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This north-south divide is reinforced by cultural, historical, and economic factors. The north drives Italy’s manufacturing and export sectors, while the south struggles with high unemployment, low productivity, and fewer opportunities.
Demographic Challenges and Gerontocracy
A core issue is Italy's aging population, a classic gerontocracy—meaning governance and societal priorities are dominated by the elderly. Italy's birthrates are low, and the population's age structure favors older generations, many of whom benefit from generous pensions and social security systems.
Impacts include:
- High Pension and Social Security Spending: Accounting for a significant portion of fiscal resources, crowding out investments in youth and innovation.