The Politics of Minimum Income: Explaining Path Departure and Policy Reversal in the Age of Austerity (Work and Welfare in Europe)

Minimum income schemes (MIS) have become key social protection institutions for European citizens, but we know little regarding the logic and dynamics of institutional change in this policy field. This book provides an analytical model that will facilitate an understanding of the scope and direction of recent reforms, offering insight into the conditions under which minimum income schemes are introduced, expanded or retrenched. Natili presents a comparative analysis of policy trajectories of minimum income schemes in Italy and Spain between the mid-1980s and 2015. Although these two countries had similar points of departure, and faced comparable functional pressures and institutional constraints, they experienced remarkably different developments in this policy field in the last two decades. This comparative analysis provides empirical evidence of the impacts of different types of credit-claiming dynamics resulting from the interaction of socio-political demand with political supply. The Politics of Minimum Income also assesses the reform processes both in countries that have introduced MIS in the age of austerity (such as Portugal) and in countries that have retrenched them (Austria and Denmark). Preface and Acknowledgements 6 Contents 9 List of Figures 12 List of Tables 14 List of Interviews 16 1 The Politics of Minimum Income in the Age of Austerity: An Introduction 19 Introduction 19 Theoretical Framework 23 Outline of the Argument 26 Methodology and Case Selection 29 Plan of the Book 32 References 34 2 Groups, Parties and Credit-Claiming Dynamics: The Politics of Minimum Income in the Age of Austerity 39 The Politics of Minimum Income: In Search of a Theoretical Framework 39 Functionalist Theories and the Growing Demand for a Minimum Income 41 Class Politics and Means-Tested Benefits 44 Historical Institutionalism and Residual Safety Nets 47 Ideas, Policy Diffusion and Minimum Income Schemes 49 Minimum Income Reforms in the Age of Austerity: A Framework of Analysis 52 The Demand Side of Political Competition: Interest Groups and Minimum Income Schemes 55 Trade Unions 56 Church and Faith-Based Organizations 58 Anti-Poverty Groups and Social Movements 61 The Supply Side of Political Competition: Moving Beyond the Classical Partisan Politics 62 Political Cleavages 63 Party Competition 64 Credit-Claiming Dynamics and the Politics of Minimum Income in the Age of Austerity 67 References 71 3 Minimum Income Protection in Italy and Spain 82 Introduction 82 Minimum Income Protection in Italy 83 The Origins of a Weak and Fragmented Model 85 The Provision of Anti-Poverty Benefits in the Golden Age 87 Anti-Poverty Policies and Politics in Italy During the Second Republic 90 The Season of Regional Innovations: Regional Minimum Income Schemes in Italy 96 The Great Recession and the Delayed Introduction of the Inclusion Income 101 Minimum Income Protection in Spain 106 Anti-Poverty Policies in Spain from Origins to Democracy 107 Transition to Democracy and the “Federalization” of Minimum Income Benefits in Spain 112 The Introduction of Regional Minimum Income Schemes (1988–1995) 118 A Lost Decade? Regional Minimum Income Between Policy Inertia and Limited Activation 121 Facing the Crisis: Policy Expansion of Regional Minimum Income Schemes 123 Minimum Income Protection in Italy and Spain in a Comparative Perspective 129 References 139 4 Regional Minimum Income Schemes in Italy: The Cases of Friuli Venezia Giulia and Lazio 147 Introduction 147 Path Departure and Policy Reversal in Friuli Venezia Giulia 148 Economy, Labour Market and Society in FVG 148 The Political System in FVG 150 The Introduction of “Basic Income for the Citizenship” in FVG 151 The implementation of the BCI 160 BCI Abrogation and Anti-poverty Policies in FVG During the Crisis 164 Path Departure and Policy Reversal in Lazio 171 Economy and Society in Lazio 171 The Political System in Lazio 172 Fighting Precariousness, Not Poverty: The Political Origins of the Minimum Income Guarantee in Lazio 174 The Guaranteed Minimum Income 179 The Onset of the Crisis and the (Difficult) Implementation of the GMI 181 References 190 5 Regional Minimum Income Schemes in Spain: The Cases of the Community of Madrid and Castile and León 193 Introduction 193 Path Departure and Gradual Institutionalization in the Community of Madrid 194 Economy, Labour Market and Society in the Community of Madrid 194 The Political System in the Community of Madrid 196 The Introduction of the First Regional Minimum Income Scheme: The Policy-Making Process in Madrid 198 The Madrid Integration Income 204 The Shift from the Madrid Integration Income to the Minimum Insertion Income 208 The Great Recession and the (Weak) Implementation of the RMI in the Community of Madrid 218 The Neo-Liberal Turn and the Evolution of Minimum Income in the Community of Madrid 222 ‘Politica Consenduada’: Minimum Income Schemes in Castile and Léon 226 Economy and Labour Market in Castile and Léon in the 1980s 226 Political Competition in Castile and Léon 228 The Introduction of the Ingreso Minimo de Insercion in Castile and Léon 229 The Gradual Expansion of Minimum Income Protection in Castile and Léon 234 The Introduction of the Citizenship Guaranteed Income in Castile and Léon 238 The Great Recession and the Implementation of the Renta Garantizada de Ciudadanía 242 References 251 6 Explaining Policy Trajectories of Regional Minimum Income Schemes in Italy and Spain 255 Introduction 255 Explaining Path Departure: The Key Role of Credit-Claiming Dynamics 256 The Role of Contextual Factors: Problem Pressures, “Europeanization” and the Uncoordinated Decentralization Process. 257 The Spanish Case 260 The Italian Case 265 Policy Reversal Versus Gradual Institutionalization of Regional Minimum Income Schemes: Why Is Spain Different? 269 The Role of Contextual Factors: “Timing” and Constraints on Sub-National Expenditures in Italy and Spain 269 Italy: The Emergence of New Political Divisions Within the Right and Policy Reversal 274 References 283 7 Credit-Claiming Dynamics and Minimum Income Reforms in the Age of Austerity 287 Introduction 287 Extending the Argument: Path Departure in Portugal and in Italy 288 Path Departure and the Institutionalization of a Minimum Income Scheme in Portugal 288 The Introduction of the Inclusion Income in Italy 295 Extending the Argument: Policy Reversal and Retrenchment in Austria and Denmark 299 Weak Demand in a Fragmented Plural Party System. Contentious Credit Claiming and Policy Reversal in Austria 299 Denmark: The Emergence of a “Competition Within the Right” and Policy Retrenchment in Minimum Income 305 Conclusions 310 Theoretical Implications of This Book 317 References 320 Index 327 Minimum income schemes (MIS) have become key social protection institutions for European citizens, but we know little regarding the logic and dynamics of institutional change in this policy field. This book provides an analytical model that will facilitate an understanding of the scope and direction of recent reforms, offering insight into the conditions under which minimum income schemes are introduced, expandedor retrenched. Natili presents a comparative analysis of policy trajectories of minimum income schemes in Italy and Spain between the mid-1980s and 2015. Although these two countries had similar points of departure, and faced comparable functional pressures and institutional constraints, they experienced remarkably different developments in this policy field in the last two decades. This comparative analysis provides empirical evidence of the impacts of different types of credit-claiming dynamics resulting from the interaction of socio-political demand with political supply. __The Politics of Minimum Income__ also assesses the reform processes both in countries that have introduced MIS in the age of austerity (such as Portugal) and in countries that have retrenched them (Austria and Denmark). Front Matter ....Pages i-xix The Politics of Minimum Income in the Age of Austerity: An Introduction (Marcello Natili)....Pages 1-20 Groups, Parties and Credit-Claiming Dynamics: The Politics of Minimum Income in the Age of Austerity (Marcello Natili)....Pages 21-63 Minimum Income Protection in Italy and Spain (Marcello Natili)....Pages 65-129 Regional Minimum Income Schemes in Italy: The Cases of Friuli Venezia Giulia and Lazio (Marcello Natili)....Pages 131-176 Regional Minimum Income Schemes in Spain: The Cases of the Community of Madrid and Castile and León (Marcello Natili)....Pages 177-238 Explaining Policy Trajectories of Regional Minimum Income Schemes in Italy and Spain (Marcello Natili)....Pages 239-270 Credit-Claiming Dynamics and Minimum Income Reforms in the Age of Austerity (Marcello Natili)....Pages 271-310 Back Matter ....Pages 311-318