The participants at this roundtable were deeply critical of the lack of transparency in the international financial system, the product of an out-of-control laissez-faire capitalism and a global lex mercatoria that has swept aside traditional capitalist organizational forms and the regulatory functions of public authorities.
The participants at this conference observed that, irrespective of the kind of institutional set-up a particular country may have, the public administration is the bridge between administrators and the administered. An efficient and modern public administration ceases to be a mere cost and becomes an asset for the productive system and a means for improving the quality of life of citizens and families.
Discussion at this roundtable event got underway with the participants citing recent figures indicating that 70% of Italians anticipate they will have to cut down on spending in 2009. The figure was 21% in 2001, 29% in 2002 and 42% in 2004. At a time of international crisis, this growing trend is forcing businesses to rethink their business models.
The experience gained by Italians around the world, the challenges that will need to be faced to build global skills, and the ability of the national economy to operate as a global actor are all aspects of a single issue, namely: how to make the most of overseas Italian talent. Talented Italians are finding it increasingly easier to emigrate rather than build reasonable career prospects for themselves at home.
In the history of any country, there are phases where it is necessary to build and phases where wealth produced needs to be distributed. Italy, hit by the international crisis, finds itself in the former condition and aims to bolster its economy by building new infrastructure and, in the process, create jobs and facilitate the movement of people and goods.
If Italy’s university system is to proceed in a new direction, there are two crucial areas that must first be given a complete overhaul: its governance and its financial framework. And, that such reforms have become necessary is certainly a widely held view. The shape of these reforms and the regulations and procedures to be adopted, on this, the eve of the sitting government’s presentation of its university reform bill, is however still a matter for lively discussion both within academia and, in more general terms, the public arena.
Demographic waves, technological innovation and citizens’ expectations: these are today’s major challenges. And, in the years to come, healthcare will become an increasingly important issue in all major countries with advanced economies and welfare systems. In the Italian system, the healthcare challenge is particularly crucial as it represents the largest public expenditure after pensions. Healthcare and pensions absorb all those resources that could be made available for other social policies.
Western businesses are increasingly focused on social responsibility, making a point of thinking not just of profits but of the environment and workplace safety, for example. It is not just a matter of “doing good”: today, the market demands such attention. The consumer is aware, and a company’s social responsibility is a meter by which it is judged – turning good works into a clear marketing tool. Social responsibility represents value added, and is considered part and parcel of a given organization.
Discussion focussed on the strategic role played by bank foundations, especially following the Constitutional Court’s 2003 ruling that they are specifically involved in guaranteeing social liberties. Foundations have a mission to guarantee horizontal subsidiarity and, therefore, support the country’s intermediaries (from the private sector to the state), today charged with maintaining development strategies and social cohesion. The 88 bank foundations currently existing in Italy have a patrimony of 47 billion euro; between 1993 and 2006 that sum grew at an annual average of 5.7%.
Discussion at this roundtable touched upon a series of strategic hot spots for China’s future and for its role in a global world. Many of the issues considered are the focus of the upcoming issue of Aspenia (n. 41, in Italian, due out June 10).
The international financial crisis and its impact on the real economy have increased the need for decisive, coordinated action by international bodies, the EU and individual nations. The greatest concern is the existence of “panic” and “lack of trust” in the markets, which is indeed what is undermining the real economy all over the world. Many maintain that, in order to restore faith in the markets and therefore face the crisis, on one hand domestic consumption must be stimulated. On the other hand, an increase in the public demand is needed for investments in infrastructures.
Italy’s south or “Mezzogiorno” is a region that fails to meet todays challenges. It deserves better, but the lack of infrastructure and of qualified labor, as well as excessive bureaucracy, high levels of organized crime, widespread disrespect for the law, weak institutions and a lack of social capital. These obstacles make it difficult for the region to take advantage of its many opportunities for development.
“Food” involves a vast and complicated network of professions, actions, movements and skills (from agriculture, to trade and distribution, to cooking and eating). All these areas can be considered elements of a single great macro-process, which is much more complicated than most consumers realize. Debate at this roundtable focused on the role gastronomy plays in spreading knowledge and understanding to all those many players that take part in the process.
The debate on Federalism touches a central theme of the possible reforms in the coming years. In a framework that is gradually being consolidated – as seen in the results of the survey conducted by the Constitutional Affairs Commission of the Chamber of Deputies and the Senate at the beginning of the XV legislature – we can get a fairly accurate perspective on the goals and policies that will finally allow full implementation of the Republic’s new institutional organization and any corrections needed for the constitutional revision of 2001.
The debate highlighted the economic and social importance of sports as well as the complexity of challenges facing public policy-makers in the field. In Italy, sport continues to represent a phenomenon with profound social roots. Fields, gyms and arenas cover the national territory better than any other social structure and play a key role in community aggregation. The organizational model of Italian sport is one of the country’s success stories. Italy’s national teams compete at the top level in all major international meets, starting with the Olympics.
The global economic scene is suffering from a worldwide slowdown in growth, the effects of the recent American financial crisis, monetary imbalances between the US dollar and the euro and rising inflation due to an increase in the price of raw materials (and not just energy resources).
Globalization, the erosion of the classic hallmarks of national sovereignty, the technological revolution and the financialization of the economy: all these scenarios have been at the center of public debate for some years now, both in Italy and abroad. But how can we stem the tide generated by global phenomena of a largely unforeseen magnitude? How do we face up to the risks and exploit the opportunities that arise from a precipitate transformation?
In the present difficult macroeconomic scenario, enacting a federalist transformation of the financial relations between the state and local government is a preordained occasion to improve the quality of administrative action; at the same time improving public expenditures according to principles of transparency, efficiency and responsibility.
Debate at this roundtable touched on the complex relationship that persists between the media and the business community. Participants noted that information should not be considered a necessary evil, but rather a meter by which to judge a democracy – a country’s freedom is evident in its journalism. A lack of information, of course, is detrimental to the workings of a democracy. Silence or tardiness in getting out the news represents a clear case of market abuse. As happened in the US, with the subprime catastrophe, financial markets also depend on the news.
The underlying premise of the Conference discussions was that the future and competitiveness of Italy depend on the further development of the country’s research sphere and on the productivity of its university system. Greater investment is thus needed, as are, above all, new rules and new organizational models which ensure a leading European role for the country in sectors where Italy already holds a strong position and which enable it to face the challenges posed by the United States, China and India.
