Subsidies, Negotiated Planning and Public Enterprise in the Italian Mezzogiorno
Currently, the main form of public intervention in the Mezzogiorno are the financial subsidies and the so-called negotiated planning instruments. In this paper, we argue that both these kind of policies show a number of relevant drawbacks. Financial subsidies fail to stimulate additional investments, lead to investment oversizing, encourage clientelism, raises transaction costs and rent-seeking activities. Negotiated planning complicates the institutional context, reinforces local bureaucracies, reduces policy’s accountability, creates opportunities for political trade-offs, and makes rent-seeking profitable. By contrast, we believe that in order for the abundant resources still untapped in the Mezzogiorno to be directed towards activities favourable for development, it is necessary to debureaucratize its economy, removing opportunities for rich pickings from political groups, bureaucracies and local potentates. To this end, we argue that a different and ‘more extreme’ combination of measures, involving automatic incentives and a new active role of the public sector in the production of goods and services, could yield better results.
Volume (Year): (2002)
Issue (Month): 3 (November)
|Contact details of provider:|| Postal: |
Phone: +39 06 57114743
Fax: +39 06 57114774
Web page: http://host.uniroma3.it/associazioni/rossidoria/qa.aspEmail:
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Martin, Philippe, 1998.
"Public Policies, Regional Inequalities and Growth,"
CEPR Discussion Papers
1841, C.E.P.R. Discussion Papers.
- Tam, Mo-Yin S, 1981. "Reward Structures in a Planned Economy: The Problem of Incentives and Efficient Allocation of Resources," The Quarterly Journal of Economics, MIT Press, vol. 96(1), pages 111-28, February.
- Tam, Mo-Yin S, 1985. "Reward Structures in a Planned Economy: Some Further Thoughts," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 279-89, February.
- S. Lodde, 2002. "Patti Territoriali e specializzazione produttiva nel Mezzogiorno," Working Paper CRENoS 200211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Finsinger, Jorg & Vogelsang, Ingo, 1985. "Strategic Management Behavior under Reward Structures in a Planned Economy [Reward Structures in a Planned Economy: The Problem of Incentives and Efficient Allocation of Resources]," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 263-69, February.
- Yuill D. & Wishlade F., 2001. "Sviluppi recenti nella politica regionale degli Stati membri dell'Unione europea: una rassegna comparativa dei cambiamenti," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 251-340.
- Justman, Moshe & Thisse, Jacques-Francois & van Ypersele, Tanguy, 2002.
"Taking the bite out of fiscal competition,"
Journal of Urban Economics,
Elsevier, vol. 52(2), pages 294-315, September.
- Justman, Moshe & Thisse, Jacques-François & van Ypersele, Tanguy, 2001. "Taking the Bite Out of Fiscal Competition," CEPR Discussion Papers 3109, C.E.P.R. Discussion Papers.
- JUSTMAN, Moshe & THISSE, Jacques-François & VAN YPERSELE, Tanguy, . "Taking the bite out of fiscal competition," CORE Discussion Papers RP -1598, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Altunbas, Yener & Evans, Lynne & Molyneux, Philip, 2001. "Bank Ownership and Efficiency," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(4), pages 926-54, November.
- Ian King & R. Preston McAfee & Linda Welling, 1993. "Industrial Blackmail: Dynamic Tax Competition and Public Investment," Canadian Journal of Economics, Canadian Economics Association, vol. 26(3), pages 590-608, August.
- Jan K. Brueckner, 1999. "Welfare Reform and the Race to the Bottom: Theory and Evidence," Southern Economic Journal, Southern Economic Association, vol. 66(2), pages 505-525, January.
- Alfredo Del Monte & Domenico Scalera, 2001. "The Life Duration of Small Firms Born Within a Start-up Programme: Evidence from Italy," Regional Studies, Taylor & Francis Journals, vol. 35(1), pages 11-21.
When requesting a correction, please mention this item's handle: RePEc:rar:journl:0165. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.