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8 OPINION 25.01.2024 Dreaming of a true democracy - power to the Polis George Mangion George Mangion is a senior partner at PKF, an audit and consultancy firm, and has over 25 years' experience in accounting, taxation, financial and consultancy services. His efforts have made PKF instrumental in establishing many companies in Malta and established PKF as a leading professional financial service provider on the Island G oing through the annals of histo- ry, we meet famous philosophers that have le us beads of wisdom for mankind to emulate and revere. In ancient times, one cannot miss the name Solon who stands as a beacon of wisdom and justice. This Greek philosopher, poet, and lawmaker of the 6th century BC Ath- ens laid the groundwork for many principles that continue to shape modern society. Among his enduring contributions, Solon's ideas on de- mocracy, the rule of law, and his in- sights into economic and moral issues remain remarkably relevant in our contemporary world. This article delves into how Solon's legacy resonates with the challenges and complexities of our times. At a time, when Athens was marred by so- cial inequality, corruption, nepotism, avarice and political strife, Solon de- vised a set of constitutional reforms that aimed to establish a fairer sys- tem of governance. His advice laid the foundation for Athenian democracy, which has since inspired democratic movements worldwide. Back to modern times, where power in most countries rests in the elected party (or a coalition of parties) for the agreed electoral term. Rogue admin- istrators abuse of democratic powers and breed insipid arrogance. Some democracies have important land- marks consisting of mid-term elec- tions eg the USA, but this system is not popular in Europe. Whether, it is a full five years or mid- term of two years, there is everything on the legislature to guide lawmakers in truly respecting desires of the polis. The concept that power rests with the people seems to morph into thin air, once a few elected candidates secure power in parliament. Moreover, contemporary democra- cies face their own set of challenges. Issues like voter suppression, misin- formation, populism and polarization have raised questions about the health and sustainability of democratic sys- tems. Solon's emphasis on broad- based participation and the rule of law serves as a reminder of the need for inclusivity and accountability in mod- ern democracies. His commitment to the rule of law was instrumental in restoring or- der to Athens. He introduced a legal code that treated all citizens equally, regardless of their wealth or social status. This noble principle remains at the heart of modern legal systems, where justice is supposed to be blind and impartial. Gone are the abus- es of power where elected cabinet members lord over state assets and abusively share some of them among nieces and nephews not to mention phantom jobs. Why did ERA approve building per- mits over sensitive areas eg 27 apart- ments and underlying garages close to Ggantija - a world heritage site in Gozo? The executive and police have to act impartially and without looking at faces to protect citizens in their en- joyment of civil liberties, serenity and the rule of law. Malta is a young democracy, so achieving this sounds Utopian. Issues like corruption, sleaze, political inter- ference, and the erosion of civil liber- ties crack the foundations of justice and scares away multi-national invest- ment. Solon's unwavering dedication to upholding the law underscores the importance of an independent judici- ary and the need to protect the rule of law from undue influence and lack of resources. Solon's economic reforms in Athens sought to alleviate the suffering of the poor and reduce disparities between the rich and the impoverished. He cancelled debts, abolished debt slav- ery, and implemented measures to prevent the concentration of wealth in the hands of a few in the Senate. Solon recognized that a just society could not flourish without economic fairness and good governance (undue enrichment must stop). In modern times, economic inequal- ity is a pressing issue. Income dispar- ities, access to good education, and concentration of wealth in a few select families continue to challenge our so- ciety. Can we now consider how local- ly, a hidden tax has eroded the value of money and no amount of COLA in- stalments (which are again taxed) can fight the soaring cost of living. There are several ways in which inflation can be labelled as a hidden tax. To start with the obvious symptoms are a reduced Purchasing Power. It can be seen as a silent tax; because the plebs effectively have to spend more to maintain the previous standard of living. But locally the finance minis- ter went shouting over the roof tops boasting that no new taxes were load- ed in the fancy red budget box. Banks are the bodies churning out super profits this year: while some of them do not share the bounty by increasing rates for depositors nor higher divi- dends to shareholders. As expected, inflation erodes the real value of their savings. This can be especially problematic for retir- ees or people on fixed incomes and all low-wage income earners. They struggle to maintain a decent stand- ard of living. Today, the OECD claims that 94 per cent of workers in the world's supply chains are in low-wage, insecure and often unsafe work. Un- doubtedly, the harsh reality is that the global economy is mired in a model of self-destruction, with the lives and livelihoods of working families in the eye of the storm. The topic needs closer examination amid recent warnings from the Inter- national Monetary Fund that AI will disrupt 40% of jobs and increase ine- quality and redundancies. Malta bad- ly needs transformational leaders who can fix the structural flaws in today's model. This yearns for a new econom- ic model. A lost opportunity in the 2024 budget not to introduce a selective cut in indi- rect taxes and give tax credits to food importers to nip the problem in the bud. Taxing profits registered by su- permarkets at a 35% corporate tax is the highest rate charged in the world. It does not encourage them to slash pric- es. A mere €125 monthly allowance of- fered to small shop keepers in order for them to offer a blanket 15% cut in a list of products - does not cut it. One recommends that the govern- ment starts to strengthen the con- sumer protection agency MCCAA. It can recruit from other government agencies, a higher cohort of techni- cal officers able to carry out an anal- ysis of business margins on essential products and services to determine whether such margins are reasonable, when compared to what they were in pre-crisis times.