the Economist has published an article on the impact of the sport’s economics on the game internationally.
They oversimplify the situation, however, in suggesting that the “Big 8” (the old 5 Nations and the 3 southern hemisphere powerhouses) are all in the same boat. In fact, the top 5 nations have run away from Scotland, Ireland, and Wales (although Wales was uncharacteristically strong this year), while Argentina has unquestionably caught up with those Celtic nations. And for Japan to be included as a so-called “middle-tier” team above Samoa, Canada, and Italy is a bit strange.
In the case of Argentina, their improvement seems to be the exception that proves the rule. Italy’s rise is clearly associated with their inclusion in the 6 Nations, while conversely Canada’s (and others’) relative backsliding can be attributed to a lack of equivalent competition on a regular, meaningful basis.
The simplest solution would just be to re-work the Six Nations and have a playoff among four or five of the stronger teams to decide who will take Italy’s “new” slot in the tournament each year. In any case, Rugby is a great sport for the sheer joy of the game, but it’s also interesting in terms of its economic and geopolitics!