I had promised myself to read the famous Colao report, those 35 pages which, according to Contebis, should be the guide to saving Italy. Fortunately, starting from the beginning, I had the premises of the document which showed me that reading was just a waste of time.

The premises guide the conclusions: if these are wrong or superficial, the rest is useless. Let's see the premises of the Colao document :

Italy has important strengths – including creativity, dynamism, widespread entrepreneurship and
export-oriented and a unique attraction in the world – but the crisis has put in
dramatic evidence of five weaknesses in our country, which also contributed to the low
resilience of the Italian economy to previous shocks (2008-2009 and 2011-2012):

  • Economic growth rates and productivity levels for years lower than those of the others
    great European nations
  • A ratio between public debt and GDP among the highest in the OECD area
  • The poor efficiency and effectiveness of the public administrative machine
  • A significant underground economy (12% of GDP) with a significant tax evasion
    (over 110 billion euros per year)
  • A high level of gender, social and territorial inequalities, a low rate of
    female participation in the labor market and a very large number of young people
    who don't study and don't work.

To listen to such profound premises, not accompanied by any data, not even in the notes, it was enough to listen to a morning talk show. Maybe, being abroad, these were his main sources of information on the Italian economy, and a pure business owner does not necessarily understand anything about political economy, economic policy and public administration. The company experience gives a little practicality, and should be mandatory for any civil servant, who, before hiring, instead of a competition, should run a pizzeria or shop for six months, but does not provide greater intelligence or vision, per se. Since we have talked about the issues in these premises for centuries on stage, however, we would like to go back:

  • Productivity. Productivity, a concept known since the sixties, is not something of divine infusion, but changes in variation of the volumes produced. Kaldor's second law states that the productivity growth of the manufacture is directly proportional to the growth of the manufacture itself, that is, its output. The reasons are varied and logical: economies of scale, greater specialization, industrial districts etc. So Colao, if he wanted more productivity, should first see how to increase the supply, and therefore the demand, of Italian products. Go look….
  • Even the stones now know that the public debt grew when there was a divorce between the Bank of Italy and the treasury, for the weight of interest, not even for public spending. And then ? Colao No Euro?
  • The poor efficiency and effectiveness of the Public Administration is plastically demonstrated by the fact that one must call one from London to write these trivia. Or will it not be a problem limited to the two political forces that signed his mandate?
  • we see a source above all suspicions for the undetected economy. in 2017 ISTAT stated that the economy "Not recognized" (therefore also that from illegal activities) was 12%, but also stated that its weight on the economy was decreasing by as much as 1.5%. The problem is that this sector is also influenced by what is called illegal and what is not. In addition to this there is the obvious influence of wealth, or poverty, collective and social assistance systems. Thinking by party is stupid and it's okay if you do a homework, but socially it's devastating. If anything, the topic of the day is the overturning of profits with the transfer of offices to the Netherlands, Ireland or … London. Toh, the city of Colao;
  • That the problem is gender inequality is, frankly, a SHAME BALL, for which it is enough to check the data of the European Union / Eurostat The gender GAP in Italy is among the lowest in the European Union, so how do we say that Italy's problem is the gender gap? Seriously, have we looked for news or information, or have we based ourselves on the usual anti-Italian prejudices? this point has been provided by some idiot poor in ideas and who parrots what others, perhaps really with this problem, says in Brussels.

The best thing about this report is to have put your wrong premises in mind, thus avoiding the need to read the rest and saving a good deal of time to be used more profitably, perhaps reading a History of the French Revolution. In conclusion, when the premises are wrong or superficial, or both, the product can only be superficial, wrong and of poor quality. Colao was based on a distorted and incorrect view of the economy and Italy and the results could only have been a superficial and, frankly, dangerous relationship. Yet Colao celebrates at Villa Pamphili.

Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Sign up now

The article WHY THE COLAO REPORT IS NOT WORTH READING (let alone apply it) comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-non-vale-la-pena-di-leggere-la-relazione-colao-figuriamoci-applicarla/ on Tue, 16 Jun 2020 19:38:43 +0000.