Opening discussions at this Aspen Junior Fellows event was the observation that the increase in the speed of progression of events and the shift towards a multipolar and networked world have led to a transformation in capitalism, with the advent of techno-finance representing one of the most obvious low points of this phenomenon.
Discussions at this national roundtable session got underway with the opening premise that the economic crisis and its social consequences have profoundly called into question the prevailing economic paradigm – a model based on competitive individualism, maximizing the profit of the individual, and an “invisible hand” regulating the market. The result is that the idea of the common interest merely being the sum of individual interests no longer seems sustainable in the current economic and social climate.
The opening premise of discussions at this International Conference was that scientific research is crucial to innovation, understood as both the discovery of new facts, data, or laws of nature, as well as knowledge with a direct technological application. Indeed, technology provides an essential bridge between science and society. As a demonstration of this, the participants pointed to the limitless practical applications of the World Wide Web (which had its origins at CERN, based on the development of the internet), citing it as a case where the industrial spinoff has been enormous.
Attendees at this National Conference examining the Italian banking sector noted that, according to economic theory, the financial system has a fundamental role to play in intermediating savings, allowing an efficient allocation of capital with consequent gains in productivity and wellbeing for the entire economy. In the recent past, however, this primary function has been compounded by others that have contributed to a distortion of the financial sector’s role and its relationship with the real economy.
The resilience of family businesses, still accounting for over 60% of Italy’s medium-sized and large firms, has been reaffirmed throughout the crisis. However, the protracted recessionary environment and credit crunch, in conjunction with ongoing succession processes, is forcing many of them to fundamentally rethink their business models, financial and ownership structures in order to return to a growth path – or otherwise succumb to the fierce global competition.
This roundtable saw the inception of a debate between various generations on issues of common interest to each of them. The event took its inspiration from Aspen Institute founder Walter Paepcke’s guiding notion that “only in such a fusion of talents, abilities, and philosophies can there be even a modest hope for the future, a partial alleviation of the chaos and misunderstandings of today”.
The opening premise of this National Interest roundtable was that although Italy boasts a cultural heritage without equal, it is unfortunately not exploited to best advantage through a uniform and identifiable strategy actually capable of generating economic benefits comparable to those produced in other countries despite having a much poorer cultural offering.
At this roundtable session dealing with the future of Italy’s welfare system, the participants observed that tackling the issue of risk management requires the resolution of an evident paradox, namely, that while the risks to which households and firms are exposed are becoming greater in number and increasingly serious, the public resources needed to address them are in ever more limited supply.
The opening premise of this ASL session was that any examination of the concept of responsible citizenship must first focus on the value system that underpins the relationship between citizens and their leaders. At the heart of this relationship (often perceived as dichotomous in nature) is a paradigm now challenged by growing grassroots demand for proof of legitimacy. Rising to such demands is a clear priority for leaders capable of steering and shaping the course of events.
Driving discussion at this ASL session on smart cities was the recognition that, in the midst of the polycentric globalization process unfolding, cities are becoming hubs of increasingly smarter networks capable of galvanizing and generating new momentum for innovation and growth. Any satellite photo will suffice to reveal a web of interconnected urban expanses, serving as crossroads and convergence points for tangible and intangible infrastructure.
The aphorism “The fast will eat the slow” was held up at this ASL seminar as the harsh law governing the digital ecosystem of today and tomorrow. To be “fast”, however, implies being able to rely on technologically-advanced infrastructure capable of sustaining competition at an international level. Indeed, major firms are continuing to invest in technology, even in the midst of the current crisis, precisely because of their acceptance that competitiveness drives economic growth, and that improving education and speeding up bureaucracy are not sufficient alone.
The point of departure for discussions at this ASL session was an acknowledgement that the gradual but inexorable process of population aging is having profound effects on the demographic and economic structure of societies. In this regard, the participants pointed to forecast trends that speak volumes: in all developed countries, and especially in Italy, Japan and Germany, the proportion of elderly people relative to the total population will continue to rise substantially.
Given the unique role played by the energy sector in the global economy, the current recession makes it imperative to take stock of the major trends unfolding in the industry. Before the crisis, the sector seemed on the verge of a major restructuring, due to the combined impact of new sources of natural gas and mounting environmental concerns. The effects of the intervening global downturn, though yet to be fully gauged, are in any event set to be asymmetrical.
Debate at this ASL session focused on framing the complexities of Italy’s economic system within an international context widely held to be in a state of crisis. It was submitted that a closer look at the real economy reveals a need to bolster the international competitive ranking of Italian firms and sectors with reforms capable of shaping the future evolution of the country’s education and research sector, the functioning of the labor market, and the banking and financial system.
Discussions at this 2-day event got underway with the observation that the Mediterranean Sea clearly connects Europe not just with North Africa, but also the Middle East, the Anatolian Peninsula, and the Persian Gulf. All these axes present opportunities for growth through greater interdependence, in spite of the current difficulties being experienced by European economies and the political uncertainty holding back those on the southern shores of the Mediterranean.
