Italy

The Italian Republic has a per capita income of $28,700, the 28th highest in the world. Aggregate figures are somewhat misleading because the economies of the northern industrial area and the agricultural south are vastly different. Most poverty in Italy is found in the south, which has an unemployment rate of 20 percent as compared to an overall unemployment rate of 7.7 percent. Nearly 66 percent of southern Italians are poor, making them dependent on welfare for survival. Italy is ranked 36 on the Gini index of inequality, and the richest 10 percent of the population claims 26.6 percent of resources while the poorest ten percent hold only 2.1 percent. Evidence exists that as income disparities have expanded, the intensity of poverty has increased.

Economic woes have led the Italian government to privatize social services and create a two-tiered welfare system in which the poorest Italians receive healthcare through government subsidies and more affluent Italians depend on private insurance. As a result of the privatization, funding for health and other social programs was seriously curtailed. No public kindergartens are available, and poor women find it difficult to work because of the paucity of child care. Consequently, these women remain dependent on welfare. Despite the lack of government for education at the lowest and highest levels, literacy rates are high. There is, however, some disparity between male (99 percent) and female (98.3 percent) literacy. All of the relevant population is enrolled in primary and secondary schools. Safe drinking water and improved sanitation are available throughout Italy. According to the United Nations Development Programme's (UNDP) Human Development Report, Italy has the 17th highest standard of living in the world.

An average of 11 percent of the total Italian budget is designated for health. With a spending rate of $2,266 (international dollars) per capita, the government directs 8.4 percent of the Gross Domestic Product (GDP) to healthcare programs. Just over three-fourths of health expenditures in Italy are government generated. Social security accounts for only

0.2 percent of government spending. The private sector is responsible for the remaining fourth of health expenditures, and 83.30 percent of private spending [Page 954]evolves from out-of-pocket expenses. There are 4.20 physicians, 5.44 nurses, 0.29 midwives, 0.58 dentists, and 1.15 pharmacists per 1,000 population in Italy.

Italy has enjoyed a high pension allowance that is now considered excessive, and reform efforts are underway.

The social security program, which covers the elderly, the disabled, and survivors, is funded by employee (8.89 percent of earnings) and employer (23.81 percent of payroll) contributions and government supplements. The program is compulsory for all employed Italians, and special programs cover civil servants and the self-employed. Italy's pension allowances have been considered excessive, and efforts are under way to reform the program. Illness and maternity coverage provides both cash benefits and medical care. New mothers receive 80 percent of their salaries from a month before the expected birth of a child to three to four months after birth. The parental leave policy provides additional leave for either parent at 30 percent salary at any time until a child turns 3 years of age. Special benefits are also provided for those suffering from tuberculosis, with benefits payable for up to two years, plus a Christmas allowance.

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