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Nothing else but merit

A recently published book provides an effective analysis of the links between skills and development and applies it to Italy

 

Merit. True merit – acknowledged, shared, appreciated and fostered – and also competence in doing what we are asked to do, as well as a desire to do it in this way and no other. It does happen in Italy, but not often enough as yet, and this is (also) the reason why the country has not been growing for the past 25 years at least. A matter of operational procedures but also, above all, of corporate culture and much else, all of which needs to be reviewed, relaunched and reformed.

Lorenzo Codogno and Giampaolo Galli (professor at the London School of Economics and vice-director of the Osservatorio sui Conti Pubblici, Italy’s public finances watchdog, respectively), reflect on the links between development and merit, growth and skills, in their recently published Crescita economica e meritocrazia. Perché l’Italia spreca i suoi talenti e non cresce (Economic growth and meritocracy – Why Italy is wasting its talents and can’t achieve growth).

The book starts with an observation: once public debt and devaluation, which fostered growth in the 1970s, were no longer an option, the country should have focused on research and on the enhancement of its talents (which do exist), but chose not to. Of course, there were – and are – exceptions, but not enough of them. What prevailed, instead, were the practices of “favouritism” and “political endorsement”, pretty much concerning everything and pretty much everywhere: universities, public administration, the political and legal spheres, local health authorities, the job market and even when appointing managers in the financial sector. And now, Italy is paying the price.

The work begins with a section entitled “Meritocrazia e declino” (“Meritocracy and decline”), which summarises the book’s basic arguments; it then moves on to a second section called “Evidenze comparative: la società” (“Comparative evidence: society”) and a third one, “Evidenze comparative: l’economia” (“Comparative evidence: economy”), which examine international data relating to key sectors of civil life, such as social capital, governance, the economy, the gender gap, the North-South divide, inequality and social mobility. It then continues to investigate the reason why doing business is difficult in Italy, as well as themes of competitiveness, the job market and the lack of growth of small businesses. The general conclusion includes a number of “suggestions” and examines the role of merit in economic development.

Codogno and Galli’s book is not a mere compendium of issues – its aim is to inspire a change in direction, starting with the notion that the first step towards finding adequate solutions is to be fully aware of all such issues, which are, on the contrary, often explicitly or implicitly refuted.

The book’s last pages, like many others, are enlightening, as they talk of humility, knowledge, courage and confidence in the future, and how they should be nurtured – by everyone.

Crescita economica e meritocrazia. Perché l’Italia spreca i suoi talenti e non cresce (Economic growth and meritocracy – Why Italy is wasting its talents and can’t achieve growth)

Lorenzo Codogno, Giampaolo Galli

Il Mulino, 2022

A recently published book provides an effective analysis of the links between skills and development and applies it to Italy

 

Merit. True merit – acknowledged, shared, appreciated and fostered – and also competence in doing what we are asked to do, as well as a desire to do it in this way and no other. It does happen in Italy, but not often enough as yet, and this is (also) the reason why the country has not been growing for the past 25 years at least. A matter of operational procedures but also, above all, of corporate culture and much else, all of which needs to be reviewed, relaunched and reformed.

Lorenzo Codogno and Giampaolo Galli (professor at the London School of Economics and vice-director of the Osservatorio sui Conti Pubblici, Italy’s public finances watchdog, respectively), reflect on the links between development and merit, growth and skills, in their recently published Crescita economica e meritocrazia. Perché l’Italia spreca i suoi talenti e non cresce (Economic growth and meritocracy – Why Italy is wasting its talents and can’t achieve growth).

The book starts with an observation: once public debt and devaluation, which fostered growth in the 1970s, were no longer an option, the country should have focused on research and on the enhancement of its talents (which do exist), but chose not to. Of course, there were – and are – exceptions, but not enough of them. What prevailed, instead, were the practices of “favouritism” and “political endorsement”, pretty much concerning everything and pretty much everywhere: universities, public administration, the political and legal spheres, local health authorities, the job market and even when appointing managers in the financial sector. And now, Italy is paying the price.

The work begins with a section entitled “Meritocrazia e declino” (“Meritocracy and decline”), which summarises the book’s basic arguments; it then moves on to a second section called “Evidenze comparative: la società” (“Comparative evidence: society”) and a third one, “Evidenze comparative: l’economia” (“Comparative evidence: economy”), which examine international data relating to key sectors of civil life, such as social capital, governance, the economy, the gender gap, the North-South divide, inequality and social mobility. It then continues to investigate the reason why doing business is difficult in Italy, as well as themes of competitiveness, the job market and the lack of growth of small businesses. The general conclusion includes a number of “suggestions” and examines the role of merit in economic development.

Codogno and Galli’s book is not a mere compendium of issues – its aim is to inspire a change in direction, starting with the notion that the first step towards finding adequate solutions is to be fully aware of all such issues, which are, on the contrary, often explicitly or implicitly refuted.

The book’s last pages, like many others, are enlightening, as they talk of humility, knowledge, courage and confidence in the future, and how they should be nurtured – by everyone.

Crescita economica e meritocrazia. Perché l’Italia spreca i suoi talenti e non cresce (Economic growth and meritocracy – Why Italy is wasting its talents and can’t achieve growth)

Lorenzo Codogno, Giampaolo Galli

Il Mulino, 2022