On October 9th, The Economist grimly reported that the world is at best, on the brink of recession, and if the IMF’s most recent World Economic Outlook, is to be believed, the world economy is “entering a major downturn” in the face of “the most dangerous shock” to rich-country financial markets since the 1930s. Which is serious news indeed, and whilst the American economy is already showing signs of a serious stumble, the situation for Europe is equally worrying. The British economy, which stalled in the second quarter, is now unmistakably sliding into recession and recently released figures showed that output in the Eurozone fell at an annualised rate of 0.8% in the second quarter with GDP shrinking in the currency zone’s three largest countries - Germany, France and Italy.

In times of financial hardship, it naturally follows that less people are willing to invest. With such uncertainty surrounding banks, and the world financial markets generally, alternative paths become much more attractive as people bail out of what are seen as risky positions. It’s only natural that they will flood to what are viewed as safer investments - gold, for example, has very recently shot up because it offers security in volatile times. So how does Malta’s economy fit into this tricky jigsaw puzzle? Well apparently, Malta ranks among the top twenty global countries most likely to sustain economic growth over the medium to long term, and property seems to be the key. The outlook for Malta has been described by some as positive. One move that helps to confirm Malta as a European country that can offer a steady outlook is the recent announcement by Parker Green International, one of Ireland’s leading property and investment companies, that they see Malta as a new opportunity regarding their plans for global expansion. With a reported increase in tourism in recent months, a notable inward investment and a sustainable domestic demand for property, Malta could be regarded as a relatively sound location for anyone looking for safe sustainable returns.

How will this affect our plans for the development of our capital city? Will investment in any of the projects we’ve discussed remain stalled until the global markets regain their footing? Should we, for instance, be looking for alternative roads towards regeneration? Who would be able to push forward without assured financial security? Enter the venture capitalist. Essentially a venture capitalist – whether an individual, a group, or a firm, uses the principal of investing in immature, high potential growth projects with a view to drawing a return on the completion of the project . They inject capital, management and expertise in order to see the project grow allowing them to cash in on their investment: Buy weak, sell strong. Venture capitalism rose to prominence in the public sphere during the Dot Com boom, where the high sale prices and an eventual crash drew public interest to the drama of the money men. Despite the Biccerija’s current state, the rest of Valletta seems to be slowly but surely dusting herself off and an eagle-eyed venture capitalist keen to invest in the city might consider taking a gamble on this currently neglected part of Valletta. However, with recent studies showing venture capitalist confidence slowing, perhaps we should be looking at other options.

So what of public-private partnerships? No public private partnership comes without its concessions; on the one hand it injects money, and thereby energy into an area but it also inevitably must bring with it an element of commercialisation in order for the venture to be worthwhile for an investor. However, the area and any project undertaken must be appropriate partners. The success of the Viset project as an area for entertainment is partly due to the fact that the development is in a non-residential area. It has a purpose, it has its audience and is currently doing brisk business. In all reality, is the Biccerija area really ready for an influx of upmarket hotels, commercial centres, shops, bars – even nightclubs? Probably not. Regenerating the Biccerija requires an attractor that brings more movement into the area, but residents, rather than short term visitors are more likely to be appropriate. More residents will require more services in the form of shops and so on, thereby naturally creating an area of mixed use but the area has to be made a desirable location to own property. Recently plans were announced to regularise the patchwork state of Valletta’s pavements, a move which is welcome and a step in the right direction, but somehow something more comprehensive than the attentions of a pavement committee is needed.

We previously discussed the viability of smaller interventions such as the creation of a boutique hotel as an attractor to the area, but perhaps the greatest thing of value the Biccerija has to offer is what it possesses already: It’s unique history, it’s maze of streets, its particular architecture and its proximity to the sea, its connection to a main road for access. Valletta’s grid of streets means access down to the area is not blocked, just offputting as its historic fabric and road surface becomes shabbier the further downtown you travel. It’s a case of improving the infrastructure of an existing district, not inventing an entirely new one. The biggest boost the Biccerija could receive would perhaps not be a swish hotel or casino; but an influx of residents, demanding those unbroken pavements, decent housing and appropriate streetlighting. With the Maltese property market standing as an attractive opportunity if those predictions are to be believed, then the regeneration of the Biccerija still has the green light.