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101. Not All Firms Are Created Equal SMEs and Vocational Training in the UK, Italy, and Germany

Author:
Chiara Benassi, Niccolò Durazzi, and Johann Fortwengel
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Why do skill formation systems put SMEs at greater disadvantage in some countries than others vis-à-vis large employers? By comparing vocational education and training (VET) institutions and their differential effect on firms of different sizes across three countries (UK, Italy, and Germany), we show that the design of VET has profound implications for shap- ing the ability of SMEs to use institutions as resources. In particular, quasi-market institu- tions in the UK amplify SMEs’ disadvantage, while non-market coordinating institutions in Italy and Germany narrow the gap between SMEs and large employers. By unpacking the comparative disadvantage of SMEs, we offer important nuances to the argument that institutions help firms coordinate their business activities in different varieties of capitalism.
Topic:
Political Economy, Capitalism, and Vocational Training
Political Geography:
United Kingdom, Europe, Germany, and Italy

102. Has the “External Constraint” Contributed to Italy’s Stagnation? A Critical Event Analysis

Author:
Lucio Baccaro and Massimo D'Antoni
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Has the strategy of the “external constraint” (voluntarily limiting the country’s policy-mak- ing discretion by tying it to the European mast) contributed to Italy’s stagnation over the past twenty-five years? The existing literature is divided on this question. The dominant in- terpretation is that Italy’s stagnation is due to insufficient liberalization, and that the exter- nal constraint has had no negative and even a positive influence. An alternative interpreta- tion emphasizes the demand compression and supply-side effects of the external constraint. Based on three case studies of public debt management, privatization, and labor market policy, this paper reconstructs the process by which the external constraint has affected out- comes. It argues that it has had a negative impact, but more as a necessary condition than as a sufficient one. In other words, it would probably have been possible to manage the exter- nal constraint differently to produce better outcomes, but without the external constraint, the stagnation would likely have been less deep.
Topic:
Political Economy, European Union, Economic Growth, and Liberalism
Political Geography:
Europe, Italy, and Southern Europe

103. Is the Euro up for Grabs? Evidence from a Survey Experiment

Author:
Lucio Baccaro, Bjorn Bremer, and Erik Neimanns
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The COVID-19 pandemic may lead to a resurgence of the euro crisis. In this context, Italy seems particularly vulnerable: support for the euro is lower than in most other eurozone countries, and a possible exit could have serious consequences for the common currency. Based on a novel survey experiment, this paper shows that the pro-euro coalition is fragile in Italy and preferences are malleable. They are heavily dependent on the perceived costs of continued membership, as a majority of Italians would opt for Italexit rather than accepting a bailout plan requiring the implementation of austerity policies. Individuals who feel they have not benefited from the euro are most likely to support exit when faced with the pros- pect of austerity. This suggests that, differently from Greece, where voters were determined to remain in the euro at all costs, the pro-euro coalition may crumble if Italy is exposed to harsh conditionality.
Topic:
European Union, Eurozone, Voting, and Currency
Political Geography:
Europe, Italy, and Southern Europe

104. Covid-19: Recovering Estimates of the Infected Fatality Rate During an Ongoing Pandemic Through Partial Data

Author:
Matteo Villa, James F. Myers, and Federico Turkheimer
Publication Date:
05-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
In an ongoing epidemic, the case fatality rate is not a reliable estimate of a disease’s severity. This is particularly so when a large share of asymptomatic or pauci-symptomatic patients escape testing, or when overwhelmed healthcare systems are forced to limit testing further to severe cases only. By leveraging data on COVID-19, we propose a novel way to estimate a disease’s infected fatality rate, the true lethality of the disease, in the presence of sparse and partial information. We show that this is feasible when the disease has turned into a pandemic and data comes from a large number of countries, or regions within countries, as long as testing strategies vary sufficiently. For Italy, our method estimates an IFR of 1.1% (95% CI: 0.2% – 2.1%), which is strongly in line with other methods. At the global level, our method estimates an IFR of 1.6% (95% CI: 1.1% – 2.1%). This method also allows us to show that the IFR varies according to each country’s age structure and healthcare capacity.
Topic:
Health, Pandemic, Data, and COVID-19
Political Geography:
Europe, Italy, and Global Focus

105. Covid-19 and Italy’s Case Fatality Rate: What’s the Catch?

Author:
Matteo Villa
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
COVID-19’s lethality in Italy is a highly discussed figure. When compared with other major countries, Italy’s 9.9% case fatality rate (CFR) as of 24 March 2020 is the highest by far. But relying on this figure is misleading. By itself, the CFR tells us almost nothing about COVID-19’s plausible lethality (infected fatality rate, or IFR). On the opposite, recent studies place China’s IFR at 0.7%. By relying on this figure, ISPI’s best estimate for COVID-19’s plausible lethality in Italy is 1.1%. The gap between the IFR and the CFR figures can be largely attributed to the number of infected persons that have not been tested and, therefore, escape counting. ISPI estimates that the number of active cases in Italy is at around 530,000 as of 24 March 2020, or almost ten times larger than the official count of 55,000 active cases. This paper shows that the CFR is an unreliable indicator of COVID-19’s plausible lethality, and there is not enough evidence to suggest that Italy’s IFR is much higher than expected. On the opposite, a direct comparison between the CFR and the IFR is much better placed to paint a more realistic picture of the evolution of the ongoing epidemic.
Topic:
Health, Pandemic, Data, and COVID-19
Political Geography:
Europe and Italy

106. China, Italy and COVID-19: Benevolent Support or Strategic Surge?

Author:
Francesca Ghiretti
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The bilateral relationship between Italy and China is back in the spotlight one year after the signature of the Memorandum of Understanding (MoU) on China’s Belt and Road Initiative. To date, Italy is the second hardest hit country by COVID-19 pandemic after China. Despite strict measures in place to limit the crisis, numbers keep rising, placing the national health care system under severe strain.
Topic:
Health, Bilateral Relations, Foreign Aid, and Propaganda
Political Geography:
China, Europe, Asia, Italy, and European Union

107. Italian Military Operations: Coping with Rising Threats and Declining US Leadership

Author:
Alessandro Marrone
Publication Date:
03-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
The Italian armed forces need to adjust to a changing operational environment, whereby threat levels are on the rise and the United States is more reluctant to lead military operations than in the past.
Topic:
International Relations, NATO, Armed Forces, and Military Affairs
Political Geography:
Europe, Italy, North America, and United States of America

108. Illegal Trafficking of Plastic Waste: The Italy–Malaysia Connection

Author:
Elisa Murgese
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
China’s 2018 import ban on mixed “recyclable” plastic waste revealed deep-rooted problems in the global recycling system and uncovered the wasteful and harmful nature of the recycling trade. Repercussions have been global. In April 2019, Greenpeace East Asia took a closer look at the top plastic waste importers and exporters globally. This data details the 21 top exporters and 21 top importers of plastic waste from January 2016 to November 2018, measuring the breadth of the plastics crisis and the global industry’s response to import bans. Two core trends emerged from China’s ban and the Greenpeace analysis.
Topic:
Crime, Environment, Trafficking, and Waste
Political Geography:
Europe, Malaysia, Asia, and Italy

109. Russia and the COVID-19 Crisis: Hardship at Home, Soft Power Flexing Abroad

Author:
Nona Mikhelidze
Publication Date:
04-2020
Content Type:
Commentary and Analysis
Institution:
Istituto Affari Internazionali
Abstract:
On 25 March, one month after Russia registered its first confirmed case of Coronavirus, President Vladimir Putin announced a week of paid national holiday and invited Russians to stay home in a televised address to the nation. Further measures were subsequently introduced to limit the spread of the virus, while authorities prepared emergency plans to safeguard socio-economic conditions in the country. Initiatives included providing a new support package to businesses hit by the pandemic, a monthly bonus to medical personnel and the construction of new hospitals, following the Chinese model. Meanwhile, the constitutional referendum meant to extend Putin’s term limit as president was postponed. Originally scheduled for 22 April, this delay is due to Putin’s concern for public health and the multidimensional impact of the pandemic, a perfect storm involving quarantine measures, declining living standards, inflation and a weakened exchange rate, rising prices and increased job insecurity. Taken together, these challenges could jeopardise the outcome of the referendum. A recent poll conducted by the Levada Center in March highlighted a very slim majority (45 per cent) in favour of Putin’s constitutional amendments.
Topic:
Foreign Policy, Health, Soft Power, Coronavirus, and Vladimir Putin
Political Geography:
Russia, Europe, and Italy

110. With Friends Like These: The Kremlin’s Far-Right and Populist Connections in Italy and Austria

Author:
Andrew Weiss
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
A blend of new threats and opportunities is causing Moscow to take greater risks and embrace more flamboyant policies in Europe. The Kremlin’s relationships with Italy and Austria shine a spotlight on how Europe’s domestic troubles have opened many doors for Moscow.
Topic:
Foreign Policy, Politics, Populism, and Far Right
Political Geography:
Russia, Europe, Italy, and Austria