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agostini

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27 Aug 2020

Umbria’s production apparatus (manufacturing plus services), as well as the Italian one, will go through a long and not simple restructuring phase. National and regional interventions of recent months have rightly had an emergency character to confront businesses’ needs for liquidity and cost containment.

I believe that the time has come to start thinking about a systematic packet of economic policy measures that is very compact, selective and rapidly implemented. The way the projects will be devised will affect the possibilities and timescale of realization.

European Commissioner Gentiloni recently said that in order for the Recovery Fund (read in perspective Next Generation EU) to transform our economies in a more sustainable, inclusive and competitive way, we must focus on seven or eight projects that will drive the rest, rather than disperse into a hundred projects to give signals to all. This is the approach that must also be followed in Umbria.

So let’s try to make some suggestions, starting with method. Sharing with the social forces continues to be fundamental. I do not believe, however, in the formulas of the past - the different formats of the “round-tables for development” - engaging ever more voices and bringing in the subjectivities of environmentalism, of social enterprise, civic-mindedness. The time of neo-corporative pacts is long over.

A strong control room, both from a political and technical point of view, would assume the function of connection and direction, on the merits. The point of attack remains reversing the trend of declining productivity. Productivity is often taken to refer exclusively to manufacturing. The fine work of Bracalente and Montrone (Produttività e redditività delle imprese, Franco Angeli 2019) makes it clear that the scope is much broader, with particular reference to the service sector. And it is precisely there that pockets of resistance to innovation lurk, in an attempt to maintain situations of "control" of the market.

Let's think about the tourism offer and the quality of the structures. Certainly, it is important to promote what has long been called “brand Umbria”, but without a deep renovation of this strategic sector of the regional economy, the results can only be conjunctural. In other words, stimulating demand is good, but sooner or later we must reflect on the quality of the offer and on the irreplaceable key role of the private sector.

Second, an integrated infrastructure plan that focuses strongly on rail and air links and the modernization and maintenance of the existing road structure. The sustainability of our region cannot be declined only in terms of the landscape environment but also for active policies for the environment, in the sense of changing the choices and behaviours that make a strong impact.

Third, a great plan to make Umbria’s historical centres "car free" within 5 years. The example of Perugia serves as experience to avoid, speaking as a resident. The non-choice choices for mobility in the historical centre not only failed to benefit businesses but they determined a real suffocation from the cars. This effectively discourages people from living there or opening businesses, the prerequisites for the liveability of a town centre. An authentically "green" choice is to completely free the centres from cars and convert the public transport to electric only, making this solution also a powerful element of tourist attraction.

Fourth, incentives for entrepreneurial activities for the installation of a widespread network of electric car charging points throughout the region. The green transition materializes in many small coherent choices.

We now come to manufacturing, which has been widely discussed and has seen more proposals, so I will limit myself to a few considerations.

Fifth, to take advantage of the economic phase of export recovery to further increase the resources available to support the internationalisation of companies. Set the goal to shrink to the vanishing point the gap between Umbria and Italy in the foreign component of GDP demand, through strengthening the competitiveness of companies already present on foreign markets and supporting access of those that aspire to it. I would drop suggestions of the "reshoring" of the production, both because of the high financial and operational costs, and for the message of closure of the regional economy that inevitably accompanies it.

Sixth, to encourage and really focus on a close collaboration between Universities and businesses for the research of new products, new organizational and technological solutions, and deep digitization processes. The contribution of start-ups can be certain, but it is only marginal. To think that the turning point in the Umbrian economy can come from a "Californian" proliferation of performing start-ups is pure utopia. We must focus instead on what we have, and there is much, in the variegated world of Umbrian companies of excellence, in order to increase qualification and employment impact.

I close with two requests on the public side. Seventh, the Umbrian School of public administration has carried out over the years the valuable job of professional updating of managers and public officials. This should be flanked by an activity, in close connection with the University, to prepare courses and a Masters’ in PA management.

Eighth, public procurement. The qualification of public demand (Region, Local Authorities, etc.) can represent a stimulus and even a guide to raising the quality of supply. A project of excellence of the University of Perugia (DICA, of which I promise to speak elsewhere) moves in this direction for the quality of post-earthquake reconstruction and extraordinary maintenance of infrastructure. An excellent result also came from a European project (Prominent Med) of which Sviluppumbria was the leader with the redevelopment of a nursery school in Narni.

If these few ideas contribute to the discussion, they will have achieved their goal.    

Mauro Agostini