The North–South Gap: Economic Development and Public Intervention

Abstract

Over the past decade, the differences in economic development at the regional level have widened even further: Southern regions of Italy have consistently seen a decrease in their economic weight, highlighting a growing difficulty in employing the available workforce, a reduction in capital accumulation, and slower population growth compared to more advanced areas of the country. The private sector in the South, already significantly undersized, has further contracted; employment levels, already among the lowest in Europe, have further decreased, as has the average quality of employment. In light of this, the priorities of economic policy should be oriented towards two main objectives. The first concerns the improvement of the quality of public action. Secondly, a strengthening of private initiative appears necessary, through the reduction of infrastructure gaps in the South, the exploitation of the development potential of its urban agglomerations, and a qualitative improvement in the productive system.