Italy’s structural reforms of recent years have improved the financial health of the corporate sector and contributed to a gradual economic recovery. However, the Italian economy still lags other large European economies. Improving the way capital markets function would help drive investment in the real economy, creating jobs and boosting productivity, according to a new OECD report.
The OECD Capital Market Review of Italy says that reforms to the institutional and regulatory framework will give corporations better conditions to finance new long-term investments and citizens better opportunities to diversify their savings and share in the success of Italian business.
The Italian capital market is less developed than in many other advanced economies. Over the last ten years, less than four companies per year listed on the regulated market of the Italian stock exchange and the Italian market capitalisation as a percentage of GDP remains well below that of its European peers. By the end of 2018, the total value of Italian listed shares represented only 31% of GDP, much less than in Germany (46%) and France (88%).
“Reforming the capital market will help release the full potential of the Italian economy and drive sustainable growth,” said OECD Secretary-General Angel Gurría, presenting the report with Italian Minister of Economy and Finance Roberto Gualtieri and European Commission Executive Vice-President Valdis Dombrovskis, in Rome. “At the same time, minimising economic, social and political uncertainty will be instrumental in harvesting the full benefits of reforms and reinforcing the trust of entrepreneurs, investors and households.”
The report reveals that Italy is one of the large European economies with the highest proportion of high-growth firms (23%). However, there are still too few high-growth companies compared to the large number of small companies with low productivity. More developed capital markets would help by providing the financial means for companies to invest, grow and obtain a critical competitive scale, according to the report.
Italian companies also remain highly dependent on debt financing. Moreover, overall 40% of their assets are financed by short-term debt, a significantly higher ratio than their European peers. This constrains growth-oriented investments and increases the vulnerability of the non-financial sector in times of macroeconomic shocks. Better access to and more efficient allocation of long-term capital, such as equity capital and longer-term corporate bonds, would allow more strategic risk-taking. This will increase research, development and innovation and improve the productivity of both the human and fixed capital stock in Italian industry.
The report notes that most of the money in global capital markets is invested through large institutions that use passive investment strategies that track a pre-defined index. However, Italy is receiving a relatively smaller share of investments from global institutional funds. One reason is that the free-float of Italian listed companies is relatively low compared to most advanced markets. Increasing the free-float ratios in Italy is essential to help companies attract the growing pool of capital from global institutional investors.
Aviation Sector Calls for Unified Cybersecurity Practices to Mitigate Growing Risks
The aviation industry needs to unify its approach to prevent cybersecurity shocks, according to a new study released today by the World Economic Forum. The increased level of interdependencies can lead to systemic risks and cascading effects as airlines, airports and aircraft manufacturing take different approaches to countering cyber risks.
To guard against these risks and create a streamlined approach with civil aviation authorities, the World Economic Forum has launched the Cyber Resilience in Aviation initiative in collaboration with more than 50 companies.
The latest report, Pathways to a Cyber Resilient Aviation Industry, developed in collaboration with Deloitte, outlines how the industry – from airlines to airports to manufacturing and the supply chain – can work with a common language and baseline of practices. The report focuses on mitigating the impact of future digital threats on multiple levels:
· Aligning regulations globally
· Establishing a baseline of cyber resilience across the supply and value chain
· Designing an impartial assessment and benchmarking framework
· Developing international information-sharing standards
· Enabling reskilling
· Rewarding more open communication on aviation incidents
· Integrating cyber resilience in business resilience practices
· Ensuring risk assessment and prioritization
· Improving collaboration
“The aviation industry has developed a strong track record of safety, resilience and security practices for physical threats and must integrate cyber risks into this culture of safety and resilience,” said Georges De Moura, Head of Industry Solutions, Centre for Cybersecurity, World Economic Forum. “A common understanding and approach to existing and emerging threats will enable industry and government actors to embrace a risk-informed cybersecurity approach to ensure a secure and resilient aviation ecosystem.”
“The work of the World Economic Forum on aviation cyber resilience complements these global efforts led by the ICAO and is another excellent example of the importance of broad-based international collaboration among public and private stakeholders,” said Fang Liu, Secretary-General, International Civil Aviation Organization (ICAO).
“Adopting a collaborative cyber-resilience stance and creating trust between cross-sector organizations, national and supranational authorities is the logical yet challenging next step,” said Chris Verdonck, Partner, Deloitte, Belgium. “However, if the effort is not collective, cyber risks will persist for all. Further solidifying an extensive and inclusive community and developing and implementing a security baseline is key to adapt to the current digital reality.”
The Cyber Resilience in Aviation initiative has enabled organizations to create plans as a community to safeguard against current and future risks. It convenes over 80 experts from more than 50 organizations across global aviation and technology companies, international organizations, trade associations and national government agencies. Major collaborators include ICAO, NCSC, EASA, IATA, ACI, Eurocontrol and UK CAA.
The recommendations and principles developed by the community have been published in a set of reports, allowing companies worldwide to learn from their insights and develop their own policies to ensure cybersecurity in aviation.
Wide Variations in Post-COVID ‘Return to Normal’ Expectations
A new IPSOS/World Economic Forum survey found that almost 60% expect a return to pre-COVID normal within the next 12 months. including 6% who think this is already the case, 9% who think it will take no more than three months, 13% four to six months, and 32% seven to 12 months (the median time). About one in five think it will take more than three years (10%) or that it will never happen (8%).
Views on when to expect a return to normal vary widely across countries: Over 70% of adults in Saudi Arabia, Russia, India, and mainland China are confident their life will return to pre-COVID normal within a year. In contrast, 80% in Japan and more than half in France, Italy, South Korea, and Spain expect it will take longer.
At a global level, expectations about how long it will take before one’s life can return to its pre-COVID normal and how long it will take for the pandemic to be contained are nearly identical. These findings suggest that people across the world consider that being able to return to “normal” life is entirely dependent on containing the pandemic.
An average of 45% of adults globally say their mental and emotional health has gotten worse since the beginning of the pandemic about a year ago. However, one in four say their mental health has improved since the beginning of the year (23%), about as many that say it has worsened (27%).
How long before coronavirus pandemic is contained?
Similar to life returning to pre-COVID normal, 58% on average across all countries and markets surveyed expect the pandemic to be contained within the next year, including 13% who think this is already the case or will happen within 3 months, 13% between four and six months and 32% between seven and 12 months (the median time in most markets).
Majorities in India, China, and Saudi Arabia think the pandemic is already contained or will be within the next 6 months. In contrast, four in five in Japan and more than half in Australia, France, Poland, Spain, and Sweden expect it will take more than a year.
Change in emotional and mental health since beginning of the pandemic about a year ago
On average across the 30 countries and markets surveyed, 45% of adults say their emotional and mental health has gotten worse since the beginning of the pandemic about a year ago, three times the proportion of adults who say it has improved (16%)
In 11 countries, at least half report a decline in their emotional and mental health with Turkey (61%), Chile (56%), and Hungary (56%) showing the largest proportions.
African fisheries need reforms to boost resilience after Covid-19
The African fisheries sector could benefit substantially from proper infrastructure and support services, which are generally lacking. The sector currently grapples with fragile value chains and marketing, weak management institutions and serious issues relating to the governance of fisheries resources.
These were the findings of a study that the African Natural Resources Centre conducted from March to May 2020. The centre is a non-lending department of the African Development Bank. The study focused on the impact of the Covid-19 pandemic in four countries – Morocco, Mauritania, Senegal and Seychelles. The countries’ economies depend heavily on marine fisheries. The fisheries sector is also a very large source of economic activity elsewhere in Africa. It provides millions of jobs all over the continent.
The study dwells on appropriate and timely measures that the four countries have taken to avoid severe supply disruptions, save thousands of jobs and maintain governance transparency amid the ongoing global uncertainty and crisis.
Infrastructure shortcomings include landing facilities, storage and processing capacity, social and sanitary equipment, water and power, ice production, and roads to access markets.
Based on the findings, researchers made recommendations to strengthen the resilience of Africa’s fisheries sector in the context of a prolonged crisis, and looking ahead to a post-Covid-19 recovery.
The report strongly advocates for:
– Increased acknowledgment of the essential role of marine fisheries stakeholders and the right of artisanal fishermen to access financial and material resources.
– Strengthening the collection of gender-disaggregated statistical data in a sector that employs a vast number of women and youth.
– Establishing infrastructure and support services at landing and processing sites of fishery products, with priority access to water.
– Investing in human capital to ensure high-level skills in the different areas of fisheries management.
– Improving governance frameworks by encouraging the private sector and civil society to participate in formulating sectoral policies and resource management measures.
The study recommends urgent reforms to make marine fisheries more resilient and enable the sector to contribute sustainably to the wealth of the continent’s coastal countries.
Marine fisheries are a crucial contributor to food security and quality of life in Africa. Good nutrition is a key factor to quality of life, and the marine fisheries sector supports the nutrition of more than 300 million people, the majority of whom are children, youth and women. It also provides more than 10 million direct and indirect jobs.
Dominated by artisanal fishing and traditional value chains, the fisheries sector in Africa is mainly informal and is rarely considered in public policies or in assessing the wealth of countries.
Like other sectors, the African fisheries sector has been severely hit by the Covid-19 pandemic. Covid has affected supply markets and regional trade. This has resulted in substantial economic losses for most households that depend on fisheries.
Covid 19 and Human Security in Anthropocene era
Since the end of second World the focus on international security has grown, not only state threats but also threats...
Athletes knock the legs from under global sports governance
Sports governance worldwide has had the legs knocked out from under it. Yet, national and international sports administrators are slow...
Biden’s Dilemma: Caught Between Israel and Iran
By all indication, the latest sabotage at Iran’s uranium enrichment facility in Natanz aimed at more than just disabling thousands...
Pakistan and Germany are keen to Sustain Multifaceted and Mutually beneficial Cooperation
Pakistan has varied history of relationship and cooperation with other countries in international arena. Despite of proactive foreign policy Pakistan...
Disability policies must be based on what the disabled need
Diversity policies, especially when it comes to disabled people, are often created and implemented by decision makers with very different...
Preparing (Mega)Cities for the 2020s: An Innovative Image and Investment Diplomacy
Globalized megacities will definitely dominate the future, in the same way as colonial empires dominated the 19th century and nation-states...
The Galwan Conflict: Beginning of a new Relationship Dynamics
The 15th June, 2020 may very well mark a new chapter in the Indo-Chinese relationship and pave the way for...
Southeast Asia3 days ago
New Leadership Takes Charge in Vietnam: Challenges and Prospects
East Asia3 days ago
Sino-US rivalry and the myth of Thucydides Trap
Europe3 days ago
Sino-Serbian relations under the “microscope”: China’s footprint In Serbia
Europe2 days ago
Ммm is a new trend in the interaction between the EU and Turkey:”Silence is golden” or Musical chair?
Reports2 days ago
Aviation Sector Calls for Unified Cybersecurity Practices to Mitigate Growing Risks
South Asia3 days ago
Modi’s Illiberal Majoritarian Democracy: a Question Mark on the Future of Indian Minorities
Europe2 days ago
The Man Who Warned Us First About Climate Change
Tech News2 days ago
7 Driving Habits That Are Secretly Damaging Your Diesel Engine