Italy's Economy
The North-South Divide
Why Italy's south, the Mezzogiorno, has much lower incomes and employment than the north, despite decades of development spending.
Italy has a deep north-south divide.
The gap
- The south (Mezzogiorno) has much lower income per person than the north.
- Unemployment is much higher, especially for youth.
History
Differences go back before unification in 1861.
Development spending
The Cassa per il Mezzogiorno (1950-1984) funded southern infrastructure and industry, with mixed results.
Causes
- Weaker institutions and organised crime.
- Less infrastructure.
- Emigration of young people.
India parallel
Like India’s regional gaps, spending alone doesn’t close them without better institutions.
The emigrant graduate
A young engineer from Naples moves to Milan or Germany because local jobs are scarce.
Thinking money alone closes regional gaps
Institutions matter.
Key takeaways
- The south has much lower incomes.
- Unemployment is higher there.
- Development spending had mixed results.
- Institutions and crime matter.
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