Calendar of Inside No OCTOBER GIORGIO ARMANI A DESIGNER TURNS

Calendar of Inside No. 14 OCTOBER 2001 GIORGIO ARMANI: A DESIGNER TURNS ENTREPRENEUR nterview with the 67years old Milan designer who says he now considers himself more of an entreprenuer than a designer. After ending his decades-long agreement with Gft, Armani will now produce and Giorgio Armani was born July 11, distribute his 1934 in Piacenza (about 50 miles products himself. south of Milan, in Emilia Romagna) There are plans for accessories and home furnishings, but not for a stock market listing. "At this point I think of myself more as an entrepreneur than a designer", says a very tan Giorgio Armani, dressed in his usual blue T-shirt and matching trousers, and sitting in the library of his Milan headquarters in Via Borgonuovo. In recent months the internationally-known designer has overseen his company's upstream re-organisation, bringing to a close the long-term licensing agreement with Piedmont clothing producer Gft and starting his own production of men's and women's collections, in collaboration with high-level specialists such as Zegna (men's clothing) and Vestimenta. Downstream, investment in distribution and brand-name stores has been continuing apace. But what is the outlook? Q. Mr. Armani, one doesn't become an entrepreneur over night, you know that don't you? I A. Of course, but all through my career I've always thrown myself into things without really thinking very hard about it and without real training. I became a designer without knowing how to draw, and now I am becoming an entrepreneur, gaining experience as I go along. Remember, I grew up in a small, agricultural provincial town (Piacenza) and I brought with me the farmer's sixth sense about how much one can get done and when it is advisable to take a risk. I’ve now surrounded myself with specialists and I've been reading up on how the decision-making process should develop in a company. But the long and short of it for me is that the entrepreneur is the one who at the end decides yes or no and I like that even though it's a lot of responsibility, because our employees now number almost 4,000 world wide. Q. Gft has been your partner for a very long time. Are you sorry that the relationship has come to an end? A. Very. It's a fantastic company and the Giorgio Armani name owes a great deal to it, since it was Gft which had faith in us from the start. Q. You have been courted for a long time by two of the luxury goods greats, Lvmh and Gucci. Have you definitely decided not to sell out to one of them? A. Nothing in life is definitive but for the time being this is not a solution which interests me. It may be that I was able to resist selling out because of my involvement in the move into new sectors such as accessories and home furnishings. Q. Yes, but wouldn't a launch into accessories have been easier alongside either Lvmh o Gucci, which are specialists in that field? A. Yes, but it would have kept me from seeing just what I myself could accomplish. This kind of work is my entire life and the idea of seeing others managing it would have been very difficult, no, impossible. Q. So you were never really close to selling? A. Well, let's say I had a few sleepless nights, asking myself if I was doing the right thing by saying no. I was certainly attracted by the amount of money involved but, you know, I have less and less time in which to spend all this money and I don't even know what I could buy. It's true that it’s better to have money than not to have it, but when it gets to be over a certain amount it begins to matter much less, and I say that with all the respect in the world for all those people who wait desperately for their monthly pay-checks. Q. Which of the two giants appealed to you more? A. Oh, they were both delightfully kind, telling me I wouldn't have had any more worries and that they would have seen to everything. An elegant approach but when I hear words like that I get furious. Q. The trend towards brand integration is snowballing now, don't you think? A. Yes, but in some cases it's turning out to be more difficult than one thought. When the supply of fashion items becomes so enormous, the consumer tends to choose the leading brand, which means that others are left behind. And to establish real credibility in the preta-porter sector is by no means a simple matter. (continued on page 2) he picture shows Italian Foreign Minister Renato Ruggiero during his visit to Israel on August 29, 2001. The mission took place in the framework of Europe’s steppedup efforts to overcome the present critical situation in the Middle East. Minister Ruggiero met with Prime Minister Ariel Sharon and his counterpart, Foreign Minister Shimon Peres. He said he hoped to come again on an official visit in autumn.<> ITALIAN FOREIGN MINISTER RENATO RUGGIERO VISITED ISRAEL T "Agenzia Ansa" - Alessandro Bianchi Edited by: The Italian Embassy in Tel Aviv GIORGIO ARMANI: A DESIGNER TURNS pg1-2 ENTREPRENEUR ITALIAN FOREIGN MINISTER RENATO RUGGIERO pg1 VISITED ISRAEL RENATO RUGGIERO pg2 Profile of the Minister of Foreign Affairs pg3 SCIENTIFIC FLASH pg3 ITALY'S EXPORT SUCCESS STORIES ITALY AS FOREIGN INVESTMENT SITE: THE COMPARATIVE ADVANTAGE OF THE ICT pg4-5 SECTOR pg6 ITALIAN NATIONAL INSTITUTE OF HEALTH ITALY AND U.S. JOIN FORCES IN FIGHT AGAINST pg7 ANTIQUITIES SMUGGLING pg7-8 EVENTS IN ITALY pg7 Embassy of Italy 4, Weizman St. Tel Aviv Tel: 03-6964223 Fax: 03-6918428 E-mail:italemb@netvision.net.il www.italian-embassy-israel.org Italian Foreign Minister Renato Ruggiero (left), Israeli Prime Minister Ariel Sharon (right), Israel's Ambassador to Italy Ehud Gol (center). At the far right, Ambassador Giuseppe Baldocci, Secretary General of the Italian Ministry of Foreign Affairs 1 enato Ruggiero was born in Naples on 9 April 1930. After graduating in law from the University of Naples in 1953, he entered the Italian diplomatic service. His first posting abroad was to the Italian Consulate in Sao Paolo, Brazil. In January 1959, he was assigned to the Italian Embassy in Moscow, where he worked towards the normalisation of cultural and trade relations between the Soviet Union and Italy during the years of destalinisation, the confrontation in Berlin and the emerging Sino-Soviet conflict. In 1962 he was posted to the Italian Embassy in Washington, where he monitored the last phase of the Kennedy Administration, the development of the Cuban Missile Crisis, East-West relations and the Vietnam War. In 1964 he returned to Rome as Head of the Political Affairs Secretariat of the Foreign Ministry. In 1966 he was assigned to the Italian Embassy in Belgrade, where he monitored developments in the Cold War and the events of the 1968 Prague Spring. After a short interval in Rome, he began the second phase of his diplomatic career in 1969. Posted to the Italian Mission to the European Community in Brussels, he negotiated the terms for an agreement on social security for migrant workers. In July 1970 he was appointed Chef de Cabinet of the President of the European Commission, Franco Malfatti. In this role, he participated in the negotiations that led to the accession of the United Kingdom, Denmark and Ireland to the EEC, and in the development of the first European Economic and Monetary Union project and in the official launch of the European Union project at the European Summit in Paris in 1972. After a brief period as Political Advisor to the President of the European Commission, Sicco Mansholt, he was appointed Director General for Regional Policy at the European Commission in Brussels. In this role he negotiated and created, with Commissioner George Thomson, the European Regional Development Fund, the most significant instrument of financial support for the less developed regions in Europe. In 1977 he was appointed Spokesman of the President of the European Commission, Roy Jenkins, whom he assisted in the negotiations that led to the launch of the European Monetary System. Groups like Louis Vuiton are known for accessories and the Japanese tourists who crowd into the Lvmh mega-store on the Champs Elysees are to buy purses, bags, wallets and belts and certainly not clothing. In the same sense, turning John Galliano's ideas for Christian Dior into saleable pret-a-porter is also difficult. In fact, Bernard Arnault asked me if I wanted to assume the role of a filter, someone who can look at what he sends down the runway and decide whether it can also be sold. I don't think Lvmh knows how to do this at the moment. They have top designers but you can't become credible overnight just on the basis of huge advertising campaigns. Q. What about Gucci? A. Well, they seem to be doing more research and Tom Ford is a man who knows how to adapt runway styles for stores. (continued from page 1) R In 1995, Ambassador Ruggiero was elected Director General o f t h e W o r l d Tr a d e Organisation in Geneva by its 130 member countries, and served in that role until 1999. During this period, he promoted the implementation of a trade dispute settlement system based on the rule of law and not on power. He also promoted the further inclusion of developing countries in trade flows, and the liberalisation of trade with the 48 least developed countries. In addition, Ambassador Ruggiero began an institutional dialogue with the NonGovernmental Organisations Between 1978 - the year he returned to the Foreign ( N G O s ) . D u r i n g h i s t e r m a t t h e W TO , Ministry in Rome - and 1987 Ruggiero occupied telecommunications, information technology and several positions at the highest level of the Italian financial services were liberalised on a global basis. diplomatic service: he negotiated Italy’s entry into Following his tenure at the WTO, Ambassador the European Monetary System, was the Diplomatic Ruggiero was appointed Chairman of ENI. He left Advisor to the Prime Minister and the Chef de that position in September 1999 and became ViceCabinet of two Foreign Ministers. In 1980, he was Chairman of Schroder Salomon Smith Barney appointed Ambassador and returned to Brussels as International and Chairman of Schroder Salomon Italy’s Permanent Representative to the European Smith Barney Italy. He also served on the Board Community. After four years in that position, he of Directors or Advisory Boards of several important was appointed Director companies in Italy and the General for Economic Affairs rest of the world. at the Foreign Ministry in He was appointed Minister Rome (1984-1985) and then for Foreign Affairs in the reached the highest position second Government of in the diplomatic service when Prime Minister Silvio he became Secretary General Berlusconi on 11 June 2001. of the Foreign Ministry (1985In recognition of his 1987). During this period he contribution to public life, was also the Personal the President of the Italian Representative of the Prime Republic made Ambassador Minister at six G7 summits, Ruggiero a Knight of the and the Chairman of the Grand Cross. Foreign Executive Committee of the governments have also OECD in Paris. recognised his work in the In 1987, Ambassador Ruggiero cause of international trade was appointed Italian Minister Italian Foreign Minister Renato Ruggiero shakes hands and diplomacy. Her Majesty with his counterpart Minister Shimon Peres at a press for Foreign Trade, a post he conference in Jerusalem on 29 August, 2001. Queen Elizabeth II bestowed held until 1991. During this upon him the honorary period, he implemented the programme of liberalisation award of Knight Commander of the Order of St. of Italy’s foreign trade and capital movements. Michael and St. George; His Majesty Emperor Hirohito After his service in government, Renato Ruggiero of Japan honoured him with the Grand Cordon of left the diplomatic service and joined the board of the Order of the Sacred Treasure; and His Holiness directors of FIAT and of several other Italian, Pope John Paul II named him Knight Grand Cross European and American companies, either as a director of the equestrian order of St. Gregory the Great.<> or as an international consultant. Renato Ruggiero Profile of the Minister of Foreign Affairs Q. Do you think at all about who will take over from you? A. Well, I'm 67 now but I have not decided anything along the lines of "at 70, I'll stop working". It's hard to think concretely about such an issue. But I know I've created something which in the future will have to be able to function without my presence. So it is for this reason that I'm re-structuring the company and training some very capable people. In fashion, if there is no one heir, one works with a team of creative people who provide one with a basis for work. Q. How long do you think it will be before your new company is structurally complete? A. In another year everything will be working smoothly. And in the meantime, we are looking into other sectors such as luxury watches and jewellery, as well as into expansion into previously untapped markets such as Russia and China. And we have also been thinking about getting into the hotel sector, possibly - to begin with with furnishings. This is a business in which you simply can't sit still. The competition is always breathing down your neck. Q. A final question. What about the stock market? Have you definitely put aside plans for a listing? A. At the moment we are perfectly able to finance our projects without going onto the stock market to raise capital. If we were to become a listed company, I would have to be constantly justifying certain expenses to my shareholders, expenditures that are sometimes absurdly enormous but which can produce an enormous return. And I don't see why I should. Il Sole 24 Ore.com September 8, 2001 By Paola Bottelli, Milan <> 2 "Agenzia Ansa" - Alessandro Bianchi Scientific Flash A TELESCOPE THAT WILL OBSERVE PLANETS OF OTHER STARS he most powerful telescope in the world has been developed at the factory of AnsaldoComazzi in Milan. It will enable scientists to observe planets discovered around other stars. The telescope will be disassembled and transported to Arizona, where it will be completed, reassembled and installed at the 2,400 meter summit of Mt. Graham. The "Large Binocular Telescope" (LBT), as it is called, with its two huge mirrors 8.4 meters in diameter, looks like gigantic glasses. This feature, which is based on a technique of observation called interferometry, makes it the most powerful telescope in the world. It is capable of observing the core of galaxies, the beginning of the birth of stars and the planets around other stars with detail and clarity that were hitherto impossible. The new telescope is the result of collaboration between the United States (50%), Italy and Germany (25% participation, each). T The elevation structure of the telescope, pre-erected at the factory of Ansaldo-Comazzi in Milan The two huge mirrors were developed in the United States, and the secondary mirrors which form the heart of the telescope, in Italy. They are only 91 centimeters in diameter, but are the result of a sophisticated technology that eliminates the defects of observation through the atmosphere. Each one is equipped with 672 actuators to correct, in less than a millisecond, the optical distortions with accuracy of millionths of a millimeter. In practical terms, the telescope will be able to observe to the same depth as the Hubble Telescope (which orbits around the Earth) but with an angular resolution ten times greater. A wide field camera which has been developed by the University of Padua, will be installed in the first focus of the LBT. It will be able to observe very weak and very far-away objects in the depths of the cosmos. The new Italian-German-American Observatory of Arizona (which will cost one hundred million US dollars) will be operational in 2004, with the first mirror, and in 2005 with both mirrors. <> Agreement on Scientific Cooperation between ITC-IRST (Trento) and the Caesarea Rothschild Institute (Haifa) n agreement on scientific cooperation in the area of computer science was recently signed between the newly founded Caesarea Edmond Benjamin de Rothschild Foundation Institute for Interdisciplinary Applications of Computer Science (University of Haifa) and the Institute for Research in Science and Technology (Trento, Italy). This agreement, ratified by their respective institutions, had been envisioned for some time by Professor Martin Golumbic, Director of the Caesarea Rothschild Institute in Haifa and Professor Oliviero Stock, the Director of ITC-IRST, as a way of increasing and strengthening research collaboration. It will commence activities in the coming academic year with the exchange of scientists between Haifa and Trento, and continue with proposals for joint projects through the European Union. "This new initiative will begin by building upon existing areas of scientific relations already active among Israeli and Italian researchers, such as computational linguistics, neural networks, algorithmic and artificial intelligence", said Prof. Golumbic. "The new Caesarea Rothschild Institute will have much to benefit from the experience and expertise at IRST, not only on specific research projects, but especially in developing further contacts and joint participation in European Union programs." "For IRST it is an important opportunity to work together with a very qualified Israeli research centre, that will involve a number of Haifa researchers of absolute excellence" said Stock. This is not their first joint project. In 1992 and 1996, Golumbic and Stock organized binational workshops on Artificial Intelligence in Israel and in Italy sponsored by the Israeli Ministry of Science and the Italian National Research Council (CNR). <> Italy's Export Success Stories A Behind the success of the Italian packaging industry lie specialisation and technological innovation for the industry. In other words Think Global, Act he Italian Local. This goal is also aided by the major industry packing and agreement that was recently signed between the packaging machinery Ministry of Foreign Trade and Ucima, aimed at industry is one of the creating the maximum synergy between public and highlights of the Italian private action in favour of an internationalisation economy. With around process within the industry. 250 companies on an Even though Israel, compared to other outlet markets, industrial level, plus a does not represent a significant market quota in hundred craftsmanshippercentage terms, it is an interesting area for the based production units, this industry closed the packaging industry. In 1999, for example, Israel year 2000 with a turnover equal to Euro 2,561,63 imported 27.55% of Italian machinery, to the detriment millio. 81% of the overall turnover was from of traditional competitors such as the Germans with exports. 22.44% and the Americans with 13.35% (Ucima The success of this industry is the result of a number data processed using local data). of factors including extreme production flexibility The trend slowed down in combined with high level the year 2000. In fact, Italy technological innovation; dropped back into second providing the customer with place (18.01%), behind the “tailor-made” solutions; Germans (29.89%). What competitiveness. These firms is comforting, however, is have given rise to a network the data recently released of large integrated groups by the Central Bureau of and small and medium-sized Statistics regarding the first super-specialised companies. six months of 2001. In the Most of the production is period in question Italian absorbed by the food and exports to Israel increased beverage sector (40% of the on the whole by 2.5%, industry’s turnover), followed reaching a quota of 856 by the pharmaceuticalmillion dollars, as compared cosmetics-toiletries sector to 834,800 million dollars with almost 20%; then the in the first half of the year chemical-petrochemical UCIMA' s Director General Guido Corbella 2000. According to The sector with around 10%. The Bureau of Statistics, rest is used in different machinery and mechanical equipment have contributed sectors, especially tobacco, where Italian technology to this increase. boasts a great tradition. Anyone interested in finding out more about the In support of the industry and its globalisation process, Italian packaging industry can visit the Association’s UCIMA, the Italian Association of Automatic web site. The site www.ucima.it includes useful Packing and Packaging Machinery Manufacturers, information about the member companies, the is in favour of moving on from a phase of exportation merchandise on offer, market trends and major events to a situation that sees Italian companies taking root within the industry.<> in those markets that are considered to be strategic T 3 I TA LY A S F O R E I G N I N V E S T M E N T S I T E : O verview it began expanding later than Although in other European countries, the Italian ICT sector is now growing rapidly, placing Italy at the forefront of developments in Europe in telecommunications (especially mobile telephones) and swiftly gaining ground in information technology. This progress has moved Italy into what the OECD calls the "Medium ICT Intensity" group of countries, together with, among others, France, Japan and the Netherlands, and ahead of Germany. High innovation rate Investment by ICT firms is increasing steadily, as is R&D spending, which according to the OECD accounted for 27% of all R&D spending by Italian firms. ICT Firms in Italy In 1999 there were 61,774 ICT firms in Italy, an increase of 6.4% on 1998. Most of these (72.6%) operate in the software and services segment of the industry, accounting for the largest share of employment (48.1%). This was followed by firms in hardware and technical assistance (12.6% of firms and 11.9% of workers), indirect operators (12% of firms, 7.1% of workers) and finally telecommunications services and equipment (just 2.7% of firms but fully 32.9% of sector employment). There have been interesting developments in the breakdown of firm numbers by segment. While hardware producers increased in the early 1990s before turning downwards in the middle of the decade, telecommunications services and equipment firms recorded a strong acceleration between 1996 and 1997, following the liberalisation of the industry. Software and services firms accelerated in the first half of the 1990s before easing to a more linear growth trend. Shortages of specialised skills are an obstacle to development because they raise labour costs and make it more difficult for firms to find the necessary human resources. Compared to other European countries, Italy enjoys a clear competitive advantage in this area thanks to its large pool - especially in the South - of young, welleducated, flexible workers with a low turnover rate. Qualified Labour Force Italy has one of Europe’s highest shares of students in the 24-30 age group who have earned a first-level university diploma. The number of full university degrees awarded has also increased steadily, rising by 40% from 92,539 in 1993 to 129,167 in 1998. In particular, there has been a jump in the number of university degrees awarded in the disciplines of greatest interest to ICT firms, i.e. engineering and economics and statistical fields. The share of graduates in engineering rose from 8.3% in 1993 to 11.8% in 1998. The share of university students enrolling in the 147 full degree courses and 78 diploma courses in technological or scientific fields is also rising, from 15.3% in 1998-1999 to 19% in 2000-2001. The university system of diploma courses is paralleled by post-secondary school training courses as an alternative to degree programmes. One recent addition is the system of advanced technical education and training courses (IFTS), which are intended to train intermediate-level staff such as technicians, professional managers and qualified operators who can be quickly integrated into firms in a system that meets European standards. There are already 56 active courses to train experts in telematic and information technology applications, and the number of programmes is set to increase. An IDC study estimates that some 56,000 technology professionals will be trained in 2001-2002, nearly twice current levels. Of these, 50,000 will complete university programmes and the remainder will come from IFTS courses. Corporate investment in IT training is also rising sharply. In 1999, spending increased by 10.2% to more than Euro 557 million. Forecasts indicate that this growth will strengthen further in the coming years, with spending on training expected to rise to nearly Euro 775 million in 2002. A fast growing market The Italian ICT market is estimated to have grown by 12.8% in 2000, the fastest pace in Europe after Greece and Spain. In 2001, this will place the Italian market in fourth place by size (at a forecast of Euro 7.5 billion), trailing the United Kingdom, Germany and France. A highly-trained labour force Italy offers a vast pool of young, well-educated workers. In 2001-2002 alone, universities are expected to turn out some 50,000 new professionals in technology sectors. High productivity With the added value of more than $80,000 per employee, Italy has Europe’s highest productivity in the sector after Germany. Italy's strong points The availability of appropriately trained professionals is a key factor in competitiveness in the ICT sector. Faster sector growth depends on ensuring an expanding pool of increasingly qualified staff, needed to keep pace with demand. Low labour costs Relatively low labour costs, high flexibility and low turnover rates are major advantages for firms investing in Italy. THE ICT SECTOR IN ITALIA: Key Figures Share of GDP Per capita ICT expenditure The fourth market in Europe Trade in ICT hardware 5.5% Euro 1,065 Euro 67.5 billion (with growth of 12%) 1999: Total imports:Euro 9.773 billion Total exports: Euro 4.903 billion Trade deficit: Euro 4.870 billion 441,522 (2.1% of total workers) $ 80,200 value added/employment 42.500 million 2000: 2000: 2001 (forecast) 61,774 firms Total number of sector workers 1999: Second-highest productivity per worker in Europe 1997: Largest number of mobile subscribers in Europe 2000: 4 THE COMPARATIVE ADVANTAGE OF THE ICT SECTOR Low Labour Costs Relatively low labour costs are another important attraction Italy holds for foreign investors. According to the OECD, in Italy wage and salary levels per employee in the ICT sector are significantly lower than in all other European countries, except France. A recent survey also shows that, considering the minimum salary, network engineers and senior programmers cost less in Italy than in every other industrialised country. portals (54.4%) and implementing CRM solutions (38.9%). In 2001 firms are expected to increase expenditure on CRM solutions (44.1%), marketplaces and e-procurement (16.2%) market. At 13.7%, growth was stronger than in 1999. for 2000 confirm Italy’s position as one of the fastest growing markets in Europe. The number of mobile subscribers overtook the number of fixed lines, while the penetration rate (number of lines per inhabitant) soared to 72%, from 53% in 1999. Flexibility and Low Turnover An analysis of employment developments over the period between 1991 and 1999 shows that the use of innovative contracts has increased, boosting the flexibility of the labour market. Although the market is becoming more and more dynamic, the propensity of Italian workers to change jobs remains low. From 1993 to 1999 the share of highly-qualified employees working in the same firm for more than 5 years remained at about 62%, while the figure rose to 70% for technicians. This behaviour has a beneficial impact on staff costs, as firms find it easier to retain the people they have trained. The IT Services Market The IT services market was one of the fastest growing sectors of the entire Italian ICT market. Worth more than 8.4 billion euro, and with growth of 15.6% compared with 1999, this market accounted for more than 70% of the software and services market and 44% of the total IT market Internet Users in Italy After a period of rapid expansion, the pace of increase in the number of Internet users in Italy continued to grow in 2000. Italy is now the third leading country in Europe with 14.11 million users (24% of population). THE SECTORS: Hardware Systems and Related Services The hardware segment continued to grow strongly in 2000, at a rate higher that of 1999 and higher than the European average. The hardware segment was worth 6.05 billion euro, up 11.1% from 1999. Technical assistance on the other hand, continued to report negative growth, reflecting the downturn in traditional services. Innovative services achieved very positive growth. The Electronic Components Industry Approximately one thousand lectronic component firms operate in Italy, providing work for about 30,000 people. The province with the largest number of electronics workers is Milan, followed by Turin and Frosinone. There is also a major manufacturing presence in Bologna, Catania and L'Aquila. In 1999, the electronic components industry in Italy generated sales of Euro 2,159 million, an increase of 2% with respect to 1998. In the same year, exports grew by a healthy 11.4%, while imports rose by only 1.4%. With exports accounting for 52.7% of total sales, the Italian electronic components industry is very open to external markets. Initial estimates suggest that, measured both by sales and exports, the good performance of 1999 continued in 2000, and the number of workers in the industry continued to increase.<> Telecommunications In 2000 the Italian telecommunications market (TLC) grew faster than its European counterparts and the world average. Sales in the TLC sector rose by 12.9% to 36.9 billion. TLC services made a major contribution to the growth, with an increase of more than Euro 2.7 billion. The TLC equipment market expanded by 17% in 2000, with total sales of 10.43 billion. The network infrastructure segment performed particularly well, with revenues rising by 16.9% from Euro 5,010 billion in 1999 to Euro 5,857 billion in 2000. Software and IT Services In 2000, Italy's software and IT services market was worth 11.9 billion euro, and continued to account for a growing proportion of the total IT market (62.5% in 2000). The sector's growth (up 15%) was two percentage points higher than that of 1999 and the second highest among industrialised countries. The strongest growth was in services, which grew by 15.6%. Software performance was also strong (up 13.7%). In 2000 e-business solutions moved from 4% of total ICT expenditure up to 7.2%. Italian firms’ expenditure was focused on creating sites and Mobile Telecommunications in Italy Italy is the largest European market for mobile communications, with 42.150 million subscribers and sales of 11.5 billion in 2000. The figures 5 FOCUS ON SCIENTIFIC RESEARCH IN ITALY ITALIAN NATIONAL INSTITUTE OF HEALTH The "Istituto Superiore di Sanità", (the Italian National Institute of Health, ISS) is a technical and scientific branch of the Italian National Health Service. It undertakes experimental research, control and training functions related to public health in Italy. mong other functions, the Institute organisations. collaborates with the Minister of Health Part of the Institute's research activities are planned in preparing and implementing scientific and and carried out on the basis of a 3-years plan; these health planning. It promotes programmes of are the so-called "Institute research projects". In the national interest in accordance with the objectives 1997-1999 Plan (extended to 2000), these are grouped of the National Health Plan. It provides technical into 14 large "thematic areas". guidance and co-ordination in the field of health The 3-years plan is a document that must specify protection and promotion, in collaboration with scientific activities, priorities, and human and financial local hospital authorities and health boards, as resources. Like State planning acts, the Plan must well as with public and private sector organizations be intended as a rolling plan in relation to the annual of national importance. plan which, in addition to indicating the resources It also provides advice to the national government and the Regions on their respective health plans, as well as promoting programmes of research on the relationship between environment and health. It promotes programmes and clinical trials of national interest, undertaken at scientific hospital and care facilities and local health board hospitals. It provides advice on protection of public health in collaboration with the Italian National Institute of Health and Safety at Work and with other bodies concerned with the production and use of thermoelectric and nuclear energy, radioactive substances and every form of energy used for diagnostic and therapeutic purposes. Through its own operations centres The Italian National Institute of Health in Rome and by contributing financially, it takes part in foreign and international projects aimed at protection of public for the activities that can be planned, must specify health, as well as in study and research programmes the allocation of resources for activities that cannot of national organizations. be planned in advance (controls, advises, actions, It certifies and accredits test laboratories and certification etc.). bodies provided for by EU regulations and international The Institute's proposals for research are submitted treaties in the public health field. for the opinion of the Scientific Committee, which It signs agreements on collaboration with must assess the scientific validity of the proposals, administrations, government agencies, associations their congruity with the financial resources requested and other public or private sector Italian, foreign or and the human resources available to carry out what international legal persons, from which it may receive has been proposed. The Institute's research budget contributions to carry out specific research related is set out in terms of programmes and objectives. to its institutional tasks. The Scientific Committee is required to assess the results achieved each year before the financial Governing bodies, Laboratories and Services resources for the following year are approved by The ISS is headed by its President, Prof. Enrico the Administrative Committee. The Institute promotes Garaci and by the Director General Dr. Romano multi-year research projects for development of Rosario Di Giacomo. Its principal governing bodies research and action in the territory, financed by the are the Executive Board and the Scientific Committee National Health Fund, the so-called "1% Projects". It also co-ordinates and finances research on AIDS The "Istituto Superiore di Sanità" currently comprises to be undertaken both on the Institute’s premises 20 Laboratories, 8 Technical Services, a Library, and at other national research facilities. Administrative and Personnel Services. The National Centre for Transplants, Statistics Office and Equal Activities in the field of Public Health Opportunities Committee has also been created at In addition, the Institute undertakes surveillance, the Institute. investigation and action to protect public health on the basis of laws and ministerial decrees, as it has Research at the Institute done since its foundation. The "Istituto Superiore di Sanità" also promotes The Institute also maintains National Epidemiological research programmes on the relationship between Registers for the observation of specific diseases. environment and health, and clinical research These are information systems that make it possible programmes of national interest, to be carried out to monitor the trend and dimensions of some diseases at scientific (IRCCS) and local hospitals. in Italy and to plan effective health action for them. It takes part in foreign and international projects They are coordinated by the "Istituto Superiore di aimed at the protection of public health, as well as Sanità". A manager from the Institute's scientific in study and research programmes of national A personnel is in charge of each register. Regional and inter-Regional centres, and sometimes peripheral clinical centres, take part in the Registers. Some registers also operate in the framework of specific European projects. The institutional activities of monitoring and surveillance are often associated with research activities, since the quality of the Registers can itself promote collaborative studies aimed at improving knowledge of the diseases concerned. The Institute organises training, advanced training and updating courses on public health and health care organisation for personnel of the National Health Service and of other health protection and promotion bodies. Around sixty short courses (two to five days) are organised every year on the main public health topics such as: food hygiene, environmental health, epidemiology and bio-statistics, health economics, management, communication, health education, applied research, continuing education, control of infectious and non infectious diseases to quote a few. Two long-term projects are worth mentioning under the training function. The first is the WHO Collaborating Centre on continuing education for health professions that, since 1988, offers an annual international Master Course on Health Management using Problem-based Learning (PBL) as its distinctive instructional method. Another important project is related to the development of a National School of Public Health, presently spanning a three-years term of operations. Training Scientific Information The activities of the "Istituto Superiore di Sanità" in the scientific information field are very extensive. They are carried out chiefly through the production, management and dissemination of information, comprising publication of results of research performed at the Institute (including the preparation of specific guidelines), and the production of databases. Information is also disseminated through the numerous congresses and seminars that the Institute organizes annually in the sectors within its own competence, involving the Italian and international scientific world. In each section of the field ample attention is also given to scientific information in the broad sense, by clear and exhaustive presentation of the activities of the Institute and the principal channels of dissemination. International Relations The "Istituto Superiore di Sanità" has developed and consolidated an important presence in this sector that will be further developed in the future. There are also some WHO (World Health Organization) Collaborating Centres and other international bodies working at the Institute.<> 6 ITALY AND U.S. JOIN FORCES IN FIGHT AGAINST ANTIQUITIES SMUGGLING From Art Nouveau Bilateral Treaty sets new model to Expressionism of International Cooperation restrictions on the import of archaeological material. The US has agreed to impose import restrictions on Italian archeological material from the pre-classical, classical, and imperial periods in an attempt to stem the flow of illicitly excavated works that regularly enter the US. By all accounts, the US is one of the largest markets for stolen Italian artefacts, many of which are first smuggled to Switzerland, laundered with a false provenance and from there exported to the US. A "Memorandum of Understanding" was signed at a State Department ceremony on January 19, with Ambassador Ferdinando Salleo representing Italy and Helena K. Finn, Acting Assistant Secretary of State for Educational and Cultural Affairs, signing for the US. "Italy is one of the world’s archaeological treasures and it behoves us all to safeguard it," Dr Finn said in a statement. The areas particularly at risk were identified as Sicily, southern Italy, and Etruscan sites in central Italy. The agreement was reached in response to a 1999 request for import restrictions on archaeological material from Italy, made under Article 9 of the Unesco Convention. The terms of the original request were broad and included material from the fifth millennium BC to the fifth century AD. The request was reviewed by the Cultural Property Advisory Committee whose members are appointed by the President and whose investigations and conclusions are private. The committee includes two members who represent the interests of museums, three experts on archaeology, anthropology, ethnology or related fields, three experts in the international sale of cultural property, and three members representing the interests of the general public. According to a spokesperson for the State Department, "the terms of the request were reduced on recommendation of the committee. The final agreement states that the US shall "restrict the importation of archaeological material ranging in date from approximately the ninth century BC to approximately the fourth century AD, including categories of stone, metal, ceramic and glass artifacts, and wall paintings... unless Italy issues a license or other documentation which certifies that such exportation was not in violation of its laws." US Customs regulations will now be amended to require that the listed artefacts not be imported into October 7 - February 3, 2002 Rome, Italy T he U.S. State Department has acceded to Italy’s request for the US unless accompanied by a valid export permit from Italy. If an importer cannot produce the required evidence proving that the objects have been exported legally, the works are to be taken into custody and, if the documentation is not produced within the required time period, seized and forfeited to the US. They will then be offered for return to Italy. Speaking to The Art newspaper, Special Agent Tom Caso of US Customs said, "The bilateral agreement is a very useful tool for us because it places the burden of proof on the importer and it gives us broader authority to seize works. Until now if we received a request for the return of a work from Italy on the grounds that it had been stolen, the burden of proof was on us as investigators. We had to go before a federal judge to argue our case."The difficulty in enforcing a foreign nation’s cultural property law in the US was evidenced in the case of the gold phiale returned to Italy by US Customs, following its seizure from collector Michael Steinhardt. The gold platter had been illegally excavated from a State-protected archaeological site near Palermo, Sicily and taken to Switzerland. It was then purchased in good faith by Mr Steinhardt for $1.2 million. Italy sought US aid in recovering the object which the Italian government owns under a 1939 Italian law. After US Customs seized the platter, an ever widening lawsuit commenced which involved not only Italy and the US but also museum and archaeology groups, raising legal principles and policy arguments for and against the object’s return. False statements had been made on customs forms when the object was imported and a federal appeals court held in 1999 that these were "material" enough to subject the object to forfeiture. The agreement also stipulates that "Italy shall use its best efforts to increase...protective measures for archaeological excavations at known sites, particularly in areas at greatest risk from looters." At the moment, most sites in Italy are completely unguarded and tomb-robbers go about their business unhindered. The agreement is valid for five years, after which time it is subject to review. It is the ninth of its kind drafted since the US implemented a Convention on Cultural Property Act in 1983. Import restrictions have already been granted to El Salvador, Guatemala, Peru, Bolivia, Mali, Canada, Cyprus, and Cambodia.<> This is the first time that an exhibition dedicated to the three great Austrian artists, Gustav Klimt (1862-1918), Egon Schiele (1890-1918) and Oskar Kokoschka (18861980), has been held in Rome. These artists united together in an effort to express the Austria of their time. The exhibition includes 100 masterpieces on loan from various museums and private collectors. Contact and Information: +39-066780664 Eurochocolate Perugia, Italy October 20 - 28, 2001 For nine days, the city of Perugia turns into a sweet, colorful and tantalizing chocolate workshop. Chocolate is everywhere. Everybody smells it, wants it, eats it. website: www.chocolate.perugia.it/ email: passworld@libero.it Contact and Information: +39-0755732625 Venice Marathon October 21, 2001 Venice, Italy The Venice Marathon is a unique race in one of the most picturesque cities in the world. website: www.venicemarathon.it/ http://www.venicemarathon.it/ Contact and Information: +39-0415209287 7 E V E N T S I N I TALY Torino Film Festival November 15 - 23, 2001 Torino The promotion of a new international cinema competition entitled 'International Feature Film Competition' and the 'International Short Film Competition' will be launched alongside an intensive programme of tributes and retrospectives, connecting the future of cinema to the memory of the past. Performers: George A. Romero, Egyptian Cinema, Jean-Marie Straub & Daniele Huillet website: www.torinofilmfest.org email: info@torinofilmfest.org Contact and Information: +39-0115623309 Firenze Marathon November 25, 2001 Florence This event is open to athletes 18 years of age and over by 25 November 2001 who are currently members of a legally recognized sporting association. The event starts from the city's center at Lungarno della Zecca Vecchia and finished at the Piazza S. Croce, 100 meters from the start. The Half Marathon and the Fitness Walk end up at the Piazza S. Croce. website: www.firenzemarathon.it/ http://www.firenzemarathon.it/ Contact and Information: +39-055572885 2001-2002 baroque artist who painted splendid frescos, which included the dome of Sant’Andrea della Valle church in Rome, and numerous religious paintings which decorate the main alters of churches. The exhibition will contain over 100 of his masterpieces including some by his most famous contemporaries (Annibale Carracci, Domenichino, Saraceni, Vouet and others). The paintings are on loan from the world’s leading museums and Italian churches. Contact and Information: +39-0521313333 Website: www.giovannilanfranco.it Balthus Until January 6, 2002 Palazzo Grassi, Venice With over 250 works on show, the exhibition to be held at Palazzo Grassi is the largest ever dedicated to Balthus. Curated by Jean Clair, this is the first retrospective on this enigmatic painter who died recently, one of the great masters of the 20th century and one of the very few artists to have works displayed at the Louvre Museum while still alive. Visitors will be able to view the complete works of Balthus and trace his artistic and pictorial development along the 36 rooms of the 18th century Venetian palazzo, through works that the artist himself helped to select. The paintings on show are on loan from 90 museums around the world, private collections and cultural institutions, including the Metropolitan Museum and the Museum of Modern Art in New York, the Centre George-Pompidou and Picasso Museum in Paris, the Tate Gallery in London. Contact and Information: +39-0415231680 website: www.palazzograssi.it/ Viareggio Film Festival Viareggio This is the 18th year of this international film celebration. website: www.europacinema.net/ e m a i l : s e g re t e r i a @ e u ro p a c i n e m a . n e t Contact and Information: +39-0642000211 Children ' s Festival Milan, Strehler Theatre "Festival dei bambini" November 27, 2001 - December 02, 2001 20 November - 23 December 2001 The Masters of the Renaissance at San Severino Until November 5, 2001 San Severino (Macerata) This year the little town of San Severino, in the province of Macerata, will appear on the map of the world wide exhibition circuit. For the first time the works of Lorenzo D’Alessandro will be on show, in commemoration of his death 500 years ago. The exhibit will be in the newly restored Palazzo Servanzi Confidati. Artists from all over the world will take part in the third "Children’s Festival" to be held in Milan. They will present programmes of mime, clowns, acrobats and marionettes to young audiences, aged from 4 to 14. Various options will be offered during the weekdays, which will include activities in the theatre and outside, and at the weekends there will be programmes aimed at the whole family. During this month the "Piccolo Teatro" will become a "magic box" with thousands of surprises. Contact and Information: +39-0272333222, 027233323 www.piccoloteatro.org Contact and Information: +39-0733641296 I.r.comunicazione@libero.it Giovanni Lanfranco. A Baroque painter from Parma, Rome and Naples Until December 2, 2001 Palazzo Ducale, Parma This is the first large monographic exhibition dedicated to the artist Giovanni Lanfranco. He was a great Blood and Arena Until January 7, 2002 Colosseum of Rome The colosseum is the single most visited tourist attraction in Italy. This exhibition was created so that the visitor can experience, first hand, the history and adventures of those who fought in its awesome arena: the Gladiators. Contact and Information: +39-066723763 e-mail: Trenini@beniculturali.it 8