be created.” broad areas of content and to a high proportion of intelligent, provocative, open-ended questions Furthermore, the interviewee on behalf of FoE that allow them the freedom to use their knowl- was confident that if the Green Jobs project is edge and imagination.” Nevertheless, there are well implemented, Malta could three main disadvantages in elite interviewing, namely that in certain cases informants may be “offer its services to other countries espe- difficult to contact because of their busy sched- cially since it could be seen as a stepping ules, they can also refuse to be interviewed and if stone to northern African countries that have they decide to participate, they can assume con- a huge potential.” trol during the interview because of their position and their experience in public life (Marshall and Nature Trust’s representative added that while Rossman, 1999, as cited in A. Zammit, 2002). the size of a country might be seen as a handicap,

Unfortunately some organisations did not reply to “if used well can be a case example for other the recruitment letter, whilst others turned down states.” the invitation due to lack of time and lack of knowledge. Others promised to send feedback, but The statements are in line with the beliefs never did. The organisations that accepted to take expressed by the World Bank (2000, p. 3) wherein part in this survey were the two largest Maltese it has been emphasising, that addressing these trade unions namely the Unjoni Ħaddiema challenges is in everyone’s interest, and an ongo- Magħqudin (UĦM) and General Workers Union ing work program of actions, and the successful (GWU) and two Environmental NGOs (Nature development in small states depends on innova- Trust Malta and Friends of the Earth (FoE Malta) tive initiatives. which are two prominent ENGOs in Maltese civil Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State [15]

Perceptions on The Green New Deal activism” (Szwed, 2011, p. 7) in those countries that want to address the critical situation of the When respondents were asked to identify the environment as well. The respondents to this current challenges that Malta is currently facing survey seem to have grasped this new reality. in this regard the spokesperson of Nature Trust and Friends of the Earth mentioned amongst Green Jobs in Sustainable Energy: other factors the current global economic crisis. the current situation This is a challenge which the Green New Deal as a policy framework is aiming to address. The Respondents showed different degrees of aware- financial crises together with climate change and ness about the incidence and variety of green jobs high oil prices are threats that are endanger- in sustainable energy sector in Malta. Specific ing the global economy, and in the process also references to sustainable energy sector were causing harm to the environment and people’s sometimes missing in their responses. NGO rep- lives (GND Group, 2008). resentatives focused on jobs in the fields of solar and wind energy, albeit Friends of the Earth Malta According to the GWU’s respondent, various (FOE) also referred to academics, thus adopt- NGOs have organised seminars and acted as ing a more holistic vision of employment within pressure groups so that Government meets the the green industry, as proposed by Angelov and renewable energy targets by the year 2020 as Johansson (2011, p. 247). laid down by the European Union. Even the FoE’s interviewee added that his ENGO is Friends of the Earth also recognised that research on sustainable energy is being carried out within “lobbying with stakeholders in creating more the University of Malta. Nevertheless with the green jobs with an aim in fulfilling a sustain- exception of the GWU, the respondents do not able future.” know of any employee training programmes on sustainable energy that are being organised. The The spokesperson of UĦM stated that as a trade General Workers Union (GWU), claimed that in union, it is spite of some initiatives in this regard the programmes are limited. “continuously promoting sustainable energy development, waste separation, recycling of As regards job conditions and wage levels within raw material and thus green jobs creation.” Malta’s sustainable energy sector, the UĦM expressed overall satisfaction as it claims that On the other hand the representative of the GWU the wages of unskilled workers in the sustainable stated that his union has been actively press- energy sector tends to be higher than average ing government to draw out a strategic plan for wages of their counterparts in other sectors. This the creation of a green economy. This point was view is not shared by the GWU spokesperson who highly emphasised by the GWU as otherwise the referred to the low wages in waste collection and 2020 EU Renewable Energy targets would not be recycling and the poor working conditions simi- achieved. The stand taken by these organisations lar to those of low paid workers. The Union also and their proposals are in tune with the calls for expressed its concern about the loss of traditional policies “to protect the global climate, propose jobs through the development of the sustainable new economic dynamism, promote new jus- energy sector in Malta. However it still feels that tice and create sustainable jobs” (Bütikofer and benefits outweigh negative outcomes. Giegold, 2009, p. 36). The Nature Trust spokesperson said that wages These views about the way Maltese Government in the sustainable energy sector are very low and is being advised to address the issue of Green working conditions are not satisfactory. According Jobs correspond with the ideal of an “expanded to the ENGO the main challenges related to green vision” as espoused by Barbier (Barbier, 2009). jobs in the sustainable energy sector are short- The focus of the “New Deal” is much wider and term profits, the need to save existing jobs, the deeper than that of 1930s which limited its focus current economic context, and lack of knowledge. to social and economic issues. In other words Friends of the Earth said that in some sectors, the “Green New Deal” environmental policy of such as those employing highly educated work- the new Green Deal is becoming an “element of ers, wages were reasonably decent, but in others, [16] Green Jobs from a Small State Perspective. Case studies from Malta.

wages were on the low side. The ENGO added that “…we feel that our country is very well geo- conditions vary between one firm and the other. graphically placed and has the potential to enter the export market.” Friends of the Earth referred to the lack of an adequate investment in the sustainable energy Another theme emerging from the data analysis sector. Although it admits that this may be due is that the implementation of a policy on green to Malta’s small size and its relatively limited jobs in sustainable energy calls for the need of a market it still believes that this sector has the well-educated workforce, particularly in the fields potential to expand and in the process create of engineering, technical, research and environ- more jobs as happened in other countries such mental management. NGOs were particularly as Austria: vocal on this need. With regard to the availabil- ity of human and material resources related to “Low tech and low cost solutions, such as green jobs in sustainable energy in Malta, there home made solar water heaters have created were mixed opinions among respondents. For a niche in countries like Austria”. example, as regards new technologies that can support EU 2020 targets Friends of the Earth These responses tend to confirm the concern pointed out that, expressed by Angelov and Johansson (2011, p. 252) and emphasised by the European Greens “…not enough investment has been made in (Pierini, 2010, p 12) and the European Parliament this sector. Some out of the box ideas need to (2010) on the unevenness in the creation of green be considered too. Low tech and low cost solu- jobs and on the need to look at the quality of such tions, such as home-made solar water heaters employment. have created a niche in countries like Austria.”

Incidentally ENGOs, in comparison to other Common and transnational actions featured civil society organisations, were recognised by prominently in the respondents’ recommen- respondents as being the ideal agencies for dations. The GWU spokesperson referred to the generation of awareness on the importance the national and EU pipeline projects involving of green jobs. As regards the role of employers the allocation of Malta on the EU Intelligence and the Government in this regard there was no Electricity Grid; the installation of an offshore unanimity. The UĦM representative identified gov- wind farm and the production of gas from land- ernment as being one of the key agents for the fill waste. In line with the principle of subsidiarity creation of green jobs through Wasteserv which is (Fücks in Schreyer & Mez, 2008, pp. 8-10). Friends a Government agency responsible for waste man- of the Earth mentioned government strategies agement), and the state-owned Water Services that are independent of EU funding, to indirectly Corporation. The trade unions through their support green jobs by granting subsidies on solar increasing level of awareness of the importance of water heaters/solar panels. Nevertheless, UĦM such jobs could also play a crucial part. The EU noted that in Malta, the management of sustain- was viewed positively with respect to the creation ability projects is centralised within Government. of green jobs, through its Directives and funding. The need for increased inclusion of civil society While overall respondents endorsed the EU-wide and decentralisation was also sustained by the policies in this respect FOE and GWU said that General Workers Union: these policies should take into account the specific context in which they have to be implemented. “…the GWU had on several occasions suggested to Government to give its full assistance A Sustainable Energy Policy? for the creation of cooperatives to conduct Challenges and prerequisites energy audits for households and industry. This is just one example of a concrete proposal There was wide consensus among respondents put forward by the GWU.” about the adoption of a policy on sustainable energy. The UĦM expressed its willingness to con- Respondents were also in synch with a policy tribute to the promotion and implementation of advised by the World Bank of combining a sustain- such a policy. The GWU tends to look more on the able energy economy to broader areas of society, strength of Malta’s strategic geographical location such as financial services, information technol- which may be used to its advantage. It argues that, ogy and e-commerce (The World Bank, 2000, Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State [17]

pp. 45-46); they recommended that a sustaina- acknowledge that it may lead to some jobs losses ble energy policy should provide ample space for in particular sectors. But they still believe that collaboration. Friends of the Earth made refer- benefits, which this shift can bring about, out- ence to the ongoing research programmes of the weigh these negative repercussions. This strong Energy Institute at the University of Malta. belief is however tempered with a serious concern about uneven developments within the The context within which these policies have green job market, which may create skill mis- to be implemented was emphasised by some matches and give rise to precarious employment. respondents. The thrust of their argument is that There seems to be a wide degree of consensus the policy has to be adapted and/or customised among the key players of Maltese civil society to the specific needs and situation of the state that the smooth implementation of a green sus- concerned: tainable policy depends heavily on a holistic and inclusive approach characterised by consultation “The GWU is very much in favour of adopting and decentralisation, and finding the ideal mix of an EU-wide mainstreamed policy that takes macro and micro policies. Overall respondents into account Malta’s limitations and economic believe that smallness should not act as a deter- circumstances.” rent to policy makers. Through innovative policy making and exploitation of Malta’s geographical What this implies is that the formulation and position and its natural and human resources, implementation of a policy on green jobs in sus- the shift to a green sustainable economy can be tainable energy calls for consultation, dialogue successfully implemented. The supportive role of and decentralisation. Such a consultative and civil society as amply shown in the responses of wide participative approach might enable the its key respondents fulfils the need identified by actors involved in pre-empting the repercus- Sutton to synthesize economic, social and envi- sions, such as the loss of traditional jobs, that ronmental priorities through the involvement of might result from the enlargement of green jobs the State and civil society by means of coopera- in sustainable energy sector. tion at international, national and local levels (Sutton 2004). Such support augurs well for the CONCLUSION future prospects of green jobs in Malta.

The data emanating from this qualitative survey Hence, consciousness on the green job potential shows that the representatives of Maltese civil exists within civil society in Malta. In itself, this society are aware of and knowledgeable about augurs well for the myriad of challenges and the shift towards sustainable-energy use and opportunities which Maltese society is likely to its potential of creating green jobs. They also encounter in relation to sustainable energy use.

List of References:

Angelov, N., & Vredin Johansson, M. (2011). Green Jobs. In T. Fitzpatrick (Ed.), Understanding the environment and social policy (pp. 245-269). Bristol: Policy Press.

Barbier, E. B. (2009). Rethinking the Economy Recovery: A Global Green New Deal (pp. 1-144). United Nations Environment Programme (UNEP). USA: University of Wyoming, Laramie.

Burnham, P., Gilland, K, Grant, W., Layton-Henry, Z. (2004). Research Methods in Politics. Hampshire: Palgrave Macmillan.

Bütikofer, R. and Giegold, S. (2009). The New Green Deal. Climate Protection, New Jobs and Social Justice (pp. 1-40). Brussels: The Greens – European Free Alliance (EFA).

Commonwealth Secretariat / World Bank Joint Task Force on Small States. (2000). Small States: Meeting Challenges in the Global Economy. [18] Green Jobs from a Small State Perspective. Case studies from Malta.

European Parliament (EP). (2010). Developing the job potential of a new sustainable economy. European Parliament resolution of 7 September 2010 (2010/2010(INI).

Eurostat (2010). Europe in figures. Eurostat yearbook 2010. Luxembourg: Publications Office of the European Union.

Green European Foundation. (2009). A Green New Deal for Europe. Towards green modernization in the face of the crisis. Brussels: Green European Foundation.

Green New Deal (GND) Group. (2008). A Green New Deal (pp. 1-46). Joined-up policies to solve the triple crunch of the credit crisis, climate change and high oil prices. London, UK: New Economics Foundation.

Hochfeld, C., Kabel, C., Acker, H., Barth, R., Gensch, C., Kallenbach, B., Schmidt, G., & Timpe, C. (2010). Sustainable Industry Policy for Europe: Governing the Green Industrial Revolution. Green New Deal Series, Volume 3. Brussels: Green European Foundation. Institute for Applied Ecology.

Malta Environment and Planning Authority (MEPA). (2010): The Environment Report 2008. Malta: MEPA.

Office of the Prime Minister (OPM). (2011). National Environment Policy. Draft for Consultation September 2011. Malta: Office of the Prime Minister.

Pierini, J. (Ed.) (2010). The Green New Deal in the European Parliament. Brussels: The Greens / EFA in the European Parliament.

Schepelmann, P., Stock, M., Koska, T., Schüle, R., & Reutter, O. (2009). A Green New Deal for Europe: towards green modernization in the face of crisis. Green New Deal Series, Volume 1. Brussels: Green European Foundation. Institute for Applied Ecology.

Schreyer, M. & Mez, L. (2008). ERENE: European Community for Renewable Energy. Volume 3. Berlin: Heinrich Böll Foundation.

Sutton, P.W. (2004). Nature, Environment and Society. New York: Palgrave Macmillan

Szwed, D. (2011). Green New Deal in the World, in Europe, in Poland? In Szwed, D. (Ed.), Green New Deal in Poland (pp. 7-12). Luxembourg: Green European Foundation.

The World Bank. (2000). Small states: meeting challenges in the global economy (pp. 1-127). Report of the Commonwealth Secretariat / World Bank Joint Task Force on Small States. Retrieved from The Commonwealth website: http://www.thecommonwealth.org/Shared_ASP_Files/ UploadedFiles/03D192EA-CCF2-4FA2-96B3-F7DA64AD245B_taskforcereport.pdf Retrieved 28th October 2011.

United Nations Environment Program (UNEP). (2008). Green Jobs: towards decent work in a sustainable, low-carbon world (pp.1-352). Retrieved from the UNEP website: http://www.unep.org/PDF/UNEPGreenjobs_report08.pdf

Zammit, A. (2002). Attitudes to the environment: a sociological study of mayor’ attitudes from fourteen local councils in Malta and Gozo. Unpublished MA thesis, University of Malta. Chapter 2. A Civil Society Perspective of Sustainable Energy Policy and Green Jobs in Malta as a Small EU State [19]

Consulted Internet Sites:

http://europa.eu/about-eu/countries/index_en.htm Retrieved 28th October 2011

http://europeangreens.eu/greennewdeal Retrieved 28th October 2011

http://www.gef.eu/about/structure/ Retrieved 28th October 2011

http://www.thecommonwealth.org/Internal/180407/ Retrieved 28th October 2011

Consulted URLs:

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2009:140:0136:0148:EN:PDF Retrieved 28th October 2011

http://www.greenjobsmalta.com/downloads/ETC%20Report.pdf Retrieved 28th October 2011

http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+REPORT+A7-2010- 0234+0+DOC+PDF+V0//EN&language=EN Retrieved 28th October 2011

http://www.planetark.org/wen/50953 Retrieved 28th October 2011 [20] Green Jobs from a Small State Perspective. Case studies from Malta.

Chapter 3. The Artisan: A Sustainable Entrepreneur Leonie Baldacchino, Christine Cutajar

Abstract into the world of artisans, one may be surprised by the powerful and practical contributions that The thrust of the argument in this paper is that they could make to the holistic values of sus- artisans can make valuable contributions to the tainable development. This paper aims to show holistic values of sustainable development. These that it is possible and beneficial for artisans to contributions could include both environmental incorporate all three (environmental, social and concerns, such as the reduction and recycling of economic) elements of sustainability into their waste and the use of local, natural materials in practice, and that in so doing, they would become craft production, as well as the social aspects of sustainable entrepreneurs who could contribute developing and preserving local knowledge and to the fourth element of sustainability: a sustain- skills and the provision of sustainable employ- able culture. This paper presses home the point ment and self-actualisation opportunities. These that artisans could and should be sustainable would in turn be of value in economic terms, as entrepreneurs, thus making a contribution to the they would enable artisans to develop “pros- literatures on crafts and on sustainable entrepre- perous, vibrant enterprises” (Ferraro, White, neurship. Cox, Bebbington, & Wilson, 2011, p. 21) which incorporate all three (environmental, social and A second aim of this paper is to identify some economic) elements of sustainable development, of the threats and challenges faced by artisans thus transforming artisans into sustainable in Malta, given the small island state context in entrepreneurs. This paper forms part of a larger which they operate, coupled with the particular research project currently being conducted difficulties inherent to the genuine crafts sector. among artisans in Malta, aimed at assessing the A third and final aim of this paper is to suggest current conditions and practices of Maltese arti- measures which would encourage artisans to sans and their traditional craft production in the engage in sustainable practices and which would light of creativity, innovation and sustainability. safeguard their existence and prosperity in the It reports on an informal preliminary round of face of their ever-increasing vulnerability. research carried out with artisans at the Ta’ Qali Crafts Village in Malta, which sheds some light After defining the artisan and reviewing the upon certain unfavourable conditions that are literature on sustainability and sustainable entre- threatening the survival of traditional artisans preneurship, this paper provides an overview of in Malta. These include unfair competition from some of the ways in which artisans could incor- mass produced imports, an inadequate certifica- porate the environmental, social and economic tion system for genuine crafts, uninformed and elements of sustainability into their practice in unappreciative local customers, and fluctuations order to become sustainable entrepreneurs. It is in tourist rates. The paper concludes by giving against such a background that the threats faced an outline of the steps that should follow this by artisans in Malta are highlighted. The focus preliminary research, and by making practical of this paper is on artisans who are engaged in recommendations for the survival, prosperity and commercial activity and are therefore deemed sustainability of genuine Maltese artisan enter- to be subject to the same general conditions as prises in the context of a market that is not other SMEs operating in a small island state. congenial to artisans. The literature review sheds light on these conditions, even though it has to be stated that the Keywords: Artisans; Crafts; Sustainability; sector-specific challenges to which artisans are Sustainable Entrepreneurship; Small Island State susceptible have not yet been adequately documented in the literature. This paper attempts to 1. INTRODUCTION identify these challenges by means of an informal exploratory study conducted among artisans Human creations which are moulded through the at Ta’ Qali Crafts Village in Malta. As this paper creative process of the artisan are often superfi- forms part of a larger research project currently cially valued solely on the basis of their aesthetic being conducted among artisans in Malta, an and functional features. However, delving deeper outline of the future research steps is provided, Chapter 3. The Artisan: A Sustainable Entrepreneur [21]

followed by practical recommendations for the be utilitarian, aesthetic, artistic, creative, cultur- survival and sustainability of the genuine artisan ally attached, decorative, functional, traditional, enterprise. religiously and socially symbolic and significant” (ibid.). Although some authors (e.g., Cox & 2. DEFINING THE ARTISAN Bebbington, n/d) view crafts as being produced in limited amounts, the UNESCO/ITC report does A common approach in defining the artisan is to not place any quantity restrictions in their classi- refer to the crafts that artisans produce and to fication of crafts. It does, however, list the use of the processes involved in their production. The raw materials from sustainable sources as part artisan is in fact often called a craftsman, while of their definition. the practice in which artisans are engaged is termed craftsmanship. This paper adopts a sim- In the view of the above, this paper defines an ilar approach, defining artisans by virtue of the artisan as a skilled person who creates objects processes in which they engage and the crafts of aesthetic and/or functional value, mainly that they produce. What, then, are crafts and by manual labour, using traditional craft tech- craftsmanship? niques and/or materials.

Metcalf (1997) draws a distinction between 3. DEFINING SUSTAINABLE “craft-as-skilful-labour” and “craft-as-a-class- DEVELOPMENT of-objects” (p. 69). The former refers to a skill and “implies learning and expertise applied to In line with the huge leaps that have been work” (p. 69), while the latter refers to a physi- made over the years where scientific and tech- cal object, or to the product of skilful labour. In nological discoveries are concerned, human order to classify as a craft, such a physical object beings have devised an ever-increasing array of must possess at least one of the following char- ways in which to use and abuse Earth’s natural acteristics. First, it must be “crafted”, or “made resources. Decades ago, it may have appeared substantially by hand, utilising the hand itself, that the abundance of nature is infinite, leading to hand tools, and to some degree, power tools” (p. the misconception that nature is ours to exploit, 70). Second, an object would be classified as a not only to provide the necessities required for craft if it is made out of “traditional craft mate- survival, but also to lead an indulgent, luxurious rials, use of traditional craft techniques, and life. This has resulted in the squandering of nat- addressing a traditional craft context” (p. 70). To ural resources and the production of excessive Metcalf, traditional craft techniques and mate- amounts of harmful waste and toxins. Recent rials are ones which have been in use since the times have however witnessed a growing aware- pre-industrial period. Although these criteria are ness that natural resources are not at all infinite, quite flexible, Metcalf maintains that “the more and that human activity has a huge impact on the an object exemplifies these characteristics, the natural environment. Environmental problems more craftlike it is” (p. 69). such as climate change are now seen as warning signs from nature that our extravagant lifestyles Metcalf’s views of crafts are in line with the defini- may be compromising the possibility for future tion provided in the final report of an international generations to lead healthy, productive lives. symposium on crafts and the international market held by the United Nations Educational, In response to the above, the concept of sustaina- Scientific and Cultural Organisation (UNESCO) ble development has emerged to promote a more in collaboration with the International Trade considerate use of natural resources and preser- Centre (ITC) in 1997. This report defines crafts vation of the natural environment. This concept as those tangible products which artisans mould originated from the North-American Iroquois entirely with their own hands, or partially with tribes’ philosophy which stated that “Sustainable the help of tools or machinery, “as long as the development is development that meets the direct manual contribution of the artisan remains needs of the present without compromising the the most substantial component of the finished needs of future generations to meet their own product” (UNESCO/ITC, 1997, p. 6). This report needs”. In 1987, the Brundtland Commission further specifies that the values emerging from (then known as the World Commission on the unique characteristics of the particular crafts Environment and Development – WCED) adopted result “from their distinctive features, which can this definition, and named environmental, social [22] Green Jobs from a Small State Perspective. Case studies from Malta.

and economic development as the three cru- technologies” (Katsikis & Kyrgidou, 2007, p. 2). cial pillars upon which sustainable development The second “P”, People, relates to the social must be built. dimension and is concerned with the behaviour of organisations in social and ethical issues. This In more recent years, culture has been argued includes the way organisations treat their employ- to constitute a fourth pillar that is essential for ees and whether they promote social cohesion sustainable development, as it is embedded in and protection of human rights (Crals & Vereeck, the value systems of societies and is therefore a 2004). The social dimension of sustainable entre- key determinant of behaviour. Ehrenfeld (2005) preneurship aims to achieve social change and to maintains that “underlying cultural values will make resources available to a larger number of always trump technology and design in deter- people. While financial gains are understood to mining behaviour. It is at that bedrock level that be essential in order to ensure viability, the focus the foundation for sustainability must be built” of the social dimension is primarily on creating (p. 25). Nurse (2006) concurs and explains that social value (Katsikis & Kyrgidou, 2007). The third “culture shapes what we mean by development “P”, Profit, relates to the economic dimension and and determines how people act in the world” refers to the financial results of organisations, (p. 37). A culture which is built upon the princi- together with the use and allocation of resources ples of sustainable development thus provides an for employment, investment in machines, and internal platform for society to nurture the other distribution of returns between key players in the three pillars of sustainable development and to entrepreneurial process (Crals & Vereeck, 2004). incorporate them into daily life. A shift in cultural values is thus pivotal for creating sustainable Another conceptualisation of the 3 Ps model is societies the Triple Bottom Line view of entrepreneurship, which evaluates organisations not only on the 4. DEFINING SUSTAINABLE basis of their financial performance but also in ENTREPRENEURSHIP terms of their environmental and social achieve- ments (Chapas, 2003). “Sustainable entrepreneurship is a combina- tion of creating sustainable development on the It is hereby argued that for entrepreneurs to one hand, and entrepreneurship on the other move towards more sustainable practices, they (Masurel, 2007, p. 191).” need to fully embrace the values of sustainability as their personal worldview. These values would Sustainable entrepreneurship is a spin-off concept ensure that they would always consider the social which is derived from the notion of sustainable and environmental aspects when pursuing eco- development. Crals and Vereeck (2004) explain nomic opportunities. This argument stresses the that “sustainable entrepreneurs are those compa- cultural element of sustainability as discussed in nies that contribute to sustainable development by Section 3 above, which maintains that the con- doing business in a sustainable way” (p. 2). While cept of sustainability needs to become embedded traditional businesses are concerned exclusively in the mindset and cultural values of a society. with financial gains, sustainable entrepreneurs are also concerned with environmental and social 5. THE BENEFITS OF SUSTAINABLE matters. Therefore like sustainable development, ENTREPRENEURSHIP sustainable entrepreneurship is built upon the pillars of environmental, social and economic At this stage, one may ask: Why should an entre- development. preneur be concerned with anything other than making profit? What would motivate an entre- These pillars are sometimes referred to as the preneur to invest energy, time and money in 3 Ps: Planet, People and Profit. The first “P”, safeguarding the natural environment and soci- Planet, refers to the environmental dimension ety, rather than on maximising financial gain? and is concerned with the impact organisations How can the concept of sustainability become have on the natural environment. This includes ingrained in the entrepreneur’s mindset? the protection of natural resources and ecosys- tem (Crals & Vereeck, 2004), and involves the Bos (cited in Crals & Vereeck, 2004) identifies two “discovery and implementation of new, more main reasons for organisations to act in socially environmentally friendly, product or process and ecologically responsible ways. The first is Chapter 3. The Artisan: A Sustainable Entrepreneur [23]

because not doing so generates bad publicity Ultimately, the three dimensions are highly inter- for the organisation. The second is concerned related, as one often leads to the others, with with the idealism that drives so many organisa- possible problems and opportunities occurring tions which view themselves as more than solely within and among them. Masurel’s (2007) findings profit-making ventures. indicate that many SMEs invest in environmental measures primarily for employment-related It is interesting that many large, often multina- reasons such as care for the well-being of tional organisations publicise their Corporate employees. He thus argues that “Planet” and Social Responsibility (CSR) practices. Although “People” are interconnected. He also identifies a they may share the true sustainability idealism, connection to “Profit”: it is clear that the CSR publicity is a form of marketing aimed at building a positive reputation as “improvement of the working conditions may being environmentally and socially conscious. result in employees having better motivation Basu et al. (2008) note that unlike large organisa- and less sick leave, thus increasing their pro- tions with plenty of cash at their disposal, many ductivity. This connection between ‘planet’, SMEs have limited resources and may be una- ‘people’ and ‘profit’ completes the traditional ble or unwilling to dedicate the time and funds sustainability circle (p. 199)”. required to become sustainable. In making a case for sustainable entrepreneurship, it is therefore 6. THE ARTISAN: necessary to demonstrate that there are numer- A SUSTAINABLE ENTREPRENEUR? ous benefits that could outweigh the costs of investing in environmental and social concerns. The above discussion leads to one of this paper’s central questions: How can artisans incorporate Crals and Vereeck maintain that “sustainable all three elements of sustainability (environmen- entrepreneurship gives companies an oppor- tal, social, and economic) into their practice in tunity to distinguish themselves from others” order to make the transition towards becoming (p. 6), and note that the Dow Jones Sustainability sustainable entrepreneurs who could contribute Group Index indicates that sustainable enter- to the fourth element of sustainability: a sustain- prises financially outperform non-sustainable able culture? At this point, one should note that ones. They add various other reasons why enter- while it is clear that all these elements need to prises should adopt a sustainable approach. be present to some extent in order to be consid- These include being less dependent on depleted ered as a sustainable entrepreneur, the specific resources, higher motivation of employees and actions which must be taken and the degree to attractiveness for new employees, efficient pro- which they must be incorporated in an enterprise duction due to superior technologies and better are subjective and debatable. The suggestions skilled staff, superior insight in market pref- provided below are therefore guidelines which, erences and opportunities, lower burden from if followed, would lead artisans towards becom- changes in (environmental and social) legislation, ing sustainable entrepreneurs. The greater the and business partnerships with other sustainable extent to which these suggestions are embedded entrepreneurs and global players. within the artisans’ personal values and business practices, the more they may be said to have Furthermore, although the environmental, social made the transition towards sustainable entre- and economic dimensions of sustainable entrepre- preneurship. neurship may be separated to facilitate discussion, Basu et al. (2008) note that in practice these per- First of all, in order for artisans to be consid- spectives are closely linked. As noted by Crals ered as sustainable entrepreneurs, they need and Vereeck (2004), “a company does not operate to engage in practices that are environmen- on a deserted island, but is embedded in an eco- tally-friendly. At a very basic level, this would nomic, social, cultural and ecological environment” include measures such as the reuse of materi- (pp. 2-3), all of which constitute threats, obligations als (if possible), the reduction and recycling of and opportunities. Sustainable entrepreneurs have waste and the use of alternative energy sources. a responsibility not only towards their investors and Furthermore, as argued by Cox and Bebbington shareholders, but also towards nature, society and (n/d), one should consider what raw materials future generations (Basu et al., 2008). are used to produce the craft, where these materials originate, how they are transported to the [24] Green Jobs from a Small State Perspective. Case studies from Malta.

artisan’s workshop and how they are processed of nurturing their economic development. Their during production. Sustainable craftsmanship craftsmanship needs to lead to the generation of would aim to minimise its environmental impact financial gains in order for them to be able to sup- by making use of natural raw materials which port themselves and their families, as well as to are not treated chemically and which do not need continue producing their crafts. In simple terms, to be transported over long distances. Cox and the artisans need to sell their crafts and make Bebbington suggest that a way of reducing one’s adequate financial returns relative to the time carbon footprint is to work from home so as to they spend in producing their crafts. According reduce the environmental impact of commuting to Ferraro et al. (2011) besides offering oppor- to other destinations. tunities to “reduce environmental footprints; enhance social equity (and) build resilient com- Even if it is not always possible for artisans to munities”, craft production may also lead to the follow Cox and Bebbington’s suggestions, a development of “prosperous vibrant enterprises” case can still be made for the relative environ- (p. 21). Artisans therefore require adequate busi- mental sustainability of craftsmanship. When ness-related skills to ensure that they are able to one recalls that crafts are, by definition, made make profit from their crafts, especially if this is primarily by hand, it is easy to see that the envi- their main source of income. ronmental impact of craft production is negligible when compared to that of the millions of mass- As explained above, culture has recently been produced items that are churned out by factories argued to be a fourth element of sustainabil- in locations like Asia where preservation of the ity. According to Cox and Bebbington (n/d), the natural environment may not be at the top of the connection between craft and sustainable devel- priorities list. opment is probably the strongest at a cultural level as it increases cultural identity in both traditional Secondly, sustainable entrepreneurship requires and modern practices. As artisans develop their artisans to make some contribution to the social own unique techniques and “tricks” for producing dimension of sustainability. On an individual level, their particular craft, they contribute towards the craft production may be argued to provide artisans development of their local culture. This is in line with employment and self-actualisation oppor- with the UNESCO/ITC report (1997) which defines tunities. Recalling Metcalf’s (1997) notions of crafts as being “culturally attached” (p. 6). “craft-as-skilful-labour” which “implies learning and expertise applied to work”, and “craft-as- It is clear from the above discussion that it is a-class-of-objects” which must be produced indeed possible for artisans to incorporate all primarily by hand (p. 69), one may appreciate that elements of sustainability into their practice and craft production is a personally-involving and ful- in the process become key players in the transi- filling endeavour that allows artisans to put their tion towards sustainable entrepreneurship. It is skills and knowledge to good use and to enjoy also clear that there is much to be gained in envi- the fruits of their labour in the form of their final ronmental, social, economic and cultural terms if hand-made product. On a community level, it artisans were to be encouraged to engage in sus- may be argued that craft production involves the tainable practices as suggested above. However development and preservation of a set of local- as noted by Cox and Bebbington (n/d), the logic ised skills and knowledge which are cherished of industrialism, with its heavy machinery and and passed on through generations. The greater mass-production lines aimed at the maximisa- the extent to which a society is equipped with tion of profit, constitutes a serious threat to the its own pool of skills and knowledge, the better survival of the artisan. There is nowadays a “gen- able it is to sustain itself, and the less it needs eral tendency of technology and capitalism to to depend upon external sources for its survival. replace the more genuine and authentic forms of Craft production may therefore pave the way to a hand made production” (p. 12), such that it is sel- more resilient and sustainable society. dom economically viable for artisans to persist in their craft production. Thirdly, the economic element cannot be overlooked in sustainable entrepreneurship. An It is hereby argued that the challenges that are enterprise which operates at a financial loss faced by artisans in Malta need to be identified cannot be considered to be sustainable, so arti- and understood in order to devise a plan of action sans need to ensure that they are also capable to safeguard the existence, prosperity and sus- Chapter 3. The Artisan: A Sustainable Entrepreneur [25]

tainability of genuine artisans in the face of their of Smallness. This refers to the small size and ever-increasing vulnerability. These challenges associated lack of resources and added vulnera- are explored in the sections that follow. bility of organisations that are in the early stages of development. 7. CHALLENGES FACED BY ARTISANS IN MALTA: INSIGHTS FROM Furthermore, the Open Systems approach pos- THE LITERATURE its that organisations (including SMEs) are open systems made up of interrelated components As indicated in the introduction, the focus of this and enclosed by boundaries of varying degrees paper is on profit-oriented artisans, rather than on of permeability (Cummings, 2005a). They are those artisans who are engaged in craft produc- “inhabitants of a larger system encompass- tion as a hobby or for other non-financial gains, ing the environments in which they operate and as it is the former who may meet the criteria of on which they depend for resources” (Baum & sustainable entrepreneurship within an economic Rowley, 2002, p. 6). Such higher level systems dimension, as explained above. It may safely be or supersystems include the economic system assumed that all of these artisans would fall into of the country, together with various social, cul- the Small and Medium Enterprise (SME) category tural and demographic factors (Arnold, Cooper which comprises 99% of all businesses in Malta. & Robertson, 1998), all of which “provide con- They may therefore be argued to be subject to the straints and opportunities” for their subsystems same general conditions as other SMEs operating (Cummings, 2005b, p. 385). In this view, the SMEs in Malta. of artisans may be considered to be highly permeable open systems which in turn exist within Malta is a small island state with a total land a larger open system (the Maltese environment). area of 316 square kilometres and a population They are thus open to a double dose of vulnerabil- of just over 400,000. It is located 93 kilometres ity: as highly permeable open systems they are south of Sicily in the heart of the Mediterranean exposed to forces in the Maltese context, which Sea. This acts as a natural barrier that isolates is in turn highly susceptible to shocks in its own Malta from the rest of the world and gives rise to external environment (Baldacchino et al., 2008). the remoteness and insularity that are typical of many small island states (Baldacchino, Cassar & A recent study conducted among entrepreneurs Caruana, 2008). As a result, travel and transpor- in Malta found that creativity and innovation are tation costs to and from Malta are higher, making among the key success factors which enable local it more difficult for Malta to form part of major entrepreneurs to overcome the challenges posed centres of trade and commerce (Baldacchino, by Malta’s small island state context (Baldacchino 1999; Sultana, 2006). et al., 2008). It would be interesting to explore whether these findings hold true for the crafts Many authors consider small island states sector. This will be further discussed below. to be “doomed by the accident of geogra- phy” (Baldacchino, 2002, p. 254). Their small One may note that the very challenges posed size, remoteness, isolation and lack of natural by Malta’s small island state context could be resources increase their exposure to uncontrol- seen to be facilitators for craftsmanship as sus- lable external forces and gives rise to economic tainable entrepreneurship. For example, the vulnerability (Briguglio & Kisanga, 2004). Malta’s expense associated with the importation of raw natural resources are limited to limestone depos- materials could be used as an impetus for local its and salt, creating a heavy reliance on import for artisans to make use of locally sourced natural raw materials in most industries. A limited domes- resources, which although are limited, could tic market makes Malta’s economy dependent on be moulded by creative artisans into innovative an export market for local products (Buttigieg, crafts. Furthermore, the limited domestic mar- 2004). The absence of natural resources often ket and the expense associated with exporting forces small states to rely heavily on their human from an island need not be a disincentive. Instead resources to generate wealth (Baldacchino, 1995). artisans, whose crafts are produced by hand and often in limited numbers, could aim at developing According to Witt (2004), micro and small organ- the local market. This would be greatly enhanced isations (such as those typically operated by by a promotional campaign for local crafts as artisans in Malta) are subject to the Liability shall be recommended in Section 10.2 below. [26] Green Jobs from a Small State Perspective. Case studies from Malta.

Finally, since craftsmanship has been suggested 8.2. Key Insights to increase the resilience of a society by preserving and enhancing the pool of local knowledge A predominant theme which emerged from the and skills, it could be argued that artisans are in interviews with the artisans in this exploratory a strong position to overcome the vulnerability study is concerned with unfair competition from associated with a dependence on external sys- foreign markets. Three respondents complained tems for resources. that since the EU liberalised the market, copycat items – including the filigree Maltese Cross – are 8. CHALLENGES FACED BY ARTISANS being mass-produced in Asia, imported to Malta IN MALTA: INSIGHTS FROM AN and then sold as Maltese crafts at a significantly EXPLORATORY STUDY lower price (often around 30% cheaper).

Besides the general conditions faced by SMEs in To add insult to injury, one artisan admitted to Malta, artisans are also argued to be susceptible selling both genuine local crafts and imported to sector-specific challenges which have not yet products from the same shop with no labels that been adequately documented in the literature. An would enable a customer to distinguish the gen- informal exploratory study (which forms part of uine Maltese products from the imported items. a larger ongoing research project) was conducted Consequently, uninformed customers would in July 2011 among artisans at Ta’ Qali Crafts likely purchase the cheaper product to the det- Village in Malta to shed some light on the matter. riment of the artisan whose sales of genuine Maltese crafts are dwindling. 8.1. Method A possible solution to this problem would entail Informal interviews consisting of open-ended clearly marking the genuine Maltese crafts so questions were conducted with six respondents that customers would be able to make informed who are engaged in the crafting and/or sell- purchasing decisions based on factors other than ing of filigree, Maltese lace, plaster models and price alone. One respondent explained that the wrought iron works. The questions elicited infor- crafts sold in his shop (Maltese lace) are certi- mation on the current economic satisfaction of fied as genuine Maltese crafts by the Malta Crafts the artisans, on the difficulties that they face, Council (MCC). When asked to explain the process on their experiences with local agencies such as of this certification, he explained that the MCC cer- the Malta Crafts Council (MCC) and on the role of tifies that the items produced by his enterprise are innovation in their practice. genuine crafts and provides stickers and labels to be placed on the items. He further explained that All respondents were informed that this study had it is the artisans’ responsibility (or that of their been approved by the University of Malta Research employees) to affix the stickers and labels. Ethics Committee, and assured that their rights to anonymity, confidentiality and non-partici- When one considers that a shop may sell both pation would be respected at all times. Where local and imported products and that it is up to appropriate, the nature of the craft produced by the artisans, shop owners or employees to place the respondents is revealed in the section below the certification on the items they have for sale, in relation to a particular finding. However, when one may wonder whether this could give rise to reporting on findings which could have negative an unethical and unsustainable practice of sell- repercussions for one or more of the artisans ing imported items as genuine local crafts to (e.g., when complaints are made about the local unsuspecting buyers. This may be tempting to authorities), no details are provided about the sort a seller as it would provide wider profit margins of craft produced by that respondent in order to on the imported products, but it would be highly ensure the artisans’ anonymity. All respondents counterproductive for Maltese craft production are assumed to have participated in this study which may well come to a halt if faced with such voluntarily and with full informed consent, and to deceitful actions. have provided factual and sincere answers to the questions asked. Discussing the issue of pricing, the artisans who felt threatened by the competition from Asian imports agreed that the amount of time and effort required to produce their crafts makes it impossible Chapter 3. The Artisan: A Sustainable Entrepreneur [27]

to reduce their selling prices to be able to compete tive practices in recent years – two of these create with their Asian competitors without incurring plaster models while the other is a wrought iron financial losses. They reported that this predatory worker. Two of these respondents – one of the situation has forced many artisans to close down plaster modellers and the wrought iron worker their business and seek alternative employment. – claimed that innovation helped increase their The respondents interviewed in this study are thus levels of productivity, boost sales, employ more among “the very few lucky ones who still work in people to deal with the added workload, and cre- this field”, as one of the artisans commented. ate a safer working environment. In these cases the innovation took the form of new craft designs, One may suppose that the plans for upgrading the adoption of novel craft-making processes and the Ta’ Qali Crafts Village would be beneficial to the introduction of new machines to aid their craft artisans, but the respondents in this study were production. One of these artisans proudly reported vocal in their criticism of these plans. One artisan that his products have won two awards, includ- explained that importers and sellers of mass- ing one by the MCC for innovation. Meanwhile, produced copycat items have been given permits the third artisan who attempted to innovate his to set up large premises where they can show- craft-making enterprise reported a disappointing case and sell their products, thus overshadowing current level of sales. This artisan had created his the smaller shops where the Maltese artisans own techniques and methods for plaster model sell their genuine crafts. This artisan stated making a few years ago, during a time where that he could never compete with these types of business was flourishing, but the challenges that entrepreneurs on an equal footing and expressed he is now facing are overwhelming. his fears that eventually he might be forced to close down. 8.3. Limitations

Besides the issue of unfair competition, another As outlined above, these insights were obtained recurring theme that emerged from these inter- from six informal interviews in an exploratory views concerns the support (or lack of) from the study conducted as part of a larger ongoing local authorities, media, and consumers. Two research project among artisans in Malta. The respondents in particular complained that the aim of these interviews was simply to test the local authorities do not provide adequate sup- waters and to obtain some early indications to port and that Maltese buyers do not appreciate guide the development of the rest of this research Maltese crafts. One complained that he had project. Neither can the findings of this explora- attempted to make contact with two journalists tory study be generalised to other artisans in to feature an exhibition of his work in the press, Malta, nor can firm conclusions be drawn from but unfortunately this never materialised due to them at this stage. a lack of interest on the part of the journalists. This artisan explained that these conditions are For example, although three of the artisans inter- very de-motivating: “it kills my enthusiasm for viewed reported the introduction of innovative craft-making”. Another respondent lamented designs, processes and machinery, one cannot the lack of support from the local authorities: yet deduce that artisans in Malta are innova- “They [MCC] organise some meetings but they do tive. Furthermore, although previous research not hear me, so why should I go and waste my has found that innovation is among the key suc- time? I end up always doing my own thing... I’m cess factors of SMEs in Malta (Baldacchino on my own”. He further added that “people do not et al., 2008), and although two artisans in the appreciate it [his craft skills and products], espe- present study reported that their innovative prac- cially the Maltese”. Coupled with fluctuations in tices have led to benefits such as an increase in tourist visits and the associated drop in sales to sales, one cannot yet conclude that all artisans overseas buyers as reported by these respond- will benefit from innovation or that the findings ents, an unappreciative local market dampens of Baldacchino et al. (2008) are applicable to the the competitive spirit of the artisans involved in crafts sector. However limited in its scope and the Maltese crafts sector. findings this qualitative survey may seem to be, it highlights the sector-specific challenges which A final theme of interest in this study deals with the Maltese artisan has to face in a highly liber- the role of innovation in craft production. Three alised and open globalised market. The point that respondents reported having engaged in innova- is being stressed is that further research, based [28] Green Jobs from a Small State Perspective. Case studies from Malta.

on these insights, is needed in order to provide 10. RECOMMENDATIONS more valid and reliable data. The findings of this exploratory study are indicative of fertile ground Several recommendations may be made in the for future research and they augur well for the light of what has been reviewed, discussed and upcoming steps in this research project. revealed in this paper. These may be split into recommendations which would facilitate the 9. FUTURE RESEARCH transition of artisans towards sustainable entrepreneurship, and those which would help artisans The next steps in this research project will hope- in Malta to overcome the challenges they are fully obtain further support for the preliminary facing. Taken together, these recommendations findings presented above and obtain further would provide an indication of how the survival, insight into other issues of relevance. The threats prosperity and sustainability of the genuine and challenges faced by local artisans need to Maltese artisan and the crafts they painstakingly be extensively investigated, and a plan of action produce may be safeguarded in these treacher- needs to be devised based not upon unfounded ous times. assumptions but on the reality of the current situation. The extent to which artisans are engag- 10.1. Catalysing the Transition of Artisans ing in sustainable practices (if at all) shall also towards Sustainable Entrepreneurship be investigated to gauge the potential for a successful transition of Maltese artisans towards First, as explained above, the transition towards sustainable entrepreneurship. sustainability requires a shift in cultural values (Ehrenfeld, 2005; Nurse, 2006). The first step Of central interest to this research project is the in this slow process would be for individuals to role of innovation in the crafts sector. The prelim- become aware of the impact that their everyday inary findings of this exploratory study indicate behaviour has on the three elements of sustain- the presence of innovative practices among some ability and to understand the crucial role that they artisans in Malta. They also suggest that innova- play in preserving the world in which they live for tion may be as beneficial to artisans as it is to the benefit of present and future generations. SMEs in other sectors, as argued by the litera- This would hopefully lead to the formation of an ture on enterprise success (e.g., Pasanen, 2003; idealism of sustainability which would permeate Ramsey, 2005) and as found by Baldacchino et throughout the entire society, including the busi- al. (2008) in their study with entrepreneurs in ness practices of artisans. This is however unlikely Malta. However it is not yet clear how craftsman- to happen overnight (if at all in our lifetime), so ship, which by definition is traditional in nature further actions are required to catalyse the adop- (Metcalf, 1997) could embrace and benefit from tion of sustainability practices among artisans. innovation, which by definition involves novelty and “getting rid of the old” (Von Oetinger, 2004, The artisans need to be shown that there are p. 35). The link might be in the shift towards sus- various benefits to be reaped from adopting sustainable entrepreneurship, where artisans would tainable practices, as outlined in Section 5 above. adopt innovative practices for environmental, Then they need to learn about the ways in which social and economic aims while preserving the they can become sustainable entrepreneurs as traditions inherent to their crafts. Some light is suggested in Section 6. Additionally they should expected to be shed on these issues by the end of be offered incentives, such as tax-cuts or other this ongoing research project. fiscal benefits, to reward the adoption of sustainable practices. For example artisans could Finally, the artisans identified in this research be rewarded for environmentally-friendly meas- project as being highly sustainable, innovative ures such as the reuse of materials (if possible), and/or successful could be further studied in reduction and recycling waste, and adoption of order to identify their core skills, competences alternative energy sources. Similarly, they could and practices and to create examples of best be incentivised to impart their craft-specific skills practice for other artisans to learn from. and knowledge to the next generation to ensure that their skills and tricks of the trade do not die out with an ageing and waning population of artisans. This could begin with an introductory course delivered by artisans to students on the basics of Chapter 3. The Artisan: A Sustainable Entrepreneur [29]

craft-making. This course would be aimed at gen- addressed and upgraded to avoid misuse and to erating interest and appreciation for craft-making enable all buyers to recognise genuine Maltese among the younger generation. Once such inter- crafts from imported items. A revised system est is created, an apprentice sponsorship scheme would include greater monitoring by the authori- which provides further specialised training could ties to ensure that only genuine Maltese crafts be introduced for those students who would like are sold as such, coupled with penalties for any- to take on craft-making as their profession. It is one caught abusing the system. imperative that the values of sustainability are ingrained in these young minds at a very early Additionally, the value of genuine hand-made age so that they can act as catalysts for the shift Maltese crafts should be emphasised to buy- towards a culture of sustainability. ers to help them understand the higher price they are being made to pay for locally produced Another possible incentive may be the introduction crafts. While the tourism industry is key for the of a sustainability grading and certification sys- local economy, emphasis also needs to be made tem, whereby those artisans who meet enough of on addressing the local market to ensure a more the criteria of sustainable entrepreneurship would stable and sustainable local economy. The arti- be awarded the sustainability certificate together sans interviewed in this study complained of an with public acknowledgement. As explained above, uninformed and unappreciative local market. The publicising a concern for environmental and social recommendation made above concerning intro- issues has become a popular marketing tac- ductory courses on crafts and apprenticeship tic as it creates a positive impression of a caring schemes for artisans would contribute to rais- organisation (Basu et al., 2008). This suggested ing the interest of the public, but it is not enough. sustainability certification system would therefore What could be of great benefit for the crafts provide artisans with the opportunity of jumping on sector is a marketing campaign designed to edu- this marketing bandwagon and could be treated as cate the public about the presence of imported a pilot project which, if successful, could later be copycat items, to promote the value of genuine extended to enterprises in other sectors. Maltese crafts, and to highlight the importance of supporting local artisans for the benefit of the As economic development cannot be overlooked local economy as a whole. in sustainable entrepreneurship, artisans require adequate training in business and management A final recommendation concerns the need to skills to ensure that they are capable of running a create more favourable conditions for artisans to profitable and economically sustainable enterprise. operate their businesses. The difficulties of local artisans need to be acknowledged by the authori- 10.2. Overcoming the Challenges faced ties, and these in turn need to provide further by Artisans in Malta support to safeguard the survival, prosperity and sustainability of local artisans. Such acknowl- One of the key challenges identified by the arti- edgement and support would generate feelings of sans in this study concerns the unfair competition appreciation and empowerment among artisans, from mass-produced imports which are some- and these would in turn offset the de-motivation times sold to unsuspecting buyers as genuine reported by some of the artisans in this study in Maltese crafts. It is unreasonable to argue that the face of the seemingly insurmountable chal- such imported products should be banned, but lenges that they are currently facing. it is crucial that they can be easily distinguished from genuine Maltese crafts and that the value of 11. CONCLUSION the latter is conveyed to buyers. This would create a level playing field upon which local crafts The aims of this paper were to show that it is are better able compete with the imported items possible and beneficial for artisans to make the while safeguarding the freedom of buyers to transition towards sustainable entrepreneurship, make their own informed choices concerning to identify some of the threats and challenges what they would like to purchase. faced by artisans in Malta, and to make recommendations which would encourage artisans to The current certification system used by the MCC engage in sustainable practices and which would as explained in Section 8.2 above is clearly inad- safeguard their existence and prosperity in the equate for this purpose. It should therefore be face of their ever-increasing vulnerability. [30] Green Jobs from a Small State Perspective. Case studies from Malta.

It began by defining the artisan, crafts and crafts- end, the literature on the constraints that SMEs manship, and by reviewing the literature on in general face when operating in a small island sustainability and sustainable entrepreneurship. state like Malta was briefly reviewed as it is widely The benefits of sustainable entrepreneurship accepted that the economic activities of SMEs and were outlined in order to explain why everyone the artisans operating in the craft sector have (including an artisan) should be concerned not much in common. This was followed by a report only with financial gains but also with environ- on an exploratory study conducted among arti- mental and social issues. These were followed sans at the Ta’ Qali Crafts Village to offer some with an overview of some of the ways in which insights on the sector-specific challenges faced artisans could incorporate the environmental, by artisans in Malta. In the light of these insights social and economic elements of sustainability some recommendations, aimed at improving the into their practice in order to become sustainable plight of the Maltese artisans, were made. entrepreneurs. To conclude, it is worth stressing once again On the basis of the premise that artisans who that we are in dire need of a shift towards a cul- make the transition towards sustainable entre- ture which nurtures the values of sustainability preneurship have the potential to make very in order to safeguard the world in which we live valuable contributions to the environment, soci- for present and future generations. It has been ety and the economy, the paper provides a critical argued that artisans can play an important role appraisal of the threats and challenges being in this shift provided that they receive adequate faced by local artisans and of the measures that assistance and support to ensure their survival need to be taken to protect and assist them in the and to facilitate their own transition towards sus- present highly competitive world market. To this tainable entrepreneurship

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Chapter 4. Older Persons and Green Volunteering: the Missing Link to Sustainable Future? Marvin Formosa

Abstract levels of sustainable development. The premise of the argument is that the presence of older per- The empirical study featuring in this paper is sons in green volunteerism holds an important contextualised within the statistics provided by potential for a sustainable future. The presenta- a national survey on older volunteerism. Older tion of this argument is divided into four sections. volunteers are nowadays viewed as a valua- The first provides an overview of the background ble resource, a reliable and experienced labour context – namely, older persons, volunteering, pool. In Malta, many persons aged 60 and above and green volunteerism in later life. Whilst the volunteer many hours each month in local environ- second section provides some information on the mental organisations in their goal to preserve the methodology of the study, the third provides an earth for future generations even though they will analytical appraisal of the data emanating from not personally see the benefits. Through the data a qualitative survey. Finally, the paper recom- emanating from a qualitative survey this paper mends a number of policy options and action highlights the possible positive returns accru- strategies to improve the engagement of older ing from green volunteering in later life which persons in green volunteering. are of a physical, cognitive, and social nature. It thus argues that there is a potential for a greater THE BACKGROUND CONTEXT number of older people to volunteer in green non- governmental organisations. It is on this basis Malta’s population has evolved out of a tradi- that a number of policy options and action strate- tional pyramidal shape to an even-shaped block gies to improve the engagement of older persons distribution of equal numbers at each age cohort in green volunteering are recommended. These except at the top (NSO, 2011a). Whilst in 1985 the include expanding the participation by older per- percentage of the 60+ and 75+ cohorts meas- sons who are ageing actively, presenting green ured 14.3 and 3.8 percent, during 2010 the total volunteering as a course module in pre-retire- number of persons aged 60 and over totalled ment educational programmes, advertising green 95,145 representing 23 per cent of the total popu- volunteering as a means of self-actualisation lation. The largest share of the elderly population rather than as a form of unpaid work, and design- is made up of women, with 55 per cent of the ing green volunteer roles that do not necessitate total. Single families headed by older females high levels of education. predominate, with older women being more fre- quent users than older men of health and social INTRODUCTION care services. Population projections indicate an increasing trend in the percentage of population The subject matter of the discussion in this aged over 59, from 23 per cent in 2010 to 38 per paper is the interface between volunteerism cent in 2060. This is due to a decline in birth rate and sustainable development, with an emphasis (1.3 per family), and an increase in life expect- on the role that older adults can play in ensur- ancy at birth for men/women from 70.8/76.0 ing a better future. In most countries there is a years in 1985 to 77.7/81.4 years in 2005. The 2009 strong interest at local, state, and national level Statistics on Income and Living Conditions reveal in strengthening volunteering roles in envi- that older persons are at a higher risk of poverty ronmental management. Malta is certainly no than their younger counterparts (ibid. 2011b). exception. However, the field is firmly located in, The risk-at-poverty rate for persons aged 60 and and around, the younger and adult “territories” of over stood at 19 per cent while that for younger the life course, with older persons being generally age groups stood at 14 per cent. From the same excluded from both policy positions and empiri- survey, it also resulted that nearly 65 per cent of cal research. This paper delves into the patterns the elderly felt that they could not afford to pay of older adults in green volunteerism, and the for one week’s annual holiday away from home extent to which such activities can be individually and 11 per cent could not afford to eat a meal that enriching and socially beneficial to the commu- includes meat, chicken, fish (or vegetarian equiv- nity, whilst at the same time also leading to better alent) every second day. Moreover, 31 per cent [34] Green Jobs from a Small State Perspective. Case studies from Malta.

Table 1 : Maltese population by sex (2010)

Age Men Women Total % of population Total 207,586 210,031 417,617 100 0-59 164,762 157,710 322,472 77 60+ 42,824 52,321 95,145 23 60-74 32,426 35,509 67,935 16 75+ 10,398 16,812 27,210 7 60-64 14,931 15,416 30,347 7 65-69 9,929 10,997 20,926 5 70-74 7,566 9,096 16,662 4 75-79 5,236 7,593 12,829 3 80-84 3,090 5,088 8,178 2 85-89 1,562 2,911 4,473 1.5 90+ 510 1,220 1,730 0.5

Source: National Office of Statistics, (2011a) said that their household could not afford to face coming two decades the educational disparity unexpected expenses of €450 and over and 13 between older and younger cohorts will be more per cent said that they were not able to keep their equitable. home adequately warm. The number of employed older persons is relatively low as only about 7.1 Volunteering per cent of the older population was in gainful employment in 2010 (ibid., 2011c). Industrial societies are characterised by an increase of people’s life-and health-expectancy Of course, the aforementioned statistics do not so that a large percentage of citizens enjoy some throw light on the more humanistic dimensions fifteen to twenty years of active retirement. While of ageing and later life. This paper embraces the this can take many different forms, the present following qualitative definition of older persons: research focuses on the extent that older per- “people, whatever their chronological age, who sons participate in volunteer work. Throughout are post-work and post-family, in the sense that this study volunteering work is defined as “unpaid they are less or no longer involved in an occupa- work provided to parties to whom the worker tional career or with the major responsibilities for owes no contractual, familial or friendship obliga- raising a family” (Findsen and Formosa, 2011: 11). tions” (Wilson and Musick, 1997: 694). The setting Similar to international trends, the 2005 Census up of voluntary organisations under Maltese reported a negative correlation between age and law is regulated by the Voluntary Organisations educational status (NSO, 2007). As much as 65 per Act (Government of Malta, 2007). The law was cent of persons in the 60+ cohort had a primary introduced by means of Act XXII of 2007 with the level of education or less, with 80 percent holding intention of regulating a wide-ranging sector no educational qualifications. Some 17 percent which had hitherto been largely left to its own of persons aged 60+ were illiterate. Although devices. The law also established the office of the Census data is not broken down by gender, Commissioner for Voluntary Organisation, who research has found older women to hold a lower is the authority in charge with overseeing the educational level compared to men (Formosa, enrolment process for voluntary organisations. 2005). However, as a result of the implementa- According to the Voluntary Organisations Act, tion of educational policies in the post World War a Voluntary Organisation is an organisation which II years – especially the Compulsory Education is created or established for any lawful purpose, Ordinance in 1946 which set the compulsory as non-profit making, and is voluntary. The law school leaving age at fourteen – older cohorts also establishes a procedure for the enrolment boast a better educational record than the pre- of Voluntary Organisations in a “Register of ceding ones (ibid, 2010). This means that in the Voluntary Organisations”. Enrolment requires the Chapter 4. Older Persons and Green Volunteering: the Missing Link to Sustainable Future? [35]

fulfilment of a number of requirements, including days and weekends, tends to increase with rising the submission of annual accounts and identifica- age (tables 2 and 3). Persons aged 65 years and tion of the administrators of the organisation. It is older engaged in volunteerism for about 0.7 and noteworthy that it is not enrolment which confers 0.9 hours every weekday and weekend respec- the status of “Voluntary Organisation”; any organ- tively (national average 0.4/0.8). The same study isation that fulfils the above criteria is a Voluntary reports that retired persons in Malta engaged in Organisation. However, enrolment confers a volunteerism for about 0.8 and 1.0 hours every number of important advantages to the organisa- weekday and weekend respectively. tion. An enrolled Voluntary Organisation may (i) make collections without the need to obtain any More recently, the 2009 Survey on Income and further authorisations, (ii) receive or be the ben- Living Conditions (NSO, 2010) revealed that eficiary of grants, sponsorships or other financial 27,250 persons aged 12 and over (8 per cent of aid from the Government, any entity controlled by the total population in this age bracket) were the Government or the Voluntary Organisations doing some form of voluntary work. Just over half Fund, (iii) be the beneficiary of any policies sup- these persons were contributing in a voluntary porting voluntary action as may be developed by organisation, while 41 per cent were working in the Government, (iv) receive or be the beneficiary other institutions. Fifty-two per cent of voluntary of exemptions, privileges or other entitlements in workers were females. terms of any law, and (v), be a party to contracts and other engagements for the carrying out of When analysing the distribution by age, 36 per services for the achievement of its social purpose cent were aged between 25-49 while 32 per cent at the request of the Government or any entity fell within the 50-64 bracket. As regards the controlled by the Government. number of volunteers aged 65 and over, this was reported to amount to 3,690 – or 4.2 per cent of The National Statistics Office has also published the total number of persons aged 65 plus in 2009. a number of reports relating specifically to local The largest proportion of persons doing volun- volunteering. The Time-use study (NSO, 2004) tary work (32 per cent) were doing so through collected information on how the Maltese popu- membership organisations. They were followed lation, aged 10 years and over, spends its time. by organisations engaged in social work activi- Data shows that volunteering time, both on week- ties (28 per cent) and religious organisations

Table 2: Volunteer work (hours and per cent) per weekday and weekend by age

WEEKDAYS Age 10-14 15-24 25-34 35-44 44-54 55-64 65+ Total hrs/per cent 0.5/2.1 0.2/0.8 0.1/0.4 0.2/0.9 0.2/0.8 0.8/3.3 0.7/2.9 0.4/1.7 WEEKENDS Age 10-14 15-24 25-34 35-44 44-54 55-64 65+ Total hrs/per cent 0.9/3.8 0.5/2.1 0.5/2.1 0.7/2.9 0.8/3.3 1.0/4.2 0.9/3.8 0.8/3.3

Source: National Statistics Office, (2004)

Table 3: Volunteer work per weekday and weekend by employment

WEEKDAYS Status Employed Unemployed Student Retired Housekeeper Other Total hrs/per cent 0.3/1.3 0.3/1.3 0.3/1.3 0.8/3.3 0.4/1.6 0.7/2.9 0.4/1.7 WEEKENDS Status Employed Unemployed Student Retired Housekeeper Other Total hrs/per cent 0.6/2.5 0.6/2.5 0.8/3.3 1.0/4.2 0.8/3.3 0.9/3.8 0.8/3.3

Source: National Statistics Office, (2004) [36] Green Jobs from a Small State Perspective. Case studies from Malta.

(21 per cent). Forty-six per cent of persons Green volunteerism in later life engaged in voluntary work participated actively in the organisation’s activities, while a quarter had In recent years, green volunteerism has gained an administrative role, with the remainder having increasing visibility as an example of civic engage- a supportive role. Forty per cent of these work- ment. Following Bushway and colleagues, green ers had been doing voluntary work for more than volunteerism 10 years, while 32 per cent had been involved for less than 5 years. “includes either group or solitary activities that may be formal – where people commit their The most common purpose for doing voluntary time and skills to an organisation on a regular work was that people felt it was their moral duty; basis, such as docents at a nature preserve or persons citing this reason comprised 47 per cent park – or less formal – such as regular partici- of the total. This was followed by 23 per cent pation in outings to remove invasive weeds.” of persons who said they did voluntary work to Bushway et al., 2011: 1 meet new people or for recreation, and another 12 per cent said they did so out of sympathy for The benefits of green volunteerism are various. the needy. Nineteen per cent of persons provided They are however much more evident, when other reasons. When asked how many hours they “environmental volunteer activities directly spent volunteering in a typical month, one-third engage members of the public in the genera- said they spent less than 10 hours in such activi- tion of data and discussion of issues of personal ties. The survey also revealed that a further 27 and public concern, confidence in science-based per cent spent 10-19 hours, while 25 per cent decision making in environmental management volunteered for 30 hours or more. Males tended may be reinforced” (Bushway et al., 2011: 2). to spend longer hours doing voluntary work than Green volunteerism also produces mental and females; the average number of hours per month physical health effects, as well as a connection stood at 26 and 21 hours respectively. Persons to the natural world that is within the realm of doing informal voluntary work were most likely to the spiritual (Becker, 2001). The participation spend more time volunteering. Indeed, persons of older adults in green volunteerism has been in this category spent an average 40 hours per given scant attention in academia. The 2008 month volunteering, as opposed to 27 hours for Cornell National Social Survey, conducted by persons working within a voluntary organisation the Survey Research Institute (SRI), specifically and 20 hours for those volunteering with another addressed citizens’ connections to environmen- entity. Unemployed and retired persons, as tal management (Bushway et al., 2011). As much expected, spent more time volunteering than per- as 80 percent of respondents felt that they would sons who were working, though persons whose do what is right for the environment, even if it status was “other inactive”, such as housewives meant spending additional time and money, with and students, spent the least time doing volun- respondents being unanimous in their responses tary work. Of all those aged 12 and over living in regarding the importance of maintaining the envi- private households, 5 per cent were members of ronment for future generations. Similar trends a voluntary organisation. were noticed when data is limited to adults aged 55 plus (table 4).

Table 4: Connections to environmental management among adults over 55

Would do what is right for the environment no matter the cost 83% Think we should maintain the environment for future generations 96% Have a membership in environmental organisations 12% Engage in volunteer activities related to the environment 15%

Source: Bushway et al., (2011: 3) Chapter 4. Older Persons and Green Volunteering: the Missing Link to Sustainable Future? [37]

Librett and colleagues (2005) have conducted METHODOLOGY empirical research on the participation of older persons in green volunteerism. This study reported This paper developed as a follow-up study to a that older adults who volunteered in environ- national survey on older volunteerism in Malta mental activities were nearly “three times more commissioned by the office of the Commissioner likely to meet physical activity recommendations for Voluntary Organisation (Formosa, forthcom- than those not volunteering on environmental ing). The aim of the follow-up study, which elicited projects” (Bushway et al., 2011: 4). Although it the data and discussion presented herein, was may be argued that further research is needed to threefold – namely, to (i) unearth the participa- validitate this statement, these findings support tion patterns of older persons in Malta involved the thesis that environmentally-based volunteer in green volunteering, (ii) to make recommenda- programs could “simultaneously improve indi- tions about a number of policy options and action vidual health, increase access to physical activity strategies – at national, local, and community for the community, and improve the environment” levels, and (iii), to improve the engagement of (Librett et al., 2005: 12). Pillemer (2010) provided a older persons in green volunteering. This gener- number of reasons why environmental volunteer- ated four key objectives namely: ing and civic engagement has the potential to be highly beneficial for older people. These include gathering information on the character of green volunteerism in later life; ...volunteering that involves physical activity, discerning the motivations that inspire and as does most environmental volunteering, has encourage older persons to engage in green vol- major health benefits for older persons; unteerism; environmental volunteering promotes better uncovering the benefits that ensue from partic- health outcomes because it leads to increased ipating in green volunteerism for older persons; exposure to nature...; and environmental organizations are age-inte- developing social policy strategies to recruit grated; unlike many senior centers and related and support older persons as green volunteers. facilities, they bring together people of different ages in meaningful activities; Due to the character of the aforementioned aim ...environmental volunteering has been more and objectives, the study opted for a qualita- successful in [engaging men in later-life volun- tive methodology which “is concerned with how teering] because it is consistent with older men’s ordinary people manage their practical affairs lifelong patterns... in everyday life, or how they get things done” Pillemar, 2010: 11 (Neuman, 2002: 71). More specifically, qualitative studies constitute the “systematic analysis Pillemar also examined the possible difficulties of socially meaningful action through the direct that older persons face in taking part in green vol- detailed observation of people in natural settings unteerism and reported three potential barriers in order to arrive at understandings and interpretations of how people create and maintain their First, some people felt they had insufficient social worlds” (ibid.). The deployed method of expertise or knowledge about environmental data collection consisted of the “semi-structured issues and science to contribute effectively. interview” with fourteen older persons partici- Second, they were unaware of opportuni- pating in green volunteerism. In semi-structured ties for environmental stewardship in their interviews, the interviewer is normally required communities and were unsure how they to ask specific open-ended questions but is free could become involved. Finally, environmen- to probe beyond them if necessary with the inter- tal volunteer activities were not perceived as view developing as a joint product of what the socially fulfilling compared with other types interviewees and interviewers talk with each of opportunities (e.g., volunteering in schools other. Therefore, semi-structured interviews or churches). Pillemar, 2010: 12 contain the advantages of both standardised and non-standardised interviews such as flexibility, control of the interview situation, and collection of supplementary information (Frankfort-Nachmias and Nachmias, 1996). Data was analysed following Glaser and Strauss’s (1967) grounded-theory [38] Green Jobs from a Small State Perspective. Case studies from Malta.

approach which advises to assign codes, annota- The participants in the study were all over 60 sixty tions, and memos to data arising from observations, years old, in full-time retirement, and devoted conversations, and interviews. many hours per week of unpaid volunteer work to improving the environment. The character of OLDER PERSONS their work in green volunteerism was various: IN GREEN VOLUNTEERISM James is involved in activities that protect the In Malta, one finds many non-government organ- environment, halting environmental destruction, isations engaged in green volunteerism. Key and saving wildlife. He is active in fund raising organisations include (i) Friends of the Earth and in various campaigns such as those related which aims to be the human voice of the earth to climate change and those against the intro- to bring about a peaceful, just, equitable and duction and use of genetically modified food. sustainable society, respectful of present and James is very concerned that natural sites are future generations by inspiring change and pro- being turned in property development sites and moting solutions; (ii) Flimkien ghal ambjent claims that he is ready to do all he can to “halt ahjar which lobbies for the better preservation the rape of Malta”. and use of the heritage of the Maltese islands, not only for the sake of preservation but also as Rita works with families and young children an agent of social regeneration in areas such as to bring about greater levels of awareness on a lower Valletta, the Three Cities and Gozo; and (iii), myriad of environmental issues ranging from tree Nature Trust which lobbies to get legal protec- planting and waste management. She believes tion for various plants and animals in the Maltese that the promotion for green living must be based Islands, helping to save from extinction some of on a bottom-up approach as politicians will not the local endemic species, as well as engaging in draft and implement eco-friendly policies unless environmental education. All three organisations citizens pressure them to do so. Rita is very con- were contacted with the scope that coordinators cerned about the way consumerism is denting link the research with possible older volunteers people’s quality of life. for interview purposes. However, this strategy proved unsuccessful since, despite the aid of Carmen helps with the farming of organic coordinators, no older volunteers made them- products and volunteers in promoting eco- selves available for interviewing purposes. Faced friendly products ranging from dishwasher liquid with such a failure, and running out of time, older to cosmetics. She is very conscious of the harms volunteers were successfully contacted and that the “dangerous chemicals found in most interviewed through snowball sampling. The list daily items such as food, cleaning apparel, and of interviewees, and their key characteristics, is even toys” is doing to the environments and our presented in table 5. bodies. Carmen dreams and hopes that one day organic food and eco-friendly items will be staple items in family’s shopping lists.

Table 5 : List of interviewees

Pseudonym Age Gender Education attainment Volunteering hours per week James 65 male secondary education 10 Rita 66 female primary education 8 Carmen 63 female primary education 10 Joe 69 male primary education random Peter 69 male secondary education random Michael 70 male secondary education random Chapter 4. Older Persons and Green Volunteering: the Missing Link to Sustainable Future? [39]

Peter is engaged in monitoring activity that ing the environment. We have to think about threatens wild birds, such as illegal hunting and quality of life in a holistic manner. If we have trapping, and urban development in conservation to earn a bit less but then experience a much areas on the Maltese islands. He is also inter- cleaner environment, then so be it. ested in taking a more active part in monitoring Joe the quality of the sea and the air. Peter believes that we cannot take the environment for granted Finally, some volunteers who have significant lei- and that one has to ensure that economic devel- sure time on their hands are motivated to engage opment does not harm the earth system. in volunteering, as a means to do something enjoyable and interesting, or to enhance personal Joe and Michael are involved in earth cleaning development by learning new skills and gain- campaigns such as beaches and valleys. They are ing training. Indeed, some volunteers were not both concerned about the extensive use of plas- driven by some progressive or radical motives tics that people use for and during their outings, in their engagement in green volunteerism, but items which cannot be recycled, and end up build- only did so because they enjoyed the work and ing mountains of public dumps. Joe and Michael perhaps more importantly, the company of fellow are also deeply concerned about the plastic and volunteers: other non-biodegradable rubbish which ruins the eco-system and pose a threat to both wildlife and I am no extremist. I have voted all my life for vegetation. the [Nationalist Party] which, in many ways, is directly responsible for the destruction of the Motivations sites that we are now working hard to preserve and conserve... I engage in [green volunteer- The study uncovered three key types of moti- ism] because I enjoy it, gives me a purpose vational categories amongst green volunteers to live, retirement can be quite a problem if – namely, altruistic motivation, ideological moti- you do not have tasks to do and objectives to vation, and leisure-time motivation. Volunteers reach. I also enjoy meeting the people who provided altruistic types of responses when volunteer beside me in [the organisation]. asked why they volunteer, highlighting how they James want to preserve the earth for future generations, limit the destruction of natural areas, and engage Individual benefits in sustainable living: Volunteers indicated that they experienced Everything I do is for future generations for improved physical functioning as a result of my children, and their grandchildren. We “helping out”. Perceptions of positive changes have made so many mistakes in recent years, in their physical health were highly common destroyed so many fields, and polluted the amongst older volunteers: air we breathe and the sea which we enjoy so much in the summer, that I feel a responsibil- Since I started volunteering in [this organisa- ity to try, as much as possible, to improve the tion], I feel healthier. I move more and am less local environment. Future generations have at home where I tend to overeat. When vol- a right to a much cleaner environment. unteering you are always on the go, walking, Peter going up and down the stairs... When we stop for Christmas and Easter periods, or when it Others were motivated by an ideological commit- is too hot such as August, I start feeling stiff. ment, driven by post-materialist values. These I worry that if I will stop volunteering I will volunteers prioritised the preservation and sus- start suffering from arthritis. tainability of eco-friendly environments over Peter material advancement and profit: The experience of volunteering also resulted in Success must not solely be measured by improved levels of emotional well-being, life how much money we have in our pockets. It satisfaction, self-esteem, and overall morale. is meaningless to have the best available car Respondents reported that the act of engaging possible and then having children suffering in green volunteerism instilled in them higher from asthma because these cars are pollut- degrees of happiness, optimism, and self-worth [40] Green Jobs from a Small State Perspective. Case studies from Malta.

on one hand, and fewer symptoms of depression, volunteering is the impact it has on the environ- anxiety, and somatisation on the other. mental awareness, knowledge, attachment and sense of responsibility of volunteers. I have always suffered from depression. I worry a lot, about everything. Working and raising my It is also positive to note that Foster-Smith and children made me very depressed because Evans (2002: 207) report that the monitoring by I was always waiting for something bad to volunteers is not generally “significantly differ- happen. When I retired my depressive symp- ent” from that collected by scientists, indicating toms increased as I had too much time on my that volunteers who are appropriately trained hands and so little things to do. Volunteering have the ability to collect data accurately and keeps me active, keeps me doing something. thereby make valuable contributions to envi- Actually, it has made me happy! ronmental knowledge. At the same time, green Rita volunteering results in a number of educational benefits for participants such as (i) learning more Volunteering in eco-friendly activities aided older about environmental problems and proactive persons in combating loneliness, as volunteering solutions, (ii) learning and building new skills for leads to social networking, and is also useful in the conservation of natural and cultural heritage, gaining “useful” social contacts. In other words, (iii) getting actively involved and learn new skills volunteering emerged as a successful strategy in for managing natural areas, (iv) creating peer combating both social isolation and social exclu- pressure as volunteers go out into the community sion. In short, green volunteering resulted in as advocates and encourage others to also learn improved levels of social capital: and change their attitudes and behaviour, (v) add- ing variety to one’s work experience and make The best thing about this is that, in addition of contacts with potential employers, as well as (vi) doing something good for the environment, is gaining on-the-job experience before commit- that you meet same-minded people, and that ting to further education or a career change (The you make many friends. I am not very good Volunteer Coordinators Network, 2011). Although at making friends, I am very shy, but at the there is no data in this study that can explicitly organisation I am meeting other retirees, confirm these benefits, the responses given in the just like me, and we talk and help each other. survey implicitly suggest that it is very likely that We also meet for a coffee when we are not the older persons who engage in volunteerism volunteering. benefit from the above-mentioned positive out- Carmen comes.

Environmental benefits POLICY IMPLICATIONS

The study also noted that green volunteer- On the basis of the foregoing recommenda- ing on behalf of older persons leads to a range tions are being made for the adoption of policy of environmental benefits such as (i) enhancing options and the formulation of action strategies the environmental and aesthetic values of the – at national, local, and community levels with area, (ii) rehabilitating areas for future genera- the aim of improving the engagement of older tions to enjoy, (iii) conserving native flora, fauna persons in green volunteering. These include and remnant vegetation, (iv) fostering community expanding participation by older persons who support and stewardship of natural areas, and are ageing actively, presenting green volunteer- (vi), encouraging active community involvement in ing as an option in Pre-retirement Programmes, the management of natural areas. Indeed, green advertising green volunteering as a means of volunteering produces practical environmental self-actualisation rather than as a form of unpaid improvements at a relatively low cost. As Church work, and designing green volunteer roles that do and Elster (2002: 32) underline, “while the direct not necessitate high levels of education. environmental impacts of most local projects are indeed limited and are mostly restricted to Expand participation by older persons who are improvements in their own localities …the collec- ageing actively. Older adults who are ageing tive impact of such projects on national targets for actively attend community centres, go to the cin- sustainable development is increasingly signifi- ema, restaurants, theatres, and libraries, as well cant”. Indeed, a related benefit of environmental as spending extensive time with family, friends, Chapter 4. Older Persons and Green Volunteering: the Missing Link to Sustainable Future? [41]

and acquaintances. Undoubtedly, many of these CONCLUSION older persons would be very willing to engage in green volunteerism. Eco-friendly societies must This paper discussed the findings of study on engage in more efficient recruitment strategies older persons who are engaged in volunteer work that will involve locating new volunteers in such with eco-friendly non-governmental organisa- places through effective and efficient advertising. tion. It is safe to assume that their work makes a very valid contribution to the preservation of the Present green volunteering as an option in earth and the sustainability of the economy. At the Pre-retirement Programmes. There is a real same time, the positive effects that green volun- urgency in planning and carrying out learning teerism holds for the older persons themselves programmes for those persons who are nearing were also highlighted. A number of policy options retirement age. In such learning programmes a and action strategies to improve the engagement component focusing on “green volunteering” of older persons in green volunteering were rec- should be included. Volunteering in eco-friendly ommended. is to be presented as an interesting and construc- tive way to spend time in later life. Facilitators What has to be underlined is that for green volun- in pre-retirement programmes are to present teering to improve both its presence and quality, learners with the vast range of eco-friendly vol- eco-friendly organisations must also do their part unteer organisations in which one can join and by working hard to become more “age-friendly”. become active during retirement. Such organisations must be well disposed to make special and necessary accommodations to Advertise green volunteering as a means of self- cater for the different and maybe specific needs actualisation rather than as a form of unpaid of older persons. Most importantly, locations of work. Running counter to the general emphasis work must be made more physically accessible, on paid work, an educational campaign on green and a range of volunteer jobs is to be provided volunteering is warranted, one which presents for people with different physical and cognitive this activity as a way to make new friends, do abilities. This, of course, implies making more something worthwhile as regards the environ- efficient transportation arrangements, and offer- ment, and achieve personal fulfilment and self ing more daytime activities given that many older worth. It must be stressed that green volunteer- people tend to be reluctant to leave their homes ism promotes better health outcomes, as it leads late in the evening and at night. In other words, to increased exposure to nature, and that – unlike there is an urgent need for eco-friendly organi- senior centres – they hold a potential for inter- sations to recognise the heterogeneity of the generational activities since they bring together older volunteer population, and that a “one size people of different ages in meaningful pursuits. fits all” approach will not work in ageing societies. Addressing adequately these issues may Design green volunteer roles that do not necessi- go a long way in increasing the intake of older tate high levels of education. As older people with persons in green volunteerism, as well as more a high level of education and who are in better intense levels of involvement. Perhaps this might health tend to participate more actively in vol- be part of the solution, in eliminating one of the unteering opportunities, space should also be key missing links that is acting as a constraint to provided for older persons with lower level of a more sustainable future. education and those who have health problems. In other words there is a need to ascertain that there are available roles for people who might be in relatively poorer health and in low-income brackets by offering transportation, reimburse- ment for travel and free lunches. [42] Green Jobs from a Small State Perspective. Case studies from Malta.

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Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation Andre Damato

Abstract Global demand for natural resources is growing fast, European fish stocks are depleting and the The green industry is facing growth due to various sustenance of forests and soils is being increas- economical, social, political and environmen- ingly threatened by climate change. Energy tal factors. This paper provides the context of demand is increasing at an alarming rate with an innovative technologies within the local manufac- average 1.3 percent growth per year, so leaders turing green industry, in particular those related are calling for new technology innovations to meet to renewable energy and energy efficiency. In a spike in demand that adhere to Governmental exploring what constitutes a smart specialisa- Energy policies. (Shen & Zeng, 2009, p. 27) tion strategy, a consultation process with key players from different pillars of interest, mainly: The challenge of climate change, security of sup- Academia, Industry, Government, Political Parties ply and the culmination of three fundamental world and Public NGOs, was conducted in an effort to crises (Financial, Energy and Environmental) have identify a range of different perspectives and led to a major shift in global government policy. Due understandings of such a strategy at a local level. to the ageing infrastructure assets in the developed This process was mapped onto a SWOT analysis world and on the other hand an increase in energy and Scenario Planning exercise, highlighting the demands from new economies, the green indus- present context of the local green manufacturing try makes more sense today than ever to policy industry. This research concluded by drawing on makers, the industry and consumers alike (Anex, this research to identify a general framework for 2000). The Green Industry proposes different inno- developing a specialisation strategy and approach vative solutions in meeting today’s and tomorrow’s for eco-innovation for small countries like Malta. electrical and power demands. It is envisaged that within the next three years the green industry will INTRODUCTION create over two million jobs in the EU, many of which are within the manufacturing and services This paper provides an evaluation of the factors industry. Climate change challenges and agree- stimulating the growth of the green industry and ments within the EU and beyond are increasing the how this impacts on local innovation, particularly pressure for countries to adopt a green agenda, in the manufacturing sector in small countries. which is undoubtedly resulting in the growth of the Governments, under pressure to meet low carbon green industry. Furthermore, innovation, the crea- targets, are seeking to capitalise on the opportu- tion and adoption of new, cleaner technologies and nities opening up through the green economy and know-how will provide a means to achieve eco- eco-innovation by designing strategies to stimulate nomic growth together with environmental goals investments in this sector. Such strategies need at significantly lower costs (Cassingena Harper & to be “smart” by building on local capacities and Crehan, 2005. p. 11). know-how, addressing local priorities and needs and focusing on niche areas of comparative advan- The MANUFUTURE 2004 stressed the “need tage based on specialisation. In exploring what for the development and implementation of a constitutes a smart specialisation strategy, a con- European manufacturing strategy based on sultation process with key players was undertaken research and innovation which would promote in an effort to identify a range of different perspec- industrial transformation” (from resource-inten- tives and understandings of such a strategy at a sive to knowledge-intensive manufacturing), and local level. This research concludes by drawing on a shift to innovating clean production based on this research to identify a general framework for knowledge and capital. developing a specialisation strategy and approach for eco-innovation for small countries like Malta. Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: [45] Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation

The key drivers of change affecting the manufac- pillars of interest, namely: Government, Political turing industry include: Parties, Academia, local Industry and non-profit organisations. The rapid advances in science and technology Environmental challenges and sustainability Interviewees from the public sector included requirements policy makers, civil servants from the Ministry Regulatory environment and standards of Finance, Malta Environment and Planning Values and public acceptance of technology Authority (MEPA) and members from Malta Council for Science and Technology (MCST) whilst Investing in a green economy and having peo- those from political parties included the spokes- ple working in green industries are both persons for the environment and/or industry from politically attractive and economically promising. Partit Nazzjonalista (PN), Partit Laburista (PL) and Governments around the globe have enacted leg- Alternattiva Demoktratika (AD). Interviewees from islation designed to assist green businesses and the Academia pillar included members from the to ensure that the employers in this industry have Faculty of Engineering, Faculty of Science, Faculty access to the workforce. (OECD, 2008) These of Economics, Management and Accounting, initiatives include tax credits to biotechnology Faculty of Arts, Faculty of ICT, Institute for businesses for employee training and conducting Sustainable Development, The Edward de Bono research on the future workforce needs of green Institute for the Design and Developement of industries. The key drivers (political, economical, Thinking. Members from the Public pillar included social and technological) which have contributed spokespersons from Malta Energy Efficiency and directly or indirectly towards the growth of the Renewable Energy Association (MEREA), Friends green industry are identified in Figure 1. of the Earth, National Youth Council, Greenhouse and Żminijietna – Voice of the Left. In the indus- METHODOLGY try section which was the most significant pillar for our research a select group of companies was This study made use of a particular form of quali- chosen to represent the local green manufactur- tative interviewing, namely convenience sampling. ing and retail industries operating in Malta. Mainly Forty seven distinct qualitative interviews were this pillar is composed of four sub pillars, basi- undertaken with stakeholders appertaining to five cally: a) Local companies manufacturing green

Figure 1: Various forces contributing towards the growth of the green industry

Environmental

(CO2, SO2, NOx Pollution)

Political (EU Policy, Economical Green International (Oil Prices, Industry Commitments, Taxation) Growth Legislation, Green Public Procure- ment)

Social (Green Consum- ers, Green Growth Culture, Health Effects of fossil fuels) [46] Green Jobs from a Small State Perspective. Case studies from Malta.

Figure 2: Key drivers that affect Green industry

Public • Friends of the Earth • Greenhouse • Żminijietna – Leħen ix-Xellug, • MEREA

Industry Political Parties • Local Companies manufacturing green products • Partit Nazzjonalista • Foreign Companies manufacturing • Partit Laburista green products in Malta • Alternattiva Demokratika • Local Retail Companies selling green products in Malta • Malta Enterprise • Trade Unions

Academia • Edward de Bono Institute for the Design and Development of Thinking • Faculty of ICT • Faculty of Science Government • Faculty of Engineering • Malta Council for Science • Facutly of Arts and Technology • Institute for Sustainable Development • Ministry of Finance • Faculty of Economics, Managemnt • MEPA and Accounting • Institute for Economic Research on Innovation (IERI) – Tshwane University of Technology, South Africa

products, b) Foreign companies manufacturing A SMALL STATE VERITY: OVERLAP green products in Malta, c) Manufacturing compa- OF ROLES BETWEEN MEMBERS nies currently not producing for the green industry FROM DIFFERENT PILLARS but holding potential, such as the aluminum and sheet metal areas, d) Local retail companies The most striking point in a small state such as selling green technologies in Malta, such as com- Malta, is that a number of interviewees tend to panies importing and selling solar PV systems. play various particular roles within society and thus could fall under various pillars of interest. This phenomenon proved to be highly beneficial for this research since interviewees helped the researcher examine both inter-pillar cohesion and extra-pillar coupling tribulations from different perspectives Figure 3 depicts the overlap of roles between the five pillars of interest. Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: [47] Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation

Figure 3: A small state verity: Overlap of roles between members from different pillars

Government

Political 1 Parties

3 Public Industry (NGOs)

2 3

Academic

This research is contextualised in the theoreti- RESEARCH QUESTIONS cal work carried out on smart specialisation and applying it to the small country context in order The research focused on the following two ques- to define effective strategies in stimulating locally tions: driven eco-innovation. In this process this research 1) What is smart specialisation strategy in green draws on the academic fields of innovation policy industry in the context of a small county like and entrepreneurship as well on approaches from Malta? the study of creativity and foresight. 2) What are the particular challenges and advantages of such an approach? Smart specialisation bridges with creativity and foresight in terms of how decisions on priority- 1. SWOT Analysis Findings setting and identifying niche areas are taken. This delicate process includes choosing who is it Addressing these two questions calls for the to be consulted, how and to what end/purpose. identification of the factors that are favourable or Given that eco-innovation needs to be driven by unfavourable for the growth of green industry in industry, firms should be actively involved and Malta. A SWOT analysis based on the responses engaged in decisions regarding specialisation. of the interviewees taking part in the semi-struc- Such decisions need to take account of local exist- tured interview which was part of the survey ing capacity and how firms are planning to develop proved to be useful in the identification exer- and grow in the short, medium and long-term. cise of these factors. This analysis provides an in-depth understanding of the context for developing a smart specialisation strategy in green industry marking the Strengths, Weaknesses, Opportunities and Threats of various aspects of interest, such as government administration, [48] Green Jobs from a Small State Perspective. Case studies from Malta.

policy, educational, social, technological and ernment departments. In particular sometimes industry. personnel from a particular government department do not know that a particular scheme or Strengths policy by another government entity had been published or is in the pipeline. One of the interviewees from the Political clus- Government and Resale participants remarked ter explained that Malta enjoys a stable political that Malta lacks a national green economic pol- and regulatory environment. icy, that could be instrumental in attracting local The government representative stated that the and foreign direct investment in this sector. Maltese government has already introduced the Industry interviewee stated that the training idea of green procurement in various government grant application process of ETC is very cumber- departments. some and complex. Interviewees representing two of the NGOs An interviewee from the Manufacturing clus- remarked that there has been an increase in ter remarked that quality certification of green public and industry awareness on environmental technologies poses difficulties for local green issues. manufacturing companies. The cost involved Interviewee representing the Manufacturing in the ISO and eco-labelling certification are sector explained that industry standards in Malta considered to be relatively high for firms oper- are considered very high and are at a par with ating in the Maltese small market economy. European levels. Furthermore, EU-Government solar technology A representative of Industry remarked that grants for consumers require that the products competitive labour market rates provide Malta are eco-labelled, making it very difficult for local with a competitive advantage. manufacturers to sell their technologies locally One of the academics remarked that Malta via these schemes. has a strong multi-lingual workforce, being the Members from the NGO cluster remarked that only EU country (of course apart from UK and the when compared to other countries, the price of Republic of Ireland) where the English language solar technologies in Malta is relatively high. This is one of its official languages. could be due to possible extra inflation of prices Another interviewee from the Academic side by local importers and due to high transporta- explained the positive possibility of a spillover tion costs incurred by importers. Furthermore effects from high innovation sectors in Malta aspects of the green manufacturing industry are such as within the ICT, aviation and advanced not so green, in particular those related to the micro-technology industries. manufacture of solar energy technologies, create Interviewee from the Government cluster wastes by-products even though most of these remarked that Malta has an excellent location can be recycled. and facilities for conferencing and research. Various interviewees remarked that the collaboration between the University of Malta and the Weaknesses local industry is limited. Industry interviewee stated that Malta’s lim- One of the NGO’s remarked that in general ited natural resources necessitate that nearly as regards renewable energy, the local govern- all of the raw materials needed to produce green ment is not meeting EU legislation and targets. technologies, have to be imported. Furthermore, Malta seems to be lagging behind in the uptake manufactured products need to be exported and of alternative energies. transported via different transport networks such Lack of relevant statistics and related resources as road surface and air. This raises the cost of the relating to the green industry was highlighted by product, thus making the product less competi- Resale cluster interviewee. There are few empir- tive on the international market. ical studies related to green industry in Malta. An interviewee from the Manufacturing sector These studies have been commissioned by gov- remarked that lack of raw materials, necessi- ernment to entities such as the Employment and tates that these have to be imported. The fact Training Corporation (ETC), Malta Environment that finished green technology systems are large and Planning Authority (MEPA) and the University in size, necessitates high freight costs for export. of Malta. Resale cluster interviewee highlighted that there exists lack of coordination between gov- Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: [49] Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation

Opportunities 2. The Context: Various Eco-innovation Manufacture facets within One of the Academic cluster interviewees stated the local Green Industry that the Edward de Bono Institute for the Design and Development of Thinking can aid the industry The research has helped identify various facets by organising lectures and seminars on the use and for eco-innovation within the local green industry, practice of various thinking tools, the implementa- in particular within the wind and solar renewable tion of idea management systems and the fostering energy and water heating systems. of creativity and innovation in organisations. An interviewee from the Academic clus- Wind Energy ter remarked that the Institute for Sustainable Development at the University of Malta will soon There are various components of wind turbine sys- be launching a website as a hub for information tems which can be manufactured or assembled and support mechanisms for the general public, in locally. One particular case is the transmission particular for those in the entrepreneurship world. system, which even though it might be difficult to A representative from the Manufacturing clus- manufacture from scratch, local companies could ter stated that via in-house research they are assemble the transmission system tailored to par- studying the development of special solar water ticular systems and design. At present there are heaters tailor-made for the particular needs of companies in Malta that manufacture generators, Maltese population and the features of Malta’s which however do not operate on wind turbines. climate. Furthermore the same entity is develop- Local companies that manufacture generators ing a solar water heater that could be fixed with can move into manufacturing generators of wind balcony railings. This can be an incentive to a sig- turbines. Furthermore, there is a niche market nificant number of the Maltese population who live of wind turbine electronics such as switches. The in apartments which provide limited space on their blades of wind turbines are manufactured either roofs for the installation of solar water heaters. from fibre glass or from wood. In Malta we have A representative from the manufacturing clus- a number of industries manufacturing fibre glass ter stated that Maltese companies should try and products which could be interested in manufactur- identify areas that need a high quality input such ing the blades for the wind turbines as manufacture of glass bulbs used in UV water filters for water recycling which are currently Solar Water Heaters being produced in Malta. Currently in Malta at least one company is already Threats producing solar water heater tanks of stainless steel selling the full stainless steel model and the A member from the NGO cluster commented stainless steel glass lined models. Whilst stain- that in the field of science and technology Malta less steel is considered as a weaker substitute is suffering from a brain drain as a substantial to glass, stainless steel tanks are considered to number of qualified persons specialising in these be high quality products, and very durable. This areas of study, due to better pay and prospects area is of medium to high value added, with most in other countries, are going abroad to seek of the production process needing high skilled employment. labour input. Stainless steel tanks have the Member of the Government cluster remarked potential of being the main locally manufactured that sometimes the Maltese government is forced component of exporting solar water heater sys- to recruit foreigners to make up for the shortages tems made and assembled in Malta. Solar water in the area of renewable energy and environ- heater stands are currently being manufactured mental policy. The snag is that these foreigners in Malta, mostly from aluminum. The numerous sometimes fail to adapt and attune their exper- local companies in the area of sheet metal, stain- tise to the requirements of Malta’s micro state less steel and aluminum can serve as a support status. One of the Industry cluster interviewees base for the manufacturing of solar water heater explained that Malta has limited physical space stands and frames. for the installation of renewable technology products. The demolishment of terraced houses to Solar Water Heater assembly also presents vari- make space for blocks of apartments with a pent- ous possibilities, even though this operation is of house on the roof is aggravating this problem. limited value added. EU experience has shown [50] Green Jobs from a Small State Perspective. Case studies from Malta.

that the assembly of green technologies could 3. Green Specialisation possibly lead to the development of supporting Framework Strategy industries and also aids in attracting horizon- tal integration. Furthermore the assembly of Having formulated a green specialisation gen- solar water heaters can be induced in Malta by eral framework strategy for small countries like the introduction of do it yourself assembly kits Malta based upon the previous sections of this of these technologies, as happened in other EU study, the following section tries to design a smart countries. specialisation strategy in the green industry for small countries which would be relevant to and Photo voltaic (PV) systems applicable in the context of a small country like Malta. Although the context is a small country There are various facets and sectors related to within the EU, the general strategy can also be the manufacture of photo voltaic systems. As dis- applied to small countries in other continents. cussed earlier this area includes high value added sectors which with its high demand, makes it 3.1 Formulation of a green potential for growth. Currently in Malta there is at Technology policy least one foreign owned company that produces products that are used in the manufacture of PV Countries selecting the green industry as a systems. In particular this company produces specialisation area should formulate a green semi conductor tubes that are used for lamps technology policy. The aim for this policy is to in the sterilisation process when manufacturing effectively direct investment, research and inno- silicon PV chips. This area is high value added vation towards this area. Furthermore a strategic demanding high quality skilled labour input, with committee should be responsible for the holistic a medium level of automation. However, as is the implementation and materialisation of the green case with the semi-conductor chip industry all technology policy. For this to have full political the raw materials for this productive sector have support it would be a good idea if the respective to be imported. When compared to the semi con- minister would head the main strategic com- ductor chip industry, PV cells are of less value mittee, together with local and possibly foreign added nature since they are much less compli- sector experts. This will ensure that the policy cated and thus require less expertise, capital and is being given its due importance and effective skill. The economics of feasibility make it diffi- measures are being implemented. cult to be competitive in a sector which has been well exploited by other countries. In this context 3.2 Reduction of high compliance the most feasible solution for the manufacture cost regulation of PV systems in Malta will be to group with an established European company to set up a plant Industry compliance regulation at times entails in Malta. This has been successfully achieved high and rising costs, increasing the difficulties lately in Sicily. The advantage of this initiative is for local manufactures. This must be seen in the that the foreign entity will bring its expertise to context that manufacturers within small coun- Malta together with the direct investment that tries have limited economies of scale. This may is needed for such a venture Furthermore the lead firms to be conservative in their approach. end product will be branded. In this way the for- Such an approach tends to leave little room for eign partner will use its established market, and eco-innovation, since each time innovation is thus will use Malta to ship to countries preferably implemented at a large scale, compliance related within the Mediterranean region. costs increase exponentially. In this context regulation that is reaping little or no benefits, together As regards physical space for PV plants to with compliance regulation entailing high oper- achieve economical feasibility a large enterprise ating costs should be removed and lightened in would be necessary. A plant in the Bulebel or order to make space for a more innovative entre- Marsa industrial estate region will possibly suf- preneurship climate. This is particularly true for fice. Whilst this plant could also serve the local areas supporting the green industry, such as regu- population, it must focus on exports. lation related to VAT departments, environmental and industry related authorities and entities.

Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: [51] Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation

3.3 Government green procurement play possible vacancies and careers within the green manufacturing technology fields and other Governments of small countries can continue related areas. Possible careers will be those aiding and supporting the green industry by related to solar and wind technology engineering, increasing green procurement amongst their ICT, maintenance and installation, high precision various departments and authorities. As pur- engineering, aqua marine culture, energy effi- chasers, public authorities have huge buying ciency research and eco-innovation. This fair will power and there is enormous scope for them to be the initiative of the government in full collab- influence suppliers to innovate and produce more oration with industry stakeholders. The fair will environmentally friendly goods and services. enable the local and international green related Furthermore, the government has the potential entities, to advertise their products, inform the to persuade private sector companies and the public and increase and develop contacts. general public to change their consumption hab- its, and thus help the green industry grow. This 3.7 The Green Industry as one initiative can make use of the EU GPP training of the pillars for National branding toolkit. National branding is deemed fundamental in 3.4 Creation of Green cluster Industrial ensuring that green technology specialised coun- Park (Green Park) tries are appropriately positioned in the markets which are being targeted. This could also be Governments of small countries should select a achieved by linking specific brands of products physical area for the re-development of an indus- and services within the green industry to the trial park dedicated to the research, development national brand. and innovation of green related technologies and energy efficiency. The green park could be 3.8 Formation of a green technology administered by a government’s authority and research cluster leased at sub-commercial competitive rates for manufacturing, assembly, maintenance, con- Governments should be responsible for aiding sultancy and research and innovation oriented the grouping and development of a local green purposes. Whilst helping in the creation of jobs technology research cluster. This consortium will and the development of technical skills this park comprise government officials, academics, NGOs will indirectly help supporting industries as well representatives and industry stakeholders. The as helping in the spillage of green, technical and main aim of this unit will be research, develop- manufacturing skills into adjacent areas. ment, innovation and commercialisation of green technologies. The cluster will also be able to make 3.5 Fellowships for technology and policy alliances with international industry research research related to green manufacturing groups to study, develop and commercialize green technologies. Trade unions can also give a valid Government should classify research on green contribution by forming part of the cluster. Figure technologies, the environment and environ- 4 depicts the formulation of a green technology mental policy as priority areas when it comes to research cluster, the arrows pointing from the student scholarships and support. Supporting consortia to the cluster represent the effort and students and academic institutions financially input from the respective entities. The arrow width when carrying out studies at Masters and PhD represents the foreseen relative effort and input level in this area will help move research towards needed from each of the entities. Trade Unions the green direction. could also contribute to this research cluster by providing training, premises, labour and project 3.6 Careers Fair on Green Manufacturing development together with labour representation. Furthermore, it would be a good idea if countries Governments in collaboration with the indus- would disseminate knowledge by participating in try could organise a yearly green manufacturing existing wider international clusters. careers’ fair. The aim of this fair will be to dis- [52] Green Jobs from a Small State Perspective. Case studies from Malta.

Figure 4: Composition of a Green Technology Research Cluster

Industry Stakeholders

Academia NGOs

Green Government Technology Trade Unions Research Cluster

3.9 Public Awareness via NGOs tal friendly technologies, for both domestic and industrial use should be given the opportunity to Governments should support NGOs, in particular train in basic green technology skills via govern- environmental ones, wishing to organise educa- ment educational institutions. These skills can tional activities relating to green technologies. be learned through trade courses organised by Governments can introduce schemes whereby technical educational institutions, and offered printed material and other equipment used for on a part-time and full-time basis. Furthermore public awareness on green technologies will be these institutions could include modules or sub- partially or fully financed by the government. units relating to green industry technologies Empowering the public by strengthening their in the course programmes of engineering and belief that they are making a difference through plumbing and other trades. They can also for- NGOs could be an important element of a suc- mulate a course specially designed for technical cessful green educational strategy. Upbeat and skills within green industry technologies. positive messages that educate consumers could further be used to create this sense of empow- 3.11. E-Green Platform erment. To make the system fully feasible, governments can issue tenders for the printing Small countries specialising in the green indus- of published material, whereby organisations will try should opt for the development of an Internet get their published material printed via govern- based electronic platform related to green tech- ment selected third parties. nologies and the local green industry cluster. The aim of this electronic platform which will 3.10. Technical green skills and know how be vested in a website, will be to create links and networks between industry stakeholders. Plumbers, electricians, builders and persons Another aim of this platform would be to offer with similar or related trades, that are now and direct the public towards green technology being asked to install these new environmen- courses, possibly online via the same platform. Chapter 5. The Green Industry’s Potential to Drive Local Innovation in the Manufacturing Sector: [53] Malta a Case Study for a Smart Specialisation Strategy in Eco-innovation

Figure 5: E-Green Platform

Vocational • Green Carreers • Green skills Courses

Industry General Contact Point Information E-Green • Government Entities • NGOs • Technical • Industry Installation Guides Platform Stakeholders • New Techologies

Platfrom Information • Webinars • Newsletters

3.12 Marketing of Green Technology the organisation of various breakfast briefings Strategy, Park and Cluster with banks, business networks and venture capital organisations; Governments should give importance to the dis- the mobilisation of local environment NGOs seminating of information related to the green through a dedicated activity; technology strategy, park and cluster to industry, the launch of an award for research and inno- academia and public sector. This should be carried vation in green manufacturing. out in a professional manner through a marketing campaign carried both within that country and It is highly important that the green research on an international basis with the aim of attract- development cluster is well-promoted to develop ing and strengthening investment in the area. A and strengthen. Marketing should be done secondary aim of the campaign will be to mar- amongst the following players: ket the green manufacturing and R&I incentives locally and abroad using government and partner public sector (targeting the green procure- media such as websites and newsletters. A special ment initiative); emphasis should also be given to inform and aid banks (local and foreign) and other financial the networking of players within the green cluster. intermediaries; research laboratories; The marketing should be carried out through: intermediaries in Europe.

the setting up of an online database listing companies and consultants offering green services and technologies, banks offering venture capital and technology needs; [54] Green Jobs from a Small State Perspective. Case studies from Malta.

CONCLUSION such as public procurement, research driven clusters and supply measures like the development of The focus of this paper is on smart specialisation specialised industrial parks. As it explores the dis- and applied to a small country context in order to covery of smart specialisation domains in which a define effective strategies in stimulating locally region can hope to excel it calls on the academic driven eco-innovation. It draws on the academic domain to aid in the development of the smart fields of innovation policy and entrepreneurship specialisation strategy. Indeed this paper provides approaches from the study of creativity and fore- the practical skeleton for other academic studies, sight. The main conclusion is that green strategies where the aim of the study will be in developing and policies call for an innovative management. In an innovation framework for the manufacturing other words it encompasses on the demand side industry, based on a country case study. measures supporting innovation management

References

Anex, R., (2000), Stimulating Innovation in Green Technology – Policy Alternatives and Opportunities. American Behavioral Scientist.

Cassingena Harper, J., Crehan, P. (2005), European Innovation Trend chart: Annual Innovation Policy Trends and Appraisal, Report for Malta.

MANUFUTURE (2004), High Level Group Report – A Vision for Malta 2020.

OECD (2008), Economic Aspects of Adaptation to Climate Change.

Shen, L.Y, Zeng, S.X. (2009), The drivers for contractors’ – Green innovation: an industry perspective.

Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs [55]

Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs Vivan Storlund

“Prosperity for the few founded on ecological ronment in multiple ways as it facilitates people’s destruction and persistent social injustice is no individual work that often is small-scale and foundation for a civilized society.” thereby mostly local and light. In Robertson’s Tim Jackson, Prosperity without growth words ‘ownwork’ will enhance the informal economy which will become one of the main areas Abstract for further economic growth and social progress (1985/2006). The basic argument in this paper is based on the premise that when green is the qualifying cri- A reassessment of the notion of work is gener- terion for work rather than profit or economic ally called for. This should be linked to green growth, the world of work and the economic sce- economics that challenges the narrow scope of nario in which it has to operate assume a different mainstream economics. Green economics look dimension. The focus of this new dimension is for solutions that simultaneously address poverty, here placed on work performed in the intersec- climate change and biodiversity within an equita- tion between employment and entrepreneurship. ble framework. It is a question of re-orientating This is a grassroots level hibernation sphere for ourselves and our economics,“manoeuvring it innovation and thus also a fertile breeding ground back onto its rightful course to a better “life- for green jobs. A green job in this context is being world” result,” says Miriam Kennet. (2008, p. 19). associated with meaningful work. What makes work meaningful is its potential to enable the Research in Namibia and South Africa as well as worker to participate meaningfully and creatively a basic income project in Namibia illustrate the in the life of society in less materialistic ways. potentials of a basic income as a means of facili- This does not however mean that the instrumen- tating new venues for subsistence and work. In tal value of work has to be ignored. In whatever affluent societies a basic income would greatly perspective work is perceived it ultimately has to enhance the creative sector and activities in civil assure one’s survival and well being. Herein lies society. A basic income would assist in levelling the the principle of basic income. This paper chal- very uneven playing field we face on many fronts. lenges the conventional economic theory of pay and argues that a national and/or macro policy of THE BIGGER PICTURE basic income can be very conducive to the creation and sustenance of green jobs. There are both economic, environmental and governmental system failures that need to be Work in the intersection between employment assessed and the issues renegotiated. To do that and entrepreneurship can be characterised as we need, on the one hand, new paradigms to “meaningful”, as there is some value attached to allow for alternative approaches to the problems it that the pursuer considers worth striving for, we face, on the other, we need new social instru- as opposed to merely a bread-winning job. Such ments to correct these failures, basic income work represents both personal aspirations and schemes being one of them. Joseph Stiglitz and human and social concerns. James Robertson James Robertson who have been in the economic sees this kind of individualised work, “ownwork”, epicentre, as well as Tim Jackson, whose major as he calls it, as the future mode of employment focus is sustainable development, will here paint (1985/2006). the bigger picture, and offer their alternatives to present day impasses. How work in this sector should be compensated is a big challenge, to which a basic income could Nobel Price winner Joseph Stiglitz was economic be a solution. In addition to securing people’s adviser to the American President Bill Clinton subsistence, a basic income would serve multiple 1993-1997 and senior vice president and chief purposes such as providing start-up funding both economist at the World Bank 1997-2000. He for work aimed at profit and non-profit work. A gives us the promise “Another World is Possible” basic income would furthermore serve the envi- (Chapter 1) in his book Making Globalisation [56] Green Jobs from a Small State Perspective. Case studies from Malta.

Work (2006). Furthermore he was involved in the He points to how narrowly government has been World Commission on the Social Dimensions associated with material aims, “hollowed out of Globalization, appointed by the International by a misguided vision of unbounded consumer Labour Organization (ILO) and chaired by presi- freedoms”. Jackson considers that the concept dents Benjamin W Mkapa (Tanzania) and Tarja of governance itself stands in urgent need of Halonen (Finland) (2004). Thereafter he directed renewal. He sees the current economic crisis as the Commission set up by the French President “a unique opportunity to invest in change”. The Nicolas Sarkozy, to consider the measurement of short-term thinking that has plagued society for economic performance and social progress. Main decades should be substituted with the challeng- members of the commission were Amartaya Sen ing task of “delivering a lasting prosperity” (2009, and Jean-Paul Fitoussi (www.stiglitz-sen-fitoussi. Foreword). fr). The report was presented in September 2009. WHAT KIND OF PROSPERITY Stiglitz considers that the latter commission’s report (here called the Stiglitz commission) and its For Jackson prosperity means that human beings implementation may have a significant impact on should flourish within the ecological limits of a the way in which our societies look at themselves finite planet. “The challenge for our society is to and, therefore, on the way in which policies are create the conditions under which this is pos- designed, implemented and assessed (2009, p. 9). sible. It is the most urgent task of our times.” (2009, Foreword). James Robertson, again, gives us a model that combines a new economic order with a basic Jackson considers government to be the princi- income. He has arrived at these models after pal agent for protecting our shared prosperity, extensive experience of how things work in prac- in contrast to the narrow pursuit of growth that tice. He started as a policy-making civil servant “represents a horrible distortion of the com- in Whitehall in the 1950s and 1960s, during the mon good and of underlying human values”. decolonisation process, of which he had first hand (2009, p.11). The Stiglitz commission moves experience. “It was a very exciting time for a young along these same lines. Its report is, first of all, man”, Robertson tells (at http://www.jamesrob- addressed to political leaders. “New political ertson.com/about-james-robertson.htm). Then narratives are necessary to identify where our he worked in the Cabinet Office, participating in societies should go.” (2008, p. 10). The Stiglitz the central processes of government, “getting commission advocates a shift of emphasis from a privileged bird’s-eye, worm’s-eye view of how a “production-oriented” measurement system they worked.” Thereafter he gained experience of to one focused on the well-being of current and mergers in the public service, which were “very future generations, i.e. toward broader measures educative and very frustrating.” After that he of social progress (Stiglitz, 2008, p. 10). turned to the private sector getting involved with management consultancy and systems analysis. The small island-state Vanuatu captures in an He set up the Inter-Bank Research Organisation excellent way the effect of looking at things dif- for the British banks (1968-1973). His next excur- ferently. According to the conventional way of sion, as he puts it, was to stand for Parliament measuring well-being, the Gross Domestic Pro- in 1974, in support of the Campaign for Social duct (GDP) Vanuatu has been classified as one Democracy, “Another learning experience.” The of the least developed countries in the world. Yet lessons he learned was that, “although effective the quality of life for most people. according to processes of conventional politics and govern- Anita Herle (2010, transcript of radio program) ment may still be needed to implement radical is remarkably high.This is how she pictures the changes, different processes of ‘pre-political’ situation in Vanuatu: action are needed to get radical changes on to mainstream policy agendas.” As part of this “Nobody is hungry and there is a food secu- agenda he has, among others, created the New rity that comes from local access to fertile Economics Foundation. gardens. There’s no homelessness, everyone is cared for within extended family units. Through his work “Prosperity without growth? There’s relatively little violence, and disputes Transition to a sustainable economy” (2009), are resolved within communities by tradi- Tim Jackson links together different strands. tional leaders, and the rich natural resources Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs [57]

have been sustained for centuries through public investments could have been spent excellent traditional resource management.“ more efficiently on other programmes aimed at job creation.” (Kameeta et al., 2007, p. 18). In 2006 Vanuatu was declared to be one of the happiest countries in the world by the New Experiences from South Africa also show that the Economics Foundation (Herle, 2010), the institu- government’s efforts to create jobs have not been tion created by James Robertson. effective. The cost of a South African workfare programme amounts to several times the cost of Namibia may illustrate the reverse of this pic- a basic income grant, yet it fails to distribute ben- ture. There it becomes clear that the economic efits to those most in need of social assistance growth and “sound” macro-economic indica- (Samson, Haartmann, C. & Haartmann, D., 2001, tors that Namibia had had since independence, cited in Kameeta et al. 2007, p. 21). did not translate into sustained benefits for the majority of the population (Kameta, Haarman, C, Another aspect that C. Haarmann and D. Haarman, D, Jauch, H, 2007, p. 20). This can be Haarmann (2005) have brought to the fore is seen in the operations of the international com- that people in disadvantaged communities carry pany Ramatex. This company has contributed to a disproportionably high burden for caring for the emergence of a large number of “working other people. The informal social security sys- poor” in full-time employment, unable to meet tem effectively imposes an informal tax on the even their basic needs. This stands in sharp con- poor. Whereas the richest households support tradiction to the Namibian government’s stated other households with only about 8% of their objective of promoting decent work in line with income, the poorest households spend up to 23% ILO standards, Kameeta et al. note (2007, p. 18). of their meagre incomes on other poor people. The hope that the private sector would become In economic terms this constitutes a regressive a large-scale job-creator with substantial impact tax on the poor, diminishing their ability to save on employment has not been fulfilled (Kameeta and invest, and thereby diminishing the chance to et al. 2007, p. 20). enhance their own economic opportunities (cited in Kameeta et al. 2007, p. 9). WELL-BEING ASSESSED Scarcity is also reflected in the local economy. The Stiglitz commission recommends that when The absence of substantial amounts of cash in evaluating material well-being, one should look at the local economy prevents businesses and local income and consumption rather than production. projects from becoming successful and sustain- (Recommendation 1). Likewise, the household able. Especially in small rural communities, the perspective should be emphasised. (Recommen- limitation on the demand side to actually pay for dation 2). The commission notes that without this the provision of goods furthers the monopoly sit- change of focus one may get misleading indica- uation of larger businesses, exploiting the little tions about how well-off people are, which might cash there is. These monopolies are very effec- result in wrong policy decisions. (2008, pp. 12-13). tive in outmanoeuvring upcoming new business into bankruptcy, and then raising prices again The effects of foreign investment may be illus- (Haartmann, C. & Haartmann, D, 2004, cited in trated by Namibia and the case of Ramatex. The Kameeta et al. 2007, p. 9). government invested about N$ 120 million in public funds to set up infrastructure for Ramatex. Governments have not fared much better in the Kameeta et al’s assessments of the effects are affluent part of the world when it comes to pro- the following: moting citizens’ well-being. The pattern is the same. Analysing the global crisis, social protec- “The financial support that Ramatex received tion and jobs, Joseph Stiglitz notes (2009, p. 3) from the Namibian government is equivalent that the level playing field has been destroyed to the salaries of all workers for 40 months for years to come because of the bailouts, not – more than 3 years! A huge investment by only of financial institutions but also the promise any standard which could only be justified if that this could be the case with big companies, Ramatex’ operations in Namibia would lead to as signalled by the US and Western European long-term sustainable jobs of decent quality. governments. “This has changed the propensity Otherwise one may well argue that the huge of these companies to undertake risk, because [58] Green Jobs from a Small State Perspective. Case studies from Malta.

if they undertake big risks and lose, taxpayers And here the perception of work is central as a pick the losses up. If they win, they get the prof- diversified view of work offers an exit from the its.”(2009, p. 3). organisational failures pointed to here.

What are we left with? Stiglitz observes: A DIVERSIFIED WORKING LIFE – A DIVERSIFIED VIEW OF WORK “The people in the global economy have the same skills as before the crisis, and the The uniform view of work that was typical for machines and real resources are the same as the industrial society is no longer valid. Work is before the crisis. The problem is that there is today increasingly performed in some form that an organizational failure, a coordination failure, is a deviation of the old model of ‘long-duration, and a macro-economic failure.” (2009, p. 11). full-time employment’. There is therefore an urgent need to reassess the notion of work, its Robertson has developed a model for monetary compensation and regulation. In addition, there reform that would correct the failures Stiglitz are strong economic, social, cultural and envi- refers to. A basic income complemented and rein- ronmental reasons for a new approach to work, forced by such a monetary measure would offer as highlighted above. a two-pronged approach to address the issue of financial stability different from the policy of bail- In practice one can talk about at least two parallel ing out banks adopted by several governments. working lives This is how Robertson sees the new economic system and a basic income interact. Writing the “traditional” work performed in an employ- in 2009 Robertson notes that there is growing ment relationship; awareness of the need for “quantitative easing”, work performed outside an employment rela- financial jargon for getting central banks to cre- tionship such as freelance work, artistic work, ate large sums of money and pump them into the research without funding, voluntary work, devel- economy. The question for today’s policy-makers oping a product or trying out a business idea. is how and where are they to be pumped in? An employment relationship forms the basis “If central banks themselves were accus- for labour legislation with associated rights and tomed to keeping the money supply at the right obligations at work, and also work-related social level, and if arrangements already existed for security. To its nature it is instrumental and value the regular distribution of a Citizen’s Income, neutral. The second category of work can be the answer would be easy: vary the size of characterised as meaningful for the one doing the the Citizen’s Income as required. This would work and it often reflects the new thinking that is inject the money into the economy where it required from changed social circumstances, of would circulate quickly and would directly which green work is an essential part. Yet, work benefit those who most need it in economic performed in this sector lacks legal protection, downturns.” (2009, p. 6). support or proper compensation.

Robertson’s scheme is based on taxing the value A welcomed reassessment of work and its regu- of common resources as an alternative to present lation is the Supiot Report. On the invitation of taxes on incomes, profits, value added and other the European Commission, a group of lawyers financial rewards for useful work and enterprise. and economists looked at the needs for reform- Public spending would in his scheme be shifted ing labour law. The report of the committee, lead to distributing a Citizen’s Income, as a share in by Alain Supiot, has been characterized as “one of the value of the common resources, “away from the most original contributions to thinking on the perverse subsidies and heavy spending on big reform of the employment relationship and employ- governmental and business organisations to pro- ment law.” (Marsden & Stephenson, 2001, p. 1). vide dependency- reinforcing services to welfare consumers.” (2009, p. 2). Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs [59]

Three fundamental observations are made in the The employment-based perception of work is Supiot report: incapable of capturing substantive aspects; value considerations do not fit the paradigm. Be the employment relationship in its existing work environmentally harmful or green jobs, be form has reached its limits as many firms need the products things we need or don’t need, be more flexible relationships with their employees the work something we are passionate about or than it can currently provide; something we do for our livelihood, anything goes tinkering at the edges with special types of as long as focus is placed on work performed in employment contract for different categories of an employment relationship, a salary is paid and workers has diluted protection without increas- the economic transactions are registered as part ing new jobs; and of the gross domestic product, GDP. This is the reform of the employment relationship poses dominant perception of work. severe problems for labour law, collective bar- gaining and social insurance, because they have “The exchange of cash is the key”, Marilyn Waring all based themselves on the standard employ- observes about how we measure GDP (2000, ment relationship (Marsden & Stephenson 2001, p. 53) and gives an African perspective on this p. 3). phenomenon:

There is a promise of something new in the “The transactions can be immoral and ille- experts’ observations. The fundamental redesign gal and universally condemned, but no one of employment that Supiot and his colleagues cares. Resources are mined, skies are pol- propose includes the idea of an equivalent to luted, forests are devastated, watercourses citizenship rights in the arena of work. A per- become open sewers and drains, whole popu- son would have an “occupational status” that lations are relocated as valleys are flooded and establishes a citizen’s right involving access to dammed, and labour is exploited in chronically markets and trade. It would also cover the tran- inhumane working conditions. The statistics sition between different kinds of activity, market record economic growth.” and non-market work, training, re-training, and so on. The right to an income and other advan- The Stiglitz commission’s response to this state tages would also apply in regard to socially of affairs is to broaden income measures to non- recognised non-market activities. By making market activities (Recommendation 5). workers’ employment rights less dependent on their current jobs, such changes would spread Household work is not recognized in official sta- the risks of short term and uncertain employ- tistics, yet it constitutes an important aspect of ment more widely, making them more acceptable economic activity. The commission notes that the to workers and so encourage the development reason for excluding such data is not so much of activities that require them. (Marsden & conceptual difficulties as uncertainty about the Stephenson 2001, p. 6). This is a good start, data. There has been progress in this arena and although the report tends to focus on employ- the commission considers that more systematic ment and firms without sufficient consideration work should be undertaken. “This should start of ownwork. Unfortunately, politicians have not with information on how people spend their time been ready to act on these proposals (see Supiot that is comparable both over the years and across 2006 and 2009). Nevertheless the report is a step countries.” (2008, p. 14). in the right direction and hopefully its proposals could pave way for a basic income. What this boils down to can hardly be better told than Marilyn Waring does (2000, p. 53): MEANINGFUL WORK “Consider Tendai, a young girl in the Lowveld The Stiglitz commission points to the challenges in Zimbabwe. Her day starts at 4.00 am when, we face in perceiving the value of work particularly to fetch water, she carries a 30-litre tin to a in activities such as medical services, educational borehole about 11 kilometres from her home. services, information and communication tech- She walks barefoot and is home by 9.00 am. nologies, research activities and financial services She eats a little and proceeds to fetch fire- (Stiglitz commission, 2008, p. 11). wood until midday. She cleans the utensils from the family’s morning meal and sits pre- [60] Green Jobs from a Small State Perspective. Case studies from Malta.

paring a lunch of sadsa for the family. After whereas the share of part-time workers is one out lunch and the cleaning of the dishes, she of four against 17.6% in total employment. Another walks in the hot sun until early evening, fetch- distinctive feature is that people working in this ing wild vegetables for supper before making sector generally have a high level of education. the evening trip for water. Her day ends at 46.8% possess a university degree, whereas the 9.00 pm after she’s prepared supper and put percentage in total employment is 25.7% (2006, p. her younger brothers and sisters to sleep. 6). This triggers the question how human capital is Tendai is considered unproductive, unoccupied treated in present day structures. and economically inactive. According to the International Economic System, Tendai does HOW THINGS ARE RELATED not work and is not part of the labour force.” In their book The Spirit Level, Why Equality is In the affluent part of the world we have groups better for Everyone, Wilkinson and Pickett (2010, of highly educated hard-working persons who p. 5) observe that we have got close to the end contribute greatly to a nation’s both material and of an era that has lasted for thousands of years, spiritual wealth – artists. Yet, they don’t reap- when economic growth has meant an improve- the profit. Artists have made the creative sector ment in people’s quality of life. In the rich one of the fastest growing sectors of the econ- countries economic growth has largely finished omy. Here some EU statistics from the study The its work. “We are the first generation to have to Economy of Culture in Europe (2006, p. 6). find new answers to the question of how we can make further improvements to the real quality of Turnover: The cultural and creative sector human life.” (2010, p. 11). Their answer is equality: turned over more than € 654 billion in 2003, compared to ICT manufactures € 541 billion in 2003 “The powerful mechanism which makes peo- and the car manufacturing industry, € 271 billion ple sensitive to inequality cannot be understood in 2001. in terms either of social structure or individual Value added to EU GDP: the cultural and crea- psychology alone. Individual psychology and tive sector contributed to 2.6% of EU GDP in 2003. societal inequality relate to each other like lock During that same year. and key. One reason why the effects of inequal- Chemicals, rubber and plastic products ity have not been properly understood before is accounted for 2.3%. because of a failure to understand the relation- Real estate activities 2.1%. ship between them.” (Wilkinson & Pickett 2010, Food, beverage and tobacco manufacturing 1.9% p. 33). Textile industry 0.5%. Contribution to EU growth: the overall growth of The question of equality is of great relevance the sector’s value added was 19.7% in 1999-2003. for those working in the intersection between The sector’s growth during this period was 12.3% employment and entrepreneurship. Many of higher than the growth of the general economy. them are discriminated against in regard to pay. As they mostly lack the support structures that And how does this translate into work? In 2004, a work place, labour legislation or collective 5.8 million people worked in the cultural and cre- agreements accord, the conditions under which ative sector, equalling 3.1% of the total employed they work can be quite burdensome. Insecurity population in EU25. While total employment in is often a constant companion. A Canadian the EU decreased in 2002-2004, employment in study, Impact of Arts-Related Activities on the this sector increased by 1.85%. Perceived Quality of Life, revealed that there was no connection between 66 different art genres Here we can talk about both meaningful work and and the artist’s reported sense of psychologi- green jobs. And here we see a lot of deviations from cal well-being. The researchers, A. C. Michalos ‘the standard’. The share of independents is more and P. M. Kahlke, (2008) were surprised, as it is than twice that in total employment (28.8% against generally recognized that art contributes to peo- 14.1%). This means own work is performed in the ple’s well-being. They were probably unaware of intersection between employment and entrepre- the hardship that is often associated with artistic neurship. And those who are employed are often work. So a basic income would be a compensa- so on a more irregular basis. 17% are temporary tion for society’s lacking ability to compensate workers, compared to 13.3% in total employment, artists for their work. So much so, as artistic Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs [61]

work is an ideal means of improving prosperity No, not according to the half-year report from the without growth. project. According to this report there are now more people working at Otjivero, and there has TO BE RENEGOTIATED been several start-ups since the basic income was introduced. The malnutrition of children The constant call for economic growth is a under the age of five has decreased from 42% to major reason for both social and economic ills, 17 %. More children are attending school and the but something that is not easily questioned. payment of school fees has doubled. The number “Questioning growth is deemed to be the act of school dropouts has decreased from more of lunatics, idealists and revolutionaries”, Tim than 30 % to 5 %. Jackson observes in the Foreword to his report “Prosperity without growth?” (2009, p. 7). But this In 2011 this result was confirmed by Guy Standing, myth about growth has failed us, Jackson notes: one of the architects of the Namibia project. In 2011 he is working on two pilot projects for cash trans- “It has failed the two billion people who still fers in India (The Times of India, 4 October 2011). live on less than $2 a day. It has failed the frag- ile ecological systems on which we depend At Otjivero, the effects the basic income had for survival. It has failed, spectacularly, in its had on health was remarkable. The local health own terms, to provide economic stability and clinic reported that its income had increased five secure people’s livelihoods.” (Foreword, 2009). times as more people were able to afford health care. Thanks to an improved diet the medicines Therefore it needs to be questioned. Jackson’s for HIV-infected persons were more effective. primary recipe is a new macro-economics for Further, poverty-related violence had decreased sustainability. The presumption of growth in by 20%, according to the first half-year report. material consumption can no longer be the basis for economic stability. The folly of separating The basic income had up till then proved to be economy from society and environment must be a success, and Bishop Kameeta, who directed substituted by ecological and social sustainability the project, said in a speech that they now could (Jackson 2009, p. 10). look towards a promised land that is said to exist beyond the desert march of the poor Namibians. Structural change, Jackson notes, must lie at the – “It was a society that stood up against poverty heart of any strategy to address the social logic and assumed its dignity, this is what we saw.” of consumerism. “It must consist in two main (http://www.facebook.com/photo. avenues. The first is to dismantle the perverse php?v=1110435337885) incentives for unproductive status competition. The second must be to establish new structures THE EFFECTS OF that provide capabilities for people to flourish – ECONOMIC SECURITY and in particular to participate meaningfully and creatively in the life of society – in less material- A number of preconceived ideas had to be done istic ways.” (2009, p. 11). away with when a cash transfer system was tried out in South Africa. One of them was the gener- HOW A BASIC INCOME ally held view in conventional economic theory FITS THIS PICTURE that a basic income might “undermine labour force participation by reducing the opportunity A basic income has been tried out in a deprived costs of not working”. When empirically tested village Otjivero in Namibia. This is what Jacob against the cash transfer systems in South Africa Zetterman reported in 2008 after the project had the researchers found that: been running for half a year. (http://www.dagen. se/dagen/Article.aspx?ID=160382) Social grants provide potential labour market participants with the resources and economic Did it turn out, as the critics feared, that people security necessary to invest in high-risk/high- who get money for free become passive and shy reward job search. working; that in the long run, it leads to soci- Living in a household receiving grants is cor- ety’s collapse; that the only ones to profit from related with a higher success rate in finding the concept are alcohol dealers and prostitutes? employment. [62] Green Jobs from a Small State Perspective. Case studies from Malta.

Workers in households receiving social grants ment that drives development. It is here that are better able to improve their productivity and much green jobs see the light. as a result earn higher wages (Samson et al., 2004 in Kameeta et al., 2007, p. 22). The one size fits all view of work as employment and economic profit needs to be substituted with In regard to the Namibian model for a basic a ‘both and’ approach. Old and new work formats income “The Basic Income Grant”, BIG, Kameeta should be seen as complementary. The notion et al. maintain that it is more than an income sup- of meaningful work cuts across formal divisions port programme. of work categories such as private and public employment. This is important because outsourc- “It provides security that reinforces human ing has blurred the borderline between public dignity and empowerment. It has the capac- and private. Making meaning a part of the equa- ity to be the most significant poverty-reducing tion will give leeway for work in civil society as programme in Namibia, while supporting complementary to work for profit, allowing them household development, economic growth to be pursued parallel without internal competi- and job creation. The cost is ranging from tion. Or as Robertson says “We will do what we 2.2% to 3.8% of national income.” see to be our own good, useful and rewarding work – for ourselves, other people and society as Over time, Namibia’s economy will benefit from a whole (Robertson, J., 2006 Preface, p. 2). This the long-term growth impact of the Basic Income will bring changes to national economies in the Grant (Kameeta et al., 2007, p. 23). This report kinds of work people do, the ways they work, and was presented in 2007, thus before they tried out the way society organises work (Robertson, 2006, a Basic Income Grant in 2008, with the unambig- p. 3). uously positive results we have seen above. (http://www.facebook.com/#!/photo. MAKING PEOPLE PART php?v=1110435337885) OF THE EQUATION

BASIC INCOME – A WAY OF As noted above, the Stiglitz commission advocates PROMOTING PROSPERITY a shift of emphasis from a “production-oriented” measurement to one focused on the well-being of The prosperity Jackson is in search of is a less current and future generations, i.e. toward broader materialistic society that will enhance life sat- measures of social progress (Stiglitz, 2009, p.10). isfaction. It is a more equal society that will Here Wilkinson and Pickett’s book “The Spirit Level lower the importance of status goods. It is a less why Equality is better for Everyone”, fills a void. growth-driven economy that will improve peo- They see that the extraordinarily positive recep- ple’s work-life balance. Enhanced investment in tion their book has received is a sign that there is public goods will provide lasting returns to the a “widespread appetite for change and a desire to nation’s prosperity (Jackson, 2009, p. 11). find positive solutions to our problems.” They point to the social failings that has led to pessimism, and A basic income would give people the opportunity on top of that, the economic recession and its after- to opt out of activities that burden the environ- math of high unemployment. “But the knowledge ment, in which they are engaged solely for the that we cannot carry on as we have, that change sake of their livelihood. Those who are involved is necessary, is perhaps grounds for optimism: in own work, again, to a great extent contrib- maybe we do, at last, have the chance to make a ute to social prosperity through culture, caring better world.” (Wilkinson & Pickett, 2010, p. 11). functions and other voluntary work rather than environmentally harmful activities. In their book Wilkinson and Pickett show that “the quality of social relations in a society is built A lot of human energy goes into work in the on material foundations. The scale of income dif- intersection between employment and entrepre- ferences has a powerful effect on how we relate neurship that might or might not be business one to each other. Rather than blaming parents, reli- day. Whether one is successful or not, should not gion, values, education or the penal system, we be an issue as great leaps in development often will show that the scale of inequality provides a originate in somebody’s failure or mistake. It is powerful policy lever on the psychological well- work ‘outside the structures’ rather than employ- being of all of us” (2010, p. 5). Chapter 6. Basic Income: How it ﬁts in the Policy Framework for Green Jobs [63]

WHAT NEXT? In the 1980s Anna Christensen pointed to the failures raised in this paper, in the form of tensions The Stiglitz commission regards its report as inherent in the wage-labour society. Writing opening a discussion rather than closing it. in the context of future studies, she notes that The report points to issues that ought to be changes have to emerge from the cracks and addressed, such as societal values, what we, as paradoxes inherent in a society which is built a society, care about, and whether we are really on wage labour. This change will come about striving for what is important. among groups that refuse to adapt themselves to the value order of society, among women, part- At the moment of writing (28.10.2011) 795,486 time workers, among young people outside the persons around the globe have signed Avaaz’ wage labour system that refuse to be miserable petition The World vs. Wall Street in support of and to accept the oppression and humiliation of the thousands of Americans who have non-vio- “employment enhancing measures”. What the lently occupied Wall Street – “an epicentre of new order will look like, nobody knows, it can only global financial power and corruption”. The occu- grow through practice, Christensen notes (1983, pants call for real democracy, social justice and p. 23). anti-corruption. (http://www.avaaz.org/en/the_world_vs_wall_st/) And here we have a parallel with the project economy and the control embedded in it. The message This adds a “western” dimension to the Arab of my contribution is to allow things to grow with- spring where ordinary citizens began claiming out external interference. The central question their right against oppressive or undemocratic therefore is to give space for a sound develop- regimes starting in Tunisia, followed by Egypt, ment of today’s potentials. A basic income would Libya, Yemen, Syria, Morocco (?). In the Avaaz allow for this. And the Arab spring, as well as the posting on the internet on 5 October 2011 launch- occupation of Wall Street, show that people want ing the Wall Street petition, they note that 2011 change – social justice. could be our century’s 1968.

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Robertson, J - (1985 / 2006) Future Work Jobs, self-employment and leisure after the industrial age, http://www.jamesrobertson.com/books.htm

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