Hostname: page-component-7479d7b7d-c9gpj Total loading time: 0 Render date: 2024-07-14T02:54:26.213Z Has data issue: false hasContentIssue false

Italy: dependence and political fragmentation

Published online by Cambridge University Press:  22 May 2009

Get access

Abstract

Italy's political economy is characterized by international weakness and internal fragmentation and polarization. Since 1947, Italy's foreign economic policies have been defined by a broadly-based political and social coalition dominated by the Christian Democratic party (DC). This coalition has incorporated or maintained close links with ministerial bureaucracies, the Bank of Italy, state-controlled industrial and commercial enterprises, large corporations, and Catholic trade unions. It has attempted to foster a postwar climate receptive to business interests and to foreign investment; one which would facilitate the maintenance of a stable domestic political and social order. At the same time, the DC coalition is so fragmented by factionalism and personal competition that economic policy making has lacked direction and has been marked by personalism and by improvisation. Italian policy makers operate in a precarious environment in that they must use political and economic weaknessin order to mobilize the international assistance needed to maintain the internal social order as well as external economic survival.

Type
Research Article
Copyright
Copyright © The IO Foundation 1977

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

1 This essay is, in part, based on a larger study of Italy's Atlantic policies which focused on the interaction between Italy's external policy and its domestic politics and political culture. This earlier study included interviews in Rome and in Brussels with parliamentarians, party publicists, diplomats and government functionaries, interest group representatives, journalists, and scholars. Peter Katzenstein's advice and suggestions were invaluable to me in preparing this essay and I am grateful for Peter Lange's comments on an earlier draft.

2 For references to general Italian foreign policy, see for instance Bonanni, Massimo, ed., La Politico Estera dello Republica Italiana, 3 vols. (Milan: Edizioni di Comunitá, 1967)Google Scholar, Vannicelli, Primo, Italy, NATO, and the European Community (Cambridge, Massachusetts: Harvard University Center for International Affairs, 1974)Google Scholar, and Willis, F. Roy, Italy Chooses Europe (New York: Oxford University Press, 1971)Google Scholar.

3 Bo, Dino Del, “La Componente Economica,” in Inchiesta sulla Politico Estera Italiana, Bo, Dino Del et al. , (Rome: Lerici, 1970), pp. 2930Google Scholar.

4 On ENI corruption, see for instance Statera, Alberto, “EN1/Che Cosa Trova il Nuovo Presidente: Un Cane con Sei Zampe nel Pantano,” L'Espresso Vol. 21, No. 31 (3 08 1975): 6063Google Scholar.

5 Segre, Umberto, “Atlantismo e Neutralismo nella Politica Estera Italiana,” in Bonanni, , Vol. 2, p. 570Google Scholar.

6 Del Bo in Del Bo etal., pp. 17–18.

7 Kaiser, Karl, “Le Relazioni Transnazionali,” in II Caso Italiano, Cavazza, Fabio Luca and Graubard, Stephen R., eds., 2 vols. (Milan: Aldo Garzanti, 1974), Vol. 2, p. 404Google Scholar.

8 Economist (London), 31 01 1976, p. 81Google ScholarPubMed.

9 Turner, Louis, “The European Community: Factors of Disintegration. Politics of the Energy Crisis,” International Affairs (London) Vol. 50, No. 3 (07 1974): 408–09Google Scholar.

10 Merlini, Cesare, “Italy in the European Community and the Atlantic Alliance,” The World Today Vol. 31, No. 4 (04 1975): 164Google Scholar.

11 “Italian Debt: A Lot of Interest,” Economist (London), 20 09 1975, pp. 97, 99Google ScholarPubMed.

12 Political and Economic Developments,” Economic News from Italy Vol. 30, No. 37 (09 12, 1975): 12Google Scholar. See also De Cecco, Marcello, “Italy's Payments Crisis: International Responsibilities,” International Affairs (London) Vol. 51, No. 1 (01 1975): 5, 9Google Scholar.

13 Kindleberger, Charles P., “Economia al Bivio,” in Cavazza and Graubard, pp. 254–55Google Scholar.

14 Earle, John, Italy in the 1970s (Newton Abbot, Devon: David Charles, 1975), p. 134Google Scholar.

15 Italy's preeminent Christian Democratic Party (DC) has provided every premier and many key economic ministers since 1945. Since 1964 (with one brief exception), Italian governments have been either Center-Left coalitions (DC, the major Socialist party, PSI, Social Democrats, and Republicans) or stopgap governments of the DC and one other party, or a DC minority government which stays in office as the result of PSI (and lately PCI) abstention or support.

16 See for example Shuster, Alvin, “Italy Seeks Help to Bolster Lira,” New York Times, 01 23, 1976, pp. 1, 43Google Scholar.

17 See “New Ways to Pay for Oil Imports,” Business Week, September 7, 1974, pp. 22–23, as well as Merlini, pp. 164–65. For an estimate of the benefits that might follow from PCI inclusion, see Lange, Peter, “What Is To Be Done–About Italian Communism,” Foreign Policy No. 21 (Winter 19751976): 239Google Scholar.

18 This kind of contradictory politico-economic goal formulation is not unknown to analysts of American foreign policy. For much of the 1950s and 1960s, it was apparent that in observing the development of new and poor countries, American policy makers wanted and expected simultaneous economic progress and political stabilization. See Heilbroner, Robert, “Counter-revolutionary America,” in A Dissenter's Guide to Foreign Policy, Howe, Irving, ed., (Garden City: Doubleday Anchor, 1968), pp. 253–59Google Scholar.

19 This section owes a great deal to the suggestions of Peter Katzenstein and Peter Lange.

20 On DC factions, see also Zariski, Raphael, “Intra-Party Conflict in a Dominant Party: The Experience of Italian Christian Democracy,” The Journal of Politics Vol. 27, No. 1 (02 1965): 1934Google Scholar. On clientelism in Italy, see for instance Graziano, Luigi, “Patron-Client Relationships in Southern Italy,” European Journal of Political Research 1 (1973): 334Google Scholar.

21 In the late 1940s, these two groups were often called, respectively, “Gronchiani” (after Giovanni Gronchi who later became President of Italy) and “Dossettiani” (after the intellectual, Giuseppe Dossetti). More recently, these factions have been the labor-oriented Forze Nuove and the political Left Base.

22 Zuckerman, Alan, “Political Clienteles in Power: Party Factions and Cabinet Coalitions in Italy,” Sage Professional Papers in Comparative Politics 5, Series No. 01–055 (Beverly Hills and London: Sage Publications, 1975), pp. 34 ffGoogle Scholar.

23 Socialist Party (SPI) acceptance of this system of ground rules and rewards was at the heart of the Opening to the Left in the early 1960s when the PSI took a share of national political power.

24 Allum, P.A., Italy-Republic Without Government (New York: Norton, 1973), p. 247Google Scholar.

25 “overcome and deprive of authority the very numerous small and large agencies through which the Italian political class is accustomed to distribute public funds in the form of sectoral and corporative grants and appropriations that are perhaps not functional in terms of development goals but that are very useful for the administration of electoral clienteles.” (Author's translation.) Giuseppe Are, “L'ltalia nella Politica Internazionale,” reprint from II Mulino (November–December 1973): 18.

26 On how the public enterprises are part of the DC coalition, see for instance Shonfield, Andrew, “L'Impresa Pubblica: Modello Internazionale o Specialità Locale?” in Cavazza and Graubard, Vol. 2, pp. 271–74Google Scholar.

27 See Watson, Michael, “Conclusion,” in Planning, Politics and Public Policy, Hayward, Jack and Watson, Michael, eds., (Cambridge, England: Cambridge University Press, 1974), p. 448Google Scholar.

28 On the policies of this period, see Allum, p. 246, Edelman, Murray and Fleming, R. W., The Politics of Wage-Price Decisions: A Four-Country Analysis (Urbana, III.: University of Illinois Press, 1965), p. 65Google Scholar, Allen, Kevin and Stevenson, Andrew, An Introduction to the Italian Economy (London: Martin Robertson, 1974), p. 168Google Scholar, and Kindleberger, Charles P., Europe's Postwar Growth (Cambridge, Mass.: Harvard University Press, 1967), p. 40Google Scholar.

29 To the extent that, especially until the early 1960s, a system of national collective bargaining was the norm in Italy, even labor had to look to the DC-dominated coalition governments for decisions. These relationships will be discussed below.

30 The first President of the Republic was Einaudi himself (1948–1955). With theexception of the Social Democrat, Saragat, (1965–1972), other Presidents have been Christian Democrats. The Bank of Italy will be discussed further below.

31 Allum, p. 246.

32 Ibid., p. 248. A 1962 EEC study said that central banks are especially important in Italy and in France. Cited in Edelman and Fleming, p. 17.

33 See Zariski, Raphael, Italy: The Politics of Uneven Development (Hinsdale, III.: Dryden Press, 1972), p. 257Google Scholar.

34 Edelman and Fleming, pp. 16–17.

35 Ibid., pp. 16, 65.

36 Allen and Stevenson, p. 164.

37 Ibid., pp. 165–67.

38 Edelman and Fleming, p. 65.

39 Ibid, pp. 68–69. This helped set the stage for significantwage increases in 1962.

40 Ibid., pp. 67–68, and Alien and Stevenson, p. 169.

41 Willis, p. 76.

42 Allen and Stevenson, pp. 168–70. See also Edelman and Fleming, p. 68.

43 Allen and Stevenson, p. 171.

44 Scalfari, Eugenio, “Parla Caili: Come Lascio la Lira,” L'Espresso Vol. 21, No. 32 (10 08 1975): 59Google Scholar.

45 See, for instance, “Raising the Eurowind,” Economist (London), 24 08 1975, pp. 5152Google ScholarPubMed.

46 De Cecco, p. 9.

47 Details about IRI and ENI may be found in Posner, M.V. and Wolfe, S. J., Italian Public Enterprise (London: Gerald Duckworth, 1967)Google Scholar.

48 See again Shonfield in Cavazza and Graubard, pp. 211–74.

49 Ibid., p. 286.

50 Ibid., p. 270, and OECD, Economic Surveys: Italy (Paris: OECD, 11 1972), p. 74Google ScholarPubMed.

51 OECD, Economic Surveys:Italy (Paris: OECD, 01 1975), p. 34Google ScholarPubMed.

52 Shonfield in Cavazza and Graubard, p. 286, and Edelman and Fleming, p. 19.

53 Pasquino, Gianfranco and Pecchini, Umberto, ”Italy,” in Hayward, and Watson, , pp. 7374, 85Google Scholar.

54 See Hayward, Jack, “National Aptitudes for Planning in Britain, France, and Italy,” Government and Opposition Vol. 9, No. 4 (Autumn 1974): 409CrossRefGoogle Scholar.

55 See Shonfield, Andrew, Modern Capitalism (London: Oxford University Press, 1965), p. 197Google Scholar.

56 Statera, pp. 60–62.

57 There is a significant strain of Catholic and Marxian technocracy in Italy that believes that public enterprise is more ethical and just than private.

58 Shonfield, , Modem Capitalism, pp. 196–97Google Scholar.

59 See the unsigned article in L'Espresso Vol. 21, No.31 (3 08 1975): 59Google Scholar.

60 Leo Sisti, “Giolitti: C'è una Sola Cosa da Fare: Pulizia,” in ibid., p. 61.

61 Nichols, Peter,Italia, Italia (Boston: Atlantic Monthly Press, 1973), p. 153Google Scholar.

62 Kaiser, in Cavazza and Graubard, pp. 410–11.

63 Interview No. 1.

64 Kaiser, in Cavazza and Graubaid, p. 409.

65 , G.S., “L'Aiuto Italiano ai Paesi in Via di Sviluppo,” Affari Esteri Vol. 2, No. 8 (10 1970): 161Google Scholar, and Rezzara, Centro Studi N. of Vicenza, “It Contributo Italiano ai Paesi in Via di Sviluppo” (Vicenza, ca. 1970, offset), pp. 320. The small Italian Radical Party complains that the Church performs too many functions at home as well that should be the responsibility of the stateGoogle Scholar.

66 Bonanni, Massimo, “Nuovi Operatori di Politica Internazionale,” Bonanni, , Vol. 3, p. 695Google Scholar.

67 Kaiser, in Cavazza and Graubard, p. 411, and Kogan, Norman, The Politics of Italian Foreign Policy (New York: Praeger, 1963), p. 90Google Scholar.

68 Del Bo in Del Bo et al., pp. 17–18.

69 On political culture as “operative ideals,” see Bluhm, William T., Ideologies and Attitudes: Modem Political Culture (Englewood Cliffs, N.J.: Prentice-Hall, 1974), pp. xixiiGoogle Scholar, and Beer, Samuel, British Politics in the Collectivist Age (New York: Random House-Vintage, 1969), pp. xiixiiiGoogle Scholar.

70 Guidi, Roberto, “Gli Strumenti,” in Bo, Del et al. , p. 65Google Scholar.

71 Interviews No. 20, 4, and 14.

72 Silvestri, Stefano, “II Dibattito sulla NATO in Italia,” Lo Spettatore Internazionale Vol. 3, No. 1 (0102 1968): 133–34Google Scholar. In this case, “irenic” refers to an orientation toward peace.

73 For references to this position, see Hoffmann's, Stanley Foreword to Vannicelli, pp. ixxGoogle Scholar, and Hoffmann, , “Pranzo a Tre sulla Politica Estera Italiana,” in Cavazza, and Graubard, , pp. 393–94Google Scholar.

74 Ortigosa, Emanuele Ranci, “Imperialismo, NATO, e Paesi Europei,” Relazioni Sociali Vol. 10, Nos. 7–8 (0708 1970): 478–79, 494Google Scholar.

75 Bonanni in Bonanni, pp. 688–89.

76 Del Bo in Del Bo et al., pp. 15–16.

77 See Farnsworth, Clyde, “Shaky Europe Looks to the Summit for Aid,” The New York Times, 11 14, 1975, p. 10Google Scholar.

78 The practice of using the Bank of Italy permits further reduction of accountability on the grounds that the Bank is technical and not political.

79 Zariski, , Italy, p. 38Google Scholar. France was second with 16.6 percent.

80 Willis, p. 88.

81 Ibid., pp. 88, 130.

82 Ibid., p. 88.

83 OECD statistics.

84 Willis, p. 147.

85 Are, p. 22.

86 Willis, pp. 88–89.

87 Merlini, p. 163.

88 “Italy and Its Partners: A Case Study in International Crisis: Conference Discussion,” International Affairs (London) Vol. 51, No. 1 (01 1975): 16Google ScholarPubMed.

89 See for instance Vannicelli, pp. 28–29 on how Italy has not been a reliable Community partner. See also Puchala, Donald J., “Domestic Politics and Regional Harmonization in the European Communities,” World Politics Vol. 27, No. 4 (07 1975): 504–06, 511CrossRefGoogle Scholar.

90 From Foreign Ministry staff newsletters of 1970.

91 A member of the American Mission to the European Community found this rather strange since he said that young American Foreign Service officers liked to be assigned to those kinds of missions in that the work seemed more concrete than in traditional diplomatic posts.

92 Del Bo in Del Bo et al., p. 16.

93 Graziano, Luigi, La Politico Estera Italiana nel Dopuquerra (Padova: Marsilio, 1968), p. 41Google Scholar.

94 Willis, pp. 184, 187.

94 Nichols, p. 153.

96 Interview No. 25. Italian diplomats and those from other countries at NATO headquarters reported analogous features. Interviews No. 26, 24, and 45.

97 Quaroni, Pietro, “La Diplomazia,” in Bo, Del et al. , pp. 124–25. Interview No. 20Google Scholar.

98 Willis, p. 79.

99 Newhouse, John, Collision in Brussels (New York: Norton, 1967), pp. 6970Google Scholar. There are some who feel that, all things considered, Italy has not done too badly in European agricultural negotiations. If this is thecase, some Italian diplomats believe that it is due to diplomacy by improvisation. In this connection, Pietro Quaroni has noted that “La furberia e l'abilità hanno i loro limiti.” (Slyness and ability have their limits.) See Quaroni in Del Bo et al., p. 130.

100 Peter Lange has suggested that PCI inclusion may make for a more assertive foreign policy. See Lange, p. 239.

101 Del Bo in Del Bo et al., p. 14.

102 See for instance ibid., p. 19.

103 See for instance ibid., p. 13 and Carandini, Niccolò, “Purga a Palazzo Chigi,” Il Mondo Vol. 210, No. 47 (25 11 1958): 1Google Scholar.

104 Kindleberger, . urope's Postwar Growth, p. 36Google Scholar. See also Hayward, Jack, “Editorial Foreword” to Mariani, Isidore Franco, “Incomes and Employment Policies in Italian Economic Planning,” in Hayward and Watson, p. 202Google Scholar.

105 Zariski, , Italy, p. 262Google Scholar, and Hayward, , “Editorial Foreword,” in Hayward, and Watson, , p. 202Google Scholar.

106 See for instance Zariski, , Italy, p. 66Google Scholar, andHayward, , “Editorial Foreword,” in Hayward, and Watson, , p. 202Google Scholar.

107 Hayward, , “Editorial Foreword,” in Hayward, and Watson, , p. 202Google Scholar.

108 Quoted in ibid.

109 Ibid.

110 Kindleberger, , Europe's Postwar Growth, p. 41Google Scholar.

111 Hayward, , “Editorial Foreword,” in Hayward, and Watson, , p. 203Google Scholar.

112 Ibid.

113 Kindleberger, , Europe's Postwar Growth, p. 40Google Scholar, and “Economia al Bivio” in Cavazza, and Graubard, , p. 244Google Scholar.

114 See Are, p. 21.

115 Bank of Rome, “Two Months of Economic Activity in Italy,” Review of the Economic Conditions in Italy Vol. 29, No. 6 (11 1975): 556Google Scholar. GuidoCarli has maintained that the mid-1975 improvement in Italy's balance-of-payments position was due to a reduction of imports which followed from reduced productivity in Italy. See Scalfari, p. 60.

116 Merlini, p. 164, and Turner, p. 409.

117 Other figures for individual countries are: Netherlands,–16 percent; Germany, –12 percent; France, –7 percent; Britain, –1 percent. See Prodi, Romano and Clô, Alberto, “Europe,” in “The Oil Crisis: InPerspective,” Vernon, Raymond et al. , Daedalus Vol. 104, No.4 (Fall 1975): 101Google Scholar.

118 Ibid., pp. 102–04.

119 Ibid., pp. 96–97.

120 See the remarks by Palombara, Joseph La quoted in Corbi, Gianni, “PCI/La Nuova Strategia: Dear Jerry, Carissimo Enrico,” L'Espresso Vol. 21, No. 34 (24 08 1975): 1011Google Scholar.

121 There were left-wing Socialist elements in Italy in the late 1940s who maintained that Italy could be radically Socialist (but not Stalinist or pro-Russian) and would not haveto join an American bloc in order to receive American economic assistance. They felt that the United States would be more interested in an Italy that was strong and stable than in fostering a conservative and volatile client state.

122 The Communities and the Italian Measures,” European Communities Bulletin Vol. 7, Nos. 7–8 (0708 1974): 19Google Scholar, and “EEC Economies: Hanging Separately,” Economist (London), 10 08 1974, p. 52Google Scholar.

123 “Raising the Eurowind,” p. 51.

124 “Harold Is Turning into Europe's Invisible Man,” Economist (London), 7 09 1974, pp. 6364Google ScholarPubMed.

125 Merlini, p. 164.

126 Political and Economic Developments,” Economic News From Italy Vol. 31, No. 36 (3 09 1976): 1Google Scholar. See also “Gold: Flexible Descent,” Economist (London), 18 09 1976, p. 77Google Scholar. Another observer has maintained that instead of new collateral, the Germans wanted trade concessions: a decrease in Italian exports to Germany and an increase in German exports to Italy. He noted, however, that the Germans could not press the Italians toohard since they wanted to keep the Italian government stable. See “Italy: Gold is the Snag in Debt Rollover,” Business Week, September 13, 1976, p. 47.

127 “New Ways to Pay for Oil Imports,” pp. 22–23.

128 Merlini, p. 165.

129 “New Ways to Pay for Oil Imports,” p. 23.

130 “Italy: The Silent Ones,” Economist (London), 14 09 1974, p. 46Google ScholarPubMed.

131 “U.S. Concedes It Discussed a Ban on Loans to Italians,” New York Times, August 5, 1976, p. 7.

132 De Cecco, p. 10.

133 Schelling, Thomas C., Strategy of Conflict (New York: Oxford University Press, 1963), p. 23Google Scholar, also p. 37 on “coercive deficiency” and p. 196 on “rocking the boat”; and his Arms and Influence (New Haven: Yale University Press, 1966), pp. 100, 118, 121Google Scholar.

134 Hoffmann, Stanley, “Groping Toward a New World Order,” New York Times, 01 11, 1976, Section 4, p. 1Google Scholar.