Italy is in the throes of that most difficult of predicaments, a state of transition. Transition to a more open and egalitarian society; transition to new economic and financial arrangements; transition to a more efficient administrative machinery; transition to greater participation in decisions concerning the place of work; transition to a more important role for women; transition to an expanded influence for parties of the Left. The transition is made all the more difficult by the fact that the hectic, unbalanced economic growth of the sixties, which made tolerable the (lower) pace of social change, has given way to the twin evils of stagnation and inflation. Attention abroad has been largely focused on the drift toward impotence of the government, the crumbling of established authority, the current economic and financial crisis, the turbulent division of society and the growing ungovernability of the country, and above all on the advance of a party calling itself communist, apparently the only one capable of filling the void, since the balance between the parties of the Left in Italy is different from that in other Western European countries as a strong Socialist party does not exist. But the wheels of history are turning fast not only in the political sphere but also in the economic field, and transformations in the latter are both cause and effect of the socio-political changes of the past decade.
Guido Carli was Governor of the Bank of Italy, 1960-75, and Minister of Foreign Trade, 1957-58. He is currently a consultant to the First Boston Corporation.
Italy is in the throes of that most difficult of predicaments, a state of transition. Transition to a more open and egalitarian society; transition to new economic and financial arrangements; transition to a more efficient administrative machinery; transition to greater participation in decisions concerning the place of work; transition to a more important role for women; transition to an expanded influence for parties of the Left. The transition is made all the more difficult by the fact that the hectic, unbalanced economic growth of the sixties, which made tolerable the (lower) pace of social change, has given way to the twin evils of stagnation and inflation. Attention abroad has been largely focused on the drift toward impotence of the government, the crumbling of established authority, the current economic and financial crisis, the turbulent division of society and the growing ungovernability of the country, and above all on the advance of a party calling itself communist, apparently the only one capable of filling the void, since the balance between the parties of the Left in Italy is different from that in other Western European countries as a strong Socialist party does not exist. But the wheels of history are turning fast not only in the political sphere but also in the economic field, and transformations in the latter are both cause and effect of the socio-political changes of the past decade.
This is a premium article
You must be a logged in Foreign Affairs subscriber to continue reading. If you wish to continue reading this article please subscribe , or activate your online account to get full online access.
Log In
Buy PDF
Buy a premium PDF reprint of this article.Related
WHEN Fascism fell in Italy, the old Italian Socialist Party, survivor of many vicissitudes since its founding in 1892, reappeared upon the political scene bound by a "joint action" agreement with the Communists. The pact had been drawn up first in France in 1934, at a critical point in the struggle of the anti-Fascist underground and on the eve of the creation of the French Popular Front. The aim was to assure the future unity of the working class to which both Socialists and Communists appealed on the basis of Marxist principles.
Igor Golomstock's encyclopedic tome on the art produced in the Soviet Union, Nazi Germany, Fascist Italy, and communist China makes a good case that totalitarian art is a distinct cultural phenomenon. But a new postscript on art under Saddam Hussein is less compelling, writes a former Iraqi dissident.
Italy's Socialist Party is center stage, brought there by political transformations at home and abroad. Internally, changes in the Italian electorate have caught the Communist Party and the Christian Democrats flat-footed, helping to plunge these major protagonists into crisis. Externally, the spectacular performance of the French Socialists, and the recent victory of the Greek Socialists, lead many to argue that in Italy too the Socialists represent the wave of the future.

Sign-up for free weekly updates from ForeignAffairs.com.