I think the size, depth and breadth of the problems revealed by mr. B’ buffoonish behaviour go way beyond fixing Italy, or even fixing the Euro.
US press is beginning to realize that what seemed a rather picturesque second-tier leader of a second-tier economy actually wielded the power the shake the foundations of the world financial system, which leverages the real economy many hundreds times over.
A lever this long requires a solid trust system as its bulwark; when the trust system fails, so does the financial overstructure, falling back on the real economy, meaning essentially a massive re-adjustments of asset values not unlike what happens during a war. The alternative is a trust system less prone to fail, meaning perhaps a wholly new governance must be imagined. To paraphrase Clemenceau, “the world is too important to be left to politicians”.
My proposal for this new governance system is very simple: no governing cabinet should be formed with more than 50% of its members belonging to the same nationality; this means that at least 50% of ministers would be chosen from foreigners, with several advantages:
- less clientelism and cronyism
- less likely to create conflicts of interests
- more likely to consider issues under an objective light
- a higher premium placed on competency and experience
Can this be done? I don’t really know, but as an exercise I have attempted to draft my italian government Dream Team:
- PM – Mario Monti
- Economy – Nouriel Rubini
- Foreign Affairs – Sergio Romano
- Labour – Piero Ichino
- Family and Social Security
- Innovation and Competitiveness – Sam Palmisano