Mind The Economy

The End of History and the Loss of the Possible

It is a morning in October 1980. Adriano Alessandria arrives at the gates of the Fiat factory in Turin.

9' min read

Translated by AI
Versione italiana

9' min read

Translated by AI
Versione italiana

It is a morning in October 1980. Adriano Alessandria arrives at the gates of the Fiat factory in Turin. He is due to start his morning shift. He is twenty-three years old. Before him, the rain has brought down the banners and large posters that had accompanied the workers’ protest for weeks. They lie on the ground like the remnants of a party that ended badly. For thirty-five days, thousands of workers had picketed the gates of the Fiat factories. Now the dispute has ended with an agreement that, for many of them, represents a defeat. Alessandria looks at the fallen banners and feels the tears welling up. He forces himself to hold them back. He must enter the factory with his head held high. Forty years later, interviewed by the *Corriere della Sera*, he still remembers that scene. The rain, the banners, the need to maintain a certain sense of pride. But to understand the significance of that moment, we need to go back a few months. When Alessandria was taken on at Fiat, in February of that same year, a FIOM representative approached him to suggest he join the union. The young man turned him down, rather brusquely in fact. He didn’t seem interested. Twelve days later, once his probationary period was over, it was he who sought out the representative. This time, he wanted his membership card.

It is a minor, almost insignificant episode in the history of Italian industrial relations. Yet it reveals something important. A young worker joins a factory and realises almost immediately that his situation is not merely a personal matter. Wages, working hours, health and safety, and career prospects all depend on decisions over which, on his own, he has very little influence. Together with others, however, he can try to make a difference. It is one of the fundamental experiences through which people can develop a political consciousness: discovering that certain problems which seem private actually have a collective dimension, and that this can become the basis for joint action. A few months later, Alessandria took part in one of the most significant workers’ protests in post-war Italian history. Fiat announced thousands of redundancies. The dispute spread to the Turin factories and involved the workers, their families, the neighbourhoods, political and trade union organisations, and a significant part of the city. On 14 October, the demonstration by Fiat managers, white-collar workers and other employees – which went down in history as ‘the march of the forty thousand’ – shifted the balance of the negotiations. The agreement that followed marked the end of the mobilisation. When Alessandria returned to work, therefore, she saw not only the banners battered by the rain. It witnessed the conclusion of an experience in which it had learnt to recognise its own future as something that could be discussed and defended alongside others. We do not know exactly what thoughts were going through its mind at that moment, apart from those it would recount many years later.

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But its story raises a question that goes far beyond the history of Italian industry. What happens to a society when the belief that people, by organising themselves, can help determine their own future begins to wane? A defeat, of course, is not enough to destroy that belief. Sometimes it actually strengthens it. Lost battles can leave behind a legacy of memory, a shared language, and new bonds of solidarity. Something changes, however, when what weakens is the very possibility of identifying a common ground on which to engage. When the decisions that determine living conditions seem to come from ever more distant places, removed from public debate and political accountability. When the organisations through which people have learnt to exercise some of their power lose influence, whilst economic transformations are described as processes to which one must adapt.

It would be wrong to regard the workers’ defeat in 1980 as the origin of what was to happen in the years that followed. The trade union movement, too, is riven by divisions and contradictions. But it is precisely for this reason that the story of Alessandria is of interest to us. In that return to work, we can recognise one of the turning points through which the relationship between people, collective organisations and economic power began to change.

These considerations form the starting point for a new series of *Mind the Economy*, which, over the coming months, we will devote to democracy: its roots, its crisis in the face of the temptations of authority and technology, new perspectives and, finally, its political future – which is also our own.

When the possible becomes inevitable

In 1989, a year that certainly marks a watershed in recent history, Francis Fukuyama published an essay in *The National Interest* that was destined to become famous. It was entitled ‘The End of History?’. The defeat of fascism and the now evident crisis of Soviet communism seemed to leave liberal democracy without any ideological alternatives capable of competing with its claim to universality. Fukuyama wonders whether we are witnessing the culmination of the evolution of forms of political legitimacy. The clash between major alternative principles of social organisation may have run its course. Liberal democracy appears to be the political form in which the human desire for freedom and recognition finds its most complete institutional expression.

It is not difficult to understand the appeal of this interpretation. After a century marked by two world wars, totalitarian regimes and the delicate nuclear balance, the idea that humanity had finally found a way of living together that recognised and practised freedom and equality for all possessed considerable moral force. The fall of the communist regimes in Eastern Europe seemed to confirm this. Millions of citizens were demanding precisely those political and civil rights that Western democracies had placed at the heart of their own legitimacy. But amidst the enthusiasm of those years, a conflation took place that was destined to have profound consequences. The conviction that liberal democracy represents a historic achievement that is difficult to replace began to be accompanied by the idea that the economic model established in the West also constituted the almost inevitable result of social evolution. The distinction between democratic institutions and the capitalist organisation of the economy gradually became blurred. Political freedom, the opening up of markets, the international movement of capital, the privatisation of public enterprises and the reduction of certain forms of state intervention came to be portrayed as stages in a single process of modernisation.

However, the principles of constitutional democracy do not impose any particular model of economic organisation, nor do they stipulate how wealth should be distributed, what level of protection should be guaranteed for labour, or how extensive public ownership should be. Democratic societies have experienced very different forms of capitalism, tax systems that are more or less progressive, diverse welfare systems, and shifting relationships between the state, the market and intermediary bodies. Their economic institutions are the result of conflicts, compromises, experiments and political decisions. The possibility of changing them is as much a part of the history of democracy as universal suffrage or the recognition of civil rights. In the years following the Cold War, however, this possibility seems to be narrowing. Politicians continue to make choices, but increasingly within a framework that is presented as already defined.

The policy of forced choices

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This is not a deception entirely fabricated by political rhetoric. Economic constraints do exist and are often severe. Businesses may lose their competitive edge, investment may shift elsewhere, debt may become unsustainable, and technological progress can render skills and productive activities obsolete very rapidly. To ignore these conditions would be irresponsible. The problem arises when their existence is taken as proof that it is impossible to organise responses according to alternative principles. A constraint limits the scope of decision-making but does not automatically determine its content. Determining which costs to accept, who should bear them, and which objectives to pursue remains a political matter. The most significant change occurs precisely here, in the transition whereby a choice is removed from public debate and presented as the inevitable consequence of an impersonal law. The economic argument ceases to contribute to the deliberation and claims to bring it to a close. Anyone proposing an alternative is urged to take note of reality, as if reality already contained, alongside the description of the facts, the prescription for the decisions to be taken.

Here, democracy faces a challenge that Dani Rodrik articulated with particular clarity in *The Globalisation Paradox* (2011), in which the Harvard economist describes a trilemma according to which democracy, national sovereignty and extremely deep international economic integration cannot all be pursued simultaneously to their ultimate consequences. Two objectives may be prioritised, but the third is necessarily compromised. A fully integrated global economy requires common rules and constraints capable of ensuring the free movement of goods, services and capital. If these rules are established whilst preserving state sovereignty, the scope for national democratic decision-making is reduced. If sovereignty and democracy are to be preserved, limits on economic integration must be accepted. Reconciling democracy with deeply integrated markets, on the other hand, requires supranational political institutions endowed with adequate legitimacy. The trilemma is not a condemnation of globalisation. It is a call to recognise the political nature of the process, and not merely its economic aspects. The opening up of markets can yield considerable benefits, promote the dissemination of knowledge, expand productive opportunities and contribute to poverty reduction. It can also increase the vulnerability of certain regions, weaken specific forms of social protection and alter the balance of power between businesses, workers and public institutions. The paradox arises when a democratic society agrees to discuss only the consequences of its choices, having foregone any discussion of the premises on which they are based. It is then possible to vote for different governments, alternate ruling parties and change social policies, whilst the fundamental rules governing the distribution of opportunities and power remain largely outside the scope of deliberation. Elections continue to decide who governs. It becomes less clear to what extent they can determine what is governed.

The deepest sacrifice

The story of Adriano Alessandria takes on a particular significance at this point. In February 1980, when he decided to join the trade union, he was simply taking an ordinary step. He joined an organisation that offered him the chance to tackle certain issues alongside other workers. A few months later, he took part in a protest that ended in defeat. His account does not justify turning that experience into a parable of powerlessness. On the contrary, in the pride with which he recalls entering the factory in the days following the debacle, one can also recognise a determination not to let the defeat erase the significance of his commitment.

Anyone who has taken part in collective action and experienced defeat retains, at the very least, an awareness of what it means to try to bring about change together with others. They know that decisions can be challenged, that interests can be organised, and that power must face resistance. The outcome may be disappointing and even painful, but it is still part of the political experience. True defeat has a different root. It arises when the very possibility of acting collectively ceases to seem credible. When the future is perceived as a succession of changes for which one must prepare, without being able to help determine their direction.

The end of history, in its most insidious form, coincides with this loss of confidence in human beings’ ability to play a part in shaping their own future. Society continues to change, but citizens are learning to view these changes as something that happens to them, rather than as processes in which they can take part.

This, perhaps, is the greatest difference between the world of Adriano Alessandria and the one in which we live today. That young worker might have lost a battle, but he knew he had fought it alongside others. He had experienced the possibility of organising, of challenging decisions, of demanding a say in shaping his own living conditions. Defeat did not erase that experience. Today, the risk runs deeper and concerns not only the loss of the ability to influence decisions, but even the very idea that it is possible to do so. That politics is reduced to the administration of processes deemed inevitable, and citizenship to the individual’s search for a way to adapt to them.

History, of course, is not over. It continues to be written, every day, through decisions that allocate opportunities, resources and power, opening up some possibilities whilst closing off others. The question is who has the opportunity to participate in these decisions and who must simply endure their consequences. For a democracy can retain all its procedures whilst, at the same time, seeing the ability of its citizens to shape their shared destiny gradually eroded. The most serious sacrifice, then, is not that of a particular vision for society. It is the sacrifice of believing that such a vision can still be discussed, imagined and built together.

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