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DOI: 10.1177/1468018103003002006

2003 3: 173Global Social Policy Paolo GrazianoItalian Case)

ropeanization or Globalization? : A Framework for Empirical Research (with Some Evidence from the

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Europeanization orGlobalization? A Framework for Empirical Research (with some Evidence fromthe Italian Case)

PAOLO GRAZIANOCentre for Comparative Political Research, Bocconi University, Italy

a b s t r a c t Globalization and Europeanization have been increasingly fashionable terms in the past years. Nevertheless, often their use hasbeen somewhat loose and they have been considered as equivalents inexerting external pressures on national welfare states. Moving from thedefinition of the two processes, the article illustrates the different features of globalization and Europeanization, and provides and testsan analytical framework for the understanding of the institutionaleffects of the processes. In the first part of the article, the two politicalphenomena are defined and an analytical framework based on threedimensions (market orientation, mode of governance and decision-making style) is offered. In the second part, a closer look at the Italian

case is provided. The empirical analysis shows that Europeanizationmight act as an antidote to globalization: not only does it promotedifferent policy goals but also it displays institutional effects that globalization is not able to determine.k e y w o r d s cohesion policy, Europeanization, globalization, Italy, social

policy

ART I CLE 173

Global Social PolicyCopyright 2003SAGE Publications(London, Thousand Oaks,ca and New Delhi)

vol.3 (2 ): 173194. [1468-0181 (200308) 3:2; 173194; 034078]

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IntroductionIn order to attempt to compare and to assess the nature of globalization andEuropeanization in European countries, it is important to provide clear andpotentially solid definitions that will enable us to verify on the one hand theadequateness of the concepts used, and on the other the links betweenglobal pressures and domestic policy changes. In general, in the literaturethe political effects of Europeanization and globalization have not been

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distinguished very clearly; furthermore, both the globalization literature (seeGlobalization section below) and the Europeanization literature (seeEuropeanization section below) have not been in communication very much. Also focusing more on the social policy research area, the distinctionbetween the two above-mentioned phenomena has not been very clear.1 Therefore, the main aim of this article is to provide an analytical framework that enables a distinction not only between such phenomena but alsobetween the institutional effects of globalization and Europeanization,offering a first empirical test with respect to a specific social policy (cohesionpolicy) in a specific European Union country (Italy).

The article is organized in the following way. In the first part, the twophenomena (globalization and Europeanization) are defined, and the needfor a conceptual clarification is stressed. In the second part, a closer look at the Italian case is provided, with the attempt to highlight the dimensions of political globalization and Europeanization. The Italian case shows that Europeanization might act as an antidote to globalization: it not only promotes different policy goals but it also displays institutional effects that globalization is not able to determine in the EU member states. Evidencefrom cohesion policy illustrates that Europeanization is contributing tostrengthen the national government vis-a-vis other political institutions(parties and parliament) and frame policies that aim to counter the negativeintegration pursued by globalization. In the last part of the article, theimplications of the empirical findings are discussed, the basic argument being that Europeanization operates as a rationalization factor in thosecountries (i.e. the Southern member states of the EU) that have beenlatecomers to building both the nation state and its democratic foundations, while globalization mainly has an indirect effect limiting both the cognitiveand normative orientations of national policy makers.

Definitions and Comparing Concepts GLOBALIZATIONGlobalization has been used as a buzzword ... reflecting an important if yet poorly understood reality (Rhodes, 2000). It is by now common knowledgethat over the past 25 years the network of trading relations, the globalizationof production (in particular, multinational corporations) and the growth of foreign direct investment (FDI) have grown to unprecedented levels (seeHeld et al., 1999). There has been much debate concerning the apparent orreal novelty of such profound internationalization, as some authors havepointed out that the degree of global economic and financial interactions was quite similar in the late 18th and early 19th centuries (Hirst and Thompson, 1996). Nevertheless, if we consider the dimensions of economic globalization (extensity, intensity and impact; see Held et al.,

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1999: 1501) it is difficult to disagree with scholars who say that althoughthere exist important continuities with previous phases of globalization,contemporary patterns of globalization constitute a distinctive historicalform which is itself a product of a unique conjucture of social, political,economic and technological forces (Held et al., 1999: 429).

For other authors writing in a more sociological perspective, globalizationhas mainly involved a cultural dimension and the work of Robertson (1992),Beck (1997) and Bauman (1998) moves rather in that direction. Robertson(1992) focuses mainly on the cultural influence of the transnationalization of communications and its impact on national societies, individuals, the worldsystem of societies and mankind as a whole.2

Much less attention by far has been given to the political dimension of globalization. In fact, very few have focused on the internationalization/ globalization of politics whereas much attention has been devoted to theinternationalization/globalization of national economies.3 But as MichelleBeyeler has rightly pointed out: Globalization ... clearly involves a politicalinstitutional dimension, which is often hidden behind the economicoutcomes that are measured (Beyeler in this issue, p. 159).

In broad terms, political globalization can be seen as a process of construction on a supranational level and diffusion in national politicalsystems of global policies and institutions. It is a quite general but usefuldefinition because it enables one to focus on the politically salient elementsof the even broader process of economic and cultural internationalizationthat often goes under the globalization.

Taking a closer look at the nature and the globalization politics withinEurope, it is possible to realize that what is often considered as derivingfrom global political trasformations might very well originate instead fromEuropean political trasformations, which have been increasingly important over the past two decades.4 In fact, for most European countries, thechanges related to globalization cannot be considered apart from thoserelated to the regionalization represented by European integration(Schmidt, 1999a: 174). This does not imply that European integration wasstrengthened in order to oppose and confront globalization. In fact, theredoes not seem to be much evidence of a voluntary and acknowledgedacceleration of European integration as a response to globalization; as Rossputs it globalization issues, when present, were usually combined with otherpriorities and concerns (Ross, 1998: 174). From a more legal perspective,

... europeanization and globalization are both friends and rivals. EU law is anexpression, a means, and an outcome of europeanization. At the same time certainaspects of EU law ... respond to and encourage the development of globaleconomic networks, which are among the basic features of economicglobalization. EU law thus is an integral part of global economic networks. But these networks have contradictory effects on the EU ... Europeanization and

Graziano: Europeanization or Globalization? 175



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globalization thus are complementary, partly overlapping, mutually reinforcing,but also competing processes. (Snyder, 1999: 59)

Nevertheless, looking at the processes and their political effects, one canrealize that during the 1990s Europeanization has increasingly meant, froma public policy perspective, trying to control and respond to globalization. As Schmidt has pointed out, more recently Europeanization has acted bothas a conduit for global forces and as a shield against them, opening memberstates up to international markets and competition at the same time that they protect them through monetary integration and the single market (Schmidt,1999a: 172). In other words, the intensification of the political dimension of the European integration process has brought European decision makers tointegrate the EU in the world economy (promoting competition andtherefore acting as a facilitator of globalization) but also to design new policies (such as cohesion policy and the European Employment Strategy,and therefore acting as an antidote to globalization) aimed at the protectionof what is perceived as a growing European social model.

EUROPEANIZATION The debate on Europeanization is much more recent (mid-1990s). Until theearly 1990s scholars focused more on the process of European integration.Even if Anderssen and Eliassen had already talked about europeification in1993, it is only in recent years that the national dimension of Europeanintegration and the differences of national,5 and regional,6 responses to thisintegration have been given greater analytical centrality. In this literature,the unit of analysis are not European institutions and the European politicalspace but rather European domestic policy and the relationship betweenEU policies and national institutions and policies.

The first definition presenting some empirical orientation has beenprovided by Risse, Cowles and Caporaso (2001). These authors considerEuropeanization as the emergence and development at the European levelof a distinct political system, a set of political institutions that formalizes androutinizes interactions among the actors, and the growth of policy networksspecializing in the creation of authoritative rules (Risse et al., 2001: 1). Sucha complex definition is not completely satisfactory. As Radaelli rightly pointsout, policy networks are taken as a matter of faith. [Instead] their existenceand influence is a matter of empirical (not definitional!) analysis (Radaelli,2000: 3). Furthermore, there are non-European political institutions that formalize and routinize the interactions among actors; for example,national institutions (for the Italian case, see Ferrera and Gualmini, 1999)play a role. Following the analysis provided by Morlino (1999) and Radaelli(2000), I argue that in order to unpack the concept, the dimensions of Europeanization need to be stated clearly, as have been the dimensions of globalization (Held et al., 1999).




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Europeanization, therefore, can be broadly defined as a set of twointertwined processes: the first one is a process through which nationalpolitical, social and economic forces give birth to a new Europeansupranational political and institutional setting; the second one is a processthrough which EU political, social and economic dynamics become anincreasingly important part of the domestic political system. In other (andsimpler) words, Europeanization can be defined as a process of constructionand diffusion of European institutions and policies in European countries.

Furthermore, it is important to distinguish the processes from theireffects. Looking at the effects, and discussing the Europeanization of cohesion policy in Italy in more detail, I will show that there is a strongpotential for institutional transformation linked to such process, whereasglobalization acts in a much more automatic, uncontrolled and indirect manner.

For the sake of conceptual clarity, I shall use a comparative framework that should provide a better, well-grounded analytical comparison between thetwo processes. The dimensions of comparison, based mainly on secondary literature, are the following: market orientation (market making vs. market correcting), modes of governance (multilevel vs. hierarchical andintergovernmental) and decision-making (open/closed). I will discuss thethree dimensions separately. In the next section, I shall test the hypothesisthat such a difference empirically exists with respect to a selected policy area(cohesion policy) and EU member state (Italy).

The Dimensions of Comparison MARKET ORIENTATION As pointed out in the previous paragraphs, Europeanization must not beconfused with European economic integration (Radaelli, 2000).7 Neverthe-less, one should point out the different types of integration which constitutethe core of globalization and Europeanization.8 In the case of globalization,the process involves mainly an example of integration provided by thebuilding of a global market; in fact, due to global constraints, governments[are] pressured to ease restrictions on foreign trade by slashing protectionist tariffs and non-tariff barriers ... Past requirements, such as local equity participation, employment creation, capital reinvestment, the use of localresources, or the transfer of technology, [are] replaced by generousincentives to attract foreign capital (Gupta, 1997: 4). In fact, the most important components of IMF programs are fiscal and monetary austerity and exchange rate adjustment (Pieper and Taylor, 1998: 39). Furthermore,International Monetary Fund (IMF) policy recommendations focus onlabour tax reduction and they do not provide a broader policy context whereincentives and subventions for losers are taken into account. In addition,




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the World Bank in the 1980s moved alongside the IMF into the business of providing balance-of-payments support to countries afflicted by the debt crisis and falling export prices, adding newly invented structural adjustment loans to its project credits (Pieper and Taylor, 1998: 40).9 Also, one of themain explicit goals of the WTO is to help producers of goods and services,exporters, and importers conduct their business (WTO, 2000: 1). Therefore, the WTO aims explicitly at lowering tarifs, regardless of settingrules for the social dimension of integration. Consumers and socialinterests, moreover, are not even mentioned in the various working papers of the WTO.

On the other hand, Europeanization has meant and still means more than what has been described as negative integration or market making. Already in the Preamble to the Treaty of Rome there is a clear statement that the EC considers social and economic cohesion among its most important goals. The Structural Funds have represented a distinguishedform of relevant positive integration offering consistent financial resourcesaimed at that goal and representing a first step towards the building of asocial dimension of European integration (AA.VV., 2002; Anderson, 1995). Although positive integration, consisting in redistributive policies and thepromotion of a social dimension in the EU treaties, is very difficult toimplement (Scharpf, 1994), the Maastricht Treaty, the Amsterdam Treaty,the Luxembourg Special Council on Employment in 1997 and theStructural Funds strategy within Agenda 2000 pay much more attention tosocio-economic development and to the need to implement socio-economiccohesion: in short, to the correction of market failures. In a recent document of the Commission it is stressed quite clearly that the EU aims for fullemployment as an objective of economic and social policy with the medium-term target of cutting unemployment to levels in the best-performingcountries and that the EU must catch the wind of economic upturn andgenerate substainable growth over a long period. To achieve this the EU must pursue a systematic policy of modernisation that delivers structuralreforms, accelerates absorption of new technology, improves Europeanresearch, promotes the reform of social welfare, health and pensions, andcreates e-literate workforce whose ideas find faster expression in themarketplace (European Commission, 2000b: 1; see also EuropeanCommission, 1997, 1999).

In summary, although there is broadly speaking a growing awareness of the need for a social pillar in the global economy (ILO, 2000: 1), and thereare signs of such awareness among global institutions (United NationsDevelopment Programme [UNDP], 1999), the primary global institutionsare still mainly focused on a market making strategy, whereas there is anincreasing salience of the social dimension through which Europeaninstitutions are confronting global pressures and enhancing the elements of market correction (see also Ferrera et al., 2000).




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MODES OF GOVERNANCE The predominant pattern of governance within the global setting isintergovernmental and scarcely institutionalized. Scholars of internationalrelations who have done research on this matter are very clear on this point. As Krasner puts it: the international system is weakly institutionalized(Krasner, 1999: 49). Furthermore, according to one of the most important research projects on decision-making in international organizations, thelatter could provide only the services that governments would accept, andthe levels were determined by the decisions of a few of the most important powerful states (Cox and Jacobson, 1973: 434; see also Reinalda and Verbeek, 1998). (A few) national governments are still the main actors of theinternational political arena, although they are not capable of keeping

growing economic globalization under control (Voronkov, 1995: 12). Untilrecently, subnational actors and several weak national governments havebeen neglected both in the North and in the South of the world (Adams andGupta, 1997: 12). Moreover, international institutions are quite fragmented,since there is very little coordination among the different institutions such asthe IMF, the World Bank, the OCDE, etc. (Held, 1999: 260, Italiantranslation). Finally, there is no global democratic representation: in fact,the UN and other international organizations are formed by representativesof national governments who show quite uneven statuses and are not directly elected by world population (Bourantonis and Weiner, 1995). Therefore,representation is indirect and far from the electorates.

Instead, the recent evolution of EU institutions has made the Europeanpolitical organization more and more similar to what has been termed aEuropolity (Marks et al., 1996), or, a particular political system whereEuropean institutions have started to erode the sovereignty of the nationstate within a multilevel pattern of governance (Hooghe, 1996; Marks, 1992,1993; Marks et al., 1996), giving birth to a system of shared sovereignty(Wallace, 1999). Although intergovernmentalist bargaining is quiteimportant in Europe (Milward, 1992; Moravcsik, 1998), evidence frompolicy analysis has shown that Europeanization implies an increasing sharingof sovereignty and competencies which takes place in a quasi-federalinstitutional setting where horizontal and vertical networks have beenestablished and more recently reinforced (Kohler-Koch and Eising, 1999; Marks et al., 1996; Temmel, 1998). Over the past 20 years, decision-makingin Europe has not only been an outcome of a two-level game betweensupranational and national actors (Putnam, 1988), but it has also given birthto a multilevel governance system (Hooghe, 1996; Marks, 1992, 1993) wheresubnational actors have begun to play a significant role. Furthermore, recent documents of the European Commission DG Employment and Social Affairs are explicitly devoted to the building or consolidation of a localdimension of development and employment (AA.VV., 2002; EuropeanCommission, 2000a); this particular attention to the subnational levels of




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governments shows that the EU institutional system takes much more intoconsideration the political preferences of local territories than globalinstitutions such as the IMF, WTO and the World Bank.

DECISION-MAKING As Susan Strange pointed out, globalization all too often ... is a politeeuphemism for the continuing Americanisation of consumer tastes andcultural practices (Strange, 1996: xiii; see also Latouche, 1996) and thecapacity of governing global transformations democratically is very weak (Held et al., 1999). At the international level, not only are governmentalactors from poor countries of minor importance, but also social actors whoare far from being taken into consideration in the decision-making process. WTO decision-making is considered particularly closed and non-transparent not only by anti-globalization activists (see Public Citizen, 1998)but also by member states such as Canada and the EU. In a recent Joint Statement on the WTO, the EU and Canada stressed the importance of transparency inside and outside of the WTO and the need for a dialogue with individuals and organizations outside of government ... in order toensure its efficient operation, [and] the effective participation by developingcountries (EU/Canada Summit, 2000: 1; see also European Commission,2000a).

Turning to how public policies are formulated and implemented at theEuropean level, one sees that the process consists in general of a procedureinvolving many governmentaland non-governmental actors, with different degrees of influence (see Bomberg, 1998; Moravcsik, 1998). Although, as hasbeen stated above, this does not imply that all actors have similar powers, it does imply instead that the decision-making arena is more open, fluid andtransparent than the decision-making arena of global institutions. In fact,exerting influence is much different from playing a role within thedecision-making process. Nevertheless, influence has to be built on voiceopportunities provided (although sometimes weakly) by the procedure of policy formulation at the European level, whereas very few actors areinvolved in both policy formulation and implementation within globaldecision-making. Furthermore, at the EU level there are important policiesthat are developed through the negotiations of both horizontal (social actors governments) and vertical (supranational national subnationalgovernments) actors and which involve implementation guarantees of localbureaucracies (an important example which will be discussed in more detailis cohesion policy). On the contrary, within the WTO/General Agreement on Tariffs and Trade (GATT), the IMF and the World Bank i.e. the globalinstitution decision-making is strongly influenced by few countriesrepresenting specific interests promoting free trade around the globe(Curzon and Curzon, 1973: 3301; Reinalda and Verbeek, 1998).

But how can we test the hypotheses derived from the previous paragraphs?




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Are there in the EU market correcting policies? Is multilevel governancepresent? Is the decision-making mode of governance more open in theEuropeanization process than in the globalization one? Let us test ourhypotheses with respect to cohesion policy in Italy during the 1990s.

Cohesion policy is not a purely European policy: member states had in thepast different social development policies that have been challenged by theemerging relevance of European cohesion policy. Such a policy has beenchosen because it shows very well where the (part of) bulk of thedifferences between Europeanization and political globalization lays. Theidea is that if we do not find any difference (or only a minor one) inredistributive policies, then the Europeanization vs. globalization argument would a fortiori not be sustainable with respect to other policies. Moreover,Italy is a particularly interesting case study since it has performed badlyin the implementation of EU cohesion policy: the assumption is that ifthere are pressures from (and institutional answers to) Europeanizationin Italy, then it is even more possible that there will be in other memberstates more compliant to or in line with EU policy or institutionalconstraints.

Empirical Insights from the 1990s: Europeanization and Globalization in Italy10

THE ITALIAN POLITICAL SYSTEM IN THE 1990S: THE ROLE OFEXTERNAL PRESSURES FOR CHANGEBroadly speaking, Italy witnessed a great transformation during the 1990sand several scholars have pointed out that Europe has played an important role, although not decisive, in this transformation (Di Palma et al., 2000;Ferrera and Gualmini, 1999). The general features of the transformation of governance can be summarized as follows: at the national level, after apolitical earthquake (Cotta, 1996) caused by the discovery of mass politicalcorruption, Italy has moved from a centralized party government pattern toa broader multilevel governance system in which new actors at the nationallevel and also at the subnational level have emerged. Within this moregeneral framework, how did the two processes manifest themselves? What has been the specific political impact of globalization and Europeanization?

Such questions are impossible to answer in statistical terms by attributingprecise weights to different explanatory factors. Nevertheless, it is possibleto capture relevant impulses and to assess their direct or indirect impact onspecific policy domains. I shall focus on cohesion policy, which is the most important policy aimed at socio-economic inclusion. I will illustrate theEuropeanization of socio-economic cohesion policies and its fostering of amultilevel governance system aimed at a positive rather than simply negativeintegration, characterized by an increasingly open decision-making process.




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Moreover, I will try to demonstrate the relevance and particularity of such aprocess by contrasting it to the purely normative and cognitive constraintsderived from the globalization political discourse (Schmidt, 1999a), whichhave been relevant within the arena of Italian cohesion policy.

THE GLOBALIZATION OF COHESION POLICY To capture the relevant dimensions of the ideological forces of globalizationone might, to begin with, simply look at the IMF Staff Country Reports. The Year 2000 Report on Italy states quite clearly the socio-economicpriorities that should be encouraged and sustained by the nationalgovernment. Acknowledging that unemployment must be reduced,especially in the South and among the young (IMF, 2000: 24), the IMF staff also state that future steps should be targeted at lowering the tax burden onlabor income, with a particular view to easing job market entry (IMF, 2000:24). The only way to enhance competitiveness seems, therefore, to be by cutting labour taxes and not by implementing a new corporate income tax orpromoting new forms of sustainable development. As far as the Italian case isconcerned, however, globalization is often invoked as a new vincolo esterno(even more than Europeanization) which limits the cognitive and normativebehaviour of national decision makers.

Instead, cohesion policies are instrinsically distant from the neoliberalcreed (Pieper and Taylor, 1998) fostered by international organizations suchas the IMF, which, as implicitly highlighted in the Annual Country Report,is more interested in the creation of a free market. This does not mean that certain aspects of negative integration policies are not relevant to SouthernEuropean Members states, which benefit from the rationalization impulsederiving from such policies (Ferrera et al., 2000b). Nevertheless, it demonstrates how market correcting policies are not promoted by globalinstitutions.

In addition to not containing a market correcting dimension, globalinstitutions are not led by a consolidated and structured executivecomparable to the European Commission. The IMF and the World Bank inparticular are not responsible before an elected body such as the EuropeanCommission is; instead, both institutions are intergovernmental bodieselected by governments.

Finally, the decision-making process of such institutions is closed andfocused exclusively on labour cost and tax reduction reforms. Typical policiespromoted by institutions such as the IMF include cuts in public spending,high interest rates, and credit restraints (especially for the public sector)(Pieper and Taylor, 1998: 41). The IMF technical staff annually delivers acountry report which is based on the importance of market-friendly policiesand is written by a staff of autonomous experts who are only accountable tothe IMF Board.




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THE EUROPEANIZATION OF COHESION POLICY To a certain extent, cohesion policy is the most important market correctingpolicy implemented at the EU level. First, because it is targeted explicitly at regions that are lagging behind and are in need of financial resources inorder to catch up with other more advanced regions in Europe, and, second,because it redistributes resources to peripheral territories that are havingtrouble with the liberalization and deregulation process (building anincreasingly more free market) taking place in Europe (Marks, 1993).

The objective of social and economic cohesion has already been addressedin the Preamble to the EEC Treaty of Rome, even if the propositions that it spelt out were not immediately met with the adoption of a comprehensivecohesion policy framework.11 It was in the 1970s (and more markedly in the

1990s) that the territorial dimension and the weight of European institutionsgained relevance. In regulation 2088/85 mainly inspired by the Greek andFrench governments the Integrated Mediterranean Programmes (IMP) were brought to life. These programmes represented a clear and decisiveattempt to correct and rationalize European cohesion policy.

The IMP introduced principles (concentration of resources, partnershipamong institutional and societal actors, programming and additionality of resources), consolidated by successive structural fund reforms, whichpromoted the emergence of a multilevel pattern of governance. In 1988 thispolicy was reinforced by the approval of the first reform of the financialinstruments of cohesion policy, which witnessed a substantial increase infunds allocation. Essentially, within the course of the 1990s the resourcesmade available by the EU have increased significantly, accounting for 35.2percent of the EUs budget, and absorbing just under 0.5 percent of theaverage GDP of the member states.12

The increase of the funds available for cohesion policy and the imple-mentation of the concentration, partnership, programming and additionality principles contributed to the building of a multilevel system of governancethat differs significantly from the traditional pattern of top-down localdevelopment policies that constituted the Intervento Straordinario per il Mezzogiorno(Extraordinary Intervention for the Southern Italian Regions).13

In fact, since 1975 Italy has been confronted with a new and important actor in the administration of socio-economic disparities: the EU institutions. At a European level, Italy was particularly weak in making her voice heard in international bargaining.14 In this new European arenanational interests were not well defended. Italy has benefited from EU subsidies in large part due to the pressure of other member states (Greeceand France first, then Spain and Portugal respectively) interested in theadoption of measures favouring areas considered to be underdeveloped.

Italian indifference influenced the two Structural Funds negotiationrounds at the end of the 1980s and beginning of the 1990s, whichdemonstrated the scarce attention paid by Italian decision makers to vital




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European financial matters. In contrast, the new round for the period200006 has shown a strong potential prompted by Treasury Ministry ( Ministero del Tesoro, del Bilancio e della Programmazione economica) already during the policy formulation phase.

First, from a top-down perspective, the Treasury Ministry has underlinedthe centrality of the regions, insisting on one of the cardinal principles of thestructural funds programming and founding, alongside nationalhorizontal negotiations, a board for regional horizontal negotiations. Withthe adoption of the new Community Support Framework (CSF) there is aconsistent move towards a regionalization of the management of StructuralFunds. During the period 200006 more than 70 percent of the totalresources available will be managed by the region compared to less than 50percent in the previous CSF.Second, there has also been a bottom-up dynamic. The intenseconcertation at both national and regional levels contributed to increasingthe number of social actors involved in the decision-making process,facilitating the formation and promotion of a regional interest during theprogramming of EU cohesion policy. Therefore, the Italian government wasoperating in an increasingly open and institutionalized decision-makingenvironment.

THE POLITICAL EFFECTS OF GLOBALIZATION ANDEUROPEANIZATIONI have sought to demonstrate the progressive assertion of a Europeanizationof cohesion policies: the traditional Italian policy of assistance for the Mezzogiorno is aligned with an EU policy that has challenged and changedthe national policy. But what are the political effects of the Europeanizationof cohesion policy in Italy? And what has been the role of globalization?

The earthquake that rocked the Italian political arena in the early 1990salso affected the policy area under examination. The persistence of wideterritorial differences has favoured the consolidation and spread of anegative evaluation of the entire 40-year span of the Intervento Straordinario.In 1991 a referendum to abrogate it was proposed and, successively, L. 448 was adopted in December 1992. In this context of institutional uncertainty,Europe has become an increasingly important political and legislative point of reference for national and regional governments. Europeanization hashad substantial repercussions on relations between the centre and periphery,between the executive and legislative, on national and regionalbureaucracies, and on patterns of interest representation.

First, with regard to executive and legislative relations, the role of nationalgovernment was increased on all fronts. At this time the Treasury Ministry plays the coordinating role and is the driving force behind cohesion policy, while Parliament, traditionally a key figure for national cohesion policies,has a rather weak controlling function. At a regional level it is still the




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Government that exercises key functions. For example, responsibility for EU policies in Apulia is under the President of Regional Government (Giunta), while the regional Assembly carries out only a marginal role.

Furthermore, a reorientation of centreperiphery has taken place, themost substantial effect being the increased resources available to regionalgovernment institutions. With the new programming for the period20002006 in particular in which centreperiphery negotiation was quiteintense the regions will have the exclusive management of 70 percent of the total resources allocated to Italy at their disposal, whereas, for the othertwo CSF periods, they had managed less than 50 percent of the availablebudget. Moreover, the tools of the negotiated programming anticipate anincrease in territorial centralization and in the power of regional (and to acertain extent sub-regional) governments. Such expansions, whichcontextually involve the transfer of authority to the transfer of resources,are even more relevant seen in the light of other forms of jurisdictional (but not resource) decentralization anticipated by some recent legislativeprovisions.

The effects of Europeanization have also been significant on bureaucracy.It is necessary to pause, above all, on the bureaucratic machinery in order tounderstand the amount of change triggered by the implementation of EU cohesion policy. Over the past years, to meet the challenge of the new procedures introduced by the Community bureaucracy,15 a process of rationalization has been put in motion that continues to affect a deep changeon the nature of administration in national and regional bureaucracies. Sucha process implies a progressive independence of the bureaucratic machinefrom political parties and an adherence to the regulatory principles that limit the discretionary powers and steer administrative behaviour towards aproblem-solving approach. Such rationalization occurred (and still occurs) at the centre while it is often determined by an incentive derived from thecentre when it occurs at the periphery.

Finally, interest representation has been strongly influenced by Europeanization. At a national level the influence of the parties has been oneof the reasons for the progressive clientelististic degeneration of the Intervento Straordinario. On the other hand, EU decision-making has alwaysbeen less open to party influence concerning national policy-making. At aregional level the tools of the negotiated programming and EU programmeshave widened the circle of the interests taken into account during thepreparatory phases, including players who were not previously on the sceneat a regional level (e.g. minor business associations and representatives of Third Sector associations). In this new context, regional government institutions take on a central role as coordinators and as a driving forcemainly controlled by social actors and, in a much diluted role with respect tothe past, political parties.

In contrast, the political effects of globalization for cohesion policy in the




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Italian case have not been very relevant. In general, the political effects of globalization on socio-economic policies and institutions have been lessrelevant than those provoked by European integration (Ferrera andGualmini, 1999: 6074). From an institutionalist perspective, in the area of cohesion policy globalization seems to have manifested itself as a political discourse(Schmidt, 1999b) constraint, affecting both domestic and Europeanpolicy-making by limiting the possible policy options, but has not actedmuch as a motor fordomestic institutional and policy change. It has, of course,modified the investment preferences of some investors, whose interest areno longer anchored to the national economic interest, but such changes havebeen filtered or made possible primarily by European institutions andpolicies.16 In particular, the development of cohesion policy in Italy showsthat globalization has not been able to avoid the continuation of market correcting policies in EU member states, and that the strengthening, withrespect to cohesion policy, of both the executive and bureacracy in Italy cannot be considered as an effect of globalization. In other words, whereasEuropeanization has had a strongdirect impact on the development of cohesion policy, globalization has played a weakerindirect role that wassomewhat contrasted by Europeanization itself.

Globalization or Europeanization? Some Lessons from the Italian CaseOver the past years, after the failure of the Structural Adjustment paradigmof the 1980s (Pieper and Taylor, 1998), global institutions have also begun tochange towards a more bottom-up approach to development (see WorldBank, 2002). At the same time, Europeanization, until the end of the 1990s,has also meant a build-up to the EMU and, therefore, the setting andimplementing of harsh budget deficit reducing policies, sharing commonfeatures with the call for sound budget policies promoted by globalinstitutions. Therefore, are Europeanization and political globalizationprocesses becoming increasingly alike?

It would be rash to draw conclusions in the case of Italy on the basis of asingle area of policy study, however significant it may be, since the majority of cohesion policy actors are involved in horizontal and vertical negotiations,

and the policy concerns the development of the territory as a whole and not just of specific sectors, thus representing an emblematic case of policy aimedat market correction. That notwithstanding, the above analysis provides amore general reflection of the transformation of Italian governanceparticularly in the social and economic policy sectors.17

In the first place, along with a consolidated influence of EU law, theEuropeanization of national policies has recently, over and beyond cohesionpolicy, reached other policy domains (for example monetary and labour




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policies). After 1992 this process accelerated, following the consolidation of policy learning processes derived from the innovation of EU policies. Suchan acceleration confirms that the intensity of Europeanization varies on thebasis of the previous paths followed by its member countries: the greaterthe discrepancy between EU and consolidated national policies (the so-called goodness of fit: see Risse et al., 2001), the greater the necessary timespan in order to adapt the national policy setting to EU requirements.

Furthermore, Europeanization seems to lead to a restructuring of centreperiphery relations in a manner that is more favourable to theperiphery than before. Naturally, this does not imply that such centralgovernment institutions are obsolete and excessively weakened by thestrengthening of regional governments. Rather, it seems that there is aninduced redefinition of the role of national government led by thegovernment itself, which takes place in a context where processes areoccuring on which the national government exercises an almost irrelevant (globalization) or reduced influence (Europeanization). Such processesreduce the traditional sovereignity of western governments entailing agreater distribution of power among the various government institutionsand a widening of the number of actors that have access to the decision-making process, thus giving birth to what has been defined as multilevelgovernance. Nevertheless, since national government has the most difficulty in controlling the economy for exogenous reasons, the sharing of its weakness is a demonstration of its strength: the government decides todecentralize responsibility and authority knowing very well that in the new world economy the state-driven methods of intervention would prove of little use. Europeanization therefore is not in itself automatically effective; it is the behaviour of national government that makes Europeanization display,or not display, all its effects.

Finally, the concept of Europeanization shows a remarkable descriptive validity enabling us to better understand the interaction between EU andnational governments. The recent reorientation of European studiestowards policy analysis can be seen as favourable for its characteristically strong empirical component. Nevertheless, a large amount of information iscurrently available on how community policies are enacted on a Europeanlevel, but less is known about the specific patterns of the preferenceformation of national and regional governments and the implementation of EU policies in member states. To gain a better understanding of EU policy-making in its entirety it is necessary to examine the member states moreclosely and to empirically analyse, on the one hand, the results of European-ization and, on the other hand, the links between national governance andsupranational governance in order to also capture the patterns of policy learning and policy feedback processes. This is certainly not an easy task but it is a necessary one in order to acknowledge not only the impact of Europeon its member states but also the evolution of EU integration.




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The political effects that have been discussed might also somehow beinfluenced by globalization pressures, but the argument developed in thisarticle demonstrates that all possible pressures are filtered and accompaniedby other policies at the European level, which are trying to incorporate theconstraints and opportunities of an increasingly open world within the so-called European social model. In the next few years we will see if there arechances (quite weak for the moment) for a Europeanization of globalizationthanks to the creation of a more or less homogeneous European socialmodel which might become a model for other countries, or set of countries,or if Europeanization will refer only to a defensive strategy undertaken by European countries trying to protect and consolidate national or a Europeansocial model(s) in an increasingly integrated world.

a c k n ow l e d g e m e n t s

I would like to thank all the participants to the COST A15 WG1 meeting inFlorence (1112 October 2002), where a longer version of this article was presented,for useful suggestions. I owe special debts to Eero Carroll, Maurizio Ferrera, Nick Manning and Bruno Palier for their very useful comments and suggestions.

n o t e s

1. For a partial exception, see Hay et al. (1999); Scharpf and Schmidt (2000).2. In fact, these authors do not provide adefinitionbased on clear criteria; they

conceptualizerather broadly the phenomenon of globalization.3. Among few other exceptions we find Held et al., 1999; Keohane and Milner, 1996.4. This article considers the institutional implications of both political globalization

and Europeanization, leaving aside the economic consequences that are assessed with a large degree of uncertainty by economists (for the Italian case, BarbaNavaretti, 1999; Faini et al., 1999; Milone, 1999). For a similar institutionalistperspective on globalization and its impact on European welfare states see Hay et al., 1999.

5. Anderssen and Eliassen, 1993; Bulmer, 1983; Ladrech, 1994; Mny et al., 1996;Olsen, 1995; Radaelli, 1997; Risse et al., 2001; Schmidt, 1999a, 1999b; Wallace,1996.

6. Conzelmann, 1998; Hooghe, 1996; Jeffery, 1997; Keating and Hooghe, 1996;Keating and Jones, 1995; Le Gals and Lequesne, 1997.

7. As Beyeler points put in her contribution to this issue, both economic (market)

integration and political integration are part of Europeanization. In other words,Europeanizationincludes economic integration but it ismore than economicintegration.

8. Radaelli rightly points out that Europeanization would not exist without Euro-pean integration (Radaelli, 2000: 6), implying, therefore, that such integration isa prerequisite (or part) of Europeanization.

9. Only more recently the World Bank has gone back to its initial goals: poverty alleviation and (micro)credit measures (World Bank, 2002).

10. The research was carried out in a three-year period and regarded both the




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national and the subnational dimension. About 60 interviews with topbureaucrats and governmental representatives were performed.11. For more detailed accounts see Armstrong (1995); Pollack (1995); Staeck (1996).12. For the data see European Commission (1998: 34).13. For further details see Graziano (2003).14. See Ferrera (1991); Giuliani (1992).15. See Franchini (1993) and Dente (1999: 1234).16. In a research project on Social Integration in Europe, interviews have shown

that national and local elites perceive the constraints of globalization as not asrelevant as the opportunities and constraints posed by European institutions andpolicies. No global actor enters into their day-to-day political life. For thepreliminary findings of this research, see Ferrera et al., 2000a.

17. For similar conclusions regarding the scarce influence of internationalorganizations (such as OECD) and the relevance of European institutions on thereform of Italian welfare, see Bertozzi and Graziano in Armingeon and Beyeler(2003).

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r s u m

LEuropanisation ou la Globalisation? Une Structure pour les

Recherches Empiriques (avec de lvidence de lExemple Italien)Leuropanisation et la globalisation sont des termes qui sont, depuis quelquesannes, de plus en plus la mode. Nanmoins, lemploi de ces termes a souvent tde manire approximative et on les a considrs comme quivalents en termesdexercer les pressions externes sur les tats providence nationaux. Aprs avoir dfiniles deux processus, larticle illustre les diffrents lments de la globalisation et deleuropanisation et donne et met lpreuve une structure analytique pour lacomprhension des effets institutionnels des processus. Dans la premire partie delarticle, on dfinit les deux phnomnes politiques et on propose une structureanalytique base sur trois dimensions (lorientation du march, la mode degouvernement, et le style de prendre les dcisions). Dans la deuxime partie, onfournit une tude plus en dtail de lexemple italien. Lanalyse empirique montre queleuropanisation peut agir comme antidote la globalisation: cela ne promeut passeulement des diffrents buts de politique, mais cela montre galement les effetsinstitutionnels que la globalisation ne peut pas dterminer.




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r e s u m e n

Europeizacin vs. Globalizacin? Un Marco de Investigacin Emprica (con Algunas Muestras del Caso Italiano)La globalizacin y la europeizacin se han convertido en trminos en boga en losltimos aos. Sin embargo, a menudo son utilizados sin rigor, considerndolos comoequivalentes en el ejercicio de presin externa sobre los estados de bienestarnacionales. Tras definir ambos procesos, el artculo ilustra los diferentes rasgos de laglobalizacin y la europeizacin, brinda y pone a prueba un marco analtico paracomprender los efectos institucionales del proceso. En la primera parte del artculo,se define los dos fenmenos polticos y se ofrece un marco analtico basado en tresdimensiones (orientacin del mercado, modo de administracin y estilo de toma dedecisiones). En la segunda parte, se revisa con mayor detalle el caso italiano. Elanlisis emprico muestra que la europeizacin podra actuar como un antdoto parala globalizacin, ya que no slo promueve polticas diferentes sino que tambinmuestra efectos institucionales que la globalizacin no puede determinar.

b i o g r a p h i c a l n o t e

PAOLO GRAZIANO, PhD in Political Science at the University of Florence, currently teaches Political Science at Bocconi University of Milano. He has recently publishedThe Impact of OECD Guidelines on Italian Welfare State Reforms (with F.Bertozzi) in the book edited by K. Armingeon and M. Beyeler,OECD and WelfareState Reforms in Europe. He is also working on a volume for the Italian publisher Il Mulino dedicated to The Europeanization of Italian Public Policies: the case of Cohesion and Labour Policies. ADDRESS: Centro Poleis, Istituto di EconomiaPolitica, Universit Bocconi, V. Sarfatti, 25, 20136 Milano, Italy. [email:[email protected]]


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