Why the Italian Mezzogiorno did not Achieve a Sustainable Growth: Social Capital and Political Constraints

Abstract

This article analyses the reasons for the persisting economic and social backwardness of the Italian Mezzogiorno. The South of Italy, a large and densely populated region, has lagged behind the rest of the country over the last 60 years, despite considerable investments in development aid. Understanding the reasons for this failure is particularly important not only for the future of Italy citizens but also for regional development policies in Europe. Current explanations focused on either an insufficiency of economic aid from the central government or a lack of social capital in the Southern regions. Both of them are weak in a number of respects. The insufficient aid thesis overlooks the large absolute scale of net transfers form the state to the South (especially in terms of spending on public services). The social capital thesis points out the weaker endowment of civicness in the Mezzogiorno, but overlooks the role of political institutions that hinder economic development and the growth of civic culture. The major argument of this article is that the problem of the South should be explained primarily through reference to the dynamics of the political system (both local and national). The prevalence of clientelism in the politics of the South helps explain the inefficiency of aid policy, and also provides a more convincing explanation for the lack of social capital. Clientelism in local politics is supported and even encouraged at the national level because of the importance of the Mezzogiorno in national electoral politics.