DILEMMA OF THE ITALIAN COMMUNIST PARTY
Proctor, Joanne Barkan & Proctor, Robert E.
FROM ITALY DILEMMA OF THE COMMUNIST PARTY With the fall of the minority Christian Democratic government in Italy and national elections set for June 20 and 21, a year ahead of schedule, a timely...
...What is more, such technical reforms (which do not involve structural changes in the economy) would not solve the Italian working class's most serious problem: high endemic unemployment...
...First of all, depressed economic conditions around the world have adversely affected Italian export markets...
...Here room for maneuver is surprisingly Umited...
...Thus not only international economic conditions, bat also the struggle of Italian workers for higher wages and more democracy and better working conditions in the plants make it difficult for Italian industrialists to maximize profits...
...The hope of making Italy into another Sweden or Holland is just not realistic...
...Industrial production and investments have fallen precipitously since summer, 1974, with no pick-up in sight...
...Furthermore, for the satisfaction of basic collective and human needs it is not the most profitable sectors of the economy which need investment and expansion...
...Its enemies are the financial speculators and manipulators and the unproductive and parasitic sectors of the economy...
...JOANNE BARKAN PROCTOR & ROBERT E. PROCTOR (Joanne Barkan Proctor and Robert E. Proctor, members of the faculty at Connecticut College, recently returned from an extended period of study of the Italian economic and political situation...
...After 12 years of promises, the Center-Left coalition produced not one significant social or economic reform...
...Clearly even these Umited reforms would involve frontal Clashes with certain sectors of the financial oligarchy closely tied to the Christian Democratic Nevertheless the extra revenue to be derived from such limited reforms would not come near to meeting the pressing needs of the Communist Party's working class constituency in terms of housing, public transportation, health care, schools, and sanitary services...
...The Italian Communists' fears, however, could do with a little explanation...
...Second, for over a decade now neither the govern-raent nor industry has been able to break the growing strength of the unions and subdue the Italian working class...
...Kissinger's reasons, based on inflexible sphere-of-influence power politics, are well enough known...
...Restructuring involves more automation and decentralizing production...
...FROM ITALY DILEMMA OF THE COMMUNIST PARTY With the fall of the minority Christian Democratic government in Italy and national elections set for June 20 and 21, a year ahead of schedule, a timely riddle might begin, "What do Henry Kissinger and the Italian Communists have in common...
...Answer: Both are apprehensive about die Kalian Communist Party's possible eritry into the national government...
...Thus the most profitable sectors of the economy which is primarily export-oriented have been hurt...
...Rather agriculture and social services must be developed...
...The uncertainty of being able to make high profits in Italy explains the low level of investment, the closing of foreign-owned factories, and the constant flow of capital out of the country...
...They legitimately fear that capitalists, led by the United States, will pull their reserves out of Italy, cut off investments and loans, and thus precipitate economic chaos...
...The Communist Party alone wen 33.4 percent...
...At the same time the industrialists want to convert-Italian industry as a whole...
...If our analysis is correct, significant social reforms and a high level of employment are impossible goals for- Italy within the limits of the present system...
...Here the limit of any program of social and economic reforms which accepts the logic of production for profit becomes particularly apparent...
...The Italian electorate rejected the formula of a Center-Left government by voting Communist...
...Meanwhile a growing portion of Italy's balance of payments deficit is due to agricultural imports...
...After next month's elections, however, they may no longer have this choice...
...Their goal, in essence, is to streamline the existing system and provide a more rational use of resources, a more equitable distribution of income, and greater satisfaction of collective needs...
...Their revolt in 1968-69 curtailed management authoritarianism in the plants and gave them some direct control over the organization and pace of work...
...So a shaking up and at least partial dismantling of the huge Christian Democratic power structure and some redistribution of income will be necessary to enact even the most modest program of social reforms...
...The Left together polled 48 percent of the vote in the June 1975 regional elections...
...The amount of arable land withdrawn from cultivation each year because it cannot be farmed at a high enough profit to attract investments continues to rise dramatically...
...The situation is dramatic because such a large segment of the population is calling for such reforms and has given the Communist Party its mandate for just that reason...
...The parry would also-have to cut the wasteful spending and embezzlement of public funds, limit the activities of financial speculators, and stop the illegal flow of capital out of the country...
...They are not calling for the abolition of capitalism, In fact, the party leadership has paid particular attention to assuring owners of small and medium-size industries that the party is by no means opposed to a market economy, or to profits...
...Thus the Italian Communists find themselves in their most difficult situation since the end of World War II: They must put the unemployed to work and develop agriculture and the public sector while avoiding a head-on collision with the capitalists, both Italian and international...
...The Communists present themselves not as a revolutionary ferce but as a strong constitutional party capable of providing an honest, more efficient administration...
...For example, the putting-Out system is being used more and more...
...The response of the major Italian industrialists in both private and state-owned industry is two-fold: They want to restructure their plants in order to end workers' control over production and increase productivity...
...Italy is not rich and her economy has been stagnating since 1963...
...A well-developed system of social services and benefits for all, financed by high taxes, presupposes not only a country wealthy to begin with, but a long period of economic expansion...
...The reason is simple: there has never been any incentive for capitalists to invest in agriculture or in the satisfaction of social needs because it is not profitable for them to do so...
...As long as the Communists stay out of the government, they will not be held directly responsible for resolving an insoluble conflict...
...By 1973 they constituted over 20 percent of the total deficit...
...The Italian Communist Party would certainly have to reform the country's corrupt and unjust tax system and make the rich pay their share...
...Italian industrialists struggling to maintain or even raise their profit margins are faced with two problems...
...The Italian people are demanding real change, and this appeal is being made primarily to the Communists...
...olitical situation...
...Workers' strikes in 1962 put an end to the cheap labor upon which tile Italian "economic miracle" of 1959-63 had been built...
...By postponing their entry into the government, the Italian Communists avoid direct responsibility for resolving this conflict...
...But can they succeed...
...The Communists want, rather, to enact certain economic reforms...
...But why can't the state finance these unprofitable but necessary services and sectors...
...Funds for reforms in Italy are not only very scarce, but the financial and monetary apparatus is in the hands of the Christian Democratic Party and big business...
...This means getting rid of dead wood and expanding the most profitable sectors of the economy which, because of changing world markets, are those producing capital investment goods...
...Restructuring and conversion will require greater labor mobility (shifting workers from one factory or industry to another) than the unions have so far been willing to accept and long periods of increased unemployment To make matters worse for the Italian workers, there is no guarantee that an economic pick-up in several:years based upon more profitable restructured and converted industries will in fact provide more jobs...
...The sad irony (or basic irrationality) is, of course, that while so many needs cannot be met, valuable resources-in this case human labor and land-lie idle...
...Chile serves as a tragic reminder of what can happen when capitalist powers feel their interests threatened...
Vol. 103 • May 1976 • No. 11
