Italian Experience in Regional Economic Development and Lessons for Other Countries

The Italian experience in regional econ development is/analyzed with a view toward observing its relevance in dealing with similar problems of other countries & toward evolving general principles which may be useful for policy implications. It is stated that other countries striving to achieve regional econ development can learn a few lessons from Italy: (1) regional planning has to be discriminatory in favor of higher potential & higher yielding zones, based on both demand & supply factors. A few focal points in a region should be selected at which to concentrate all development so as to achieve full economies of scale, external economies, & an important spatial juxtaposition. (2) A survey of the development potential of all the areas in the region should be carried out. A comprehensive framework should be available to analyze the entire picture of the potential for regional development. (3) The functions of the zone should be properly coordinated. (4) The objective of increasing the income should be related to the increase in productivity gains & the distribution of these gains over the econ system. (5) Increases in income & in employment at the same time may appear difficult to achieve initially, but this is not so in the long run. (6) Movements of pop within the region to the growth points is useful, but large-scale pop movement is econ'ly & soc'ly expensive. (7) Private investment from within & from outside the region must be encouraged. (8) Regional planning must be elastic to adjust to possible changes that might become necessary. (9) The resources of the diff regions of a country should be directed in such a way that overall nat'l growth is maximized in the long run. M. Maxfield.