Why is the private economy in Italy thriving, while the public sector is so poor? This article spells out the general characteristics of the structures and procedures of the public sector and outlines the criteria on which to judge its efficiency in order to proceed to the presentation of four explanatory hypotheses. The first hypothesis is an economic one: the private sector may have exploited the public sector, which bears costs that are to the direct advantage of the private economy. The second hypothesis is social: the public sector is poor because it is a means of taking on labour from the underdeveloped South, becoming in this way a social buffer. The third hypothesis is political: the administration is used to secure political support for the ruling parties (and in particular, for the Christian Democratic Party). The fourth hypothesis is historical: the administration is badly run because, as a result of the Fascist experience, Italians fear any form of ‘Bonapartism’: and it is badly organised because the public sector's take‐off has been delayed and the pace imposed on its development has been excessive. In the last section some remedies are suggested and some conclusions are outlined.
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Sabino Cassese (1993) studied this question.