Monthly archive - March 2014

CASH&CARRY – “Pay and receive your goods”. The difficulty of recovering  debt in Italy and the consequences.

CASH&CARRY – “Pay and receive your goods”. The difficulty of recovering debt in Italy and the consequences.

In the current context of severe economic crisis in Italy and the negative experiences suffered by traders from abroad to recover their debt claims, trade relations have changed between Italy and the rest of the world in recent years. Good trade relations always requires reliability, certainty and promptness. Italy does not offer sufficient protection in this regard. The highly negative environment is manifested through: inefficiencies in the system and bureaucracy; the inability of the justice system (civil and criminal) to respond in the short to medium term, strong information asymmetries and a lack of fair competition; deeply rooted and widespread corruption in all areas of public administration; reluctance on the part of banking establishments to provide credit to companies/families; petty and organized crime. In this context , all operators – from small family businesses to large professional enterprises – all suffering more or less the same economic constraints – trade relations have been pervaded by mutual distrust . Primarily the state is slow to pay up followed by the private concerns. This has resultantly lead to the philosophy of the cash & carry, in the sense that many businesses and professionals (probably the vast majority) deliver goods and services in Italy only upon payment. After all, this is the only way to ensure and safeguard their business and commercial survival in Italy. Therefore a prudent business practice would be to know the client or supplier with whom you intend to do business, prior to goods changing hands, in order to verify their financial liquidity and reliability and to put in place suitable contracts to avoid costly and lengthy litigation.

Annino Law Firm offers a full service to protect and promote foreign companies wishing to operate in Italy, as well as, those already trading in Italy. We offer feasibility studies, pre-screening of client reliability, trade and employment contracts, registration of companies, trademarks and brands in Italy, the recovery of debts and translation of documentation. For any further information and legal support do not hesitate to send your request to: avv.annino@libero.it or vist www.annino-lawfirm.com


The Atlas of Economic Complexity

The Atlas of Economic Complexity

Researchers from the American Harvard and MIT universities (Hidalgo & Hausmann) concluded a study on economic complexity in 2009 and came up with “The Atlas Of Economic Complexity”. The atlas analyzes the foreign trade of 128 countries and sets up an economic growth ranking which is based on the so called Economic Complexity Index (ECI). The basis for the analysis is the quantity and complexity of exported goods and the frequency of exports. Economy is a complex adaptive system and therefore one cannot sum up an economy based on a single number such as Gross Domestic Product (GDP)
Hidalgo and Hausmann propose the concept of ECI not only as a descriptive measure of an economy but also as a predictive tool for economic growth. According to the statistical models they presented the ECI is a more accurate predictor of GDP per capita growth than traditional measures of governance and competitiveness. The networks of industries, the mutual utilization and development of their products as well as increasing their complexity can substantially contribute to social welfare in a country.