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The “inclusive liberalism” and reformism of the Draghi government reinvigorate the political sphere

In times of crisis, marked by a pandemic that’s slowly receding after a long period filled with sorrow and hardship, and economic difficulties that are worsening among fears of inflation and global instability (the sudden increase in energy prices is just one of its many facets), it’s best to devise new economic and social theories rather than vainly hope to go back to “how we used to be”. Hence, Michele Salvati and Norberto Dilmore examine “inclusive liberalism” in their book published by Feltrinelli, and attempt to outline “a possible future for our corner of the world”. Salvati is one of the most clear-headed political scientists in Italy, and he’s been pondering how to combine freedom and a better social balance for a long time. Norberto Dilmore is the pseudonym chosen by a representative from the Italian economic sphere, and his chosen assumed first name is meant to evoke the figure of Norberto Bobbio, one of the most authoritative Italian intellectuals and progressive exponent of the various attempts to blend liberal culture (in the tradition of Piero Gobetti and the Rosselli brothers) with the best reformist socialism. Their perspective, however, entails leaving behind traditional comparisons between the ideas of Keynes and Friedman in order to identify innovative ways to interpret and shape governments, so as to make them more suitable to the unprecedented dimensions of a “digital society” and the new relations between economic growth and good social equality standards.

Its starting point lies in the notion that retracing the great European political mindset, which takes into account sustainability, reforms, the fight against inequality, new and better development opportunities for the new generations in particular, becomes paramount when looking for a “paradigm shift” allowing us to build an economy with less inequality – the consequence of mismanaged globalisation, the cause of increasingly wider geographical, social, personal, gender and cultural gaps. The attainment of inclusive liberalism and reformism, entrepreneurial dynamism and social inclusion, competitiveness and solidarity. All values included in Salvati and Dilmore’s book and that underlie the archetypal European culture: liberal democracy and welfare, promotion of individual rights and social responsibility – a path that’s extraordinarily relevant right now, in these times of crisis and radical transformation.

There’s also another viable concept, however, found in the best contemporary writings on economics, as well as in the works by Stiglitz, Krugman, Fitoussi and Federico Caffè, innovative interpreter of Keynes’s ideas and the intellectual inspiration of Italian Prime Minister Mario Draghi: “A virtuous triangle composed by companies, State and civil society”, which could lead to new development trajectories lying outside traditional debates revolving around the question, “More State or more market?”. A concept by Philippe Aghion, French economist and professor at the London School of Economics, at Harvard and at the Collège de France, which he unravels in his latest book, published in Italy by Marsilio Editori with title Il potere della distruzione creatrice – Innovazione, crescita e futuro del capitalismo (The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations), written collaboratively with two other economists from the Collège de France, Céline Antonin and Simon Brunelli. As the title suggests, the book refers to the theories of Joseph Schumpeter concerning the creative power of innovation, but also to the monopolistic tendency of more dynamic market players, which ends up destroying the very market that made them. The aim is to demonstrate how a new, balanced relationship between politics, entrepreneurs and civil society could counteract both the decline of capitalism and the rise of demagogic populism while reviving the market economy (in a transparent, well-regulated and sustainable fashion) and, above all, liberal democracy itself. The authors analyse the technological evolution, argue against bizarre theories suggesting that robots should be taxed in order to stop the digital evolution in businesses and safeguard traditional jobs, reject notions of a “happy degrowth” and propose new ways to connect British innovation with the best European welfare traditions.

Here’s the deal: in order to talk about “inclusive liberalism” and reformism, Italy really needs a decent political set-up. These past years have unfortunately seen reformist politics getting crushed under populist and sovereignist pressures and overcome by erroneous and useless reactions to plausible solutions to real social hardship issues, as well as the collapse of confidence in a better future.

Now, however, in Italy and more generally in Europe, we see signs allowing for some fragile hope towards a recovery. The re-election of a president like Sergio Mattarella and the strengthening of the Draghi government, with its demanding programme of reforms in line with the EU Recovery Plan‘s priorities concerning the Next Generation (environment, digital economy, innovation, training, education) are veritable cornerstones on Italy’s path to recovery. The intimations made by Mattarella in his speech, concerning the “dignity” of work, culture, institutions, laws, rights of women and young people, are the foundations on which we can restore Italian politics, reinstate confidence and build better opportunities for the future.

Democracy and development are at stake, notwithstanding the heavy crisis – yet, it’s precisely in these difficult times and in spite of the uncertainties, downfalls, gloomy undertones and irresponsible behaviour lying right at the heart of Italian politics, that the country is showing it possesses positive “social capital” as well as an extraordinary recovery force.

Something that has also been noticed by influential international observers, such as The Economist, for instance, which last December declared Italy “country of the year for 2021”, setting temporarily aside its traditional tendency to severely – at times even ruthlessly – criticise the Italian Republic. Now, instead, the current issue of the weekly British magazine affirms that “Southern Europe is reforming itself”, recalling how “the old PIGS” (Portugal, Italy, Greece and Spain, bundled up in a rather offensive acronym) “are airborne, even as northern countries fall to earth”. When discussing the growing weight of Mediterranean Europe, also owing to a change in international assets, The Economist continues to acknowledge the positive reformist impetus that is driving Italian legislature, pensions and economy under the leadership of Mario Draghi, as well as the beneficial effects the country is exerting on the rest of the EU. There are still doubts, that’s true, but positive forces are rising, and “inclusive liberalism” could really be the way forward.

In times of crisis, marked by a pandemic that’s slowly receding after a long period filled with sorrow and hardship, and economic difficulties that are worsening among fears of inflation and global instability (the sudden increase in energy prices is just one of its many facets), it’s best to devise new economic and social theories rather than vainly hope to go back to “how we used to be”. Hence, Michele Salvati and Norberto Dilmore examine “inclusive liberalism” in their book published by Feltrinelli, and attempt to outline “a possible future for our corner of the world”. Salvati is one of the most clear-headed political scientists in Italy, and he’s been pondering how to combine freedom and a better social balance for a long time. Norberto Dilmore is the pseudonym chosen by a representative from the Italian economic sphere, and his chosen assumed first name is meant to evoke the figure of Norberto Bobbio, one of the most authoritative Italian intellectuals and progressive exponent of the various attempts to blend liberal culture (in the tradition of Piero Gobetti and the Rosselli brothers) with the best reformist socialism. Their perspective, however, entails leaving behind traditional comparisons between the ideas of Keynes and Friedman in order to identify innovative ways to interpret and shape governments, so as to make them more suitable to the unprecedented dimensions of a “digital society” and the new relations between economic growth and good social equality standards.

Its starting point lies in the notion that retracing the great European political mindset, which takes into account sustainability, reforms, the fight against inequality, new and better development opportunities for the new generations in particular, becomes paramount when looking for a “paradigm shift” allowing us to build an economy with less inequality – the consequence of mismanaged globalisation, the cause of increasingly wider geographical, social, personal, gender and cultural gaps. The attainment of inclusive liberalism and reformism, entrepreneurial dynamism and social inclusion, competitiveness and solidarity. All values included in Salvati and Dilmore’s book and that underlie the archetypal European culture: liberal democracy and welfare, promotion of individual rights and social responsibility – a path that’s extraordinarily relevant right now, in these times of crisis and radical transformation.

There’s also another viable concept, however, found in the best contemporary writings on economics, as well as in the works by Stiglitz, Krugman, Fitoussi and Federico Caffè, innovative interpreter of Keynes’s ideas and the intellectual inspiration of Italian Prime Minister Mario Draghi: “A virtuous triangle composed by companies, State and civil society”, which could lead to new development trajectories lying outside traditional debates revolving around the question, “More State or more market?”. A concept by Philippe Aghion, French economist and professor at the London School of Economics, at Harvard and at the Collège de France, which he unravels in his latest book, published in Italy by Marsilio Editori with title Il potere della distruzione creatrice – Innovazione, crescita e futuro del capitalismo (The Power of Creative Destruction: Economic Upheaval and the Wealth of Nations), written collaboratively with two other economists from the Collège de France, Céline Antonin and Simon Brunelli. As the title suggests, the book refers to the theories of Joseph Schumpeter concerning the creative power of innovation, but also to the monopolistic tendency of more dynamic market players, which ends up destroying the very market that made them. The aim is to demonstrate how a new, balanced relationship between politics, entrepreneurs and civil society could counteract both the decline of capitalism and the rise of demagogic populism while reviving the market economy (in a transparent, well-regulated and sustainable fashion) and, above all, liberal democracy itself. The authors analyse the technological evolution, argue against bizarre theories suggesting that robots should be taxed in order to stop the digital evolution in businesses and safeguard traditional jobs, reject notions of a “happy degrowth” and propose new ways to connect British innovation with the best European welfare traditions.

Here’s the deal: in order to talk about “inclusive liberalism” and reformism, Italy really needs a decent political set-up. These past years have unfortunately seen reformist politics getting crushed under populist and sovereignist pressures and overcome by erroneous and useless reactions to plausible solutions to real social hardship issues, as well as the collapse of confidence in a better future.

Now, however, in Italy and more generally in Europe, we see signs allowing for some fragile hope towards a recovery. The re-election of a president like Sergio Mattarella and the strengthening of the Draghi government, with its demanding programme of reforms in line with the EU Recovery Plan‘s priorities concerning the Next Generation (environment, digital economy, innovation, training, education) are veritable cornerstones on Italy’s path to recovery. The intimations made by Mattarella in his speech, concerning the “dignity” of work, culture, institutions, laws, rights of women and young people, are the foundations on which we can restore Italian politics, reinstate confidence and build better opportunities for the future.

Democracy and development are at stake, notwithstanding the heavy crisis – yet, it’s precisely in these difficult times and in spite of the uncertainties, downfalls, gloomy undertones and irresponsible behaviour lying right at the heart of Italian politics, that the country is showing it possesses positive “social capital” as well as an extraordinary recovery force.

Something that has also been noticed by influential international observers, such as The Economist, for instance, which last December declared Italy “country of the year for 2021”, setting temporarily aside its traditional tendency to severely – at times even ruthlessly – criticise the Italian Republic. Now, instead, the current issue of the weekly British magazine affirms that “Southern Europe is reforming itself”, recalling how “the old PIGS” (Portugal, Italy, Greece and Spain, bundled up in a rather offensive acronym) “are airborne, even as northern countries fall to earth”. When discussing the growing weight of Mediterranean Europe, also owing to a change in international assets, The Economist continues to acknowledge the positive reformist impetus that is driving Italian legislature, pensions and economy under the leadership of Mario Draghi, as well as the beneficial effects the country is exerting on the rest of the EU. There are still doubts, that’s true, but positive forces are rising, and “inclusive liberalism” could really be the way forward.