Luigi Burroni

Italy: rise, decline and restructuring of a regionalized capitalism

Abstract During recent decades, the varieties of capitalism approach has provided one of the most important contributions on the analysis of advanced capitalism. However, there are national experiences that seem to be hard to explain from this theoretical perspective. In this artricle we underline that this is particularly true for countries that are characterized by a high degree of internal diversity, such as the Italian case. For this reason we propose to combine the national and regional dimensions, studying what can be defined as a ‘regionalized capitalism’: a complex and heterogeneous system that entails both remarkable dysfunctions and elements of strength. Analysing the Italian case, we show the importance of centre–periphery relations, which produce a mix of local economic dynamism and national public disorder (public deficit and debt, inefficient policies). At a local level, SMEs and their networks cooperate in a flexible and neo-voluntaristic way to produce territorial competitive advantages: a networked economy based on relational capacities. However, the success of local economies has delayed the adjustment of public policies at a central level. In the last decade, this process has endangered economic development, while Italian firms were challenged by increasing globalization. Drawing attention to the regional dimension, this research approach offers not only useful insights for understanding a single national case study, but also holds broad theoretical implications for the analysis of change and restructuring of advanced economies.

The territorial governance of the shadow economy

The findings of studies of local economies can be applied to those concerned with ‘shadow’ and illegal activities. These activities need to be seen not as situations with an absence of governance and markets, but as constituting particular kinds of governance—this often being concerned with ensuring the functioning of markets. A scheme for modelling this type of governance is proposed, and is then used to formulate a critique of most of the prevailing policy approaches to trying to counter the shadow economy and to encourage the ‘emersion’ of firms from it. Some instances of policies that are better grounded in an appreciation of the reality of the shadow economy as a social order are also cited.

Governance caleidoscopica, debolezza istituzionale e sviluppo locale

Attempting to avoid the excessive embeddedness and path dependence considered to have been associated with many past forms of local economic development, authorities are increasingly likely to favour light and fragmented arrangements. Institutions are rarely allowed to have much power, and their structures are frequently subject of reorganisation, even though the component elements that came together to make the reorganised forms are often the same. These governance patterns therefore resemble a kaleidoscope. The authors are critical of such policy approaches. They point out that frequent change prevents learning and the establishment of trust. Paradoxically, the net result is a strengthening of central governmental forces. They consider examples from a range of European countries, concentrating on cases from the UK and Italy. In the latter in particular there is evidence of dissatisfaction with fragmentation on the part of local actors, who often try to establish more substantive structures for steering development programmes.

Economy and Society in Europe

While an economy is always ‘embedded’ in society, the relationship between the two is undergoing profound changes in Europe, resulting in widespread instability which is emphasised by the current crisis. This book analyses these changes, and in particular pressures of intensifying international competition, globalization and financialization within Europe.

Collective bargaining, atypical employment and welfare provisions: The case of temporary agency work in Italy

The article focuses on the relationship between collective bargaining and social security provisions in a sector of atypical employment, the Temporary Agency Work, in Italy. Analysing contents and impact of collective bargaining in this sector, we underline that collective bargaining has introduced very important social security provisions such as maternity leave, unemployment benefits, opportunities for the stabilisation of the employment relationship, «availability allowance» for periods in which agency workers are not working in user firms, supplementary pension schemes, etc. This confirms the important role played by collective bargaining in providing welfare measures to support workers. But at the same time, this case study underlines four main areas of concern. First, specific institutional conditions favored the rise of contractual welfare in the TAW sector and this «institutional embeddedness» means that it is very difficult to «export» such a system of social security provision to other segments of non-standard employment. Second, the difficulty in extending this form of welfare provision to other types of flexible jobs may introduce a stable segmentation in terms of protection among non-standard workers. Third, we show how the main features of the TAW sector together with the specific working conditions of TAW workers may have hindered a widespread use of such welfare provisions. Finally, the kind of benefits supported by collective bargaining are «integrative» and not substitutive of traditional welfare.

Competitive regionalism and the territorial governance of uncertainty

This article focuses on the model of local regulation of economic uncertainty that can be described as ‘competitive regionalism’, a governance mode characterized by its own rhetoric, key actors and political economy. The first part of the article presents a contradiction: on the one hand, private actors and market regulation have gained much importance, but on the other this process of marketization has been partly balanced by the role played by local governments, collective actors and other bodies and organizations, although trade unions are playing only a weak role, especially where they do not have a local territorial base. Thus, marketization seems to increase rather than reduce the need for intervention by public actors and collective organizations able to reduce externalities produced by the market. The second part of the article shows the impact of the economic crisis on the model of competitive regionalism and a number of possible policy implications.

When actors matter. Agency, historical legacy and institutions in models of capitalism

This paper deals with two of the main topics in the debate on varieties of capitalism: first, the process of convergence or divergence between the different models; second, the identification of factors affecting the diverse outcomes in terms of inclusive growth in European countries. The analysis shows that for the two dimensions considered here, competitiveness and inclusion, models of capitalism continue to follow different paths, both in their policy configuration and outcomes. In this process, a key role is played by the agency of three actors: State, social partners and firms. Different forms of agency of these actors are identified and the diverse trajectories of the models of capitalism are highlighted, as result of the tension between institutional structure, historical legacy and the agency of these actors.This paper deals with two of the main topics in the debate on varieties of capitalism: first, the process of convergence or divergence between the different models; second, the identification of factors affecting the diverse outcomes in terms of inclusive growth in European countries. The analysis shows that for the two dimensions considered here, competitiveness and inclusion, models of capitalism continue to follow different paths, both in their policy configuration and outcomes. In this process, a key role is played by the agency of three actors: State, social partners and firms. Different forms of agency of these actors are identified and the diverse trajectories of the models of capitalism are highlighted, as result of the tension between institutional structure, historical legacy and the agency of these actors.

The Boundaries between Economy and Society in European Cities

While an economy is always ‘embedded’ in society, the relationship between the two is undergoing profound changes in Europe, resulting in widespread instability which is emphasised by the current crisis. This book analyses these changes, and in particular pressures of intensifying international competition, globalization and financialization within Europe.

La "nuova" governance delle politiche locali del lavoro

This article focuses on the recent debate on new forms of governance from the perspective of local development, with a specific attention to industrial relations and employment policies. The experiences of three countries are considered and compared in order to shed light on similarities and differences. The aim is to identify the presence of common elements that better explain the transformation pattern of local development governance in the Europe. The arguments develop around four main key aspects that characterize this transformation: the decentralization and territorialisation of employment policies; the increasing use of participatory mechanism in the decision making and policy implementation processes; the increasing relevance of policy coordination; the diffusion of monitoring practices and incentive mechanism related to good practices. A case study based on a field research realized in a previous research is also included in order to check whether and how these elements works a ‘micro’ level. The case study refers to employment policy and industrial relations in the industrial district of Prato, which recently had to face important challenges of local development.

Agenzie e sviluppo locale: un gioco a somma zero?

The article deals with the role of regional development agencies. The author identifies two idealtypes of agency: the first one aims at attracting direct investments via financial incentives and the second focuses on the provision of local competition goods and of external economies. Looking at some empirical cases, the author underlines that both types of agencies can trigger local economic development. At the same time, looking at them more in details advantages and shortcomings of each models emerge. Finally, the possible role of this kind of organization in promoting socio-economic development of the Italian Mezzogiorno is taken into account.