Industry in Italy: development and internationalization

The seminar dealt with the main challenges that the Italian economic system is facing in this difficult chapter marked by the international financial crisis, of systemic origin, whose extent and length have yet to be determined.
During the sessions, together with discussions over the cause of the crisis, emphasis was placed on the important role of the euro in Italy as major buffer at a time of great difficulty. But along with satisfaction over how well the European framework has faced the crisis, with a large degree of coordination, some unresolved questions were brought to light. An accent was placed on the delay in encouraging the revitalization of domestic consumption and exports and, as a result, the revival of credit to foster production and the start of an ambitious building project of infrastructure that could have a positive effect on demand. The issue of the renewal of infrastructures – even given the length the program could take – has repeatedly been identified as one of great importance.
But the Italian model was also accredited with a series of positive factors, first of all its strong manufacturing component. The fact that UNCTAD ranked our country in second place after Germany in terms of competitiveness is certainly an additional element of great importance. Italy is in first place in three sectors: textiles, clothing and leather footwear. It ranks second in four other sectors: non-electronic mechanics, electrical mechanics, basic manufacturing products and miscellaneous products. Thirty percent of Italy’s GDP is made up of exports. Of this, seventy percent (in essence twenty percent in all) is made up of small and medium enterprises. And this picture is therefore no longer that of exportation based essentially on competitive devaluation.
It is clear that the present international crisis will make these sectors more vulnerable, and it is the present international context that raises these questions. We need to understand how a company marked by growing managerial capacity, but that still embraces the concept of family control (the myth of control) can navigate, without losing competitiveness, through the present phase where finance has prevailed over industry. Government, business and banks must therefore recognize recent entrepreneurial success and, at the same time, collaborate on ways of overcoming this difficult cycle.
One of the issues debated most intensely is the state of trust. Italy’s industrial system is solid, while the situation – particularly access to credit – is far from easy.  A return to the real economy could help Italy’s economy, as long as it is accompanied by a strong, well-coordinated system action. This action must also deal with some critical problems that are purely Italian, starting with the limitations produced by the high level of public debt.
But the Italian system’s ability to emerge from the present difficulties – defined by the effective image of “exports in time of war” – will also be judged by its capacity to invest in the internationalization of our businesses. The debate also touched upon the issue of sovereign wealth funds (or at least in some cases of what some called “the sovereign’s funds”). In this context, Italy will be forced to move between the need to guarantee legislation that meets European and international standards for takeover bids, and careful evaluation of the possible opportunities that can derive from an increase of system liquidity insured by long-term foreign investors.
Finally, another crucial issue right now is that of productivity. Even though, in respect to this, it is difficult to identify gauging mechanisms, and therefore redistribution mechanisms, that could lead us down the road towards a kind of “shared capitalism”.