There are reasons why Italy is considered a corrupt, wealthy democracy. Italy’s infrastructure development has always been directly correlated with the collusion of elected bureaucrats and private contractors. Mind you, it’s not an isolated phenomenon in the European Union, but Italy seems to set a standard that other nations adhere to. The answer may lie within weaker economies with less economic activity that resides on the political juncture of funneling money with respect to embezzlement.
With Italy, there’s no standard behavioral change because capital expenditures derived from public money is streamed towards corruption that falsely benefits the people of Italy. It generates its own maleficent use of public funds that undermines the growth of the public sector. Corrupt Italian infrastructure is associated with its judicial system that prioritizes political expediency by standardizing corruption at any cost to get the project done.
The physical infrastructure of Southern Italy receives the lion’s share of financial resources. This has a minimal effect in narrowing the gap in the disparity between Northern Italy and Southern Italy. The Italian criminality itself is no different than ISIS’ territorial gain: control the territory and let the criminality control the physical infrastructure where money is being siphoned off through bribes, kickbacks, and embezzlement that fuels corruption on a large scale.
Many economists would agree that capital is necessary for a country to grow. Many economists also praise government expenditures that increase especially with respect to infrastructure projects. In the case of Italy, the greater the number of capital projects the greater the influence of corruption that enlarges the monetary value of infrastructure. The only difference is the technique and complexity of siphoning money from the treasury.
In Italy, siphoning money from the treasury is based on productivity in association with criminality that affects the Italian economy. If the growth rate is based on territorial expansion then the treasury itself is in peril because it lends legitimacy to criminality. Italy’s economy becomes a series of events that builds a positive relationship between public spending and corruption. It’s intermingled between the two: one controls the other and the judicial system that perpetuates corruption for no other reason than because it gives bribes to maintain market efficiency.
The European Union is living the dream that a unified market will reduce corruption. Little do they know that market efficiency and the unification of these markets has become a systematic source of finance in the misuse of public sector resources towards organized crime. The growing weight of the Italian bank collapse may have to do with non-performing loans, but it also has to do with infrastructure development that’s able to cloud the shadowy world of embezzlement.
Mario Draghi made it known to the world that Italy is an exceptional case by deciding to support Italy with bailout money for the country’s banks. It must be Draghi’s Italian background. Where was Draghi in 2012 when Italy was forced to repay a record 307 million pounds to the EU after investigations revealed that a motorway project in the south of the country was plagued with mafia infiltration, kickbacks, and corruption?
As an economist Draghi fails to mention Italian corruption that’s pilfering the European treasury. Who picks up the tab? Is it Draghi personally? Or Draghi’s German cohorts that are simply turning a blind eye to many European countries rift with corruption? Draghi’s audacity goes even further: the man can never explain where the money goes. This behavior reveals his naivety of the economic forces that work against reforms.
What Draghi is pontificating is a membership to an organization dedicated to organized crime. Italy’s senior politicians and business leaders are imbued with organized crime that stretches its tentacles through healthcare, financial institutions, insurance, credit, and real estate. This represents a significant territorial gain that few countries can ever achieve. Italy clouds its economy by all the virtues that democracy wants to give them, but the real GDP is correlated to an emerging economy to sustain itself.
There’s no other country in the world that relies on productivity towards a population that is as lazy and unproductive as Italy. It breeds its own tail upon its students that continue to go to school or university until they’re 40 perpetuating the free ride of unproductive activity itself. Draghi’s only concept of being an economist is to appease everyone and allow the printing machines to continue internally.
We know one thing however: a change in the government of France may spur the movement of separation from the European Union. For Italy and Draghi, life is good for without them corruption becomes unsustainable. Matteo Renzi may be happy that unemployment is down. But the question is: who’s more dominant and who’s providing more work? Is it corruption or the Italian government? The answer may be so embedded in corruption that it may never be resolved.
Renzi is always bringing up the importance of education. What’s he really talking about? Corruption pilfers education no different than the infrastructure that abounds the Italian society that the European Union pays for. Isn’t that right Mr. Renzi? Every time I visit Italy God forbid that anyone is working, the people always tell me that when you have government and criminality connected then what’s the point of being productive? There are easier ways to make money. The Old Italian saying holds true: “The blind man knows where the money is going to.”