The latest research collection by the Einaudi centre in Turin makes for a good guide to understand change

Change (not always necessarily negative) is what the world is experiencing. A condition that must be understood and as such analysed with care, by everyone. Above all, a condition whose key terms need to be clarified by those who, not just in institutions but also in enterprises and social organisations, hold particularly responsible roles. Thus, having clear and accurate information is of the essence and that is precisely what readers get with Il mondo postglobale (A postglobal world), the latest research collection curated by Mario Deaglio for the Luigi Einaudi research and documentation centre in Turin, with the contribution of Intesa Sanpaolo.

This research collection starts from a clearly outlined scope: in the 1920s, and in the 20^th century – that is, our own times – the world finds itself at the intersection of four crises: the pandemic crisis, not yet concluded, which has accelerated the pace of ongoing changes and given rise to new ones; the climate-environmental crisis, which, this summer, really started affecting several parts of the planet; the geopolitical crisis, with an ongoing war at the heart of the old continent; and, finally, the economic-social crisis, partly triggered by technological innovation and exacerbated by climate, pandemic and war. These are not, the authors of the various analyses immediately clarify, necessarily negative crises, but “crises in the Greek sense of the term”, that is, attempting a most faithful translation, “decisive moments”. In other words, the world is changing, and the direction that change will take depends on a number of responsible choices made by society, and certainly not merely by choices imposed top-down, while also considering the loss of some features from the “world before”: global ones, for instance, but also those linked to the ability to grow. In order to better understand, and make better choices, it is necessary to find and try out new paths, and look at reality with fresh eyes.

Hence, the collection of essays curated by Deaglio explores, above all, the features of 2022, described as “the year that changed the world” and then goes on to investigate more in depth the reasons for change, which lead to the notion that “the world will never be the same again” and subsequently the approaches (yielding different responses) that the United States and Europe have taken to tackle what is happening. The focus then shifts onto Italy and an effort is made to suggests what should be done.

In his conclusion, Deaglio writes, “Past thinkers and schools of thought cannot provide us with solutions suited to our issues. The concept of freedom needs to be deeply reviewed, and projected from an abstract, timeless present towards a future where generations are ‘interlinked’, where living individuals are part of a relationship that includes those who lived before and will live after them, and the same applies to concepts of production and its costs, wealth and income distribution and so on.”

Il mondo postglobale (A postglobal world)

Mario Deaglio (curated by)

Guerini e Associati, 2022

Perché le fabbriche fanno bene all’Italia (Why factories are good for Italy) – a very effective title for the book written by Rachele Sessa, director of the Ergo Foundation (an organisation based in Varese that unites companies, trade unions and universities to research industry-related topics) and published by Rubbettino. Her book gained an honourable mention at Potenza’s Premio Basilicata literary prize, held last Sunday and won by Maurizio de Giovanni’s L’equazione del cuore (The heart equation), published by Mondadori (Fiction category) and Paolo Bricco’s Adriano Olivetti, un italiano del Novecento (Adriano Olivetti, an Italian man from the 20^th century), published by Rizzoli (Economics category). And it’s really important that nowadays, in such a difficult period rife with crises and uncertainties, and especially in a city of the South, the word “factory” is heard, a term that evokes the cornerstone of Italy’s development, including that of its southern regions.

We need to safeguard industry to guarantee Italy’s future, keeps on insisting, in recent weeks too, the president of territorial entrepreneurial institution Confindustria Carlo Bonomi, as we face the economic and social storm unleashed by the energy crisis, the war in Ukraine, inflation and the dark, looming shadows of recession. We need to enhance Italy’s industrial skills, conducive to a prompt recovery after the most critical phase of the COVID-19 pandemic and that continue to be key to yet another possible recovery, as economists, research centres and entrepreneurs with an eye on innovation and export reiterate.

Rachele Sessa’s book provides data and analyses that support this stance. Italy can’t do without its industry, its industrial history and its deep-rooted territorial expertise, or it wouldn’t be able to hold on to its current global positioning. Sessa maintains that, “If we describe ourselves as the most beautiful country in the world, it’s not merely because of our monuments, arts or scenery, but also because of our ability to produce objects and machinery appreciated all over the world for their efficiency and elegance, a typically Italian industrial added value.”

Unfortunately, nowadays our public opinion is not sufficiently conscious of this heritage and of the value of industry (as we repeated several time in this blog). Furthermore, over time, neither politicians nor the public administration implemented coherent and long-term decisions aimed at enhancing industry’s “polytechnic culture”, strengthening the link between the old “do well” approach and new competitive needs (Museimpresa, the Italian association of business archives and corporate museums, with its over 120 members including large, medium and small enterprises, it’s a prime example of this link) or promoting factories’ tendency towards innovation and their propensity to become effective means for social cohesion and the promotion of wealth – for the new generations, too.

Now, as Sessa demonstrates, in order to face the two great intertwined challenges that are soon to come, i.e. the digital and environmental transitions – or, the twin transition – “it is essential that we stop conceiving factories through 20^th-century stereotypes.”

Indeed, factories, “by their nature and when properly managed, actually represent hubs of modernisation scattered throughout the territory. As such, it’s about time for the public opinion to better recognise the opportunities that the industrial world entails, not just from a technological perspective but also in terms of its proclivity to generate innovation and experimentation that will benefit the whole of society.”

This is why, in a nation like Italy, policies need to place industry at the centre and, as stated by Sessa, rallying for “the industry party is a civic, rather than strictly political, choice.” Words that the new Italian government led by Giorgia Meloni (leader of a right-wing party whose culture, up to now, has shown no sign of wise or deep-rooted industrial and productive traits) will really have to take into account, not only through its declared political aims (which are however notable, such as the introduction of significant tax cuts) but also through coherent and forward-looking decisions. Namely, by spurring the twin transition, and keeping Italy’s position within the European context and the maps tracing the new boundaries of a “selective globalisation” firmly in place (our industry has a strong aptitude for international trade, export and investments, and has no calling for sovereignist or protectionist attitudes).

While the North is playing a more dynamic and integrated role within European development trends, “factory” is also a term that’d suit the South very well, as industry could tackle the widening North-South divide between income and opportunities.

The Premio Basilicata literary prize’s winners we mentioned above are further proof that at least a section of Italy’s more informed public opinion is aware of all this (Bricco’s book about Olivetti also includes some incredibly interesting pages about the company’s investments in Pozzuoli as well as notions that, from Ivrea, aspire to develop the South’s economy and expertise). In fact, if we must think in terms of sustainable, environmental, social, economic and cultural development, then we also need to think more critically and proactively about industry as a driving force that generates employment, income and wealth. A process of change that should also include agriculture, tourism and health. A kind of “metamorphosis”, almost: from an embittered South currently relying on welfare assistance and warped decisions such as the “citizenship income” (which neither boosts employment nor adequately addresses the region’s widespread needs and poverty) and Neo-Bourbon nostalgia, to a South acquiring a leading role in manufacturing processes, part of the European recovery context and embodying the response to the Mediterranean region’s newly rediscovered geopolitical central position.

A South that, basically, could thrive on manufacturing, the market, merit (where ‘merit’ is the reward of initiative, creativity, the quality of a job well done).

Here’s why, then, it makes sense to talk about “factories” – or, even better, “neo-factories” – manufacturers where high-tech solutions, production, research, services and logistics combine with regional expertise and scientific innovation. All qualities that the South, over the years, has brilliantly displayed.

Lately, the attention that large and medium companies – Google and Accenture, Apple and Microsoft, KPMG and Bosch, Pirelli and Bip, STM and Technoprobe, and so on – are paying to young women and men in the South has been featuring in economic news, a process led by the digital economy and the spread of Artificial Intelligence.

Thus, even if ISTAT data show a widening in the North-South divide, lack of investments, brain drain, material and intellectual impoverishment, the challenge to overturn this situation is still on – and factories are of the essence, precisely because they’re a good thing. For the South of Italy, too.

The first Formula 1 race was held in 1950, opening a new chapter in the world of motor racing. The partnership with Alfa Romeo continued, and the first World Championship in the history of Formula 1 was won at the Monza Grand Prix, on 3 September 1950, by Nino Farina in an Alfa 158. The tyre was a Stella Bianca Corsa and the wheels displayed the hand that had formed the company logo since 1939, the year when the “Italiana Rudge Whitworth” changed its name to “Carlo Borrani”. We can see this in a number of shots taken by the photographer Federico Patellani, who became known for his reportages in the years of recovery after the war. At the historic Grand Prix he showed the Pirelli Racing Service mechanics in the pits, checking and balancing the wheels of the Alfa 158. The historic partnership with Alfa Romeo and Maserati had started in the years of the pre-war Grand Prix races and it continued into the 1950s, but now a new marque appeared in the racing world: Ferrari. Borrani’s relationship with Enzo Ferrari began during the 1924 Coppa Acerbo, when the young driver achieved one of the greatest results of his sporting career in an Alfa Romeo fitted with Rudge Whitworth wheels. After his triumph he chose Pirelli tyres and Borrani wheels for his Scuderia Ferrari at Alfa Romeo and later for the cars he produced with the prancing horse logo.

Whether for an Alfa Romeo, a Maserati or a Ferrari, Victory Tyres were the first choice for every car manufacturer in racing, and successes came one after the other throughout the 1950s. The Stella Bianca was followed by the Stelvio, while Borrani aluminium rims, made from 1948 without joint plates thanks to the use of modern welding techniques, were named “Record”.

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In 1872, a hundred and fifty years ago, G.B. Pirelli & C. was set up in Milan and rapidly established itself in all applications of elastic rubber: technical and consumable items, cables, and tyres. In 1902 it became the first Italian company to start manufacturing abroad. On 22 April 1922, also in Milan, Carlo Borrani and Ettore Ambrosetti set up the Italiana Rudge Whitworth company for the production of spoked metal wheels, under licence from the British company that held the patent for a rapid assembly system. This, coupled with the lightness of the spoked rim, meant that Rudge Whitworth wheels quickly caught the eye of the leading car manufacturers of the time, especially in the field of sports competitions. It was here that the paths of Borrani and Pirelli crossed.

By 1922 Pirelli had already been up and running for 50 years and, with its substantial international expansion, it launched a technological innovation that was destined to spread rapidly across the world of sports: the casing of the Cord tyre featured a rubber-coated fabric without weft, consisting solely of a warp made with rubber-coated cords. By eliminating the problem of friction between the cords that appeared in normal fabrics, the Cord tyre offered greater resistance and durability than the “traditional” type of tyre. In 1924 came the Superflex, a version that halved the inflation pressure and increased the width of the tyre to ensure a more comfortable ride. An advertising leaflet of 1924, now in our Historical Archive, shows how the low-pressure Superflex version was supplied complete with rims for the Fiat 501 and 502, and the Ansaldo, OM 4 Cilindri, Bianchi 18 and Ford cars: the rim is a Rudge Whitworth. In a very short time, Pirelli and Borrani won over all the racing and luxury road cars. When motor racing started up again after the war, they won numerous victories with Fiat and Alfa Romeo cars, becoming known as the Victory Tyre and Victory Wheel respectively. In 1924, Alfa Romeo cars – which that year entered the Grand Prix with the glorious P2 tyres – triumphed at the European Grand Prix in Lyon. The following year, Gastone Brilli-Peri’s legendary victory in an Alfa won him the World Championship on the Monza track.

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In the 1930s Pirelli concentrated in particular on the world of racing and speed, with the Superflex Cord now becoming the Stella Bianca: the tread pattern was more complex and sporty and the five-pointed star of the Pirelli brand was coloured white. 1932 brought the Supersport, a full line of racing tyres, initially with the basic tread and later with the Stella Bianca pattern. This was the Stella Bianca Corsa line. The 1930s turned out to be particularly fruitful for Borrani too: a rim specially designed for racing came out in 1931, named DD after duralumin, the light alloy used. This material was lighter than steel, and meant that the wheel could be made perfectly round, with a special assembly pattern with external spokes on three rows, making the wheel more resistant and its response to direct perpendicular forces more elastic. The “magnificent” DD light alloy wheels, as an advertisement proclaimed at the time, were Borrani’s flagship product.

Our Foundation has preserved one rare Supersport tyre from that period with a Borrani DD rim, probably made for Auto Union, a German car manufacturer founded in 1932.

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Pirelli left the world of racing in 1957 to focus on road tyres, so that it could meet the needs of the nascent mass motorisation. The price list reflected the segmentation of the automotive market, with the Rolle for the Fiat 600, the Cisa for the Fiat 500, and the Sempione for the Fiat 1800. In the 1950s, also Borrani diversified its production, with new rims for lower-end cars: the “Cabo” wheel (taking its name from the founder’s initials) for the Fiat 500, 1100, 1400 and 1500, now featured disks in place of spokes and a chrome-plated hub cap that could be customised with the car manufacturer’s logo (also in a sports version, with the Rudge Whitworth quick assembly system).

The 1960s brought a new revolution to the world of tyres: the age of the traditional cross-ply tyre came to an end and the radial era arrived. Pirelli launched the Cinturato, which was patented in 1951, specially designed for sports users who preferred grip and speed over “comfort”. It was initially recommended for sport touring cars and high-powered saloons, such as the Alfa Romeo Giulietta Sprint, the Lancia Aurelia B20, and the Fiat 8V. For these cars, Borrani perfected its Turbo wheels, with the sport version in light alloy and the normal in steel. The Cinturato was soon adopted by all segments of the market and became the tyre of mass motorisation – while continuing to be used on sports cars, such as the Lamborghini Miura, the ISO Grifo, the Maserati Ghibli, and the Alfa Romeo Junior Zeta. This time it was Ugo Mulas, another great name in photography, who created an advertising campaign for Simplon and Cinturato tyres, with young people shown alongside cars fitted, of course, with Pirelli tyres. It was the beginning of a long journey, in a world that was increasingly on the move.

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The 1970s saw the triumph of Pirelli in rally racing and the dawn of a new revolution: the P7, the first low-profile radial tyre, fully put into practice the concept of the transition of technology from track to road. Developed for the world of rallying and later also used on track, its high performance led to its being chosen as original equipment by various sports car manufacturers. The first to fit it was the Porsche 911 Carrera Turbo, and this was followed by Lamborghini, De Tomaso, and Ferrari. The way was open for the development of a new low-profile road tyre, codenamed Zeta: the Pirelli PZero.

Throughout the 1960s, Borrani continued to equip sports and GT cars, and in the following decade it came out with a new spoked wheel. The Dial, an evolution of the Turbo, was adopted by car manufacturers, which by this time were moving towards the cheaper cast alloy wheel (which dominated in track cars). Despite its central disc in moulded cast alloy, the Dial needed the traditional Borrani manual assembly and could not compete with industrialised cast wheels, which gained the upper hand. Ferrari and Maserati were the last manufacturers to break off their long partnerships with Borrani, which continued its business in the aftermarket.

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Pirelli and Ruote Borrani are back together today, united by their desire to rescue, promote and give contemporary meaning to the historical and technical heritage that has been developed by the companies over the past hundred years and more. With the help of our Historical Archive, which contains almost 4 kilometres of documents, and in particular with that of research into the technical aspects illustrated in tens of thousands of drawings of vulcanisation moulds, Pirelli launched its “Collezione” project in 2018. This is a collection of tyres for historic cars, with their design identical to the originals but made with modern Pirelli technology.

Stella Bianca, Stelvio, Cinturato, P7: all the models that helped write the history of motoring are back in production with the high standards of quality and safety made possible by today’s technology. “Pirelli Collezione” tyres now meet the “Borrani Heritage” series: light alloy wheels identical to the originals and meticulously detailed thanks to an archive of over 8,000 drawings. Here too, Heritage rims can be said to be better than the originals, thanks to the developments achieved by modern construction techniques, which eliminate some of the imperfections found in vintage rims. Of extraordinary value for vintage car collectors.

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A dissertation discussed at the University of Padua debates the relationships between gender diversity and ESG

Gender disparity – an occurrence that is still very widespread in different areas of the economic system, not just in Italy, but perhaps in Italy more than elsewhere. A paradox – though only an apparent one – in a world that is increasingly freer, more open and interconnected, and that should be inclusive rather than exclusive. It is around these topics that Vera Artuso’s research work, now an economic degree’s dissertation entitled Gender diversity nel governo d’impresa e performance ambientale (Gender diversity in corporate governance and environmental performance), discussed at the University of Padua, revolves.

Artuso starts by observing real-life happenings: “In a world marked by innovation, by progress in sustainable, cultural and social development, gender disparity in enterprises still represents a significant issue in many countries, among which, unfortunately, Italy.” The goal of this investigation is to analyse “the potential of women’s roles within enterprises, with a particular focus on sustainable and environmental performance.” In addition to this, Artuso attempts to provide “information and proof that could lead to this realisation and that could help readers best understand how the issue of climate change is deeply tied to gender disparity, highlighting the need of acting in a different way than we did up to now.”

Artuso sets some ambitious tasks for herself, which in this investigation are tackled first through the analysis of the issues inherent in setting female quotas and then through an in-depth examination of the links and influence of women within ESG activities.  Subsequently, the research proceeds to scrutinise a particular segment – banking – in order to verify what was previously unearthed.

Artuso concludes that, “Consolidating a female presence in enterprises not only helps us achieve an egalitarian society but also has positive implications for environmental issues, allowing for an improvement of sustainable performance.” At the same time, however, the research finds that “laws concerning compulsory minimum quotas are not enough to generate an appropriate level of awareness, precisely because the well-known ‘glass ceiling’ rests on issues such as gender stereotypes and the conviction that these cannot be dispelled through the mere enforcement of figures imposed by the authorities. Nonetheless, the same moral and intellectual attitudes that evince the exclusion of women can be employed to explain the motivational drive of women, who find themselves more engaged in activities that support the company and especially the environment.”

Rules but also global perspective, organisational culture but also different sensibilities – these seem to be the main elements outlined by Artuso’s research, which shows how varied and complex gender relations are, and how they should be enhanced and certainly not lost.

Gender diversity nel governo d’impresa e performance ambientale (Gender diversity in corporate governance and environmental performance)

Vera Artuso

Thesis, University of Padua, M. Fanno Department of Economics and Business Sciences, Degree in Economics, 2021-2022

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