National and Regional Disparities: How Recovering?

Italy is the only OECD country in which, during the period 2000–2019, two gaps have grown simultaneously: the one dictated by territorial disparities between the north and the south, measured in terms of GDP per capita, and the one related to the aggregate growth deficit relative to other countries. In this chapter, we consider the quality of the institutional context as a key factor in affecting the growth and development gaps between economies and, within them, between different regions. By comparing economic data and indicators regarding the quality of government and social cohesion, we try to understand if there is a link between economic and social characteristics in different regions and the quality and effectiveness of governance. The idea is that institutional shortcomings are decisive in explaining the modest results recorded by our country in the last few decades. Understanding and addressing this factor could be essential for promoting balanced development and reducing regional disparities within the country.