Italy 1990–2014: the transition that never happened

This introduction explains how the contributors to this special issue draw on interdisciplinary approaches to explain why after 1992–94 Italy never experienced a true transition and why the crisis has become systemic, affecting the entire Italian political, economic, financial and institutional system with far-reaching consequences for Italian society and its future.     

The Italian welfare state after the financial crisis

The essential characteristics of the Italian welfare state as it developed after the Second World War generated social cleavages and inequities that affected the Italian economy and provided grist for future reforms. At the same time, the welfare state provided political actors with incentives and resources that constrained attempts at reform. With the financial crisis beginning in 2008, serious reform was no longer optional. But austerity politics have generated pressures for changes to the welfare state which are unlikely to moderate most of the underlying inequities generated by the post-war system. Going forward, Italian policymakers must chart a path that is informed by efforts to overcome the pathologies of the past without further undermining the social and economic health of the country.     

The Eurozone crisis and Italian corporate governance: the end of blockholding?

This article explains the process of change in domestic corporate governance. An actor-centred coalitional approach is applied to the Italian case to show how the main features of domestic corporate governance are a product of behavioural patterns (i.e. informal institutions), rather than formal legislation. Leveraging their superior financial means, business elites act as institutional incumbents shaping these informal institutions according to their preferences. It is argued that a change in corporate practices is more likely to be triggered by a socio-economic crisis, which weakens the domestic elite’s influence, rather than a legal reform. These findings call into question the excessively formalistic approach of many corporate governance scholars, and are confirmed by the Italian trajectory. After having resisted 20 years of liberalising legal reforms aimed at eroding their power, Italian blockholders are now being forced, as a consequence of the Eurozone sovereign debt crisis, to dismantle their cross-shareholding networks.     

Between containment,confinement and dispersal: the evolution of the Italian reception system before and after the ‘refugee crisis’

In this article, I will analyse how the Italian reception system has been transformed after the ‘refugee crisis’, showing how the change cannot be reduced to a mere expansion of the reception capacity. I will do this by tracing a genealogy of the Italian reception system and highlighting its main features before and after the ‘refugee crisis’. My hypothesis is that the ‘refugee crisis’ and the sense of emergency it created has stimulated the emergence of distinct segments within the Italian reception system functioning according to radically different philosophies and objectives. This, in addition to increasing the overall lack of consistency of the system, is having a profound impact on the rights of asylum seekers, greatly increasing the risk of their spatial and social segregation within Italian society.     

Between myth and reality: the euro crisis and the downfall of Silvio Berlusconi

In mid-November 2011, Prime Minister Silvio Berlusconi tendered his formal resignation to President Giorgio Napolitano. It was a humiliating ‘political exit’ for the controversial Italian leader who had been the dominant figure in Italian politics since the mid-1990s. With Italy in the throes of an unprecedented financial crisis, Berlusconi’s squabbling centre-right coalition had appeared increasingly incapable of dealing with the economic emergency engulfing the country. To restore credibility, Napolitano appointed Mario Monti who quickly put together an emergency government. Since then, the downfall of Italy’s longest-serving post-war prime minister has generated a good deal of controversy. Allegations that Berlusconi was pushed out of power by a cabal of domestic and international detractors have been rife both inside and outside Italy. But how plausible are these claims? Was Berlusconi brought down by a conspiracy orchestrated by Napolitano and instigated by Italy’s EU partners? This article will address these questions and, to do so, it will chart the dramatic events that led to his downfall and examine the international and domestic contexts in which these events took place.     

增强执政党应对金融危机的能力

应对金融风险是执政党必须高度注重的重大问题。在经济全球化时代金融危机频发以及金融风险增多的条件下,增强执政党应对金融危机的能力,妥善处理金融危机所带来的各种挑战,尽快化解可能引发的政治危机和社会危机,不仅关系到党执政的合法性基础,关系到党执政地位的巩固,而且关系到国家政局的稳定和人民群众的财产安全。     

Political and institutional constraints on structural reforms: interpreting the Italian experience

During 2011 Italy reached the verge of a financial default because of its huge public debt. Neither the centre-right nor the centre-left governments that alternated in power in the 2000s were able to introduce the reforms necessary for reducing the debt and promoting growth. The impotence of the government became incompatible with the requirements of the country's continued presence in the eurozone. In November 2011, under the pressure of financial markets and eurozone institutions and leaders, the incumbent centre-right government was obliged to resign, and was substituted by a government composed of technocrats and experts, the Monti government. This lasted until December 2012 and was supported in parliament by a cross-partisan coalition; it was able to introduce some of the structural reforms required, because of the threat of default but also because it did not need to seek the electoral support of powerful constituencies. This article advances an interpretation of the Italian crisis of November 2011, identifying the political and institutional structures and the specific political conditions that fostered a policy stalemate in the country in the 2000s and whose persistence makes the continuation of reforms after the February 2013 elections uncertain.     

金融危机与日本业内规制演进分析

日本金融市场上历次出现的金融危机,暴露了日本金融规制体系存在的问题,也影响了金融业规制政策的重点和发展方向。1927年昭和银行危机后实施的对策为“护送舰队”式规制提供了前提。日本的泡沫经济、1997年的亚洲金融危机对规制产生了影响,2007年由美国爆发的金融危机及其引发的全球金融海啸,影响了日本金融业规制的发展。日本金融业规制在金融危机的影响下,从限制竞争的“事前规制”演进到注重健全经营的“事后规制”,目前正向“事前规制”与“事后规制”相结合的以防范系统性风险为目的的保护性规制体系演进。     

The Role of Territorial Capital in Local Economic Growth: Evidence from Italy

Territorial capital is defined as the system of territorial assets of economic, cultural, social and environmental nature that ensures the development potential of places. The potential of this concept resides in the recognition of possible interactions between factors of different nature. So far, however, very few studies have focused on the empirical verification of the links between territorial capital and economic growth. This work is devoted to the analysis of the relationship between economic growth and territorial capital in Italian NUTS3 regions between 1999 and 2008. The distribution of territorial assets across regions points out the huge gap between Italian macro-areas. These divergences do not clearly reproduce the differentials in GDP growth. The second part of the analysis is focused on the joint effect of the territorial capital components on the regional economic performance. Our findings emphasize the role of some endogenous factors in explaining the differentiation of regional growth patterns. Moreover, they point out the importance of soft assets in correspondence of an external shock, as the one represented by the recent financial crisis.     

A rentier class? Milanese nobility and the economy in post-unification Italy

ABSTRACT

The Lombard nobility’s loss of political power after the Napoleonic Wars has led economic historians to overlook the persisting role of traditional elites in social and economic life. The aim of the paper is to reassess the contribution of the Milanese aristocracy to Italian economic development, providing new insights into the business behaviour of the nobility in northern Italian areas. The article presents some new findings on noblemen’s investments and enterprises related to agriculture, manufacturing, trade and banking. The research focuses on the decades following Italian political unification, a period in which noblemen increased their interest in the financial sector and joint-stock companies (transport, banking, new sectors and industries) as a result of the transformations induced by the Industrial Revolution and the agrarian crisis of the 1870s and 1880s. Both quantitative and qualitative data will be used to assess not only the number of individuals involved and the capital they invested in new ventures, but also their role in orienting, stimulating, managing or supporting entrepreneurial activities and their openness to collaboration with the members of the middle class. The analysis combines the deeds produced by four notaries, chosen on the basis of their contiguity to the Milanese aristocracy, the foundation’s deeds of the main companies established in the city, conserved in the House of Trade, and the information provided by other local and national institutions. The cross-referencing of this data suggests that the Milanese nobility maintained a prominent economic role well beyond Italian political unification, contributing to the modernization of the national economy despite the weaknesses and contradictions that marked this process.     

Financial order and world politics: crisis, change and continuity

Many insist that the world economy today is in the grip of the most severe financial crisis since 1931. Although the origins of this crisis are in dispute, the extent and scale of the changes prompted by it are becoming clear. Among these changes are a recalibration of the relationship between public and private authority, a reconfiguration of the regulatory responsibilities and capacities of the state with respect to the financial system, and a rebalancing of relations of power among states. While the financial crisis has generated points of stress along all of these axes of change, we should be wary of expecting an entirely new global financial order to emerge from the carnage. The complex links between financial order and world politics suggest that this financial crisis will result in an evolutionary rather than a revolutionary transformation in the world's financial order.     

Italian Industry,Decline or Transformation? A Framework

Debates over Italian growth (or lack thereof) are often conducted without due regard for the facts and statistics on which they are based. For instance, those who see Italy as being in decline lament the static production, the lack of increase in productivity, the loss of share in international markets and the lack of sophistication in industrial goods compared with high-tech products. Some call for greater emphasis on services, others want manufacturing to be abandoned, while others see the future in artisanship. These issues are important, because flawed judgement of Italian performance could lead to deterioration in the results expected at the critical financial market phases, beyond what might be justified by the facts. The purpose of this article is to establish a micro- and macro-framework to interpret the problems correctly, given the inconsistency of statistical data currently used, and to offer some solutions for long-term growth. The latter, in particular, should be seen in the context of a transformation process, induced on the one hand by the crisis in large-scale enterprise, and on the other by the emergence of a new class of medium-sized businesses, dubbed the “fourth capitalism”, with high innovation capabilities. The transformation that the Italian industrial system is experiencing enables the country to maintain its share of global markets. The new production structure originates largely from local production systems, is family-owned and tends to borrow little, operate in networks and retain its local roots, which is precisely why it represents a new and efficient driver of Italian growth.     

Italy's unfinished transition: between domestic dynamics and international change

In the early 1990s, Italy was drawn into a spiral of unprecedented transformation precipitated by changes that were taking place both inside Italy and on the international scene. Financial, political and institutional crises were superimposed in ways that brought into question the survival of the whole Italian system. This occurred at a moment when world geo-political relations were shifting dramatically and radically changing established relations, attitudes and policies and marked the beginning of a long period that is often described as a ‘transition’. But since the outcomes still remain far from certain, it is necessary to consider how accurately this term describes what has been taking place in Italy over the last two decades. This paper shows how more careful identification of the different phases and components of the crisis enable us to understand why the upheavals of 1992–94 have led to a systemic crisis of the Italian economy and politics.     

Introduction: Italy and the Euro–Mediterranean ‘migrant crisis’: national reception,lived experiences,E.U. pressures

The introduction discusses the origins of this themed section of the Journal of Modern Italian Studies, based on a 2017 interdisciplinary conference about migration and the migrant experience in Italy. The co-editors recognized early on that the U.S. media was paying inadequate attention to migrant landings in Italy during the so-called refugee crisis around 2015–16, and engaged scholars active in Italy, the U.K. and the U.S. to provide further nuance to this particular migratory flow, and in particular to question how the term ‘crisis’ was used in describing it. In response to a public debate increasingly prone to alarmism, the articles produced after the conference investigate the contradictions of the Italian reception system of migrants and refugees; the often glossed-over labour, race, and gender aspects of the flows; and the critical conditions of the Mediterranean crossing as represented in film and theatre. The contributions specifically bring forward the migrants’ voices to challenge the exclusionary practices adopted in Italy and Europe in favour of structured legal channels, and to reveal the growing crisis of E.U. democratic principles.     

Income Inequality and Wealth Concentration in the Recent Crisis

This article shows that the increase of income inequality and global wealth concentration was an important driver for the financial and Eurozone crisis. The high levels of income inequality resulted in balance of payment imbalances and growing debt levels. Rising wealth concentration contributed to the crisis because the increasing asset demand from the rich played a key role in the growth of the structured credit market and enabled poor and middle‐income households to accumulate increasing amounts of debt. This analysis thereby puts both income and wealth inequality at the epicentre of the recent crisis, and as crucial for social scientists analysing the causes of the crisis. The authors’ findings suggest that the policy response to the crisis should not be limited to financial regulation but must involve policies to address inequality by increasing the bargaining power of labour as well as redistributive tax policies.     

Restraining regulatory capture? Anglo‐America,crisis politics and trajectories of change in global financial governance

A growing number of respected commentators now argue that regulatory capture of public agencies and public policy by leading banks was one of the main causal factors behind the financial crisis of 2007–2009, resulting in a permissive regulatory environment. This regulatory environment placed a faith in banks own internal risk models, contributed to pro‐cyclical behaviour and turned a blind eye to excessive risk taking. The article argues that a form of ‘multi‐level regulatory capture’ characterized the global financial architecture prior to the crisis. Simultaneously, regulatory capture fed off, but also nourished the financial boom, in a fashion that mirrored the life cycle of the boom itself. Minimizing future financial booms and crises will require continuous, conscious and explicit efforts to restrain financial regulatory capture now and into the future. The article assesses the extent to which this has been achieved in current global financial governance reform efforts and highlights some of the persistent difficulties that will continue to hamper efforts to restrain regulatory capture. The evidence concerning the extent to which regulatory capture is being effectively restrained is somewhat mixed, and where it is happening it is largely unintentional and accidental. Recent reforms have overlooked the political causes of the crisis and have failed to focus explicitly or systematically on regulatory capture.     

Republicans and Socialists and the Origins of Italian Political Parties

A central debate in political science centres on the origins of political parties and specifically on the question as to whether they emerged as a result of the rise of parliamentary institutions. Regarding the Italian party system, the commonly held view is that Italian parties emerged as a consequence of national unification and the establishment of parliament. This article contributes to the debate on the origins of Italian parties by presenting empirical evidence on the timing of their initial formation, analysing data regarding the social base, membership, organisational articulation and policy-making accomplishments of the two major political movements active before and after the establishment of the national parliament. The article argues that, at least in the Italian case, parties did not originate in the legislature; rather, similar to countries such as Germany and Spain, Italian parties developed as a result of a major national crisis.     

A Bretton Woods moment? The 2007–2008 crisis and the future of global finance

The 2007–2008 global financial crisis encouraged speculation about the prospects for a ‘Bretton Woods moment’ in which the global financial system would be radically redesigned. Many of those hoping for this outcome have since become disillusioned with the limited nature of the international financial reform agenda. But the success and innovation of the Bretton Woods conference was made possible by unique political conditions that are not present today, notably concentrated power in the state system; a transnational expert consensus; and wartime conditions. Moreover, a close reading of history reveals that the Bretton Woods system did not emerge from a single moment but rather from a much more extended historical process. If a new international financial system is being born today, it will be a slower and more incremental development process that can be divided into four phases: a legitimacy crisis; an interregnum; a constitutive phase; and an implementation phase. Viewed from this perspective, post‐crisis developments look more significant. The crisis of 2007–2008 has already intensified twin legitimacy crises relating to international financial policy and leadership. It has also generated an international reform initiative that has been unusual for its speed and internationally coordinated nature. Many of the details of this reform initiative remain unresolved and its content and breadth are hotly contested in various ways. We thus find ourselves in more of an interregnum than a constitutive phase. It remains unclear how quickly, if at all, the latter might emerge and in what form.     

Italy and the development of European energy policy: from the dawn of the integration process to the 1973 oil crisis

This article analyses the history of Italian energy policy as well as that of Europe from the beginnings of co-operation until the bust of the first oil crisis. The difficulties in realising a united policy as well as the energy status of Italy and Europe until the eve of the 1973 oil shock are underlined. Then, the answers to the crisis as well as the attempts to address the energy difficulties in a united way are analysed.     

Migration,knowledge production and the humanitarian agenda in times of crisis

By drawing on the Italian case, this article critically discusses the use of crisis as a tool of knowledge and expertise production. In recent years, the theme of crisis has played a key role in shifting migration management towards a humanitarian agenda based on the premise that contemporary migration to Europe is comprised of forced mass movement. The article considers the extent to which migrants’ subjectivities call into question the knowledge that has been produced during the current era. It also reflects on the ways in which gender and race provide fundamental insights for a better understanding of the evolution of migration management within the context of crisis.