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A Jubilee for Italy
by Luigino Bruni
published on Avvenire on 24/07/2011
[fulltext] =>
In these days, there have been warning signs after another of speculative attacks, alternating with that of relaxation and optimism. In reality, we must be aware that the situation is serious, and we must equip ourselves as country and as Europe to address a phase that could prove no less difficult and lengthy than that of the autumn of 2009. In fact, the crisis that we are experiencing in these days is much more of a contagion phenomenon (of the Greek and/or Portuguese crisis): it is a structural fragility crisis of Italy and Europe. The illness is serious and yet it is neither a deadly disease nor a simple flu. It is a second mini-stroke that if it does not produce a change in lifestyle it can lead to fatal consequences.In the interval between the two crises Italy the “patient” has continued to behave as before, except for a few afternoon stroll or a few pills, but without any strong sign of a turnaround.
There are at least three elements to propose as diagnosis and a possible treatment. The first element for a correct diagnosis has to do with demography. We will never understand well what is happening if we do not start from a given structure and long-term period: Italy, more than other European countries, has in the recent years radically decreased the relationship between the active and the retired population, parallel to the sharp increase of life expectancy.
The entire state welfare system was based on a much lower life expectancy (and even more on youths who worked), which allowed the young generation to sustain the burden of pensions. In addition, the family, which was the true center of our state welfare (much more of the state or the market), can no longer perform its duties of care and nurturing. If we do not quickly act not only for a pension reform but a new intergenerational deal, the public debt cannot be reduced.
The public debt is, in fact, the second element of the diagnosis: speculation hits Italy because the huge public debt makes the periodic signing of government bonds indispensable, nothing less. Hence the request, in times of frailty even politically, of increasing returns of our bonds. The public debt is the real sword of Damocles of the current crisis.
The third element deals with Europe, namely the absence of a political reality behind the euro. The project of the founding fathers of Europe was primarily a political one. History tells us that a currency is strong when it is supported by (and expresses) a political power. The management uncertainties of the Greek crisis are very important signs, since they say that in addition to business interests of euros in Europe there is too little: the forces of financial markets know it and target those that are more fragile. Without a new political deal, a European constitution and strong institutions (and agile: one must reduce also the costs of European bureaucracy), the euro will not hold for long.
Today, the therapy that everyone suggests is the revival of the economic growth. It should be remembered that the insufficient economic growth is also a consequence of the first two elements, namely a country’s aged debt who cannot find the resources to grow. Economic growth requires many ingredients, all very essential: public investments (especially in education and research), creativity, innovation and, above all, enthusiasm and passion for the people. Today Italy certainly lacks resources for public investments but lacks even more the enthusiasm and the desire for life. To understand what this enthusiasm is, it is enough to a tour Asia, the Middle East or Africa. On my last trip to Kenya, more than the material poverty, it struck me to see young people studying in the evening under the street lights: it is this hunger for life and future that tomorrow can defeat the hunger for food and give life to development and prosperity. If today Italy and Europe do not find this enthusiasm, no finance can revive the growth because our politicians and public opinion systematically forget the greatest lesson of social sciences of the twentieth century: the growth and development of a country does not depend mainly on the action of the government but by the daily behaviors of millions of citizens, each of which has, and he alone, that piece of information and knowledge relevant to social and economic action.
Of course, among these economic agents there are also the government and institutions (which can and must do their co-essential part), but have much less power than they tell us every day (even to justify their presence and related costs). The solution to the economic crisis can be found outside the economic sphere: one can find it in the civilian life, the desires and the passion of the people, which are springs that feed also the economic life. One does not go to work every morning to reduce public debt, but to pursue projects and dreams. We are also able to make great sacrifices only if we catch a glimpse of a bigger collective project, capable of moving the heart and actions to rekindle enthusiasm. We have been able to do them many times in the past, even recently, why not now? However, each one of us should use well that piece of knowledge and power on the reality of which it is related to, use the talents well, undertake more and better. But for this game to function there is a need of rite and public liturgies, symbols of force, art, beauty, solemn and collective acts. In particular, I am convinced that today there is an dire need of a sort of jubilee, in the biblical meaning of the term: a season of mutual forgiveness, of reconciliation and of peace, to forget all the malice and poisoning of each other of which we are capable of in these twenty years both in the political class in the country and to look forward together. Today Italy is in a state of welfare very similar to “war of everyone against everyone” of which Hobbes talks about. We do not have to get out of it and continue the civic and economic decline; we can get out of it creating a Leviathan, the monstrous crocodile that is also part of the history and the DNA of the Italians. But we can get out of this poverty and economic trap by re-launching a new era of civic virtue and a new deal, the only ground that has generated and generates creativity, enthusiasm and love of life, from which the economic growth will flourish.
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see a comment of Pierluigi Porta
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A Jubilee for Italy
by Luigino Bruni
published on Avvenire on 24/07/2011
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In these days, there have been warning signs after another of speculative attacks, alternating with that of relaxation and optimism. In reality, we must be aware that the situation is serious, and we must equip ourselves as country and as Europe to address a phase that could prove no less difficult and lengthy than that of the autumn of 2009. In fact, the crisis that we are experiencing in these days is much more of a contagion phenomenon (of the Greek and/or Portuguese crisis): it is a structural fragility crisis of Italy and Europe. The illness is serious and yet it is neither a deadly disease nor a simple flu. It is a second mini-stroke that if it does not produce a change in lifestyle it can lead to fatal consequences.
stdClass Object ( [id] => 16647 [title] => But gratuitousness can live together with the market [alias] => but-gratuitousness-can-live-together-with-the-market [introtext] =>Editorial
By Luigino Bruni
Published on Avvenire on 23/09/2010
The topic of gratuitousness is (finally!) being talked about again, even in public debate, in politics – and even in economy and economic science.
This renewed interest by the economy should not surprise people if we remember that the Latin word charitas (note the letter “h”, as it was written in the first Christian codes) – which was chosen by Christians to translate the Greek word agape, gratuitous love – had economic origins and uses. It means that which was expensive, that which costs on the market. This renewed interest, however, is accompanied by usage which is not always attentive and faithful to the great philosophical, spiritual and especially human reflection (only humans know about it) on gratuitousness. In my opinion, there are two errors that frequently appear when people talk about gratuitousness. First of all, they identify it with free, as in free of charge, a price of zero. “Frank works gratuitously”, meaning he works for free, therefore, his stipend is zero. Instead, from the great Franciscan tradition, we know that gratuitousness in a certain way means to have infinite value.
[fulltext] =>When Francis sent friars to give the Gospel, he told them to not accept money in exchange for their preaching. But why? The tradition goes that, “If they had to pay you, it would take all the gold in the world.” And therefore, accepting sums of money less than “all the gold in the world” would mean underselling gratuitousness – relational and spiritual dumping. That is where the Franciscan tradition to accept gifts as an answer to reciprocity originates. Today, when we identify gratuitousness with “free”, we risk cancelling out this fundamental truth, and we twist the meaning of gratuitousness (underselling and undervaluing it) and market. Why does it also twist the meaning of market?
This is where we come to the second error.
Identifying gratuitousness with free (price of zero) has and is leading people more and more to associate the market, contracts and mercantile exchange to non-gratuitousness. If gratuitousness is free, then everything that deals with prices and money has nothing to do with gratuitousness – that is, if we use gratuitous to mean discount, freebee, which would be gratuitousness present in the market (in reality, these meanings are a “vaccine” against real gratuitousness). Or, it can come “after” the market, when entrepreneurs as private citizens make donations or institute foundations to finally be able to live that gratuitousness so foreign to economic action and business. There would be much to say about the birth of the American philanthropic model, which, even as a reaction to the excessive interweaving of gratuitousness (charis) and market (indulgence), has built a dichotomic economic system, where business is business and gift is something totally private and separate from it. (We have to say that in the USA, there is not even an equivalent word for the Italian gratuitá, or as we are using, gratuitousness. Gratuity is only the tip that one gives to the bellhop). In reality, the true cultural challenge of gratuitousness is to think about it as a founding dimension of every human experience, from family to business, from politics to contract, as is in line with Caritas in veritate. Many examples of microcredit, from the Franciscans during the Middle Ages to Yunus, have lived extraordinary experiences of gratuitousness which frees millions of people from misery and exclusion, without a gift or “free” services, but with contracts, with conditioning rules – with gratuitousness accompanied by what is right and proper. The kind of gratuitousness that is required today of the banking system is not primarily that of sponsors and banking foundations, but the kind that informs (or not) the normalness of banking, from responsibility to transparency. The kind of gratuitousness that truly counts is not the 2% of one’s profits, but the other 98%. Otherwise, we reduce gratuitousness to a kind of limoncello during a lunch (limoncello is a sweet Italian lemon-based liquor) – something that fills holes, and even more, something that should not be offered at that time, immediately becoming unnecessary and superfluous.
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By Luigino Bruni
Published on Avvenire on 23/09/2010
The topic of gratuitousness is (finally!) being talked about again, even in public debate, in politics – and even in economy and economic science.
This renewed interest by the economy should not surprise people if we remember that the Latin word charitas (note the letter “h”, as it was written in the first Christian codes) – which was chosen by Christians to translate the Greek word agape, gratuitous love – had economic origins and uses. It means that which was expensive, that which costs on the market. This renewed interest, however, is accompanied by usage which is not always attentive and faithful to the great philosophical, spiritual and especially human reflection (only humans know about it) on gratuitousness. In my opinion, there are two errors that frequently appear when people talk about gratuitousness. First of all, they identify it with free, as in free of charge, a price of zero. “Frank works gratuitously”, meaning he works for free, therefore, his stipend is zero. Instead, from the great Franciscan tradition, we know that gratuitousness in a certain way means to have infinite value.
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stdClass Object ( [id] => 16567 [title] => The Family? It´s not a stumbling block to development [alias] => the-family-itas-not-a-stumbling-block-to-development [introtext] =>Editorial
By Luigino Bruni
Published on "Agorà", a column in Avvenire, on 5/02/2010
"Italy built at home" (Mondadori), by economists Alberto Alesina e Andrea Ichino, is a book full of important data, on which it would be good to reflect, perhaps to reach "policy" conclusions which are different than those proposed by the authors. The book´s thesis is that the underdevelopment of the Italian economy is mainly cultural underdevelopment. They attribute this to our tradition of family, which causes a great percentage of women to carry out domestic work, and so, work too little "outsite of the home", in the market.
This said, here´s their recipe: reduce taxes on income of working females in order to create incentives so that women will work more. It cannot be denied that today, in Italy, the assymetry of professional development opportunities is significant between men and women. It is also true that legislative, economic and social intervention that facilitate female workers to enter the market, and that therefore help balance out the weight they carry at home, are not only opportune. They are necessary and urgent. From this point of view, then, this book can play an important role in nourishing a debate about civilization that has never been more relevant. But this implies a cultural vision that sees strong ties, especially in the family and in the community, as the main social burden of Italy and Mediterranean culture compared to the more economically and civilly developed Nordic countries.
[fulltext] =>There are also affirmations that tend to tone down this radical thesis, but in general, the pitch of the paper remains coherent to its main idea: if we are capable of abandoning the model of the Italian family and imitating Norwegian and Danish social models, we´ll finally become a post-modern, democratic, richer, and perhaps happier country. This thesis is not convincing, not only because this great "Nordic" happiness does not exist, but most of all because it lacks an idea of family as a collective subject. For the authors, family is essentially the sum of separate individuals. They don´t see relationships but individuals. That´s the origin of their critique of the proposed "quoziente familiare" (literally, family quotient), which will not tax couples as individuals but as part of a family unit and while keeping in mind the number of children they have. "If we hold that the participation of women in the workplace is an important objective for our country, it is evident that the method of the family quotient distances us from this objective, and separatetaxation would be preferable". Separate taxation sees a couple as an unjoined man and woman; but family is above all a pact that makes two unjoined people a collective subject, in which decisions are discussed and then taken together, including working decisions. Raising and educating a child, especially in his or her first years of life, is not the private business of the parents or of the mother. It´s not a "good" like transportation or housekeeping that can be bought and sold efficiently only by asking for it or offering it. Today, the best economic theory recognizes this, when it considers the family as producer not only of services but also of "relational goods" (which are goods, but not merchandise), and when it shows (as does Nobel winner Heckman) that the first years of life are those on which the even the economic success of people are most based. Before any kind of economic and fiscal reform on the Italian family, the family must be recognized as a great resource and civil patrimony, and only then can its problems be addressed.
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By Luigino Bruni
Published on "Agorà", a column in Avvenire, on 5/02/2010
"Italy built at home" (Mondadori), by economists Alberto Alesina e Andrea Ichino, is a book full of important data, on which it would be good to reflect, perhaps to reach "policy" conclusions which are different than those proposed by the authors. The book´s thesis is that the underdevelopment of the Italian economy is mainly cultural underdevelopment. They attribute this to our tradition of family, which causes a great percentage of women to carry out domestic work, and so, work too little "outsite of the home", in the market.
This said, here´s their recipe: reduce taxes on income of working females in order to create incentives so that women will work more. It cannot be denied that today, in Italy, the assymetry of professional development opportunities is significant between men and women. It is also true that legislative, economic and social intervention that facilitate female workers to enter the market, and that therefore help balance out the weight they carry at home, are not only opportune. They are necessary and urgent. From this point of view, then, this book can play an important role in nourishing a debate about civilization that has never been more relevant. But this implies a cultural vision that sees strong ties, especially in the family and in the community, as the main social burden of Italy and Mediterranean culture compared to the more economically and civilly developed Nordic countries.
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