A Middle Power in a Regional Context: Italy's Economic Security, The
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Department of Political Science Chair of Security Studies A Middle Power in a Regional Context: Italy’s Economic Security, the MENA Region and the Leonardo-Finmeccanica Case SUPERVISOR Prof. Carlo Magrassi CANDIDATE Nicolò Biscottini Student Reg. No. 625032 CO-SUPERVISOR Prof. Federico Niglia ACADEMIC YEAR 2015/2016 ACKNOWLEDGEMENTS At first sight, it might seem reckless to believe that five long and intense years of life and study can be contained in a single final work. Nevertheless, I can affirm with conviction that in the following pages there is not only the Nicolò of yesterday and today but also, and above all, my family, my professors and my teachers who have made me what I am and allowed me to find myself here today to write these lines. First of all, I would like to thank those who have made it possible for this work to take shape, that is the holder of the Chair of Security Studies of LUISS, Guido Carli, Gen. Magrassi, Col. Totaro, Dr. Pasquazzi, and my co-examiner Prof. Niglia. I am not so much grateful for their unquestionable high academic standards as for the humanity and professionalism they showed me during the drafting and elaboration of this work. Special thanks to Dr. Pasquazzi for always being there (really) in a moment of need. Secondly, I strongly desire to express my gratitude to the representatives of the institutional, academic and Italian industrial sectors who provided me with so much information that I was able to integrate into my research. Therefore, I would like to thank Gen. B.A. Pasquale Montegiglio who made this work take a decisive turn in a moment of confusion. I thank Prof. Michele Nones and Dr. Nicolò Sartori, of IAI, for their precious ideas on the Mediterranean Basin. I would like to thank Minister Nicoletta Bombardiere, Diplomatic Adviser to the Minister of Defense, Roberta Pinotti, for the long interview regarding my elaboration and that tormented and noble land called Afghanistan. I thank the Leonardo-Finmeccanica, Group and in particular Dr. Francesco Lalli, Dr. Fabrizio Braghini, Dr. Margherita Granato, Dr. Umberto Panetta and Dr. Giovanni Soccodato, who gave me the opportunity to analyze the operations of a company with one of the most important industrial success stories in our country. Finally, particular thanks to my aunt Renata, from whom I got back a passion for the world and to Patrick who, by teaching me English, gave me the key to understand it. It is not hard for me to confirm that, when considering this work, my thoughts also go to my friends in my native city, Perugia, and in equal measure to all those that life has given me the fortune to meet during the course of my studies in what is now my “second city”, Rome. 2 But obviously, I owe this work to my family, to my mother Maria Rita, to my father Paolo and to my brother Giacomo. If I was able to dream and, above all, if I continue to do so also today, it is thanks to them. 3 All’Italia, il mio Paese. Hic Manebimus Optime. 4 SUMMARY ACKNOWLEDGEMENTS .......................................................................................... 2 INTRODUCTION .......................................................................................................... 7 CHAPTER 1 - DEFINING THE FRAMEWORK: MIDDLE POWERS AND THE MIDDLE EAST AND NORTH AFRICA REGION ................................................. 10 1.1 WHAT IS MIDDLE? WHAT IS POWER? WHAT IS A MIDDLE POWER? .............. 10 1.1.1 An Open Theoretical Issue ...................................................................... 10 1.1.2 Models and Classification Criteria ......................................................... 12 1.2 ANALYSING MODERN MIDDLE POWERS ....................................................... 16 1.2.1 Canada .................................................................................................... 16 1.2.2 South Korea ............................................................................................. 18 1.2.3 Is Italy a Middle Power? ......................................................................... 20 1.3 POLITICAL DEVELOPMENTS AND ECONOMIC STRUCTURES OF THE MIDDLE EAST AND NORTH AFRICA COUNTRIES ......................................................... 23 1.3.1 Geophilosophy of the Mediterranean Basin ............................................ 23 1.3.2 Political Developments of the Middle East and North Africa Countries 25 1.3.3 Economic and Financial Structure of the Area ....................................... 28 CHAPTER 2 – ITALY IN THE MIDDLE EAST AND NORTH AFRICA AREA: A MIDDLE POWER IN A REGIONAL CONTEXT ............................................... 33 2.1 THE ITALIAN REPUBLIC AMONG MEDITERRANEAN, ATLANTIC AND EUROPEAN RELATIONS ................................................................................................... 33 2.1.1 The Third Ring Theory and De Gasperi’s Centrism ............................... 33 2.1.2 The Neoatlantic Foreign Policy of Centre-Left Governments ................ 35 2.1.3 The Arab-Friendly Policy of the Seventies and the Eighties: Finally Italy as a Middle Power in a Regional Context? ............................................. 37 2.2 FROM THE SECOND REPUBLIC TO THE LATEST DEVELOPMENTS ................... 40 2.2.1 The Post-Cold War Period and the Years of Transition ......................... 40 2.2.2 The New Foreign Policy of Silvio Berlusconi ......................................... 42 2.2.3 The Policies of the Latest Governments towards the MENA Area ......... 43 CHAPTER 3 – ITALY’S GEOECONOMICS AND ECONOMIC SECURITY IN THE MIDDLE EAST AND NORTH AFRICA REGION ........................................ 49 3.1 ECONOMIC SECURITY AND GEOECONOMICS ................................................. 49 3.1.1 Defining Economic Security in International Political Economy ........... 49 5 3.1.2 The Relation between Economic Security and Geoeconomics ................ 52 3.1.3 Evaluating what the National Interest is ................................................. 56 3.2 ANALYSING THE PRESENCE OF THE ITALIAN NATIONAL POLITICAL- ECONOMIC SYSTEM IN THE MENA REGION ................................................. 62 3.2.1 Trade Relations with the Countries of the Region .................................. 62 3.2.2 The volume of Foreign Direct Investments ............................................. 68 3.2.3 Energy Security ....................................................................................... 76 CHAPTER 4 – CASE STUDY: LEONARDO-FINMECCANICA AS A SECURITY GLOBAL PLAYER OPERATING IN THE MIDDLE EAST AND NORTH AFRICA REGION ........................................................................................ 81 4.1 THE HISTORY OF A PUBLIC INDUSTRIAL GROUP ........................................... 81 4.1.1 The Origins, the Golden Age, the Crisis (1948 - 1987) .......................... 81 4.1.2 The Internationalisation Process (1987 - 2001) ..................................... 83 4.1.3 From the First Years of the New Millennium to the Great Transformation: Finmeccanica becomes Leonardo (2001 - 2016) ........ 87 4.2 LEONARDO-FINMECCANICA OPERATING IN THE MIDDLE EAST AND NORTH AFRICA REGION ............................................................................................ 89 4.2.1 A General Outlook .................................................................................. 89 4.2.2 28 Eurofighters for Kuwait: The Largest Contract ever awarded to Leonardo-Finmeccanica ......................................................................... 91 4.2.3 Fincantieri and Leonardo-Finmeccanica are appointed to modernise the Qatari Navy ............................................................................................. 93 4.3 AN INTERVIEW WITH DOTT. GIOVANNI SOCCODATO: THE REASONS, THE PHILOSOPHY AND THE PERSPECTIVES CONCERNING THE AGREEMENTS WITH KUWAIT AND QATAR .................................................................................... 95 CONCLUSION ........................................................................................................... 101 BIBLIOGRAPHY ....................................................................................................... 106 WEBLIOGRAPHY .................................................................................................... 111 ABSTRACT ................................................................................................................. 112 6 INTRODUCTION Every good work of research is aimed at providing a question to an answer. For an author, the research question is an essential element in the same terms as the north star was for sailors in olden times. In fact, the research question helps the author to keep on the route in the “sea” of knowledge and allows him to reach the shore of conclusions. Coherently with this literary metaphor, this work originates not from a single research question but from a number of them. The first question concerns the international status of Italy. In academic literature, countries have traditionally been classified in small, medium and big powers. Although several criteria have been drafted to define a country’s rank, the attribution of the status is basically determined by quantitative and qualitative criteria. Traditionally, Italy has always ranked as a middle power. But can we consider Italy a middle power in its regional context? This is the first question which needs to be answered. The regional context, where Italy’s action is analysed, is the MENA region. MENA is an acronym, frequently used in international