Discussion here touched on the significant slowdown of America’s economy. Theories to explain this turn of events abound: from the real estate bubble to the sub-prime housing crisis, to more general imbalances. Participants focused on the financial sector, but the dynamics of prices – both for the producer and for the consumer – were also a subject of interest.
The roundtable's opening address was given by Dr. James F. Albaugh, President and Chief Executive Officer of Boeing Integrated Defense Systems and Executive Vice President of The Boeing Company. Dr Albaugh alerted the gathering to the lack of young talent in the aerospace and high tech industries. He also underlined the gap between Europe and the United States in the defense industry and public allocations for acquisitions and research in the sector. In 2005, EU countries spent 35 billion dollars in arms investments compared to the 103 billion spent by the US.
The yearly conference offers an important moment to reflect on the prevailing trends of the world economy in the medium and long term. The 2007 edition examined the question of the weaker dollar as a way of analyzing prospects for the euro and global financial relations. Discussion revolved around the weakened US currency and whether it will remain the pivot of the international monetary system. At the same time, participants looked at the strength of the euro and its rapid growth as a world reserve currency.
The roundtable began with speeches by Italian Foreign Minister and Deputy Prime Minister Massimo D’Alema and First Deputy Prime Minister of the Russian Federation and President of Gazprom Dmitri Medvedev. The encounter was a unique opportunity to examine the state of Italian-Russian relations with a special focus on the energy question. The debate highlighted the excellent trend in relations between the two countries and the encouraging prospects for future agreements, not only in the energy sector but also in other sectors – the high-tech one in particular.
This international workshop focused on the new role energy is playing in global relations, with particular attnetion to the complex relationship between Russia and the European Union as regards energy security. Participants pointed out the need, especially in the West, to diversify supply sources.
The Conference described and analyzed proposals for generational turnover in Italy and Europe. Participants focused on fostering merit in the areas of economics, politics and academia. Regarding generational turnover, proposals included lowering the active and passive voting age in the Senate, and limiting the number of terms in office they may seek (as with mayors in Italy).
The conference “Constructing the Euro-Mediterranean Space: where are we headed?” dealt with the political, economic and technological divide that currently persists between the northern and southern shores of the Mediterranean, and the effect these gaps will have once the region becomes a “free trade area”, in 2010. Much of the discussion was dedicated to consideration of the Mediterranean Union (MU), a “variable geometry” organism to be launched in June 2008 and which should breathe new life into Euro-Mediterranean cooperation.
The discussion highlighted the speed at which China’s role as a world power is evolving: its influence is growing visibly, although in the presence of undeniable macroeconomic imbalances (internal and external) that are of serious concern for the future.\r\nFrom a strictly economic point of view, a change of perspective is underway, from the prominence of export to investment and partnership – a development fostered by the sizeable liquid assets available to Chinese operators.
Discussion opened with an evaluation of the historic Marshall Plan: its origins, the postwar conditions behind its development, the underlying philosophy of US aid to Europe, the inevitable political and security implications that led to a strong reaction from the USSR. Much was said about the farsighted, multilateral approach taken by the United States at that time, despite its obvious military and economic superiority. American awareness that a complex and flexible international economic system could only be based on cooperation as well as competition was also crucial.
The Institute’s annual appointment to discuss the global economy concentrated on major challenges facing the international economic community this year. The meeting opened with a discussion of imbalances between “big savers” and “big spenders” in a phase of fluid geopolitical shifts throughout the world. Attention was focussed on the dynamic Asian markets – not just in China and India, but in a recovering Japan – throughout the conference. Even in the sessions dedicated to energy supply and security, Asia remained a protagonist.
The volume Chi guida l’economia contains a study of a statistics survey on private and public sector leadership with particular attention to Aspen Institute Italia members who are also part of Italy’s Entrepreneurs Association and the Public Administration Management School. Positive and negative aspects of the Italian economic leadership emerged from this study which includes a substantial uniformity in the education and competency of private and public managers, the lack of internationalization and a limited presence of female figures in roles of high responsibility.
The international workshop on “Securing the European Homeland” was held in Rome last Febraury 2nd. The meeting focused on the threats to internal security in EU countries and on what is currently being done in Brussels and in EU capitals to respond to the risk of terrorism. From the discussion it emerged that steps have been taken in the direction of defining possible threats, to the levels of coordination of safety measures and in terms of security legislation, although there are still great difficulties in determining the dynamics of transnational criminal trends.
This meeting offered the opportunity to discuss US security policy and priorities with regard to European allies. The luncheon guests considered crucial issues facing Western democracies today, from Afghanistan to Iraq, from Iran’s nuclear ambitions to the development of a greater multinational force capable of intervening quickly around the world. They also discussed issues of a more purely political nature on the transatlantic agenda, such as the direction Russia is taking in its political development and the possible enlargement of NATO as far as Ukraine.
The conference opened with a reflection on the Italian and the German economies, their differences and similarities. The priority for Germany is to strengthen domestic demand, given their good performance on international markets and a restructured private sector. Italy needs to become more competitive and to guarantee greater discipline in its fiscal policy. The two countries face some of the same challenges, especially as regards reforming their respective pension systems and health sectors.
The workshop, a novelty for the Institute, was made up entirely of female participants of the utmost authority and prestige. Various issues were discussed: repression of women in Arab countries, social and cultural changes needed to improve conditions and strengthen the economic development of women around the world. Participants highlighted certain obstacles hindering women’s aspirations, such as diverse interpretations of Islamic law, illiteracy and, most of all, poverty.
This event represented an important occasion to assess the enlargement process of the EU towards the Balkans, primarily Romania and Bulgaria. Participants analyzed possible reinforcement policies which should favor economic integration, as well as issues such as immigration, security and human capital. The presence of important Romanian personalities was also an occasion to present the project of Aspen Romania in Italy to a selected number of Institute members and local experts.
Aspen Italia’s annual Transatlantic Dialogue focused this year on persistent widespread instability in the Middle East. Various ideas for pragmatic solutions were proposed, though no strikingly positive developments were foreseen any time soon. The first day of debate focused on interdependency between free trade and democratization in a strategic framework, and in particular on gradually opening markets and reforming governments.
On Thursday February 9, Aspen Institute Italia organized the international roundtable on “Strong and unbalanced: how the IMF can help manage the global economy” with the Director of the International Monetary Fund (IMF) Rodrigo de Rato.
From the international workshop organized by Aspen Institute Italia at the Italian Ministry of Foreign Affairs emerged a proposal to draw up a “road map for the Balkans”. Participants met before an ample audience to discuss the “The Balkans in Europe’s future” and to consider strategies to help integrate southeastern Europe into the EU and other international organizations. The Balkans are relatively stable, military conflict has ceased, ethnic cleansing is a thing of the past, and free elections have been held.
The working lunch with the European Commissioner Peter Mandelson has brought the attention to the delicate and complex issue of trade policy prior to the Doha Round scheduled in December in Hong Kong. Participants generally agreed that greater caution is required in further trade liberalization: Italy needs more time to prepare for trade challenges that arrive mainly from China, India – in the IT sector – and from the "green giant" Brazil.
