Out of the crisis. A radical change of strategy for the eurozone

The paper argues that the crisis, mistakenly interpreted as a standard fiscal/balance of payments problem, was generated by the incomplete nature of the European institutions and a disregard for the consequences of differences in the stages of development of the member countries. The ideological pre-conception that markets are self-equilibrating through price competition has been used to justify disastrous internal devaluation policies in the belief that an austerity regime associated with institutions close to those assumed to prevail in ‘core’ countries would create the ‘right’ environment for resuming growth in the periphery. An analysis of the main phases of the development of European countries since the second post-war period provides evidence of wide differences in the productive structures of the countries of the centre and the southern periphery of Europe at the start of the Europeanization process. These differences entailed an asymmetric capacity of countries at differing levels of development to adjust to external shocks. This longer-term perspective helps us better to assess the limitations of the two alternatives that have been suggested to steer the EZ economy out of its present quagmire: internal devaluation (wage flexibility) in the deficit (Southern European) countries, or expansion of internal demand in ‘core’ countries (Germany). Both measures, it is argued, do not go to the root of the development and debt sustainability problems of Southern European countries, which continue to lack a sufficiently broad and differentiated productive structure. Given the differences in the levels of development of the various EU countries and their varying capacities to cope with change, fiscal policy should be assigned two complementary targets: the role of actively promoting — through investment —the removal of development bottlenecks and the renewal of the productive base, and a redistributive and compensative function. This new strategy entails the assignment of a strategic importance to investment guidance by the State through industrial policies geared to diversifying, innovating and strengthening the economic structures of peripheral countries. The paper concludes that this change of strategy is even more important today, since the crisis marks another important structural break in world trade, similar to those of the 1970s and the first decade of the new millennium

Trade and the Competitiveness Agenda

The global economic crisis has forced a major rethinking of the respective roles of governments and markets in the processes of trade and growth. Indeed, industrial policy seems to be back in fashion—or, at least, talking about it is. But a renewed “activism” by government in the trade and growth agenda need not mean a return to old-style policies of import substitution and “picking winners.” Instead, it may mean a stronger focus on competitiveness by unlocking the constraints to private sector–led growth. This note discusses the renewed role of government in trade and growth policy from the competitiveness angle, and it suggests some priorities for the new competitiveness agenda.trade, competitiveness, financial crisis, growth, industrial policy, import substitution, picking winners, trade policy, exports, imports

Multifunctionality and value creation in rural areas of southern Italy

The paper focuses on a new theoretical-methodological approach to interpreting functional transformation processes of farms located in rural areas and marked by a delay in development. We have defined a theoretical paradigm of optimal value portfolio (OVP) which considers -in a new light- multifunctional agricultural farms as an ensemble of governance structures optimizing the creation of value. The need to validate the OVP functionality has led us to identify a new methodological approach referred to as the Value Portfolio and Multifunctional Governance Analysis (VPMGA). This analysis embeds value chain analysis and governance value analysis and at the same time attempts to overcome the “sectoral” limits representing also a new and further development. We deem, in fact, that the VPMGA best responds to the specificities of multifunctional agricultural farms. Through the VPMGA we have identified four determining family variables which are internal and external to the farm (internal resources, market, territory, policies). We have also assessed the functional links with the boundary shift processes and the mechanisms governing transactions and the creation of an optimal value portfolio. We have empirically verified this approach on selected agro-food chains which are located in rural areas characterized by different levels of development. From the findings we have defined various ideal types of farms that allowed us to make future scientific assumptions and highlight normative implications for improving managerial decision-making processes based on the VPMGA model. In this way, the VPMGA can be a tool to inform policy makers, especially in the light of the new challenges facing rural development.multifunctionality, rural development, positive externalities, value chains, Community/Rural/Urban Development, Q12, Q18, Q19,

Sustainable Assessment in Supply Chain and Infrastructure Management

In the competitive business environment or public domain, the sustainability assessment in supply chain and infrastructure management are important for any organization. Organizations are currently striving to improve their sustainable strategies through preparedness, response, and recovery because of increasing competitiveness, community, and regulatory pressure. Thus, it is necessary to develop a meaningful and more focused understanding of sustainability in supply chain management and infrastructure management practices. In the context of a supply chain, sustainability implies that companies identify, assess, and manage impacts and risks in all the echelons of the supply chain, considering downstream and upstream activities. Similarly, the sustainable infrastructure management indicates the ability of infrastructure to meet the requirements of the present without sacrificing the ability of future generations to address their needs. The complexities regarding sustainable supply chain and infrastructure management have driven managers and professionals to seek different solutions. This Special Issue aims to provide readers with the most recent research results on the aforementioned subjects. In addition, it offers some solutions and also raises some questions for further research and development toward sustainable supply chain and infrastructure management