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Between Crisis and Transition Italian Politics in The 1990s
Between Crisis and Transition Italian Politics in The 1990s
To cite this article: Martin Bull & Martin Rhodes (1997) Between crisis and transition: Italian
politics in the 1990s, West European Politics, 20:1, 1-13, DOI: 10.1080/01402389708425172
The last special issue of West European Politics devoted to Italian politics
was published in 1979.1 The timing of that issue was apposite. It came at
the end of a decade of social, economic and political crisis in which Italy
was portrayed as the 'sick man of Europe'. Yet, the originality of that issue
lay in its challenge to much of the existing literature which sought to portray
Italy as an 'anomaly' among west European democracies. It showed that,
despite its unique features, the politics of Italy were, in many ways,
comparable to those of other nations.
Fifteen years on, few would question the need for a further special issue
on Italian politics. This is not just because much has changed since 1979,
but more specifically, because so much has appeared to change since 1989.
Indeed, it could be argued that, despite the significance of the 1979 issue
and of the social science research on Italy it helped to generate, something
analogous to a 'popular portrayal' of Italy is happening in many of the
analyses of Italy today. The dramatic developments since 1989 and the crisis
which has resulted have generated a new focus on the country, yet this has
to a large extent been dominated by the idea, particularly prevalent in the
early 1990s, that Italy has been undergoing a 'revolution', and that, once
again, there is something unique about democracy all'Italiana.
Any analysis of political change which focuses only on this period is
bound to be reductive and incomplete. This new special issue on Italian
politics seeks to analyse the last decade and a half of Italian political
development through the prism of the changes of the 1990s. The 1990s will,
inevitably, be seen as a watershed decade in Italian political development.
Yet, contrary to the popular portrayal of these changes as revolutionary,
these years have witnessed considerable continuity beneath the surface
change, making the contemporary period one of ongoing transition rather
than rupture with the past. This is not to deny the significance of recent
changes. On the contrary, by exploring developments over the past 15 years
across a range of sectors and areas, the authors in this collection seek to
identify the deep trends of political change in Italy's transition beneath the
ephemera of day-to-day political life - the focus of much current analysis.
They reveal a political system that is both dynamic and sclerotic, adaptable
and blocked, and with a surprising degree of institutional inertia. Thus while
2 CRISIS AND TRANSITION IN ITALIAN POLITICS
some aspects of the system are adjusting to the new challenges of the decade,
other areas are adapting much more slowly, despite the headline-grabbing
political upheavals of recent years. Indeed, paradoxically, it is those areas
which appear to have witnessed the most dramatic changes (and specifically
the political parties) which are proving to be most dilatory in driving Italy's
transition forward. This combination of vigour and stagnation lies at the
heart of the Italian paradox; and while the transition remains incomplete,
so the 'crisis' will continue. The aim of this introduction is to explore briefly
the nature of this paradox.
STRUCTURAL CRISIS
If we accept this characterisation of Italy as 'normal' democracy in outward
appearance, but one 'handicapped' by the legacy of 'modernisation without
development', then we can begin to understand the structural roots of the
Italian crisis. In many senses, the developments of the last few years
represent a struggle between traditional and modernising forces and the
norms of political behaviour and social organisation they each promote and
defend. While the traditional forces have been responsible for the impasse
reached by the political system by the end of the 1980s, their modernising
counterparts have been seeking a way out of the morass. The Italian impasse
can be expressed in terms of its incapacity for internally generated political
reform and inescapable drift towards 'systemic crisis' - an expression used
by Maurizio Ferrera in this volume to describe the Italian welfare system,
but applicable, in fact, to the entire polity.
4 CRISIS AND TRANSITION IN ITALIAN POLITICS
Glib assertions to the contrary, Italy by the late 1980s/early 1990s could
no longer be characterised as a country whose many problems could be
disregarded on the basis of eppurse muove (nevertheless it works).5 As the
experience of the 1990s has shown, the tensions within the system had been
building up with cumulative and debilitating effect. The pentapartito (five-
party coalition) government under the self-interested control of the so-
called CAF - the strategic and cynical alliance of Bettino Craxi, Giulio
Andreotti and Arnaldo Forlani - had taken to its logical extreme a form of
government based on the permanent exclusion from power of the main
party of the left (representing consistently more than a quarter of the
electorate) and on the distribution of spoils and patronage. The squalid
pursuit of not just party but individual aggrandisement reachedits apogee
in the Socialist Party and the quite ostentatious display on the part of some
of its members of potentate power. The political class was manifestly
ethically bankrupt and incapable of reforming either itself or the institutions
it had neglected or turned to its own, particularistic, usage via the 'privati-
sation of the public sphere'.6 As discussed in the analysis by Martin Rhodes,
'blocked democracy' had helped to spawn a system that was not just corrupt
but systematically corrupted, to the extent that 'illicit governance' had
become the norm. The economic problems of the country were in part
connected to this process, facilitated by the absence of an administrative
technocracy and a 'rational' and 'functional' capacity for decision making
-all negative features of what della Sala calls a 'weak' or 'non-state', one exploit-
ed not just by its political masters, but captured, in a self-perpetuating cycle
of clientelistic exchange, by a broad range of societal interests. Again, the
welfare system exemplifies the more general 'functional crisis' of the state.
By the late 1980s, recurrent public-sector deficits had generated an
enormous public-sector debt that was constraining Italian fiscal and
monetary policy and beginning to generate important political strains. By
the early 1990s, these strains began to manifest themselves in the 'tax revolt'
which underpinned the success of Umberto Bossi's secessionist Lega Nord
(Northern League) and now pose a serious challenge to national identity.
Broadly speaking, then, Italy has been undergoing a growing crisis with
four dimensions:7
(1) a crisis of the political parties, which had gradually moved away from
being organisations devoted to the mobilisation of the electorate and the
expression of ideological and policy preferences, to being machines for
mobilising, distributing and exchanging resources;
(2) a crisis of the political class, which had become more and more
degenerate and degraded by the logic of partitocrazia and scambi occulti
ITALIAN POLITICS IN THE 1990s 5
and which, with the collapse of the Soviet Union, and the final laying to
rest of the supposed 'Communist threat', had lost their only rationale for
clinging to power, except for the continued 'privatisation' of the public
sphere;
(3) a crisis of institutions, which the political class, incapable of anything
other than clannish, party 'fetishism', was unable or unwilling to reform,
and which, as in the case of Parliament, helped contribute to the inefficiency
and incapacity of the state as a decision-making body and compounded the
crisis of public finances (witness the chaos of budgetary politics, beset until
recent years by secret voting and the exertion of clientelistic pressures on
members of the Chamber of Deputies and Senate);
(4) and a crisis of the state, more broadly conceived, as a legitimate system
of governance, protecting and sustaining the identity of the nation. While
one can debate the origins of the state's lack of legitimacy in Italy, it is clear
that the politicians in Rome had done much to discredit themselves over
the previous 30 years or so, and that their unpopularity preceded the revela-
tions of the Tangentopoli ('Bribesville') scandals. Yet these revelations
fuelled a rejection of politicians that now threatens not just the revitalisation
of democratic government but the unity and stability of the country.
In short, the structural crisis invests the political class, the political parties,
institutions and, more generally, the state and national identity. It is,
therefore, fundamentally a political crisis, but one with distinct economic
and social implications. This should be distinguished from the conjunc-
tural crisis, even though, as will be argued below, the two are inextricably
linked.8
CONJUNCTURAL CRISIS
The conjunctural crisis refers to the crisis ostensibly triggered by
Tangentopoli and the collapse of support for the traditional parties between
1992 and 1994. The structural and conjunctural crises are inevitably linked
but, at the same time, of a different order. The structural crisis is deeply
rooted in the institutional arrangements of the country and in the norms
of political behaviour. The conjunctural crisis is the expression of the
sudden breakdown of political parties, alliances and networks that were,
on the one hand, partly responsible for the systemic problems of the country,
and, on the other, partly its victims. For the logic of the political system and
its underpinning power structure simultaneously undermined the system's
institutional foundations and precluded the emergence of forces capable
of reforming them. In many respects, collapse was the inevitable conse-
6 CRISIS AND TRANSITION IN ITALIAN POLITICS
quence of the systematic abuse of power. If, by the late 1980s, the system
was rotten, its very nature also hindered the key political actors from behav-
ing much differently if they wished to stay in power.
The unfolding of the conjunctural crisis is documented by James Newell
and Martin Bull and Roberto D'Alimonte and Stefano Bartolini. The
meltdown of the old configuration of partieswas, by comparative standards,
extraordinarily rapid, so rapid, in fact, that it created a vacuum which new
and recycled parties and movements attempted to fill. This vacuum allowed
the creation and successful electoral launch of a truly new and original
phenomenon in Forza Italia, described by one commentator as a 'virtual
party'.' The Berlusconi experience - his rise to power only four months
after launching Forza Italia, and his subsequent turbulent eight months as
Prime Minister - was, with the fall of politicians like Craxi and Andreotti,
a symbol of the completely unpredictable nature of the crisis which could
produce unexpected and ephemeral outcomes and multiply the dimen-
sions of the crisis. In the case of Berlusconi, his rise to the premiership
prompted a major debate on both his 'conflict of interests' and, more
broadly, on the use and abuse of the media in Italian politics, as outlined
by Luca Ricolfi.
Why precisely the collapse of the traditional parties occurred when it did
has been the subject of much speculation but, as yet, little systematic
exploration.10 In the popular imagination, it was caused by the collapse of
communism and the exposure by Italian magistrates of a massive system of
corruption operated for years by the political parties. These factors are
important but they are inadequate by themselves in explaining why the
Italian polity, specifically in the 1990s, should have witnessed the effective
removal of its former political class and the dramatic reconfiguration of its
party system. As already discussed, there are deeper historical and
structural reasons which relate to the nature of the post-war Italian political
system. There are also changes in society and in the nature of the economy
to take into account, as well as the transformation of the international
political and economic context.
Of the domestic factors, three are worthy of note. First, there was a
growing disjuncture between a modernising and highly successful private-
sector economy, composed of both dynamic small- and large-sized firms,
and a decrepit state machine and public sector. Additional domestic
pressure was exerted by the internationalisation of this economy in the
1980s (see below). Second, there was the emergence of social and reform
movements, accompanied by a new type of politician no longer willing to
accept 'illicit governance' and its implications for society. The most
powerful expressions of this were the emergence of the Rete (the Network),
led by former DC politician, Leoluca Orlando, and the associated anti-
ITALIAN POLITICS IN THE 1990s 7
TRANSITION
Viewed together, the studies in this special issue show how, despite the
dramatic changes of the 1990s in various aspects of the system, the changes
in the style of Italian governance have been affected far more by external,
outside forces than by the goals and strategies of political actors inside the
palazzo. Delia Sala shows how the role of the state and governance in Italy
is undergoing considerable change as a result of the demands arising from
European integration on the performance of the economy. On the one
hand, the state has been ceding authority upwards ('hollowing out') to the
EU in terms of the broader objectives of macro-economic policy. On the
other, responding to these demands has required a 'hardening' of the state
towards the groups and interests traditionally used to exercising influence
over economic policy inside the state and society. Consequently, Italy's
traditional state model, one based on the penetration of the state and
economic policy-making by a multitude of interests, rendering policy
making fragmented and inefficient, is being undermined.
ITALIAN POLITICS IN THE 1990s 9
This has occurred, moreover, at a time when the political parties and
party system have been undergoing a deep crisis. The consequence, as
Pasquino argues, has been the effective suspension of party government in
the 1990s, and an increasing dominance of technicians (and notably ex-
central bankers) over key decision-making positions.11 And even with the
resurrection of party government under Romano Prodi, it is notable that
the central characteristic of the government is a curtailing of its decision-
making autonomy by the demands of the Maastricht Treaty - a government,
moreover, whose main component part, for the first time in Italian history,
is the ex-Communist party (PDS), and which is supported in Parliament by
the current Communist party (Communist Refoundation). The consequence
of a 'technocratic' response to economic problems, legitimised by the need
to respond to external pressures, has delivered notable successes, including
recent advances in tackling the public sector deficit (producing a surplus
net of interest payments), reducing inflation and lowering interest rates -
a virtuous circle which cannot be broken if Italy is to join the club EMU
countries.
At the same time, significant changes to welfare provision were achieved
in 1992,1993 and 1995, as outlined in the article by Maurizio Ferrera. These
reforms are significant breakthroughs with respect to the institutional
legacies of the past, and are aimed at responding to the system's in-built
growth pressures as well as the legacy of debt under new economic and
monetary constraints. Similarly, as noted in the contribution by Marino
Regini and Ida Regalia, changes in relations between the state, employers
and trade unions - as well as in the behaviour and organisation of the social
partners themselves - have been driven to a large extent by the external
context, specifically the constraints of the 'Maastricht parameters', the
globalisation of markets and the intensification of international competi-
tion: all three place a premium on the search for greater consensus in
industrial relations and its institutionalisation in the form of an incomes
policy, although recent threats to undermine this consensus from various
parts of the union movement underline the fragility of both the arrange-
ments and the legitimacy of the policies underpinning them. In short,
the 'hardening' of the state should not necessarily be equated with the
denial of any influence to organised groups, but the adaptation of those
groups to a more informal (and usually decentralised) mode of exercising
influence.
These quite impressive changes in the nature of economic governance
contrast strongly with the current lack of progress in institutional reform,
as explored in the pieces by Gianfranco Pasquino, Bruno Dente and
Giacinto della Cananea. If one believed the rhetoric of the parties and
many commentators, Italy, in the 1990s, is on the cusp of fundamental
10 CRISIS AND TRANSITION IN ITALIAN POLITICS
FUTURE PROSPECTS
be critical to Italy's future governance; and they will need to act much more
responsibly than their defunct predecessors.
NOTES
1. Sidney Tarrow and Peter Lange (eds.) 'Special Issue on Italy in Transition: Conflict and
Consensus', West European Politics 2/3 (Oct. 1979). It was published as a book by Frank
Cass & Co. Ltd. in 1980.
2. For opposing side of this debate, see G. Pridham, 'Comparative Perspectives on the New
Mediterranean Democracies: A Model of Regime Transition', ibid. 2/7 (April 1984)
pp.1-29 and A. Lijphart, T.C. Bruneau, P. Nikiforos Diamandourous and R. Gunther, A
Mediterranean Model of Democracy? The Southern European Democracies in
Comparative Perspective', ibid. 11/1 ( Jan. 1988) pp.7-25.
3. See G. Sapelli, Southern Europe Since 1945: Tradition and Modernity in Portugal, Spain,
Italy, Greece and Turkey (London and NY: Longman 1995).
4. See D. Delia Porta, Lo scambio occulto. Casi di corruzionepoliticain Italia (Bologna: Il
Mulino 1992).
5. The best academic version of this argument is Joseph LaPalombara, Democracy Italian
Style (New Haven CT: Yale UP 1987), a book which was highly controversial, particularly
amongst Italians, from the date of its publication.
6. See M. Magatti, 'La modernizzazione fallita della società italiana: Tra fiducia personale
e fiducia istituzionale', Quaderni di Sociologia 38-39/8 (1994-5) pp.33-53.
7. This categorisation was suggested by Roberto D'Alimonte and Stefano Bartolini.
8. This structural-conjunctural approach can be contrasted with more structural approaches
found in Massimo Salvadori, Storia d'Italia e crisis di regime. Alle radici della politica
italiana (Bologna: Il Mulino 1994) and some of the contributions to M. Caciagli, F.
Cazzola, L. Morlino and S. Passigli (eds.) Italia fra crisi e transizione (Roma-Bari: Editori
Laterza 1994).
9. P. McCarthy, 'Forza Italia: nascita e sviluppo di un partito virtuale', in P. Ignazi and R.
S. Katz (eds) Politica in Italia. I fatti dell' anno e le interpretazioni. Edizione 95 (Bologna:
Mulino 1995) pp.139-60.
10. See M.J. Bull, 'The Roots of the Italian Crisis', South European Society and Politics
1/1(Summer 1996) pp.131-7 for a review of some of the literature. Gianfranco Pasquino,
'Le coalizione di pentapartito (1980-91): quale governo dei partiti?' and Alfio
Mastropaolo, 'Perché è entrata in crisi la democrazia italiana? Un'ipotesi sugli anni
Ottanta', both in Caciagli et al. (note 8) are noteworthy in this respect.
11. For an in-depth study of the role of the banking technocracy in Italian economic policy
making, see Kenneth Dyson and Kevin Featherstone, 'Italy and EMU as a 'Vincolo
Esterno': Empowering the Technocrats, Transforming the State', South European Society
and Politics 1/2 (Autumn 1996) pp.273-300.
12. For an expression of this view see, for example, Mark Gilbert, The Italian Revolution:
The End of Politics, Italian Style? (Boulder, CO and Oxford: Westview Press 1995).