Friday, 21 October 2011

It is misleading to compare little Gib with large economies, says Panorama

GIBRALTAR (Panorama) The Chief Minister has now admitted that the financial crisis is affecting Gibraltar (See Gibraltar is not immune ...). He reckons that people are finding it harder to get a loan, to get a mortgage etc. Well, in other parts of the world such developments are seen as serious, and arising from the world economic crisis, but in Gibraltar the Chief Minister tries to put such a negative development on another plane, almost as if it did not matter! Look around and see all those empty 'luxury' flats, is that not another indicator of the effect of the world crisis on Gibraltar? Besides, to try and compare little Gib with the large economies of other countries is simply misleading. There are other small economies that are in a position similar to that of Gibraltar. And, big or small, had Gibraltar depended on industrial output for export, having say a car factory, if demand had reduced because of the crisis, such downturn would also have affected the Gibraltar industries, which would lead to cuts in manpower etc, such as happens in industrialised countries.>>>That is why it is so misleading, indeed mischievous, to compare a tiny place like Gibraltar with a major economy elsewhere, with different economic parameters.

Even so, in major countries the overall picture may be one of gloom, but there may be parts of that country, the size of Gibraltar or even bigger, which may not have been affected that badly.

To think that Gibraltar is some kind of 'miracle' is not to consider matters properly. We cannot just swallow everything that is thrown at us for spin without analysing what the words being bombarded in our direction really mean.

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