Individual Country Assessment Italy: Nicole Arena
1. Demographics
A. Population-Actual
Growth Rate
B. Population rank
C. Fertility Rate %
Contraceptive Use %
D. Age
Median Age
% of population < 15
% of population > 65
E. Life Expectancy
Male/female
A) Population: 58,126,212 (C.I.A. 2009)
Growth rate: -0.047% (C.I.A. 2009)
Population Density: 199.2 persons per sq. km (Wikipedia)
B) Population Rank: 24 (C.I.A 2009)
C)Fertility Rate: 1. 3 children per woman (Italy Demographic Profile 2008)
Contraceptive Use:________
D)Median Age: 43.3 years old, Male: 41.8 years, Female: 44.8 years
% of population < 15: 13.5%
% of population > 65: 20.2%
% of population 15-64: 66.3% (C.I.A. 2009)
-NOTE: Second oldest population ( The Italian Opera, Gannon)
E)Life Expectancy
Male: 77.26 years
Female: 83.33 years
(C.I.A 2009)
*note: population of approximately 1.3 million foreign residents/immigrants
74 (2009 Q.O.L Index, www.internationalliving.com)
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1
Quality of Life Index
(NY = 100)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
Education Levels
A.% adult literacy
M
F
B.% enrollment
Primary
Secondary
Tertiary
C. School life expectancy
Male and female
D. Education Expenditures
as % of GDP
A)Literacy: defined as those over the age of 15 who can read and write
Total % of Adults: 98.4%
Male:98.8%
Female: 98% (C.I.A. 2009)
B) % school enrollment  100%
Primary: 101%
Secondary: 88%
Tertiary:47%
( Earth Trends 2009)
C) School Life expectancy
Male: 16 years
Female:17 years (C.I.A 2009)
D) Education Expenditures as % of GDP: 4.5 %
Compared to World: 88
(C.I.A 2009)
“ The culture of conversation can be seen as a product of a variety of influences:
an educational system that requires oral examinations and thereby cultivates
verbal skills….”(Cultures and Customs of Italy, 2005)
Health
A)Health as % of GDP
B) Doctors per 1,000
C)Major cause of death
#1, 2, 3
A) Health as % of GDP: 9%
( World Health Organization 2007)
B) Doctors per 1,000 6.06
( Tiscali 2009)
C. Major Causes of Death
- 1)Ischemic Heart Disease 16%
-2) Cerebrovascular disease 12%
-3)Lung Cancers 6%
( World Health Organization 2007)
Note:
-Health Services are coordinated through government agencies, individuals can
choose physician in most cases government pays costs. Private care is paid for
individually. (Culture Grams 2007)
- Smoking is common, even after the 2005 ban on smoking in enclosed areas.
( Culture Grams 2007)
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2
-About one-quarter of the population reportedly smoke. (Cultures and Customs
of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
Social Stats
A. # of households
average # people per
household
B.marriage rate per 1,000
divorce rate per 1,000
A) # of households: 23.3 million ( Istat.it)
Average # of people per house hold 2.7 persons
-Lone parent households: 7%
- Households with 5+: 11%
-Home ownership: 78%
B) Marriage rate per 1,000: 4.5
- Age at
1st
( Nation Master 2009)
( Istat.it)
marriage;
Men 30
Women 27.1
( Nation Master 2009)
Divorce rate per 1,000  0.27
2. Geography
A. Size of Country
and rank if in top twenty
Divorce is only allowed after 3 years of legal separation. ( Culture Grams
2007)
Area of Country: 301,340 sq. KM
Rank: 78
-
Slightly larger than Arizona ( C.I.A. 2009)
-Includes the large Islands of Sicily and Sardinia and a number of smaller
islands (Cultures and Customs of Italy, 2005)
-Divided into 20 regions
B. Climate
The climate in Italy is very diverse but can be categorized as being
predominantly Mediterranean, with Alpine climates in the far North and can
be severely hot and dry in the South (C.I.A.).
Summers can get fairly hot in the south reaching temperatures up to t 104
degrees Fahrenheit (40 degree Celsius), while the rest of Italy has moderate
summers. ( Culture Grams 2007)
Climate has effect on not only cooking and food but the way Italians
trace that back to their cultural and national identities:
“The reason for the internal difference in gastronomic habits is that the
historical factors that produced the idea of a national cooking are usually
outweighed by geographical disparities, notably climate.” “… greatest
contrasts are to be found between northern and southern cooking.” ( Culture and
Customs of Italy, 2005)
Climate is normally suitable for outdoor activities, favorite pastimes
of Italians all occur outside of the home in open spaces:
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“…a climate that encourages gathering in public places...” (Cultures and
Customs of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
C. Terrain
% country in mountains
% country as desert
% near sea level
Low Point
High point
Coastline
Natural Disasters
% country in mountains:10,611,010 km, 35.21%
%country as desert: 12,541,898 km, 41.62%
% near sea level: 6,980,693 km, 23.17%
-Italy consists of mostly rugged mountainous regions, some plains in the central
locations and coastal lowlands (C.I.A. 2009). The Alps run along the north
border, while the Apennines mountain range forms a spine dividing east and
west down to the peninsula. The heel and coastal areas are more flat.
The 2 Regions: North and
South
- The lowest point  Mediterranean Sea  0 meters
Notes
-The coastline  7,600 km
-The highest point  Monte Bianco  15,771 ft.
Volcanoes Etna, Vulcano, Stromboli, Vesuvius
Many Mudslides!
Italy has had so many natural disasters that the people are more willing to
except the insecurity as a part of life. ( The Italian Opera, Gannon)
The 2 Regions: North and South
North
-37 million people
-rich farmland ( The Italian Opera, Gannon)
South
-20 million people
-poorer , more agrarian, harsher farming conditions (The Italian Opera,
Gannon)
Notes:
Northern Italy is blessed with rich farmland which has led it to traditionally
prosper. The southern regions of Italy are more subject to heat and droughts
which has led them to be less successful then their northern neighbors. ( Culture
Grams 2007)
“As a result of its mountainous topography, Italy has traditionally been a place of
localized politics, economy, culture, and customs. To understand Italy is to
understand its great local and regional traditions, a feature that has challenged
the creation of a modern nation state and led some to emphasize the importance
of local over national characteristics” (Cultures and Customs of Italy, 2005)
Prepared by: Nicole
“Much of the South is mountainous, and thus traditionally its agricultural
population has struggled
interior.”
(Cultures
Arena
Italyto support itself, particularly
Date: in the
October
8, 2009
and Customs of Italy, 2005)
-Italy’s islands (Sicily/Sardinia) are historically grouped with the south
Page
“…Emilia-Romagna region… highly valued food products. Its plains are home to
wheat,corn, and sugar beet fields, its cattle are much sought, and..best tomatoes
and asparagus are said to be harvested here….connecting north to central Italy
and thus serving as a major hub of road and rail transportation.” (Cultures and
Customs of Italy, 2005)
4
“At the base of the Alpine ranges is Italy’s only wide plain, the Po River Valley,
running westward from Venice and the Veneto through Lombardi into
Piedmont. The well-watered plain of the Po, Italy’s “bread Basket,” is home to
Italy’s major dairies and grain producers.” ( Cultures and Customs of Italy,
2005)
D. Major Rivers and Lakes
Rivers 
North: Adda, Isonzo, Tagliamento, Ticino, Piave, Po ( waters the plain of the Po
River Valley, also is major transportation way)
Center: Tiber ( flows through Rome), Arno (connects Florence and Pisa cross
center of peninsula from Apennines to Tyrrhenian Sea)
South: Abruzzi, Forrtore, Ofanto
Lakes 
North: Garda, Maggiore, Como
Center: Trasimeno
South: Lesina, Varano
E. Number of ports
Quality of port facility
9  Augusta, Genoa, Livorno, Ravenna, Sarroch, Taranto, Trieste, Ancona,
Venice (C.I.A 2009)
Strategic locations on the Mediterranean
Ancona is a busy port that houses ship-building, fishing , chemical, and
metallurgical industries. (Cultures and Customs of Italy, 2005)
F. Shape and Location of
Country
Shape: Italy is a boot shaped country in-between Spain and Greece, with a long
narrow peninsula that extends 750 miles south into the Mediterranean Sea. The
spine like range of the Apennine mountains divides the country into east and
west. Italy is also partially separated from the rest of European mainland by the
Alpine mountain range on the northern border. (Cultures and Customs of Italy,
2005)
Location: In-between Spain and Greece but does not border either country.
Northern region is boarded with France (488km), Switzerland (740km),
Slovenia (199km) and Austria (430km). The west side of Italy boarders the
Tyrrhenian Sea, while the East side of the country boarders the Adriatic Sea. The
southern regions of the country border the Ionian and Mediterranean seas.
Coordinates: 42 50 N, 12 50 E
“Strategic location dominating central Mediterranean as well as southern sea
and air approaches to Western Europe.” (C.I.A. 2009)
“Alpine regions to the far north incorporate French styles …and Austrian
diets…German is often the language of choice.” (Culture and Customs of Italy,
2005)
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“…northeastern regions… Austrian style… and Slavic influences.” (Cultures and
Customs of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
3. Economics
A. GDP in aggregate
Origins of GDP
Agriculture
Industry
Services
Rank in world economy
% of GWP
GDP  $2.314 trillion (2008 C.I.A.)
B. GDP per capita
Growth rate in GDP pc*
GDP per capita  $31,300 in U.S. dollars
Origins of GDP:
Agriculture  2%
Industry  27%
Services  71%
Rank in World Economy as % of GWP 7th , $2.1 trillion
Compared to World: 41
GDP Growth Rate  -1%
Compared to World: 209
C. GDP w/PPP @ pc
(C.I.A. 2009)
$1.823 trillion in U.S. dollars
Compared to World: 11
D. Econ. Freedom Score
Explain where that places
the country relative to
other countries in the
world
(C.I.A 2009)
Economic Freedom Score  61.4
-
-1.2% change from previous year
World Rank 76 out of all countries
Regional Rank 32 out of 43 countries
Index Scoring:
100-80 Free
70-79.9 Mostly Free
60-69.9 Moderately Free
50-59.9 Mostly Unfree
(Italy on Economic Freedom 2009)
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49.9- 0 Repressed
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
E. Trade Measurements
Major Trade Partners
Biggest Export Target
Biggest Import Source
% of GDP in foreign trade
Balance of Payments
Membership in Regional
Trading Organizations
Major trading partners Germany, France, USA, the Netherlands, UK, Spain
Exports mechanical and electrical machinery, transport equipment, textiles,
clothing and leather goods, wine (leading producer and exporter), metals and
metal products, chemicals, food, beverages, tobacco goods. Resources lignite,
lead, zinc, mercury, potash, sulphur, fluorspar, bauxite, marble, petroleum,
natural gas, fish Principal market: Germany 13.6% (Tiscali 2005)
Imports mineral fuels and lubricants, machinery and transport equipment,
chemical products, foodstuffs, metal products. Principal source: Germany 18%
(Tiscali 2005)
Current Account Balance -$78.03 billion (U.S. Department of State 2008)
Regional Trade Organizations
-
F. Financial
Inflation rate 10 years
Savings Rates
European Union ( EU)
Euro Zone Participant
North Atlantic Treaty Organization (NATO)
Organization for Economic Cooperation and Development (OECD)
General Agreement on Tariffs and Trade/World Trade Organization
(GATT/WTO)
Organization for Security and Cooperation in Europe (OSCE)
Savings Rate 6.8% (America.gov 2007)
Investment Gross Fixed  20.9% of GDP
Compared to World: 98 (C.I.A. 2009)
Inflation Rate  3.4% (2008) 1.8% (2007)
Compared to World: 42
G. Unemployment rate
Unemployment rate 6.8%
Labor Force
Partcipation
Major Sources of
employment –
agricultural,
manufacturing, services
(C.I.A. 2009)
Compared to World: 86 (C.I.A. 2009)
Labor Force 25.11 million
Compared to World: 21 (C.I.A. 2009)
Labor Force Participation 57% of those age 15-64 ( The Italian Opera,
Gannon)
Major Sources of Employment:
Agricultural4.2%
Industry30.7%
Services65.1%
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Note: Most Italians work in small family owned businesses, there are only
47 large firms in Italy. ( The Italian Opera, Gannon)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
H. Income Distribution
Gini coefficient
average income
Income Classes
Middle Class
% in poverty
% in Middle Class
stage of economic
development
Gini Coefficient  32 (2006)
Compared to World: 104 (C.I.A. 2009)
Average Income $20,800 US dollars
Income Classes: (Nations Encyclopedia, 2008)
-Bourgeoisie (entrepreneurs/ upper management): 10%
-White Collar (non-manual labor): 17%
-Urban Petit (small business owners): 14%
-Rural Petit (small business agriculture): 10%
-Urban Working Class (manual labor) : 37%
-Rural Working Class (primary sector): 9%
Poverty Rate11.1% ( Istat.it)
Economic Stage Developed Country ( DC)
-established middle class
-Low growth rates/ mature market
-savvy consumers with access to information and choices
-buyers market
I Penetration rate of TVs,
radios, internet, and
personal vehicles, per
1000
TV’s per 1000 590
Radios per 1000 880
Internet users per 1000 408
Personal Vehicles per 1000 541.7
( Tiscali 2007)
Note:
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“…radio broadcasts contributed to the standardization of the Italian
language, particularly in the south.” (Cultures and Customs of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
J. Infrastructure
Road Network
Length
Railways and Airlines
passenger and freight.
Road Network 479,688 km , 100% of which is paved
Railways length 16,200 km
Airports 11 principal international, 120 smaller airports
4. Political Factors
A. Duration of government
Type of government
Enfranchisement Rates
Government type Republic
-
(C.I. A 2009)
Republic since June 2, 1946
Based on civil law system in which appeals are treated as new trials
Enfranchisement rates _______
Rank in World Economy as % of GWP 7th , $2.1 trillion
Note: There have been 57 successive governments in Italy since WWII, frequent
government collapses in the 1980’s ( Culture Grams 2007)
B. Government interaction
How Involved is the
government in the
economy
Italy is a centralized government whereby the officials of each of the provinces
is appointed by and answerable to the central government. ( U.S. Department of
State 2009)
 Constitution provides for 20 regions with limited governing powers. “Five
regions--Sardinia, Sicily, Trentino-Alto Adige, Valle d'Aosta, and Friuli-Venezia
Giulia--function with special autonomy statutes ( U.S. Department of State
2009).”
 15 regions were established in 1970 and they vote for regional councils
The regional governments throughout Italy have brought some
decentralization to the national government, and more recent governments have
delegated powers to the regions ( U.S. Department of State 2009)
C. Corruption Index
2008 CPI score 4, 8
Rank55
(Transparency International, 2008)
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Confidence range 4-5.5
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
D. Risk Factors
Political
Financial
Is this a risky market?
Political
-unstable and inefficient government
-wide spread corruption in government and business
-criminal groups ; such as the mafia ( The Italian Opera, Gannon)
-gateway/consumer of illegal drugs such as Latin American cocaine and
Southwest Asian heroin
-illegal immigration from southeast Europe and northern Africa ( C.I.A. 2009)
Financial
-huge public debt; official debt remains above 100% of GDP ( C.I.A. 2009)
-rampant tax evasion; unpaid taxes account for approximately 27% of GDP( The
Italian Opera, Gannon)
E. Defense
Spending as % of GDP
Armed Forces (000)
Military/defense expenditures 1.8% of GDP ( C.I.A. 2005)
Armed Forces:
Italian Army
Navy
Air force
Carabineri Corps
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5. Historical Factors
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
FIVE Events or trends
1) King Frederico
2) National Unification
3) Corruption at a Peak in
1992
1) King Frederico 11th century He established an autocratic form of
government in the southern region of Italy. This caused the mafia to rise to
power as a middle mans between the people and the king and led to widespread
corruption. Northern Italy had much more civic involvement and democratic
elections held corruption in check (The Italian Opera, Gannon).
-
Today The country is still divided into a more prosperous north
and a more repressed south
2) National Unification Italy did not become a nation state until 1861. This
makes it a relatively young nation compared to others in the European Union.
Many other foreign bodies had attempted to control Italy prior to its unification.
( The Italian Opera, Gannon)
-
Today Italians never really identified with any of the other
foreign bodies that conquered the country. This may explain
Italians historic contempt for law and paying taxes
3) Corruption at a Peak in 1992 Public officials investigated leads having
to do with kickbacks and bribery in business practices. This investigation led to
the questioning of more than 6,000 people and the indictment of 1,200 people.
Some of whom were top businessmen, mafia members and included two former
prime ministers. This was the biggest shake-down in Italy’s history. ( The
Italian Opera, Gannon) and (Culture Grams 2007)
-
Today Many Italians have a mistrust of government officials
and business leaders. New companies have to gain trust of the
people before becoming fully accepted.
4)1815 Italy divided between Austria, Papal Statues, Naples, Sardinia and
four duchess
-
Today Italy is now one republic but Italians still value their
individualism. They show more loyalty to their towns and families
then their nation because they are used to being separated
5) Mussolini 1922-1943 in 1922 Mussolini established a fascist dictatorship
followed by periods of strikes and agrarian revolts. He eliminated political
parties, curtailed personal liberties, and installed a fascist dictatorship termed
the Corporate State
-
Today Italians still do not trust authority and they take life with
a grain on salt and uncertainty
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6. Cultural Effects
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
Language
Primary
Secondary
Tolerance and latitude
Primary Language Italian 90%
Secondary Language English
Other major languages German, French and Slovene ( C.I. A. 2009)
Note:
“well over 90 percent of Italians speak Italian as their first language…however
60 percent of Italians continue to use one of many dialects. ” (Cultures and
Customs of Italy, 2005)
“ …the national language is marked with distinct regional variations in
pronunciation, spelling and syntax.” (Cultures and Customs of Italy, 2005)
Religion
primary, secondary %’s
tolerance and latitude
Roman Catholic
-
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-
85% of Italians profess themselves Roman Catholics, while only 35%
attend mass regularly (Cultures and Customs of Italy, 2005)
Other: protestant, Jewish, Muslim
Italian constitution guarantees freedom of religion ( Culture Grams
2007)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
Cultural Perspective
Primary Values
Dealing with foreigners
Ethnocentrism
Values
-
-
-
-
Medium context Culture: do not convey feelings or thoughts at least
partially at the beginning of relationships. Northern Italy is more low
context while Southern Italy is more high context. ( The Italian Opera,
Gannon)
Public Oriented: strong need to portray and maintain a certain image.
Information is widely shared and there is no word for “privacy” in
Italian. “ La Bella Figura” is the term for portraying an image of
power and class which is pursed through the acquisition of material
possessions.
High externalization: feelings and emotions are expressed openly to
others. Italians are skilled conversationalist and enjoy communicating in
an expressive manner that gives visual connections to others. They
would rather be in group settings than alone. ( The Italian Opera,
Gannon)
Polychromic: perform many activities simutaneously
Campanilismo: the Italian term for first belonging to your town, then
to your region and finally to your nation.
Large power distance
Accepting of Individualism and aggressive materialist
behavior
Strong family ties: tend to not be trusting of outsiders, therefore rely
on the family unit for advice and decisions ( The Italian Opera, Gannon)
Foreigners: general good and accepting attitude towards foreigners unless
acting out of context
Ethnocentrism: ________
Note:
“In spite of a legacy of localized traditions, the people of Italy rank among the
more homogenous national groups on the European continent, particularly in
terms of language, national origin and religion.” (Cultures and Customs of Italy,
2005)
Favorite Pastimes
1) Soccer ( “football”)
2) Auto racing ( Grand Prix)
3) Cycling
4) People watching and conversation
“The fervor of Italian fans for soccer, auto racing and cycling is world renowned.”
(Cultures and Customs of Italy, 2005)
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“….58 percent of Italian preferred soccer, followed by auto racing and cycling.”
(Cultures and Customs of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009
Favorite Beverage
1) Wine
2) Espresso
3) Sparkling Water
4) Warm milk for children ( Culture Grams 2007)
“Wine is ubiquitous at mealtime, accompanied by sparkling water.” (Cultures
and Customs of Italy, 2005)
“Wine is the only type of alcoholic beverage used by the majority of
Italians…exclusive beverage of 63 percent of men… and 70 percent of women.”
( Alcohol in Italian Culture, Lolli)
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“..Italians begin their days with an espresso …usually at their favorite bar...”
(Cultures and Customs of Italy, 2005)
Prepared by: Nicole Arena
Italy
Date:
October 8, 2009