Monday, February 15, 2010

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AN ECONOMICS POINT: 11. THE PRESENCE OF POLICY.

Author: Sandro Trento.



reading the newspapers we find that first Greece and Spain are now coming into sight of the big international investors.
Great American investors talk about pigs, "pigs" in English but also "Portugal - Italy - Greece - Spain". Before these events, they face the risk of a financial crisis that can strike very relevant to our neighboring countries, Greece and Spain, we have the paradox of a country that has blocked for weeks on the resources of the Parliament to discuss issues have nothing to do with the economic emergency, but of laws affecting the Prime Minister.
The motion presented by the President Antonio di Pietro at the National Congress is a statement that might seem a paradox: "the market is the means to defeat Berlusconi". Some would say that Berlusconi is the defender of the market in this country, but it is a misconception to think that the center is the party that defends the market and competition. In these weeks have gone very interesting volume on the Minister Tremonti, from which we discover that the minister has an anti-market culture, against globalization, against the opening international against China, against, is a nostalgic public property , stating that it was better when the IRI, and is a nostalgic public banks (See case was a public bank, BNL-led socialist, the first bank that financed the construction of Milan Berlusconi 2).
The paradox is that the Italian center-right forces, which apparently should rely on market principles and competition, have a cultural setting of government-owned press, which is claimed greater government intervention to counter the competition and open markets. To this we associate with other elements of concern, such as poor compliance with a constitutional democracy. The idea that the only source of legitimacy is the popular vote, and then accuse a number of intermediary bodies, such as the judiciary, the Constitutional Court and supervisors, not to be legitimacy is a concept totally absent from the Western liberal democratic and liberal tradition.
Another concern is the principle of state secularism. Now we are in fact the only power of the Parliament of the secular state is a fundamental cornerstone of its program of government. E 'at risk the freedom of religion, some would have a country divided between two, three fundamentalisms that throats with one another, it was prevented from doing research with stem cells, precluding the possibility of technological innovation, and is intended to prevent people to choose their own fate in the terminal moments of his life.
The principle of respect for constitutional rules, the principle of secularism and the principle of centrality of the market are three elements that make the Italian right an anomaly in the international, European and Western Europe.
Stating that the market is the means to defeat Berlusconi means that at this moment, in Italy, we must review a set of norms and rules of behavior. Many of the traditional notions of the Italian left and the European Union no longer be used to address the crisis in Europe and Italy in particular.
I think the question of public ownership, which in recent Italian history has been a source of corruption and inefficiency. Think dell'Enimont events, the events of ENI, and think about what has cost and continues to cost Italy the clearance of IRI. Jump on the chair when I hear that one of the main Italian trade union leader calls for the nationalization of the crisis of Alcoa. We have already given, such solutions do not work, this is not the way to deal with the economic crisis. Public ownership is a source of corruption, inefficiency, waste of public money. The question is: how can we find new buyers for companies in difficulty? The place to start is: why in Italy we attract a few international investors? Why the big international investors do not choose our country to make investments? I do not think there is a problem of colonization, we want to do many more, Germany and France intercept a very substantial share of international investment, and the reasons why they do not invest their money in Italy are the same for which our country is in crisis: the lack of infrastructure, excessive time for justice, the inefficiencies of public bureaucracy, excessive cost of raw materials such as energy, the scarcity of skilled labor, the poor quality of our education, and so on. These factors mean that our country, in comparison with others, be discarded when deciding where to invest their own resources. A modern industrial policy impact on these factors, changing the relative attractiveness of doing company in Italy or in another country.
Another important point to consider is government spending, another traditional battle of the European left. We can say that public spending is not the solution to address and solve the problems of the Italian economy. One reason is the very high public debt and the fact that many of the reforms and actions that I am listing do not require public expenditure. This liberal revolution, which I believe should be the heart of our action reform, was concentrated on changing a set of rules and behaviors, which refer to individuals in all their meanings.
Another important element is the fact that we are a Country where the presence of politics is too heavy in the economy and society. We are a country where entrepreneurs, to decide the investments they need to do, go to Palazzo Chigi, and to interview before a political decision. Think about the events of climbing Telecom, think about the events and the events Unipol Alitalia. This mingling of politics and economics is an admixture ill, a mixture that is broken. A liberal revolution introduced the market as a means of discipline and economic growth, not politics and Palazzo Chigi. Entrepreneurs, in a normal country, they decide their investments no matter what you decide Palazzo Chigi.
This "excess policy" also refers to a fundamental issue in the functioning of a market economy: information. We are one of the few countries where much of the information are not independent. I speak not only of television but also the press, and we live on our skin as the party publishing programs, we work, we draw documents, which are systematically ignored by the national press. Why? Because even in this case there is a blend of power blocs, and ownership of public transport. It would require an Act of separation between editorial, political and economic power.
Being liberal does not mean wanting to dismantle the state. At this time the Italian state is too weak in the face of economic lobbies and too weak in the face of private interests. We are liberal and we want a strong state that is capable of doing the duties devolving upon him.

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