The composite economy: Local politics and industrial change in contemporary Italy

This paper examines the apparent paradox behind two contrasting images of Italy (a negative one which presents Italy as a 'weak state' and a positive one which emphasizes the more dynamic aspects of the Italian economy) while at the same time advancing an alternative approach to the study of comparative political economy. In contrast to the dominant, national models approach, the author proposes a micro-political analysis that emphasizes the internal heterogeneity of national economies and the 'embeddedness' of economic activity in local socio-political networks. To illustrate this micro-political approach, this paper analyses the alternative adjustment strategies present within the same country, even within the same industry. By analysing the divergent patterns of adjustment in two of Italy's most noted textile districts (Biella and Prate), the author stresses the internal heterogeneity manifest within a single national economy.