Leading in to discussions at this Aspen Junior Fellows event was the observation that 2014 is the launch year for the European Banking Union, the product of what have been difficult compromises between the various countries involved after six years of financial crisis and two recessions.
The title of this event yielded three key words for a debate on modern leadership: change, uncertainty and complexity. The proceedings got underway with the observation that any discussion of change entails assessing the various geographical and temporal factors that are increasingly impacting personal and professional life. Twenty years ago, the reach of professional activities was limited to the West, whereas today it is extending more and more towards emerging countries.
This Aspen Junior Fellows meeting and debate session got underway with the observation that the importance of protecting the public economic order is underlined by the challenges currently faced by Italy in the public finance arena, which have impacted on the country’s development and its citizens’ standard of living. It was stressed that, in a modern economy, the value of lawfulness needs to be affirmed through regulatory certainty and high-quality rules, backed up by effective enforcement mechanisms.
By way of opening premise at this Aspen Junior Fellows meeting, it was observed that the current crisis is an accelerator of change and, like the Chinese ideogram for the word “crisis”, can be seen as posing both a problem and an opportunity. Small wonder then that young people are a prime focus of attention, given that they also represent both of these conditions. Having inherited a legacy of curtailed or betrayed hopes, younger generations appear defeatist.
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.
The latest Aspen Junior Fellow Breakfast meeting on the topic of Youth and Employment in Italy got underway with a number of key questions posed for discussion by those present. First and foremost, doubts were raised as to whether Italy could truly be considered a country geared towards young people. How then – on the eve of the resumption of national talks on employment – should the country go about reforming a system debilitated by generational self-interest? And based on what ideas, at what cost and with what resources?
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.
It was remarked during this AJF Breakfast meeting that the Mediterranean has been an area of ongoing interest throughout the history of Aspen Institute Italia, particularly during the 1990s, with specially-themed conferences dealing with the subject, and over the last decade, with a focus on the impact of the socio-political prospects of the region on access to energy resources. Acknowledged as a place of encounter and of conflict for thousands of years, the participants also noted its role as a trading space, a “liquid plain” hemmed in by numerous borders, to use Braudel’s description.
This Aspen Junior Fellow Breakfast event saw the participants make a concerted effort to examine the individual challenges facing Italy through a broader frame of reference. It was noted that the long-term inertial forecast is one of a country that is aging and characterized by increasing levels of immigration, a widening North-South divide, the persistence of a detrimental public deficit, and insufficient productivity to maintain the level of prosperity hitherto achieved. This outlook, it was observed, feeds into a longstanding rhetoric of decline and defeat that is rife in Italy.
The event was introduced by the reflection on presentism, or the lack of collective attention in a country overly concerned with the present and which is losing its strategic vision. Presentism is the product of “real time” which has been brought on by technological advancement. Faced with weighing benefits in terms of quality of information and the growth of opportunities, the present has expanded and it has taken over our past and future. In this way, in economic terms, the world financial crisis came about due to an excessive focus on the short term.
The challenges, opportunities and constraints facing future generations is the recurring theme of the Aspen Junior Fellow Breakfasts, examined from an international perspective. In this breakfast debate, it was acknowledged that Europe, despite the level of prosperity, social cohesion and intellectual output it has achieved, is progressively offering fewer opportunities than other geographical areas.
The aim of this meeting was to debate the issues raised by a White Paper entitled “Living well in an active society: the future of the Italian welfare model”, recently published by the Italian Ministry of Labor, Health and Social Policies, and to focus specifically on the concerns facing young people in Italy today.
The breakfast meeting got underway with an identification of the long-term challenges that the economic crisis poses to the West. It was noted that the last twenty years have been marked by momentous changes. In the 1990s, the various areas of the world became increasingly interdependent. As a result, the last ten years have seen the highest global GDP growth ever recorded, fueled mainly by the US deficit and Chinese exports. However, the scale of this financial and trade imbalance cannot support future growth.
The participants at this talk and debate session were reminded that the main priority on the economic agenda of Western countries is the immediate promotion of sustainable recovery. The fact that there are 22 million unemployed people in Europe is indicative of the social hardship caused by the recession. Linked to this surplus production capacity is a reduced ability to use leveraging (the very mechanism that induced “euphoria” within the economic system thereby triggering the crisis).
The current financial crisis has lasted longer and been more damaging than expected, revealing the extent of market failure. The rule-free market era is over. No longer does anyone believe the “solid” economy – especially real estate – will turn into a “liquid” economy, thanks to deregulation. Widespread digital technology – a fundamental resource in globalization – does not help sell “toxic” shares: uncertainty about their worth only worsens the crisis.
Human rights were defined as fundamental inalienable rights of all individuals. The tradition of human rights trace back to the ancient world and was codified by Roman Law, to be then claimed as the basis for political independence by feudal entities and eventually enshrined in the Magna Charta of 1215. In its modern meaning and in relation to governments, the concept of human rights posits that governments have a duty to do no harm but also actively protect fundamental rights.There are various structural problems hindering the promotion of human rights worldwide.
