E4 · cycle-003.e4-ita

Italy, scripted, 30 years from 1996

30 simulations of 30 rounds from the 1996 position. Italy decides by the scripted method; scripted events: Global funding seizure in year 12, Core disaster in year 13, Global funding seizure in year 15, Severe pandemic in year 24, Trade bloc rupture in year 26.

Model 0.2.0 · graph 0.2.0 · parameters 0.1.1 · seeds 1–30 · elasticity sampled within each bracket

The same configuration in other cycles: cycle 2.

Every simulation · Compare with another experiment · More experiments like this

Not a forecast
Simulations of a structural model with seed parameter values, to compare methods and test the model. Other nations stay at their 2026 ratings throughout.

Outcome across simulations

The median at 2026, with the 10th to the 90th percentile of the 30 simulations under it.

Capability index
13.95 (−0.55)
From 14.51; 13.93 to 13.99
Rank by index
18
From 16; 18 to 19
Domains at Tier 1
2
From 0; 2 to 2
Tier rank
8
From 19; 8 to 9

Capability index by round

Rank by index, by round

Every objective at the position and at the horizon
Objective199610th percentileMedian90th percentileBetter
Capability indexprimary14.5113.9313.9513.99higher
Rank by index16181819lower
Tier rank19889lower
Domains at Tier 10222higher
Score sum1051.71016.11017.41019.6higher
Goal-weighted score1051.71016.11017.41019.6higher
Resilient score1051.71017.6 (mean score sum over the simulations)higher

The capability index is the mean of the three dimensions, each the mean of its domains, each the mean of its groups. Tiers are Pareto layers within each domain; the tier rank orders nations by domains held at Tier 1, then Tier 2, and so on. The goal-weighted score is the score sum unless the experiment sets a goal. The primary objective is the one the experiment is judged on; every other objective is reported beside it.

Credits

What each round’s credits went on in the median simulation. Across all simulations, build took 79 per cent, buy took 20 per cent, partner took 1 per cent of the 2,467 credits a simulation spent on actions.

Against history

Started from a reconstructed 1996 position and played along the pathway and shocks Italy actually had, then scored against the 2026 ratings. The position is an estimate, so part of any error is the reconstruction's. The calibration summary across all fifty nations is on the cycle's page under Loop.

Index 1996
14.51
reconstructed
Observed 2026
13.72
the Index's rating
Simulated 2026
13.96
13.88 to 14.03
Skill against persistence
−0.62
group error 1.78 against 1.10 if nothing changed
Domain1996ObservedSimulatedBiasDirection
Critical Technology13.1612.9911.71 11.7–11.8−1.28wrong
Strategic Infrastructure15.3214.4616.26 16.2–16.3+1.80wrong
National Security13.3112.2013.74 13.7–13.8+1.54wrong
Human Capital14.7513.6614.52 14.4–14.6+0.86wrong
Information & Influence15.4314.6113.92 13.9–14.0−0.69right
Governance & Integrity13.1313.5012.96 12.9–13.0−0.55wrong
Financial Strength14.8213.8714.90 14.8–15.0+1.04wrong
Production & Innovation14.9913.4514.52 14.4–14.6+1.07right
Trade & Investment15.6514.7513.06 13.0–13.1−1.69right

The history it was played under: shocks and events

  • 2008 · S02 × 0.8 The Lehman collapse and global credit freeze hit Italian banks, exports and small firms, triggering a deep recession.
  • 2009 · S07 × 0.5 The L'Aquila earthquake devastated central Italy, killing more than 300 people and displacing tens of thousands.
  • 2011 · S02 × 1.1 The euro-area sovereign debt crisis drove Italian government bond yields above 7 per cent, forcing emergency austerity and a technocratic government.
  • 2020 · S10 × 1.3 COVID-19 made Italy the first Western epicentre, overwhelming hospitals in Lombardy and prompting a prolonged national lockdown and deep economic contraction.
  • 2022 · S01 × 0.8 Russia's invasion of Ukraine and the resulting EU-Russia trade and energy rupture caused severe gas and electricity price shocks for Italian industry and households.

The pathway: what it prioritised, period by period

  • 1997–2001 · build · 5% each Italy pursued Maastricht convergence through deficit reduction, pension and public finance reforms and large privatisations to qualify for euro entry in 1999. (Fiscal Capacity & Public Finance, Monetary & Currency Capability, Financial System Depth & Access, Government Effectiveness & Public Administration)
  • 1997–2004 · buy · 2% each Italy procured Eurofighter Typhoon and renewed naval and amphibious capabilities through European defence industrial programmes. (Air Power, Maritime Power, Joint Command, Projection & Sustainment, Space, Aerospace & Defence Infrastructure)
  • 2001–2008 · build · 5% each Italy built the Alta Velocita high-speed rail network linking Turin, Milan, Florence, Rome and Naples and upgraded strategic road and port corridors. (Transport Infrastructure, Advanced Manufacturing, Economic Output & Productivity)
  • 2006–2013 · build · 2% each Successive digital agendas promoted broadband rollout, e-government services and digital literacy to close Italy's digital gap. (Communications & Digital Infrastructure, Digital & AI Competence, Technology Adoption & Diffusion, Government Effectiveness & Public Administration)
  • 2008–2014 · build · 5% each The global financial crisis and euro-area sovereign debt crisis forced bank recapitalisation, fiscal austerity and structural reforms under emergency governments. (Financial Stability & Crisis Management, Financial Regulation & Integrity, Fiscal Capacity & Public Finance, Economic Output & Productivity)
  • 2014–2019 · build · 2% each The Piano Industria 4.0 used hyper-depreciation and tax credits to boost investment in machinery, robotics and digital manufacturing technologies. (Advanced Manufacturing, Innovation & Commercialisation, Technology Adoption & Diffusion, Business Dynamism & Entrepreneurship, Digital & AI Competence)
  • 2015–2020 · partner · 2% each Italy responded to the Libya and Mediterranean migration crises through naval operations, coast guard reinforcement and EU-NATO security cooperation. (Maritime Power, Internal Security & Order, Alliances & Security Cooperation, Intelligence & Assessment)
  • 2020–2026 · build · 5% each The EU-funded National Recovery and Resilience Plan channelled about 235 billion euro into green transition, digitalisation, health resilience and infrastructure modernisation. (Energy Infrastructure, Communications & Digital Infrastructure, Health System Capability, Transport Infrastructure, Government Effectiveness & Public Administration)

Reconstruction notes (deepseek-v4-pro): The main uncertainties concern Italy's high-technology and defence-industrial scores, where nominal participation in programmes can overstate operational capability relative to 1996 frontier leaders. Governance and public-administration scores are especially sensitive to North-South regional variation, the informal economy and the long shadow of Tangentopoli. The mapping of the 2011 sovereign debt crisis and the 2022 energy shock to the event library is approximate but captures their severe national impact.

Report

Written from the simulation record by the loop's narrator. Every figure names the query it came from, in square brackets.

Batch cycle-003. Model 0.2.0, graph 0.2.0, parameters 0.1.1. 30 simulations, seeds 1 to 30; probes on 10. Every figure is a distribution over simulations of a structural model with seed parameter values; it shows what the model implies under these settings, not what will happen. Other nations are frozen at their 2026 ratings. No reconstructed historical data is used in this experiment.

Headline

Italy played 30 rounds from 1996 under the scripted method, with scripted events, 30 times. Its capability index moved from 14.51 to a median of 13.95 (−0.55), with 90 per cent of simulations between 13.93 and 13.99 [experiment_objectives].

Starting position

In 1996 the nation ranks 16 on the index against the frozen field, holds 0 of nine domains at Tier 1 and has a tier rank of 19. Its base income is 724 credits a year, calibrated so that its 2026 position is affordable with headroom for investment.

What was decided

A simulation spent a median of 2,464 credits on moves. The five groups that took most were Communications & Digital Infrastructure (build, 215 credits, 8.7 per cent); Government Effectiveness & Public Administration (build, 196 credits, 8.0 per cent); Transport Infrastructure (build, 194 credits, 7.9 per cent); Monetary & Currency Capability (build, 185 credits, 7.5 per cent); Financial System Depth & Access (build, 185 credits, 7.5 per cent) [experiment_decisions_by_group]. By mode: build 79 per cent, buy 20 per cent, partner 1 per cent [experiment_decisions_by_group]. Concentration of spending (HHI) had a median of 0.062, and the most repeated action appeared in 27 per cent of rounds.

The leading domain by period: rounds 1 to 5, Financial Strength; rounds 6 to 10, Strategic Infrastructure; rounds 11 to 15, Strategic Infrastructure; rounds 16 to 20, Production & Innovation; rounds 21 to 25, Strategic Infrastructure; rounds 26 to 30, Strategic Infrastructure [experiment_spend_by_period].

What the world did

A median simulation saw 5 shocks and 0 upside events. The most damaging per firing were S10 (30 firings in 30 simulations, −37.0 points each); S02 (60 firings in 30 simulations, −19.5 points each); S01 (30 firings in 30 simulations, −17.0 points each) [experiment_shocks].

The groups that lost most to shocks, per simulation: Labour & Employment −3.19; Investment Attraction & Projection −3.09; Trade Facilitation & Logistics −2.99; Fiscal Capacity & Public Finance −2.77 [experiment_shock_damage_by_group].

The edges that carried most change through the graph, per simulation: Fiscal Capacity & Public Finance to Social Infrastructure (+0.61 points); Fiscal Capacity & Public Finance to Force Generation & Mobilisation (+0.41 points); Fiscal Capacity & Public Finance to Transport Infrastructure (+0.38 points) [experiment_propagation_by_edge].

Where it ended

At 2026 the median rank is 18 (5th to 95th percentile 18 to 19), the median count of Tier 1 domains 2 (2 to 3) and the median tier rank 8; the resilient score, the mean score sum over simulations, is 1,018 [experiment_objectives].

Tier 1 probability changed most in: governance and integrity (0 to 100 per cent of simulations); strategic infrastructure (0 to 100 per cent of simulations) [experiment_tiers_by_round].

Why

Without shocks the index ends +1.140 higher on average, so the shocks cost about 1.140 index points [experiment_probe_attribution].

Holding instead of following this method changes the index by −1.524: that is the method's worth against doing nothing [experiment_probe_attribution].

Removing any single one of the five largest actions changes the index by between −0.022 and +0.048, for example 2005 build Transport Infrastructure (42 credits) [experiment_probe_attribution]. The largest actions by credits come late, when income is highest, and are rarely the most valuable.

Removing the largest shock of a simulation raises the index by +0.481 on average [experiment_probe_attribution].

The replay probe reproduces the simulations exactly (index change 0.000000), so the attributions are clean [experiment_probe_attribution].

Surprises

tier_jump (warn): largest gain in one domain within five years: 6 tiers (30 simulations above 2); tiers are reported, not an objective.

retired_words (warn): e4-ita/report.md: 'simulations' 1 time(s), first near line 39; use 'simulations'.

The simulation furthest from the median (seed 7) ends +0.05 from it, with 5 shocks and 0 upside events [experiment_outlier_simulations].

Comparison

This is the baseline (hold) experiment, or there is none for this nation in the batch.

Against history: from a reconstructed index of 14.51 the model ends at 13.96, where the 2026 ratings put it at 13.72. Group scores miss by 1.78 points on average, against 1.10 for assuming nothing changed (skill −0.62); the change in each domain has the right sign in 33 per cent of domains. Furthest below history: trade and investment (−1.69); furthest above: strategic infrastructure (+1.80) [experiment_against_history]. The starting position is reconstructed, so part of the error is the reconstruction's.

What each decision and shock was worth

Counterfactual probes on the first 10 seeds: the same simulations with one thing changed, paired seed by seed. A removed decision or shock is taken out and the other decisions replayed unchanged, so the difference is that item's worth.

ProbeIndexScore sumTier 1For example
Hold instead of the method−1.524−108.4−2.30
No shocks+1.141+76.3+0.70
Replay of the recorded actions (must change nothing)0.0000.00.00
Without the 1st largest decision−0.022−1.4−0.302005 build Transport Infrastructure (42 credits)
Without the 2nd largest decision+0.002+0.2−0.202003 build Transport Infrastructure (41 credits)
Without the 3rd largest decision+0.048+3.4+0.102002 build Transport Infrastructure (40 credits)
Without the 4th largest decision+0.003+0.1+0.702002 build Advanced Manufacturing (40 credits)
Without the 5th largest decision+0.011+0.9+0.802021 build Energy Infrastructure (40 credits)
Without the 1st largest shock+0.481+32.7+1.802020 S10 (-36.9 points)
Without the 2nd largest shock+0.198+13.7+0.802011 S02 (-23.1 points)
Without the 3rd largest shock+0.279+19.7+0.702022 S01 (-17.0 points)

Simulations

Three simulations told round by round, each on its own page: the one nearest the median index at the horizon, and those nearest the 10th and the 90th percentile. Every one of the 30 is listed with its outcome on the simulations page.

All 30 simulations

Events

How often each shock and upside event began across the simulations. Shocks come from the ten downside scenarios and upside events from the ten upside ones, at their yearly likelihood.

Event
Kind
Simulations
Mean round
Points
Trade bloc rupture S01Shock100 per cent26.0−17.0
Global funding seizure S02Shock100 per cent13.5−19.5
Core disaster S07Shock100 per cent13.0−9.1
Severe pandemic S10Shock100 per cent24.0−37.0

Groups across simulations

Every capability group: its position, and its median and spread at the horizon across the simulations, with what the method spent on it.

73 of 73 groups

Capability group
Domain
1996
2026
Change
Levels invested
Credits
Government Effectiveness & Public AdministrationGovernance & Integrity13.9218.74 18.67 to 18.82+4.826.82196
Technology Adoption & DiffusionProduction & Innovation14.7018.66 18.54 to 18.74+3.965.28107
Digital & AI CompetenceHuman Capital13.3917.03 16.51 to 17.55+3.644.3251
Transport InfrastructureStrategic Infrastructure15.3518.96 18.84 to 19.05+3.615.17194
Energy InfrastructureStrategic Infrastructure13.8217.05 16.90 to 17.12+3.234.23169
Communications & Digital InfrastructureStrategic Infrastructure16.3119.54 19.52 to 19.57+3.234.29215
Fiscal Capacity & Public FinanceFinancial Strength13.2616.15 16.09 to 16.22+2.895.67185
Air PowerNational Security15.7218.51 18.47 to 18.56+2.793.25123
Joint Command, Projection & SustainmentNational Security15.9118.70 18.64 to 18.76+2.793.10123
Maritime PowerNational Security17.0819.10 19.07 to 19.13+2.022.47139
Space, Aerospace & Defence InfrastructureStrategic Infrastructure16.7018.67 18.61 to 18.73+1.972.56123
Advanced ManufacturingStrategic Infrastructure17.2919.11 19.07 to 19.14+1.822.79162
Financial System Depth & AccessFinancial Strength15.9517.60 17.58 to 17.62+1.654.51185
Innovation & CommercialisationProduction & Innovation15.3716.60 16.56 to 16.71+1.232.9779
Monetary & Currency CapabilityFinancial Strength16.4517.33 17.25 to 17.41+0.884.04185
Health System CapabilityHuman Capital16.1617.00 16.89 to 17.16+0.842.0698
Force Generation & MobilisationNational Security12.8512.71 12.60 to 12.81−0.140.000
Nuclear DeterrenceNational Security3.753.51 3.50 to 3.51−0.240.000
Business Dynamism & EntrepreneurshipProduction & Innovation14.9914.60 14.01 to 15.02−0.391.2727
Social InfrastructureStrategic Infrastructure16.0815.64 15.48 to 15.81−0.440.000
Internal Security & OrderGovernance & Integrity12.6812.23 12.19 to 12.26−0.450.6716
Water, Sanitation & Waste InfrastructureStrategic Infrastructure14.4113.93 13.82 to 14.05−0.480.000
Land PowerNational Security14.1413.61 13.57 to 13.63−0.530.000
Space OperationsNational Security13.5513.02 12.96 to 13.08−0.530.000
Cyber & Electromagnetic OperationsNational Security13.4612.89 12.85 to 12.96−0.570.000
Strategic Strike & Missile DefenceNational Security11.6611.03 11.01 to 11.06−0.630.000
Intelligence & AssessmentNational Security15.0214.37 14.34 to 14.41−0.650.000
National Resilience & Crisis ManagementGovernance & Integrity15.6214.96 14.80 to 15.10−0.660.000
Advanced EducationHuman Capital14.3113.57 13.51 to 13.61−0.740.000
Research Talent & Knowledge CreationHuman Capital15.1814.39 14.32 to 14.43−0.790.000
Economic Output & ProductivityProduction & Innovation15.0414.21 14.15 to 14.29−0.831.3330
Technical & Vocational SkillsHuman Capital14.5613.66 13.65 to 13.68−0.900.000
Lifelong Learning & ReskillingHuman Capital11.6110.70 10.68 to 10.73−0.910.000
Early Childhood DevelopmentHuman Capital16.8015.82 15.79 to 15.87−0.980.000
Public Integrity & Anti-CorruptionGovernance & Integrity11.7310.75 10.71 to 10.80−0.980.000
Foundational EducationHuman Capital14.5513.56 13.50 to 13.63−0.990.000
Regulatory Governance & Strategic ControlsGovernance & Integrity13.2912.28 12.25 to 12.32−1.010.000
Agriculture & Food InfrastructureStrategic Infrastructure14.6613.63 13.61 to 13.66−1.030.000
Political Institutions & Civic ParticipationGovernance & Integrity12.6811.65 11.62 to 11.66−1.030.000
Transparency, Oversight & AccountabilityGovernance & Integrity12.8011.77 11.76 to 11.79−1.030.000
Justice System & Fundamental RightsGovernance & Integrity12.3211.28 11.26 to 11.29−1.040.000
Financial Stability & Crisis ManagementFinancial Strength15.8314.73 14.67 to 14.77−1.101.5639
Space TechnologiesCritical Technology14.5813.45 13.40 to 13.50−1.130.000
Alliances & Security CooperationInformation & Influence16.3415.12 14.97 to 15.29−1.220.182
Resource InfrastructureStrategic Infrastructure12.2911.06 11.01 to 11.16−1.230.000
Connectivity, Cyber & Trust TechnologiesCritical Technology12.9811.72 11.70 to 11.74−1.260.000
Population HealthHuman Capital16.1814.91 14.88 to 14.94−1.270.000
Development Cooperation & Global AssistanceInformation & Influence13.0911.81 11.75 to 11.85−1.280.000
Financial InfrastructureStrategic Infrastructure16.3215.02 14.98 to 15.06−1.300.000
Robotics & Autonomous SystemsCritical Technology14.6513.33 13.28 to 13.40−1.320.000
Quantum TechnologiesCritical Technology10.629.28 9.25 to 9.30−1.340.000
Diaspora & Global CommunitiesInformation & Influence15.3713.99 13.99 to 14.01−1.380.000
Energy TechnologiesCritical Technology12.1610.78 10.75 to 10.81−1.380.000
Artificial IntelligenceCritical Technology12.4311.04 10.98 to 11.08−1.390.000
Sensing, Timing & NavigationCritical Technology13.4912.10 12.06 to 12.12−1.390.000
Culture, Language & Education DiplomacyInformation & Influence17.8516.43 16.41 to 16.44−1.420.000
Semiconductors & Advanced ComputingCritical Technology12.5511.03 11.00 to 11.08−1.520.000
Advanced Materials & ManufacturingCritical Technology15.0013.46 13.44 to 13.49−1.540.000
Financial Regulation & IntegrityFinancial Strength15.0413.35 13.15 to 13.58−1.690.7817
Diplomatic Statecraft & Global NetworksInformation & Influence15.0313.32 13.31 to 13.34−1.710.000
Digital & Services TradeTrade & Investment16.2914.51 14.40 to 14.59−1.780.000
Industrial & Sectoral BaseProduction & Innovation16.9815.04 14.97 to 15.08−1.940.000
Structural Transformation & ComplexityProduction & Innovation14.7912.76 12.74 to 12.82−2.030.000
Information Environment & Strategic CommunicationInformation & Influence14.8812.84 12.80 to 12.86−2.040.000
Sovereign Capital & External Financial PowerFinancial Strength12.3710.26 10.23 to 10.30−2.110.000
Biotechnology & Health TechnologiesCritical Technology13.1610.95 10.93 to 10.97−2.210.000
Trade Facilitation & LogisticsTrade & Investment14.9212.55 12.41 to 12.72−2.370.000
Global Value Chain PositionTrade & Investment17.3214.71 14.64 to 14.75−2.610.000
Trade Policy & Market AccessTrade & Investment15.7313.09 13.05 to 13.13−2.640.000
Export Capability & SophisticationTrade & Investment16.7814.04 14.00 to 14.12−2.740.000
Economic Leverage & DependenceTrade & Investment14.4111.64 11.56 to 11.70−2.770.000
Investment Attraction & ProjectionTrade & Investment14.0910.89 10.86 to 10.93−3.200.000
Labour & EmploymentProduction & Innovation13.059.75 9.73 to 9.77−3.300.000

Checks

The automated checks run on this experiment before anything was written about it. A warning is a candidate finding for the improvement loop.

  • passcredits_conservedlargest gap between credits in and credits accounted for: 7.1e-14
  • passscores_in_boundsscores range 3.500 to 20.000
  • passno_nans0 missing values in the trajectory and objectives
  • passprobe_replay_reproducesthe recorded moves played back reproduce the simulation to within 0.0e+00 points (10 simulations)
  • passledger_balancesthe edge ledger sums to the propagated change to within 1.7e-06 points
  • passmove_without_shocklargest one-year move in a group with no shock landing: 1.36 points; 0% of simulations have one above 3
  • warntier_jumplargest gain in one domain within five years: 6 tiers (30 simulations above 2); tiers are reported, not an objective
  • passall_tier1_from_outside_top10starting rank 16; 0 simulations reach Tier 1 in all nine domains
  • passsaturation_high0% of simulations end with a group at 20 that did not start there (median 0 groups)
  • passsaturation_low0% of simulations end with a group at 0 that did not start there (median 0 groups)
  • passspend_concentrationmedian concentration of spending across groups (HHI) 0.062; most funded group hard.strategic_infrastructure.communications_and_digital_infrastructure
  • passsame_actionthe most repeated move (group and mode) appears in a median 27% of rounds
  • passregression_index_p50index_p50 moved 4.1% since cycle-002 (14.55 to 13.95); versions changed (0.1.0 to 0.1.1, graph 0.2.0 to 0.2.0)
  • passregression_score_sum_p50score_sum_p50 moved 3.7% since cycle-002 (1055.97 to 1017.39); versions changed (0.1.0 to 0.1.1, graph 0.2.0 to 0.2.0)

Settings and versions

Experiment cycle-003.e4-ita. Every simulation records the model, graph and parameter versions, the scenario, the method and its seed, so it can be reproduced exactly.

Nation
Italy (ITA)
Position
A reconstructed 1996 position, aligned to the Index's scale
Method
Scripted. Actions fixed in advance by the experiment: for a backcast, the nation's historical pathway.
Scenario
Scripted events: Global funding seizure in year 12, Core disaster in year 13, Global funding seizure in year 15, Severe pandemic in year 24, Trade bloc rupture in year 26
Objective
Capability index, the primary objective the experiment is judged on; every other objective is reported beside it
Horizon
30 rounds, 1996 to 2026
Simulations
30 seeds, 1 to 30. Every method in the batch faces the same draws for the same seed.
Graph elasticities
Drawn for each simulation, uniformly within each edge’s bracket
Income
Base credits 724.3 a round, moving with the economic groups
Versions
Model 0.2.0, Capability Dependency Graph 0.2.0, parameters 0.1.1
Batch
Backcast 1996-2026 (cycle-003), cycle 3 of the improvement loop
Runtime
7.0 seconds in all; 1765 microseconds a round
Not a forecast
Every figure is a distribution over the simulations of a structural model, reported to compare methods and test the model. None is a prediction of what a nation will do or become.
Structural parameters
Costs, decay, vulnerability and credits are structural seed values with low or medium confidence, set by domain with single-group exceptions. Five groups have no defensible value in a single-nation model and are flagged in the parameter tables.
Other nations are frozen
One nation is simulated at a time. Every other nation stays at its 2026 rating, so rank and tiers are measured against a still field; where the simulated nation rises past others their own tiers are not re-sorted.
Starting depth and mode are defaults
The position is the National Capability Index ratings. How institutionalised each capability is, and how much was built, bought or partnered, have no data behind them yet and start from structural defaults.
Credits are calibrated, not measured
Each nation’s income is set so that its position is affordable with headroom that rises with its fiscal capacity. It is not yet fiscal capacity as a share of GDP.