A multi-speed economy
After the Second World War, the creation of the " Cassa per il Mezzogiorno " (literally the "Caisse du Midi") was the salvation of a region plagued by isolation, precariousness and endemic emigration. The work of this organization, set up in 1950 to resolve the "Southern Italy question", was carried out in two stages: from 1950 to 1960, the Cassa focused on modernizing the regions' infrastructure (road building, irrigation, land reclamation, reforestation) and improving land tenure conditions. From 1960 onwards, Cassa focused all its efforts on the industrial sector, trying to attract capital to the development hubs of the South. The results of this vast action plan were visible but not revolutionary: average per capita income remains below the national average.
Unemployment in the Mezzogiorno has been falling for several years, with an average of 12.5%: in Puglia, it represents 9% of the working population aged between 20 and 64, and 13.2% in Calabria (figures for 2024). At 6.8%, Basilicata's unemployment rate is slightly higher than the national figure (6.3%). According to an alarming report published by Eurostat in 2024, three regions in southern Italy have the lowest employment rates in the European Union: Calabria (48.4%), Campania (48.4%) and Sicily (48.7%). These figures take into account the population aged between 20 and 64. In comparison, the European average is 73%, while the Italian average is 63%. The hardest hit segments of the southern region's population are women and young people under 35, who are neither active in the labor market nor looking for work.
In the Mezzogiorno as a whole, Puglia is the region with the most favorable economic situation. Per capita income is slightly higher than the national average, and well above the average for the southern zone. This is due to growth in the tertiary sector and industry. Calabria, on the other hand, is Italy's poorest region, and Basilicata remains economically underdeveloped; both suffer from a lack of infrastructure and their marginal position in relation to markets. And in Calabria, the activities of the 'Ndrangheta fuel a parallel economy.
Agriculture, the strong point of the Mezzogiorno economy
Agriculture started its modernization phase with the agrarian reform of the 1950s. The most striking example of this development is the Tavoliere area, currently the richest in Puglia, characterized by the intensive cultivation of wheat and tomatoes. In Puglia, monoculture dominates: we can mention the olive trees of Murge and Salento, the vineyards and fruit trees of the Bari area. Other agricultural products, including artichokes, salads, table grapes and almonds, complete the list. In Basilicata, the construction of irrigation works has made it possible to develop citrus and olive cultivation alongside cereal production. In Calabria, citrus cultivation is the main resource of the region, along with olive oil, DOC wine and wood.
The discreet place of industry
Puglia's three industrial hubs form a triangle between Taranto, Bari and Brindisi. Some forty international groups, active in the automotive, aeronautics, chemicals and information and communication technology (ICT) sectors, are based in the region. This is the case, for example, of Getrag, a company specializing in automotive equipment, and the multinational Bosch: both have their headquarters in Modugno, near Bari. Brindisi is a leader in the petrochemical and electrical energy sectors, with three thermoelectric power stations and a vast photovoltaic park. Taranto, meanwhile, has been home to Europe's largest steel industry since 1961. In the early decades, the plant helped boost the economy of an entire region, but it suffered the steel crisis of the 1980s, while at the same time voices were raised denouncing the environmental impact of the plant and the worrying number of tumor cases among nearby residents. In 2012, part of the site was even placed in receivership for serious environmental violations. The steel mill's recent history has been marked by production cutbacks, employee lay-offs and a takeover announced by ArcelorMittal, but finally cancelled in November 2019.
Conversely, Calabria's industrial sector is underdeveloped, with petrochemical and mechanical industries in the towns of Reggio di Calabria, Vibo Valentia and Crotone.
In Basilicata, in addition to hydroelectric power generation and the recent discovery of natural gas and oil deposits, the Fiat plants in the Melfi region are among the most modern in Europe.
Tourism, an essential engine of the economy
Tourism, initially seaside, has been gradually established in Puglia since the 1990s. The presence of art cities, such as the baroque Lecce and the Byzantine Otranto, has been a major factor in the attraction of the territory, with record numbers of visitors in recent years. This recent tourist development is partly responsible for the economic growth of Puglia, but it is also the cause of the sometimes disorderly increase of new settlements that have had a negative impact on the environmental conditions. A forgotten and hidden region, Basilicate sees tourism as a means of economic recovery. Efforts have been made to enhance the coastline, and more recently to promote the city of Matera, European Capital of Culture in 2019. Finally, Calabria is attracting more and more tourists, drawn by its magnificent beaches. The challenge remains to improve the image of the region, which is too often associated with the mafia.
Organized crime
And let's talk about the mafia! Organized crime, still important in this part of the Mezzogiorno, contributes to feed the parallel economy of the country.
Born in Calabria, the 'Ndrangheta is the most powerful Italian mafia organization today. Its name is derived from a Greek word meaning "heroism and virtue". In addition to importing narcotics from the Asian Golden Triangle, the organization puts pressure on all businesses in Calabria to prevent them from getting rich and staying in power. Its means of action are the taxation of entrepreneurs to the point of bankruptcy, racketeering, money laundering and the misappropriation of European funds. According to recent studies, the annual turnover of the Calabrian mafia is estimated at 35 billion euros, which is more than the gross domestic product of the whole of Calabria.
Another criminal organization, the Sacra Corona Unita, is active mainly in Puglia. It emerged from the attempts of the Neapolitan Camorra to expand into Puglia in the early 1980s. The main field of action of this mafia, less powerful than the others, is the trafficking (and especially the final sale) of drugs, illegal gambling, extortion and smuggling, in association with the Montenegrin mafia. Illegal immigration, managed in agreement with the Albanian mafia, is a market in which the organization took part in the 1990s, following the fall of the Tirana regime and the war in Kosovo.
Political panorama of southern Italy
Puglia, Calabria and Basilicata are three of Italy's twenty regions. The regions are further subdivided into provinces and communes. These local authorities have been autonomous since 1970, and have their own powers and functions in the administrative, legislative and fiscal areas laid down in the Constitution. Each region has :
- A Legislative Assembly.
- A Giunta regionale, which represents the executive body and is guided by the President of the Region. The President sits in the regional capital during his five-year term of office.
In Puglia, the current president, in office since 2015 and up for re-election in 2020, is Michele Emiliano, a former mayor of Bari from the center-left Democratic Party (PD). From 1970 and for some twenty years, the Giunta 's composition was predominantly Christian Democrat (CD). It then alternated between center-left and center-right formations.
In Basilicata, Vito Bardi, a former military officer, has held the post of regional president since April 16, 2019. He was re-elected in May 2024. He comes from the center-right political party Forza Italia, a party founded in 2013 by Silvio Berlusconi. This political orientation is a first for Basilicata, which was previously governed for 24 years by center-left formations and, before that, by the Christian Democrats.
Calabria was governed by the Christian Democrat (DC) and Italian Socialist (PSI) parties from 1970 to 1994. From 1995 onwards, center-right and center-left formations alternated. Since October 29, 2021, the region's president has been Roberto Occhiuto, of the Forza Italia party. He succeeded Jole Santelli, from the same party, who was the first woman president of Calabria, as well as the first woman regional president in southern Italy. Her untimely death in October 2020, just eight months after taking office, led to early regional elections.
