Environment and market to move beyond our present times
A contribution by the CEO of the Bank of Italy provides useful elements to further understand what is happening and how to act
Aiming for development, even when everything might point to the contrary, and doing so with foresight and determination. This is the task of every entrepreneur and, on closer examination, it is at the heart of every good corporate culture whose goals include a balanced growth. Of course, discipline and earnestness are paramount, as Luigi Federico Signorini, CEO of the Bank of Italy, argues in his speech entitled Scelte per lo sviluppo sostenibile, tra emergenza e transizione (Choices for sustainable development, between emergency and transition), delivered in Venice on 11 June 2022, at the Centesimus Annus Pro Pontifice Foundation conference.
Asked to comment on the situation of these “last 100 days” and on the choices that should be made, Signorini provides an analysis on how to face challenges that will prove useful to us all as, in his words, “a reaction is possible, as long as we are forward-looking in setting goals and wise in choosing means.” This is the beginning of Signorini’s argument, which first outlines “the emergency economy” that we are currently experiencing and then explores the theme of energy supplies, examining not only what Italy is doing now but, above all, what needs to be done for the future. Thus, he identifies four goals: “Free ourselves from excessive dependence from energy supplies; mitigate the economic consequences of increasing prices on families and companies, especially the most vulnerable ones; avert inflation; all while keeping well in sight, as far as possible, climate change issues.” And he proceeds to provide a careful – and, above all, clear and comprehensible – analysis for each point.
Hence, the conclusion he reaches concerning not just on climate change, environmental and energy choices, but also civil society and market, is a very important one. Signorini asserts that, “The market is a means, not an end. It does not possess “a ‘nature’s vision’; it should not be treated as a concrete reality and it should certainly not be ‘idolised’. The market is us, consumers, entrepreneurs; its values are our values. It is governed by laws which not easily help us understand whether we really want a common good; yet, at the same time, it represents a system, the least perfect one we have conceived until now, to allocate resources according to individual preference, as well as to the rules and incentives established by the ‘welfare state 4.0’. It dynamically responds to the price system. It should be exploited.” And further, “Wise and forward-looking policies meant to tackle the new challenge of this century should see the market as a powerful ally to be enlisted, not an enemy to be defeated.”
Luigi Federico Signorini’s contribution makes for yet another – unmissable – chance to increase, enhance and improve one’s knowledge about the current situation, a useful tool to better understand what is happening.
Scelte per lo sviluppo sostenibile, tra emergenza e transizione (Choices for sustainable development, between emergency and transition)
Luigi Federico Signorini
Centesimus Annus Pro Pontifice Foundation, Venice, 11 June 2022
A contribution by the CEO of the Bank of Italy provides useful elements to further understand what is happening and how to act
Aiming for development, even when everything might point to the contrary, and doing so with foresight and determination. This is the task of every entrepreneur and, on closer examination, it is at the heart of every good corporate culture whose goals include a balanced growth. Of course, discipline and earnestness are paramount, as Luigi Federico Signorini, CEO of the Bank of Italy, argues in his speech entitled Scelte per lo sviluppo sostenibile, tra emergenza e transizione (Choices for sustainable development, between emergency and transition), delivered in Venice on 11 June 2022, at the Centesimus Annus Pro Pontifice Foundation conference.
Asked to comment on the situation of these “last 100 days” and on the choices that should be made, Signorini provides an analysis on how to face challenges that will prove useful to us all as, in his words, “a reaction is possible, as long as we are forward-looking in setting goals and wise in choosing means.” This is the beginning of Signorini’s argument, which first outlines “the emergency economy” that we are currently experiencing and then explores the theme of energy supplies, examining not only what Italy is doing now but, above all, what needs to be done for the future. Thus, he identifies four goals: “Free ourselves from excessive dependence from energy supplies; mitigate the economic consequences of increasing prices on families and companies, especially the most vulnerable ones; avert inflation; all while keeping well in sight, as far as possible, climate change issues.” And he proceeds to provide a careful – and, above all, clear and comprehensible – analysis for each point.
Hence, the conclusion he reaches concerning not just on climate change, environmental and energy choices, but also civil society and market, is a very important one. Signorini asserts that, “The market is a means, not an end. It does not possess “a ‘nature’s vision’; it should not be treated as a concrete reality and it should certainly not be ‘idolised’. The market is us, consumers, entrepreneurs; its values are our values. It is governed by laws which not easily help us understand whether we really want a common good; yet, at the same time, it represents a system, the least perfect one we have conceived until now, to allocate resources according to individual preference, as well as to the rules and incentives established by the ‘welfare state 4.0’. It dynamically responds to the price system. It should be exploited.” And further, “Wise and forward-looking policies meant to tackle the new challenge of this century should see the market as a powerful ally to be enlisted, not an enemy to be defeated.”
Luigi Federico Signorini’s contribution makes for yet another – unmissable – chance to increase, enhance and improve one’s knowledge about the current situation, a useful tool to better understand what is happening.
Scelte per lo sviluppo sostenibile, tra emergenza e transizione (Choices for sustainable development, between emergency and transition)
Luigi Federico Signorini
Centesimus Annus Pro Pontifice Foundation, Venice, 11 June 2022