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Italy: dependence and political fragmentation

Published online by Cambridge University Press:  22 May 2009

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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119 Ibid., pp. 96–97.

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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.

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