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Competing on international markets: economic challenges for businesses and professionals

    • Rome
    • 22 May 2012

          It was observed at this meeting of Former Aspen Junior Fellows that Italy’s current prime objective is economic development. To aid recovery, the country must make the most of every resource at its disposal. In addition to firms, institutions and social partners, this joint undertaking was also requiring the involvement of professionals, who contribute 15% of GDP and represent nearly two and a half million highly-skilled individuals, of whom one-third are between 30 and 40 years of age and a significant proportion are female. A major regulatory shake-up is in the process of establishing new operating conditions for the professions, as firms come to grips with the effects of the financial crisis and the globalization of markets. The relationship between these two diverse players in the Italian economy – businesses and professionals – is destined to evolve rapidly as a result of the pressing needs of productivity growth, competitiveness and internationalization.

          The participants noted that a crucial focus in the current regulatory overhaul is that of strengthening the link between professional and business associations in order to develop policies and reforms that are more market-oriented and adapted to the reciprocal needs of supply and demand. It was felt that goals of simplification and efficiency should also be pursued in those fields where there is an oversupply of professionals (as, for instance, emerges from an international comparison of numbers of lawyers). In this regard, there was a perceived need for support to underpin fresh efforts by the higher education and university system to encourage young people to make informed career choices more in line with actual market prospects.

          It was suggested that the challenge inherent in subsidiarity and reducing needless bureaucracy calls for the efficiency of the Italian public administration to be improved by conferring a greater number of publicly-performed functions on private professionals. An instance cited was approval since 2003 of company articles of incorporation by notaries (instead of courts); since 2010, notaries have also played a part in combating illegal building practices by certifying the conformity of real property which is being transferred to its description in the relevant land-registry deeds. It was stressed that if – as has been claimed – concepts such as the Big Society and New Governance are built on the principle of subsidiarity, then much can be done to expand the role of the professions as a resource in cutting red-tape and improving the competitiveness of the country.

          The moves currently afoot to liberalize the professions in Italy will enable silent partners to become shareholders of incorporated professional firms. Businesses, and in particular, large industrial, banking and insurance groups will be able to hold stakes in professional companies. The participants acknowledged that this poses a question regarding how to go about reconciling the independence and deontological ethics of professionals with the productivity and competitiveness demands of corporate shareholders.

          Finally, it was observed that there is a need for cooperative efforts on the part of businesses (starting with those of an international breadth operating in Italy), the professional sphere and public institutions to strengthen Italy’s attractiveness to foreign investment, whilst also improving the ability of domestic firms to compete in global markets. Technological innovation, an evolving labor market, mounting international competition and an increased need for more competitive organizational models have – it was suggested in conclusion – paved the way for new professions with room for a significant contribution from young people.