Strengths and weaknesses in the promotion of local employment initiatives: the Italian case

Abstract

The development of local initiatives aimed at creating employment and increasing social welfare is not, at the moment, an equal opportunity for all European countries. The potential for growth of new social services is affected by various economic and social factors, but the success of any initiative depends on subjective factors like the political environment, the institutional setting, the quality of public bureaucracy, and the dynamism of private entrepreneurship. The aim of this paper is to discuss which of these subjective factors are strengths and weaknesses in the promotion of local employment initiatives in Italy. The political context has been and may still be a hindrance for the necessary cultural evolution. On the other hand, the current political debate has favoured the move towards an institutional setting that, being characterised by a greater degree of administrative decentralisation, appears to be more consistent with the development of local initiatives. Simple fiscal systems and efficient public administrations are essential prerequisites for demand policies and Italy is just beginning to move in this direction. For the Italian case a major strength relative to other European countries is the dynamism of small private enterprises and, more recently, the development of non-profit-making enterprises. Indeed, a strong impetus for the development of new activities could come from the engagement of the whole cooperative movement.