Role of the State in relaunching the economy
Discussions at this two-day seminar centered on the role of local, national and European-level public actors in stimulating economic recovery.
Discussions at this two-day seminar centered on the role of local, national and European-level public actors in stimulating economic recovery.
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.
Discussions at this roundtable got underway with the observation that five years of crisis – triggered by the collapse of the financial sector and constantly compounded by (public and private) financial difficulties – have forced a rethink of the role of industry, which is now called on once again to become an engine of growth. Indeed, the need for a different economic vision, one which combines the kind of tangible and intangible values needed to kick-start new sustainable growth – has seen the production system return to center stage.
Proceedings at this National Conference got underway with the observation that the ICT industry characterizes and defines the age we live in. The spread of digital technology has led to a radical sea change in the economic system that is perhaps yet to be fully grasped. The profound and complex changes that this has given rise to in a number of spheres of endeavor are often perceived as a threat in Italy, due to the devastating effects they are having on the status quo, on centers of power, on existing organizational structures, and on employment.
Discussions at this ASL session got underway with the observation that the current economic woes are indicative not of a simple downturn but of a profound crisis, which calls for a radical alteration in lifestyles and development models. It was felt that without such far-reaching changes, levels of growth throughout Europe will continue to be very low in the coming years, in part because it will be impossible to kick-start development and employment without incurring some cost.
It is a long story that began back in the 1990s and that is still very much a part of the debate today. We are talking about the controversial and syncopated story of deregulation in Italy.
Proceedings at this national roundtable got underway with the observation that, in recent years, the concept of ethics seems to have taken center-stage in economic debate. Expressions such as ethical finance, ethical trade and business ethics are being used more and more frequently, and all major international companies have a code of ethics.
Kicking off discussions at this national conference was the observation that the current financial crisis, evidently systemic in nature, is predominantly being shaped at this stage by perceived risk factors linked to vulnerabilities in the real economy and the banking system. Efforts in the political, economic and monetary arenas – both at national and European levels – seem to have eased speculative pressures on the markets and tentatively restored international investor confidence.
The indestructible bond between art and the economy needs to be forcefully reiterated today, even at such a tough time for the global economy and for Italy’s economy in particular.
At this talk-debate event held in Rome, it was noted that although twenty years have passed since the publication of the book “Nazioni senza ricchezza, ricchezze senza Nazione” written by Giulio Tremonti, Sabino Cassese, Tiziano Treu and Francesco Galgano, the work remains extraordinarily relevant today, as by the time of its release a rift had already emerged between nations and reality, with the latter – and the problems and opportunities it presented – eluding the material constraints under which the former were forced to operate.
This encounter with Professor Guido Tabellini, Rector and Full Professor of Economics at the Luigi Bocconi University, gave the Aspen Junior Fellows an in-depth look at today’s issues. Twenty years after Maastricht, Europe’s economic and financial scenario has changed radically. The outlines of European unity were born of an optimistic forecast of the ability to govern a monetary – albeit not yet political or fiscal – union in the context of growing financial integration.
The current financial crisis has thrown into sharp relief the close links that exist between monetary policy, the banking sector, sovereign debt, and serious imbalances within the Eurozone. The vehemence and longevity of the crisis have called into question the very political structure of the European Union as well as its institutional architecture, both in need of modification through a more rigorous application of existing rules, but also by means of the assignment of new responsibilities and the creation of new mechanisms.
As Altiero Spinelli once observed: “Europe will not fall from the sky”, but rather needs to be built from the ground up with the involvement of everyone. These words served as the opening premise for discussions at this Aspen Junior Fellows Conference on the new challenges that will shape the cohesion and future of the European Union. On one hand, the Conference set out to address the question of the kind of new models that could guarantee prosperity and employment for all Europeans by mitigating the widening imbalances between generations.
Those attending this second installment of the Aspen Bosphorus Dialogue embarked on a renewed consideration of the overarching issues stemming from the relationship between the trends unfolding within Europe and the transformations taking place in its neighboring regions.
The “European paradox” lies first and foremost in the great potential of the eurozone and the EU as an integrated economic bloc, which remains undeniable despite the serious difficulties of the past few months, and the concerns with the future solidity of the single currency: we are practically witnessing the crisis (hopefully a temporary crisis) of a giant on the global scene.
Innovation is a complex process that requires creativity and talent, as well as infrastructure, long-term investment and a truly effective merit-based system of incentives: these were the watchwords at this event to launch the latest issue of Aspenia. Indeed, it was observed that for a society to be innovative in the twenty-first century world, it must have the scope and ability to combine scientific research with applied technology, thereby transforming ideas into products or services that are useful from a market perspective.
Proceedings at this National Roundtable examining the link between fiscal equity and growth in Italy got underway with the observation that, according to the Italian Constitution, taxation, as well as enabling the delivery of services and benefits essential to the welfare and progress of citizens, should also help overcome social inequalities through the application of redistributive justice criteria. This principle of “fairness” in setting tax levels takes on an even greater significance when, as is currently happening, social and economic disparities widen.
The second meeting of the Trialogue series focused on the issues of global economic governance (with special attention to the role of the G20), trans-Atlantic and trans-Pacific links in the security field, and instability in the Middle East region with its possible implications.
Paving the way for discussions at this National Roundtable session was the acknowledgement that in a climate where globalization processes are playing an increasingly more central role in Italy’s social and economic development, Italian firms also need to gear themselves up to being more globally competitive. Achieving this objective, it was suggested, brings with it a renewed need for financing or refinancing of many of the country’s firms and banks.
Discussions at this national roundtable session got underway with the observation that the idea of introducing European public debt securities – or so-called Eurobonds – is not a new one: indeed, it dates back to 1993 when Jacques Delors proposed, albeit in embryonic form, the issuance of European bonds to finance investment in European Community infrastructure.