Italy  

Italy seems to possess sound economic fundamentals with an inflation rate of only 2% and an unemployment rate of 6%. Italian workers have access to the seventh highest amount of physical capital in the international community, boosting their productivity. The domestic savings rate is average, and foreign direct investment low, with Italy ranking 56th and 81st, respectively, on these variables, indicating a lack of investable capital. Despite net interest margins being low at just 2.5 percentage points, high default rates indicates inefficiency within the Italian credit sector. Household expenditure is high, placing Italy in the top 10, internationally. Italy’s low raw material export concentration indicates that export revenues do not depend on raw materials. However, Italy’s ratio of export revenues compared to the cost of its imports is relatively low, indicating weak terms of trade.

Italian citizens enjoy moderately secure and fast internet connections, with almost 53 secure servers per million people and high levels of bandwidth placing the country within the top third on these variables. Access to personal computers is also moderately high, with almost 37 personal computers per 100 capita. However, ICT accounts for less than 4% of total goods exports and high-tech exports account for only 7% of manufactured exports. Italy ranks 15th, internationally, for numbers of new businesses registered as barriers to entry are comparatively low, with nine formal procedures required to start up a business. Italy has moderate levels of expenditure on R&D, ranking the country in the top quintile on this variable. Italy ranks in the top 15, globally, for royalty receipts, implying strong commercialisation of innovation. Value added in the service industry stands at 71%, indicating that the Italians have a strongly service-driven economy.

Italians are unconstrained in their freedom to participate in political processes, express their beliefs, and to display their political and civic affiliations. Elections to both executive and legislative positions in the government are well regulated. There are also high levels of competition between the various political parties in the legislative and executive branch, and the judiciary is independent of the government. However, checks and balances are weak and do little to prevent arbitrary actions within the government. The durability of the current political system is comparatively high, ranking the country 17th on this variable.

Nearly all Italian children are enrolled at the primary and secondary education levels. Enrolment in higher education is also strong at 67%, positioning Italy in the top 20. The quality of education received is also comparatively high, with 11 students per teacher at primary level, ranking Italy in the top 10, internationally, on this variable. Italy also benefits from high levels of gender equality, with 99 girls enrolled in schools for every 100 boys. On average, Italian workers benefit from 5.4 and 4.1 years of secondary and tertiary education, ranking the country 43rd and 46th, respectively, on these variables. Furthermore, the Italian government spends more than $10,000 on education per student, ranking Italy 16th on this variable.

Italian hospitals are well equipped, with 42 doctors per 10,000 people and four beds per 1,000 capita, ranking Italy in the top three and the top third, respectively, on these variables. All Italians have access to improved sanitation facilities and 77% indicate satisfaction with their water quality.* Further, very low infant mortality rates of only four deaths per 1,000 births, coupled with the third highest healthadjusted life expectancy overall, indicate a healthy population with a long lifespan. Furthermore, at 3%, malnourishment does not pose a significant problem. In accordance, 86% of Italians are satisfied with their state of health, and only 18% reported health problems.* Additionally only 23% of the population reported experiencing pain on the previous day, ranking the country in the top 40, globally.*

Italy faces few security challenges related to refugees, targeted violence towards social groups with a history of discrimination, human flight from dangerous conditions, and state-sponsored political imprisonment and torture, for which the country ranks above the global average on all variables. Threats to personal safety in Italy are moderate as only 6% of respondents reported having been a victim of assaults or muggings in 2008.* Italy also performs above average in terms of homicide rates and stolen property, with only one homicide per 100,000 citizens and 12% claiming property theft in 2008.* Despite this, only 62% of people feel safe walking alone at night: a figure close to the international average.*

The Italian civil service is moderately effective, ranking the country 43rd on this variable. Although Italy ranks above the global average on variables relating to the rule of law, it performs very poorly in comparison to other countries in the EU as the law is often applied unequally, and regulation of Italian markets does not always encourage competition. Further, more than nine out of 10 citizens believe corruption to be rife in both local businesses and government.* There is also low public approval of the courts and the judicial system.* However, 80% of people have confidence in the military.* Despite citizens having the right to change laws and elect the leaders that govern them, only 55% have confidence in the honesty of elections.*

Freedoms of movement, speech, and religion are strongly upheld in Italy, although only 68% of respondents were satisfied with the freedoms afforded to them in their daily lives.* Tolerance of ethnic minorities and immigrants is slightly higher than the international average, with roughly seven in 10 respondents believing Italy to be a good place for immigrants and ethnic minorities.*

In Italy, less than a third of respondents believe that others can be trusted. With only one-third of the population helping strangers and one in five volunteering, Italians rank 93rd and 50th, respectively, for these variables.* Despite these figures, almost half of Italians donate money, ranking Italy in the top 25 according to this variable.* Membership of social organisations, such as arts, environmental, and sports groups, puts Italy firmly in the top 40. Friends and family are very important to Italian citizens, with 91% of respondents believing that they can rely on friends and family in times of need.*

* Data taken from the Gallup World Poll

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