Accounting, Organizations and the Italian Society: The Istituto per la Ricostruzione Industriale (IRI) and the searchfor alternatives to US corporate capitalism(1948-1973)

Abstract The accounting literature has long investigated the relationships between accounting, economic policies, and the State. This paper aims to enter this debate by looking at the history of the Istituto per la RicostruzioneIndustriale (IRI), the large State owned Italian corporation privatised in the eighties. The paperaims to show how accounting provides a mediating platform where economic and social policies are not simply implemented, do not only emerge and stabilise, but are also continuously negotiated and re-invented. Drawing on archival evidence, we illustrate the development of planning and management techniques in the immediate postwar period until their institutionalization at IRI in the late sixties. We do so to illustrate how the emergence of value added planning at IRI was not simply a means to provide data to national accounting statistics. The emphasis on value added constituted instead a material practice that made the translation of certain values into an economic value and provided a technical solution to the problem of mediation of the postwar fragmented Italian society. In bringing the case of IRI out to the fore, we also aim to further speculate on the role of accounting in organizations and society beyond a critical stance and towards a more positive speculation on the possibilities that accounting provides to mediate amongst sometimes opposite political and economic interests by providing technical innovations that substantiate the ideal of compromise and assume the character of social innovations.

“Essendo noi uomini medi, le vie di mezzo sono, per noi, le più congeniali ”1 (GiulioAndreotti)

1. Introduction In their seminal article on the history of value added in the United Kingdom, Burchell et al . asked: “How is “efficiency” to be brought into relation with “democracy”?” (1985, p. 399). This question has since then inspired many works in the accounting literature that has explored the relationship between accounting and the State (e.g. Miller, 1986; 1990), the role of accounting in the making of macroeconomic policies (e.g. Suzuki, 2003a, b); and reflected on the nature of accounting as a ubiquitous technique of government affecting many aspects of our life (Miller and O’Leary, 1987; 1991). Accounting, far from being a mere technical issue of representing economic transactions, is instead a technology of government (Miller, 1986),2 where economic and social policies are not simply implemented. They rather take form and stabilise through, and in, accounting practices. Viewed from this perspective, accounting, as much as finance, is an “engine and not a camera” (McKenzie, 2006) of the economy, and of economic and social policies.

1“Being ourselves average men, middle ways are for us the most congenial” (GiulioAndreotti, our translation). 2 A technology of government is defined as “the wide range of calculations, procedures and mechanisms that help to operationalise certain abstract objectives” (1991, p. 736) and political rationalities. 1

This paper intends to enter this debate by exploring accounting and planning practices at the Istituto per la RicostruzioneIndustriale (IRI), 3 a large state owned corporation in Italy, in the period that goes from the end of World War IIuntil the explosion of the oil crisis in the seventies which culminated in the privatization of IRI in the eighties and nineties. The choice of this period is not casual. It coincides with the establishment of the Italian Republic, the need for administering the funds arriving to Italy through the Marshall Plan (see (Kipping and Bjarnar, 1998), the search for forms of cohabitation amongst various parts of the Italian fragmented society under this new republican form of government and the necessityto rebuild the Italian economy. IRI was at the centre of these various demands and constituted one of the social, economic and political spaces where attempts to create a new social and economic order in Italy took place (Amatori, 2013). Drawing on archival evidence, we firstly show how attempts to ‘modernise’ management practices at IRI by importing the “American model” (Djelic, 1998) were gradually side-lined and substituted by the emergence of value added as the technical solution to the problem of mediatingamongst various fragmentsof the Italian society.This, it is argued, created the conditions for a balanced and socially sustainable development of the Italian economy. In this context, value added acted as a platform where national economic and social policies could be negotiated and continuously reinvented through a process of planning and mediation that defined the space within which such mediation could happen and be defined. In bringing the case of IRI to the attention of scholars in accounting and organization theory, we pursue a twofold aim. Firstly, we aim to speculate on the nature of accounting as technology of government (Miller and Rose, 1991). We contribute to this literature by theorising the coexistence of stable political rationalities and technologies of government with their continuous change and intrinsic fragility that requires constant compromising work, which is made possible by the malleability of accounting as platform of mediation. We show how accounting produces order by ‘continuous ordering’.In other words, accounting acquires its nature of technology of government and allows stability of economies, political orders, and societies only because of the possibility that it offers of continuously exploringalternative forms of political rationality, beyond any stable and final perfomative attainment. In this respect, the case of IRI is useful as it shows that the only political rationality that allowed a civil cohabitation and a sustainable development of Italy was one of not having any, of always creating and inhabiting a liminal space ‘in between’ various political, social and economic instances. IRI’s way of planning through value added incarnated the political thought of the Democrazia Cristiana (the Christian DemocracyParty, DC), which ruled Italy for forty-five years and is encapsulated in the epigraph opening this paper. It became the platform on which what has elsewhere been defined as a “compromised mindset” (Gutmann and Thompson, 2010; 2013) became operationable. Secondly, by exploring IRI’s history of accounting, we aim to offer material to speculate on alternative forms of accounting beyond those currently framed by market and liberalist economic policies and ideologies, which inspire most of contemporary policy making in Western economies and beyond. This helps us return to the debate on the roles of accounting in organizations and societies (Burchell et al ., 1980) as a material

3 The literature on IRI is vast. As first reference and for a bibliography, see Castronovo, 2011; Amatori, 2103. 2 practice that mediates between the production and distribution of value. We argue that accounting, although provides a framework of visibility, is not aimed at providing truthful representations but is an instrument to reflect on what constitutes a sacrifice of value and for what. We therefore call for positive, but not positivist, forms of accounting that make of this translation the key matter of concern (Latour, 2005) rather than leaving this mechanism in the backstage, covered by a veil of rationality. This call implies a profound reflection not only of the social context in which accounting operates but also the technical aspects of keeping the accounts and communicating information in specific formats which are not neutral in how accounting and the social intertwine (Burchell et al. , 1985). Beyond a critical stance, we aim to show how accounting can provide a technical platform that mediatesamongst sometimes opposite political and economic interests. In this sense, technical accounting innovations assume the character of social innovations, as these accounting technicalities always inform the way in which members of societies are tied together and socialise ‘the economic’. The paper is organised as follows. The following section recalls the accounting literature that has highlighted and theorised the links between accounting, public policies, and the state. This is then followed by a section on research methods where we provide details on the archival material that we have utilised in this study. We then provide a cross section of the IRI case that illustrates the role of value added as planning technology that served the continuous mediation and negotiation of political rationalities in the Italian government, economy and society. We continue with some theoretical speculations in the discussion section and conclude with a summary of the arguments and indications of further possible avenues for theoretical and empirical research.

2. The texture of society: material practices and calculative ties Since the eighties, accounting scholars have paid increasing attention to through “what processes can the social [...] intertwine itself with the calculative” (Hopwood, 1985, p. 365). It is by now clear that economic calculations never inhabit only the space of ‘the economic’, but construct such a space by translating into it wider societal concerns. This is for instance what the literature on governmentality(Miller and Rose, 1990; Miller; 2001; Rose, O’Malley, Valverde, 2006) has shown in the last couple of decades. Miller (1991), for instance, has shown how supposedly rational approaches to investment decisions constitute, embed,and help to make sense of, wider societal concerns of economic growth. In this respect, accounting is seen not as a neutral technique that implements given policies as much as ‘the State’ is not the agent behind public policies: “presupposing the existence of the state, rather than viewing this as something to be explained, does not help develop an understanding of those practices of government that make ‘the state’ possible” (Miller, 1990, p. 321). Astatement that possibly summarises the research agenda of studies on governmentality and on genealogies of calculations is made by Miller and Napier, when theydefine theorise the role of accounting history as: toreaffirm the historicity of the various techniques and rationales that have constituted accounting at different times, and in different places. We focus on the outcomes of the past, rather than looking for the origins of the present. We draw attention to the different meanings that have been attached to practices at different moments in

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time, rather than taking contemporary practices and the meanings currently attached to them as historical constants (1993, p. 632). And if accounting “is a practice and discipline of study without an agreed and widely understood subject matter” (1985, p. 361) and “there is no “essence” to accounting, and no invariant object to which the name accounting can be attached” (1993, p. 631) this means that its nature cannot be reduced to economic matters or even more complex crystallised constellations, as these are always in a state of flux and therefore pose the problem of how to theorise the multiplicity, dynamism, and tendency of accounting to become what it was not (Hopwood, 1987). Problematizing the nature of accounting (as made in the works of Burchell et al ., 1980; 1985; Hopwood, 1985;Miller and Napier, 1993) made accounting scholars face both a challenge and an opportunity. They face a challenge as these scholars are to address serious ontological problems, that is, tacklingthe difficulty posed by theorising an object such as accounting, which has been shown as multifaceted and potentially always in a state of flux. This theoretical difficulty, though, is also an opportunity as, if accounting is always other than itself and it is the locus where the economic and the social are constituted, then the possibilities for experimenting new forms of definitions of the economy and society proliferate. Yet, how economies and societies are constituted and meet through the material mediation of accounting practices of various kinds needs not only to be explored (as in the new accounting history movement, Miller et al ., 1991)but also re-thought and imagined, as there are no theoretical limits to what accounting can become (see Molisa, 2011) and therefore no theoretical limits to what kind of economy and society accounting can contribute to create, sustain, and change. To us, this seems a particularly cogent argument in a period where the neo-liberalist policies expressed through accounting as a powerful technology of government have clearly showed their limitations. Already back in 1985, Burchell et al . illustrated how the categories of ‘accounting’ and ‘society’ do not denote “two distinct, mutually exclusive domains” (1985, p. 385). If one has to understand what counts as ‘economy’ (and ‘society’) accounting is not the measuring solution to the problem but the problem itself. As much as for understanding scientific knowledge ‘method’ is the problem,not the solution (Woolgar, 1988), speculatingon what kind of economy and society we to live in requires not questioning how accounting translates certain social values into an economic value but also how it actively construct such values and related organizational and social orders. The accounting inscriptions that operate these continuous construction and multiple translations is where relationships amongst members of a community take place and unfold. Wecan therefore note, drawing on Latour (2005),that society is always an ensemble of ‘socie-ties ’, that is, it is made in and by a series of links that tie its members together into a powerful constituency (as the etymology of the word ‘society’ suggests, from the Latin socius , i.e. a companion, an ally). Accounting is one of the most powerful, pervasive, and nowadays ubiquitous practicesthat establish and order these ties. One could have, for instance, a P&L where the bottom line coincides with the profit to be distributed to shareholders, meaning that labour is a cost, or another where the bottom line is shifted above and the remuneration of labour becomes a result rather than a cost, as in value added statements. Organizations, economies and societies exist in nest of relationships that are governed through material practices such as accounting and accountability. In this sense, to study organizations and societies means to study these practices and the traces they leave. 4

This reminds us of the power of numbers and visualisations in engaging users (Chua, 1995), generating beliefs(Quattrone, 2009) and visions of organizations and societies (Puyou et al ., 2012). The accounting sign, if purged of a residual referral to the world, can then be conceived of as a force. It is an action itself (Fabbri, 1998), which, in the process of referencing, always generates further meanings, associations and, above all, effects (Thrift, 2004). Conceived as force, accounting inscriptions become the locus to imagine alternative forms of relationships amongst soci , which are constituted and assembled through the mediation of accounting not as a means of representation but as a platform of mediation and imagination. Inscriptions establish conditions of possibilities for certain political rationalities to emerge and be operationalised but given their recurrent failure and incompleteness (Mennicken and Miller, 2012), these inscriptions also constitute a possibility for a change in these conditions of possibilities. While a lot of theorisation and empirical work has gone into the exploration of how political rationalities become real, albeit incomplete, through the role of accounting as technology of government, surprisingly little attention has been paid on the possibilities that accounting as malleable technology offers and create. Somehow we need to go back to that ambiguity that accounting intrinsically shows (Meyer, 1986) and that allows to “orchestrate the considerable number of positions of individual and group interests and their political representations” (Burchell et al ., 1985, p. 397). Most of the literature which has investigated how accounting is intertwined with the social in contemporary and historical contexts (Miller, Hopper, Laughlin, 1991) has sought to expand the boundaries of accounting, beyond simple issues of double entry book-keeping, and towards a study of broader calculative practices and those spatialized forms under which “the accumulation of certain numbers into particular columns and charts become capable of transformation into practices as distinct as cost accounting and managerial accounting” (Miller and Napier, 1993, p. 639). While the study of accounting in organizations and society has always paid attention to these practices (e.g. Ahrens and Chapman, 2004; 2007), there is, it seems to us, a need to go back to the materiality of the accounting sign, be this a table or an entry in a ledger, for these apparently mundane practices (Woolgar and Neyland, 2013) make a difference in the kind of ties they build amongst actors and in the kind of visibility that these actors are constitutively given. In this respect, while we know a lot on govermentality and the role of a certain form of accounting in bringing apparent rationality to various forms of organizations, from profit seeking enterprises to hospital and increasingly university and education institutions, we know very little on how and whether, for instance, different reporting designs affect the way in which social actors interact within organizations and societies and on how they enable certain forms of public policies and political economies emerge and operate (see, in this respect, Suzuki, 2003). Accounting, to some extent, has been the victim of its own success, where it has become an instrument of construction of economic citizens and economic selves through supposedly objective economic calculations and practices but is no longer studied for what it is not and potentially could be. This requires theoretical speculation and empirical analysis on how accounting inscriptions always create the conditions of possibilities for economic and social order and still never close this range of possibilities by remaining an incomplete ordering. The case of IRI that we illustrate in this paper, offers the empirical material for such a speculation, as we will see later in the paper. The following section, instead,

5 offers some theoretical insights on how to theorise the unfolding nature of accounting through the political lenses of the concept of compromise.

3.Accounting for compromise: exploring the conditions of possibilities for social innovationand change While [...] we do not seek to deny the purposive nature of accounting action, we are concerned to emphasise the potential multitude of different actors acting on accounting in purposive ways with an array of different arenas, each living specific, often non overlapping and sometimes conflicting interests in the accounting practice (Burchell et al., 1985, p. 401). These comments were made in closing the seminal paper on the history of value added in the UK to stress the difficulty in grasping the nature and use of accounting in practice. When observed in practice, accounting is more a constellation where “certain institutions, economic and administrative processes, bodies of knowledge, systems of norms and measurement, and classification techniques” (Burchell et al, 1985, p. 400) are all at work in this process of defining the nature and purpose of accounting. In this respect, Miller noted how this constellation of specific entities, agencies and processes can be “viewed as an unintended outcome produced by strategic actions of a number of different participants [and how] to talk in terms of outcome is not to appeal in realist terms to an entity or system. Instead, what is implied is a temporary and non-monolithic complex of relations established between actors, institutions and forms of argument” (1991, p. 736). The outcome is therefore never to be reified, never to be seen as separated from society or from the observer that accounts for accounting. However, this it is relatively easy to observe in practicebecause, as De Certeau noticed (1984, pp. 29ff), users always seem to have tactics and strategies to react to dominating ordering strategies and technologies such as accounting, which are supposed to force human beings into patterns of behaviour. It is instead more difficult to make theoretical sense of such a complexity and of the interplay between domination and resistance within the relativist ontology that characterises political rationalities, technologies of government, and accounting constellations. In helping to understand how political rationalities and related technologies of government are always fragile, in a state of flux, and never fully crystallised while achieving a certain degree of stability (such is the case of the analysis of discounted cash flowand value added in Miller and Napier, 1993), we bring to the attention of accounting scholars the notion of “compromising mindset” as defined by Gutmann and Thompson (2010; 2013a; 2013b), were they move beyond the idea of compromise as sharing, agreement and common views towards one that seeks to avoid the common mistake of assuming that “compromise requires finding the common ground on which all can agree” (2013, p. 185). In looking at the current developments in US political campaigns and governments’ public policies, Gutmann and Thompson (2010; 2013) oppose two logics. On the one hand, they describe the ‘uncompromising mindset’ where opponents, typically two opposed parties, seek to define a policy in a strict and clear opposition to the other. While this mindset is useful and used in electoral campaigns, where politicians aim for simple messages clearly crafted and defined to stand opposite to their adversaries, it is not useful, the authors argue, for governing after the elections. On the other hand, then, Gutman and Thompson (2010, pp. 1125ff) identify and call for a

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‘compromising mindset’, where compromising entails a modification of the views of the parties involved, with outcomes that are unpredictable. Moreover, successful compromises are those which are underpinned by principles that are incoherent but create a third space in between two opposite positions that does not coincide with the original interest of the parties (which remain in opposition) but offers a space of cohabitation to the multiple interests of such parties. These notions of compromise are exemplified in Figure 1 where we make a distinction between ‘agreement’, on the left, and ‘compromise’ on the right. This difference is important for the aims of this paper. It shows that the notion of agreement does not leave room for multiplicity and assumes the completeness and clarity of the interests in conflict, that is, two parties have a clearly defined set of interests and find an area to share ideas and principles that suits both leaving the original interest intact. The notion of compromise instead, by its very nature of being about the exploration of a solution that makes incoherent principles to cohabit, always leaves space and room for the compromised solution to generate further possibilities for disagreement, and therefore further incomplete compromises and precarious cohabitations. The logic of compromise is conducive to describe the precarious, multiple, and evolving nature of accounting as for making compromise operationable, it requires a material platform of mediation through which this continuous ordering is made possible. In the case of IRI that we will introduce later in this paper, this platform is constituted by value added planning, that allowed the coexistence of opposing interests under the same compromise.Beyond accounting’s epistemological impossibility of providing an objective ground to firmly strike an agreement, accounting provided a tool for debating and reaching a third solution that would have not been otherwise operationalised. In this sense, the IRI case is mobilised to provide a further instance of how accounting plays roles beyond representations (see Burchell et al. 1980), where representation is, in fact, the only role accounting cannot epistemologically fulfil.

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Figure 1. Agreement vs. Compromise

Interest A Interest B

Agreement Compromise

3. Archival sources A substantial part of the archival analysis has been carried out at the Archiviostoricodell’IRI (ASIRI), currently hosted by the ArchivioCentraledelloStato (ACS), the State Central Archive, in Rome. ASIRI contains all the official documents that IRI produced along its whole history. This means a period of more than 70 years. It is therefore a huge archival fund as testified by the amount of time required to make its inventory: from 1993 to 2011 (complexity augmented by the storage of documents in different sites in Rome). Yet, while only a small part of the archive has been digitalized, this already accounts for more than one million and one hundred thousand images, currently accessible digitally. The structure of the ASIRI is divided into two parts: the documents produced by the IRI as the group holding and the documents related to each of the firms belonging to the IRI Group. The latter is named the Red Collection ( NumerazioneRossa ), while the former is named the Black Collection ( NumerazioneNera ). The administrative organization of the IRI holding is replicated into the organization of the archive so that it is possible to find the official documents produced by the different internal offices. The Black Collection groups all the official material related to the IRI Group, and the IRI Holding, and contains all the information regarding the relationship between the IRI and the Italian government, including not only the official communications and reports prescribed by the various regulatory frameworks, but also the informal correspondence between the main personalities operating in IRI and representatives of the Government and political parties. This collection also hosts the flow of communication between IRI and the MinisterodellePartecipazionistatali (MPPSS - the Ministry of State Holdings), established in 1956 to supervise and manage the intervention of the Government onto the firms participated by the State. Similarly, the internal structure of the IRI group is translated into the organization of ASIRI in the Red Collection. This collection hosts all the official documents

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(minutes, financial statements, long term plans, etc.) related to each subsidiaries and sub-holdings of the group. The archival analysis has been developed mainly using the Black Collection. Data from the Red Collection have been used in the empirical analysis when needed to illustrate the use of value added based reports. An additional source has been the “ ArchivioStorico Pasquale Saraceno ” (SAR), containing all official documents produced and received by Pasquale Saraceno, one of the protagonist of IRI’s history and a key figure of the Italian political and academic arena, now also included in the ASIRI.4 The ArchivioSaraceno offers a unique picture of the history of the IRI Group and of the relationships between the IRI Group, and the academic and political world. Given the vastness of the archival sources, we operated a selection that was guided by pragmatic and theoretical purposes. We limited the research to a specific, albeit long, period of time, which goes from the postwar period until the oil crisis in the 1970s. This allows us to follow the evolution of the accounting and planning techniques in a period that was characterised by a complex dynamic involving a varied of interests, from the USA to the Vatican, that were mediated around IRI and its activities. With regard to the kind of documents analysed, the search has been focused on the planning procedures within the IRI Group: this meant not only to analyse the actual procedures implemented in the Group, namely the several four-years plans produced by IRI, but also their preparatory documents, and the regulations that the IRI holding prepared and delivered to the sub-holdings and subsidiaries. This choice also allowed us to explore the context in which the planning procedures were embedded through the documents containing the relationship between the Italian government and the IRI Group. Beyond the obvious decision making nature of these planning processes, in IRI they played a key role in terms of national economic policy, given the relevance of IRI in relation to Italian GDP and value added (from 1963 to 1977 IRI value added (apart its bank sector) grew by 17% compared to the national GDP which grew by 15% - ACS, ASIRI, STU/235).It is also in the planning phase where the power struggles amongst different stakeholders become visible and had to be mediated. For instance, most of the consulting advice that the group received from both Stanford Research Institute just after the end of World War II and Hamilton, Booz & Allen, an American private consulting company, later in the 1950s and 1960s, related to how to improve planning, budgeting and control, which therefore constitute the locus where to investigate the clash between different views of organising corporations, economies and, in the end, societies. For the aims of this paper, the history of IRI has been divided into two main phases: the first one starts just after World War II with the joint effort for reconstructing the country and its factories supported by the Italian and the US governments. This is the phase where IRI acted as the operating arm of the Marshall Plan (Kipping and

4 Pasquale Saraceno was a key figure of the economic policy of the Christian Democracy part (he co-authored the Camaldoli code, of 1943, outlining the economic policy of the catholic party in Italy), academic, (a pupil of Gino Zappa, key influential academic figure in Italy from the 1930s), and key consultant of IRI and the Italian Government from the 1940s to the early 1990s with different roles (Arena, 2011). 9

Bjarnar, 1998). In this phase, IRI had the key mission of reconstructingthe industrial sector in Italy and the US sought to influence it via the Stanford Research Institute (ACS, ASIRI, STO/522; Saraceno, 1946, 47)]), whichprovided consultancy on planning but also on selecting which sectors needed greater investments and in what priority. The second phase covers the 1960’s when the IRI Group, after the second round of consultancy provided by Hamilton, Booz & Allen, begun a systematic planning process in four years cycles. This phase ends in the early 1970s, when the oil crisis hit the world economy and neo liberalist ideologies begun to take currency leading to the privatization of IRI in the eighties and nineties. Despite the high number in absolute terms of documents consulted for this study, these constitute only a minimal part of all the evidence now available at the archive, our findings cannot therefore be considered as conclusive. Our narrative, i.e. the way in which we have linked the evidence collected (see Czarniawska, 1998), is framed by the literature that this paper attempts to engage in a dialogue, the theoretical insights we have mobilised in the study, and the objectives the paper aims to achieve. It is because of this plot and of its relationships with a specific kind of literature on governmentality, political compromise, and accounting, that we can meaningfully limit the collection of an otherwise difficult-to-manage mass of material available to us for investigation. In this respect, we have followed Czarniawska’s advice that the plot “must be put there” (1998, p. 2) on the events by the researcher rather than being found, as if the case story had already been written and awaiting to be recounted in a positivist fashion (cf., Yin, 1984). This is also the only way in which a single case study can prove to be useful for theorization, since it adds to existing theoretical contributions rather than building theory exclusively from an inductive process of evidence recollection.

4. Setting the historical context: IRI, politics, academia, and practices of planning and control This section aims to briefly describe the historical context in which the accounting development at IRI took place in between the postwar period and the 1970s. We will start with a brief introduction of IRI and its role in this period. We then move to a brief description of the political context, especially in relation to the role of the DC as majority party for the whole period, and illustrate how the case of IRI constitutes an interesting locus of convergence between institutional, individual, and academic matters which all contributed to make DC’s ideology of compromise concrete through the development of a specific approach to accounting, planning and control. This sets the scene for the following section where we provide some key empirical examples of how planning and control practices at IRI acted as platforms for continuous compromise amongst the different parties performing on the stage of Italian politics.

4.1 The role of IRI in the Italian postwar Economy: sustaining growth in between State intervention and free market IRI was created by decree on the 24th of January 1932. It was IRI was supposed to be a transitory solution aiming at restoring Italian banks’ financial solidity after the 1929 crisis.5This scope changed rapidly and especially under the fascist regime when, in

5 The history of IRI is long and cannot be fully illustrated here. Historical details on IRI can be found in (Castronovo, 2011; Colli, 2011, Amatori, 2011, Lavista, 2011). 10

1937, IRI was transformed into a permanent institution and became a public economic entity similar to a large holding,whose equity was totally owned by the Italian Treasury (Castronovo, 2011; Cinquini, 2007). This role continued after the end of the World War II when the USA started to support the European countries to recover from the war devastations. From 1948,all the US government supporting activities were formalised into the European Recovery Program (ERP, otherwise known as the Marshall Plan). IRI became the operative arm of this programme in Italy.6IRI existence and influence was seen by the USA and its consultants as an anomaly, 7but its role gradually changed and it later became one of the main clogs in the machinery of the Italian economic miracle of the fifties and sixties (Ginsborg, 1989). At the beginning of the fifties and especially during the sixties, IRI became the main actor of the so-called “programming era” (Lavista, 2011; Ricciardi, 2006), which found in IRI the institution through which national economic policy could be carried out, and balance the power of a ‘free market’ (La Malfa, 1956; Saraceno1963). As part of these programming efforts, the MPPSSwas established in 1956, with the aim of supervising and managing the intervention in the Italian economy through direct investments in Italian companies’ equity, which were directly controlled by the State. This public policy through direct State intervention created the conditions for a sustainable economic development at an average of 5% (Castronovo, 2012; Cardini, 2007) per year during the fifties and continuously, although less strongly, until the oil price shock of the seventies, when IRI begun to accumulate an increasing amount of losses. The financial situation improved in the second half of the seventies and in the early eighties, and was rebalanced in 1986. However, despitethis achievement,EU requirements, the rise of a neoliberalist ideology, and the consequential reform processes of the public sectorled the Italian Governmentto privatise IRI. In 1992IRI’s legal status was transformed (from economic public entitytojoint stock company) andthe divestmentof its participations in the equity of other companies was decided. Once finalised the process of privatising the whole group, IRI was liquidated on the 27 June 2000.

4.2 The political contexts: the economic doctrine of the DC as search for a difficult compromise. The Italian political context can possibly be summarised by this quote by Martin:

6 Through this program the US government tried to diffuse in Europe the principles and values underlying the US economic and social model (Kipping and Bjarnar, 2002; Djelic, 1998). The main objective of the ERP was not to build a relation of dependence between Europe and US but a relation among pairs which are characterised by the same value structure (ACS, ASIRI, STO/565). The creation of a free commerce space, between the European countries and within each country, would have been the way to guarantee in the long term a peaceful cohabitation (Fauri, 2010), avoided political instability and therefore potential soviet infiltration in Western European countries (Ginsborg, 1990; Di Nolfo, 1983). 7 As stated at the beginning of the 1950s in one of the reports of the Stanford Research Institute, which acted as consultant to IRI to modernise its subsidiaries: “the intervention of the state in the economy and especially in the industrial sector is much wider in Italy than any other democratic country” (ACS, ASIRI, N 025). 11

Italian politics always had to be about reconciling, or containing, deeply ingrained social loyalties and conflict – of class, of faith, of ideology, of ethnic or linguistic group, of regional culture and municipal interest. Political institutions evolved as a ‘politics of accommodation’, defusing over conflict, reconciling incompatible views (2006: 2). The party that possibly best incarnated this need for a political compromise was the DC in a constant mediation with the PartitocomunistaItaliano (PCI), the largest communist party outside the USSR (Table 1 shows the political weight of DC from 1946 to 1972 and Figure 1 illustrates the membership trends of these two main political parties in the same period). [INSERT TABLE 1 AND FIGURE 1 ABOUT HERE] Thanks to its electoral successes, the DC was able to exercise a strong influence on the political arena resulting in the stabilization in Italy of a political model that avoided strong contrasts between different social classes via a continuous balancing of their interests (Ginsborg, 1990: 72-76). However, this stability is not to be seen as a convergence towards a common ideal as much as the continuous change in governments should not be seen as a sign of instability. Quite the opposite.The DC had many different political streams and, since its inception, it was a very heterogeneous body that emerged from the confluence of the interests of the Italian entrepreneurial class, some parts of proletariat,the growing Italian bourgeoisie, and the Holy See (Basso, 1975).In this context, the PCI strategically was not interested in generating a strong contrast with the DC, up to the point of envisaging an alliance between the two parties lead by Moro (DC) and Berlinguer (PCI), known as the CompromessoStorico (historic compromise), later in the seventies. The continuous change in government leadership (sixteen different prime ministers in between 1945 and 1973, all lead by a DC member, and thirty-seven until 2013) is also to be seen as a result of this continuous balancing of interests, very often within the same political strategy. A key document to understand DC’s economic doctrine and how this intertwined with a view of society for Italy can be gained by reading the so-called Codice di Camaldoli (Camaldoli Code). This code was drafted in 1945 by some of those who later became influential personalities in the Italian political and economic arena such as GiulioAndreotti, AmintoreFanfani, Alcide De Gasperi, , who all later appointed as Prime Ministers and Ministers various times, and , who partook to the works leading to the publication of the Constitution of the Italian Republic in 1947. Most interestingly, the core of the document was written by Pasquale Saraceno and Sergio Paronetto, who later both became managers of IRI 8, and EzioVanoni, who authored the Piano Vanoni , an influential national planning exercise outlining the economic policy for growth and employment for the decade 1955-1964 in the implementation of which IRI played an important role (ACS, SAR, 143; Saraceno, 1982). 9 The Code explicitly referred to Papal encyclicals such as the RerumNovarum and , outlined a vision on how to govern society and the economy in accordance with the Catholic doctrine (Franchi, 2004). For the Code, human and social action was to be directed towards the ‘common good’: this was the enabling, but also

8 PasqualeSaraceno was Head of Planning Office (1953), Head of the Inspection Office (1933), Head of the Financial Office (1948), while Paronetto was head of the Technical Secretary (1934) and Vice General Director of IRI (1943). 9Vanoni was also the Ministry of Finance (1954-56) and one of the founders of the DC. 12 constraining, principle guiding individual, economic, and social action. In this sense, the individual free will was constrained by other intermediate social constructions, amongst which, most importantly, the family. Similarly the activity of the State (Code, art. 6 and 15 of the section dedicated to the civil life; RerumNovarum , art. 26) was to be directed towards the ‘common good’ but also limited by it, so that, for instance, State intervention was to be balanced with, and leave space to, the actions of individuals, families, and firms (Code, art. 9 and 18 of the section dedicated to the civil life; RerumNovarum , art. 26-29). Many of the concepts contained in the Code were later recalled in the debates of the Constituent Assembly in 1943 and informed the final Constitution of the Italian Republic promulgated in 1947.10 IRI constituted one of the main instruments through which this social, political,and economic doctrine was made real. Not by chance the three main authors of the Code had a direct (Saraceno and Paronetto, as IRI managers) or indirect (Vanoni, as writer of the national economic plan that IRI had to implement) influence on IRI strategy. These three figures also embed most of what Italy has always been, a link between a series of personal, family and professional ties (see also Padgett and Ansell, 1993 in relation to Renaissance Florence): they were all from the same small village of Morbegno (close to Sondrio in the Pidemont), two of them were relatives (Saraceno married Vanoni’s sister), and had strong academic and professional ties. These ties and not economic rationalism are those phenomena that have to be studied to understand the complexity of accounting at IRI and in Italy. Even the supposedly quintessential engine of economic development, i.e. the firm, was a key actor in the economic and social doctrine of the DC. How the theorization of the firm and the related accounting, planning and control mechanisms made this doctrine possible in the context of IRI is explored in the next sections. There we illustrate the professional figure of Pasquale Saraceno and its links with the Italian approach to management known as Economiaaziendale (see Capalbo and Clarke, 2006; Canziani, 1987; Zan and Zambon, 2000) to then move to the illustration of value added based budgeting and planning practices at IRI.

4.3 On making ideologies real: people, institutions, and practices Ideologies, as much as business concepts such as ‘globalization’,‘efficiency’ and the like (see Hansen and Mouritsen, 1999), are empty signifiers until they are made real through some concrete actions. They require people, institutions, and practices to become real. This is also the case for the social and economic doctrine of the DC and the case of IRI, which we build in this paper, is quite enlightening with respect to how these three factors become intertwined in Italy in between the forties and the sixties. IRI

10 An exemplar link between the ideas contained in the Code and the ideology of the DC is made in one of Taviani’s speeches during the drafting of the Code. Referring to the concepts of private property and labour right, Taviani stated “the necessity to overcome capitalism without reaching collectivism and thisnot being solely for meeting the needs of productionbut also for addressing the question ofsocial needs. […] When we say thatthe State recognizesanddefends private propertyas a way through which citizens can realise their personality,itmeansto limitprivate property andadopta rulethat will inspirefuture legislation,in order to avoid thatthis recognition of the private propertydoes not result in crushing the personality of other people”(ACS, ASIRI, Saraceno, 993). 13 constituted the institutional space where these ideologies could be translated into a series of practices that produced effects on the Italian economy and society. This space was populated by some key actors such as Pasquale Saraceno, who, for his links with academia and politics, was a key mobiliser of the DC ideology within IRI but also a practitioner fully aware of the social implications of accounting calculations. He is considered to be the ideologist of the IRI, not only because he worked in several executive positions (as Head of Planning Office, Head of the Inspection Office, Head of the Financial Office) for more than forty years, but also because he contributed to outline IRI strategy and, more generally, the role of state owned enterprises in the Italian economy (Felisini, 2013). He was hired in 1934 by DonatoMenichella, the general director of IRI in the period 1933-1943, who appreciated his strong abilities in financial statements analysis. An ability that he acquired in the CompagniaNazionaleFiduciaria , a corporation created by the CreditoItaliano (one of the most important Italian banks) with the aim to audit the corporations in which the CreditoItaliano had a stake in (Arena, 2011). As we stated earlier, in 1943 Saraceno played a key role in drafting the Camaldoli Code (Arena, 2011). During, and immediately after,the World War II, he was member of several governmental bodies dealing with international aids. He created a Technical Secretariat in the Ministry of Industry, using IRI personnel, which was lately transformed in the Inter-ministerial Committee for the Reconstruction. The Secretariat drafted a preliminary analysis in 1944 aimed at restarting the industrial production in Italy (Saraceno, 1977a: 36ff). Saraceno also took part to the drafting of the Piano di primo aiuto (First aid Plan) in 1945, of the Piano di massimasullaripresadellaproduzioneindustriale in Italianel 1946 (the Preliminary plan for the recovery of industrial production in Italy in 1946), a document prepared jointlyby the Economic Committee of the ComitatoNazionale di Liberazione (CNL, the organization fighting the Nazis and the Fascists in Italy during the war) and the Allied Control Commission, in charge of managing the US Aids to the European Countries devastated by the war (Felisini, 2013; Saraceno, 1977a). In 1953-54 Saracenoalso collaborated to drafting the Piano Vanoni (ACS, SAR, 143; Saraceno, 1982). In order to implement this Plan a Comitato per lo Sviluppodell’Occupazione e del Reddito (Committee for the development of Employment and Income) was created. It was composed by 26 experts and Saracenoactedas President (ACS, SAR, 668). In the sixties, Saraceno was appointed as vice-president of the CommissioneNazionale per la ProgrammazioneEconomica (National Committee for Economic Planning). In 1962, he became member of the national board of the DC (without ever being elected to Parliament) and had a constant and strong relationship with Aldo Moro (General Secretary of the DC, and Prime Minister in the period 1963- 68 as testified by the huge correspondence between them, see ACS, SAR, 656). This correspondence contained, amongst other things, various analyses of the Italian economic situation and of the role played by State owned enterprises, prepared for the official annual assemblies of the DC (ACS, SAR, 652.2.1). At the same time, Saraceno was also an influential academic with appointments at the universities of Rome, Venice, and the Catholic University of Milan (Arena, 2011). He was also amongst the first pupils of Gino Zappa, the founder of the EconomiaAziendale (Mattessich, 2008; Biondi, 2002; Canziani,1987). The influence of this institutional approach to business economics, and of the Catholic doctrine we have discussed in the precious section was clear in his various works. In these works he

14 theorized the role of State owned enterprises within the Italian economy, which were to be considered as instruments to impede private monopoly, balance the lack of private economic initiatives, and as crucial institutions for national economic growth (Saraceno, 1963: 83 et ff.), especially in less developed areas of the country such as the Mezzogiorno (Saraceno, 1970; 1974). 11 He wrote the first history of IRI (Saraceno, 1956) and widely on the planning experiences and technical tools therewith (Saraceno, 1946; 1947; 1948; 1959; 1969), which he continued to study also in his late career and life (Saraceno, 1970; 1982). In accounting terms, Saracenotheorized the role of the so called ‘inappropriate charges’ (oneriimpropri ) in the profit and loss account of state owned enterprises and IRI in particular. These charges were a burden due to the social and political nature of IRI which served to balance profit, public needs, and political directives (ACS, SAR, 430). More precisely, an inappropriate charge was a cost that the State (and not IRI) should have born (Saraceno, 1977b: 26). As a consequence, the profitability of the investment could be lower than those of private enterprises or even absent (ACS, SAR, 430). This was not only a technical solution that allowed IRI managers to behave as if they were in a profit seeking enterprise and at the same time pursue social objectives but was in line with the traditional Italian approach to income measurement that was not aimed at a crude representation (an epistemological impossibility, Zappa, 1957) but at a mediation amongst different interests, thus guaranteeing the resilience of organizations as key institutions of economic and social life (Zappa, 1927; Onida, 1965; 1961a, 1961b). The Italian approach to accounting and earning measurement at least the until eighties was underpinned by this epistemological impossibility (see Canziani, 1984;Mattessich, 2008),and was translated into a structure of the income statement (in a format of a ‘T’ account, rather than vertical, see Dagnino and Quattrone, 2006) that was aimed at questioning the quality of earning and reliability of the bottom line, rather than assuming it as a fact. Net income was theorized as a residual buffer where the power of shareholders could be balanced by being able to clearly see the influence of non-market transactions onto the definition of profit and therefore of dividends. This is also why most of the Italian accounting theory was dedicated to the study of various kinds of reserves (D’Ippolito, 1949; Amodeo, 1964;Onida, 1970),which all served the scope of mediating amongst different parties, but also amongst different times, by apportioning income to the current or the future annual result. These technical solutions were instruments through which the mediating power of accounting were put to fruition of a similarly mediating ideology, that of the DC and of its most influential agents, such as Pasquale Saraceno. 12

11 In fact, Saraceno was one of the founders of Svimez, an association aimed at developing the industrialization and the economic development of the South in Italy (Arena, 2011). 12 Beyond the theoretical contributions, Gino Zappa was also able to create a large group of academic disciples who not only shared the same approach to management and accounting but also applied it in their professional experiences. Most of Zappa’s pupils had a role within IRI. Teodorod’Ippolito, PietroOnida, Arnaldo Marcantonio and Pasquale Saraceno all worked at the CompagniaNazionaleFiduciaria , presided by Gino Zappa (Arena, 2011) and all of them, in various capacities, had the possibility to work at IRI. Marcantonio was IRI General Inspector from 1943 and Managing Director from the same year. D’Ippolito was auditor at the BancaCommercialeItaliana in the thirties. Onida was a member of IRI’s Board of Directors for the period 1956-1966, and also took also part to several commissions for the analysis of specific 15

The following section delves into the details of the planning practices at IRI to illustrate through concrete examples how this continuous compromise took place through, and in, planning and control practices at IRI.

5. An accounting history of IRI: first preliminary considerations on the role of value added in planning and productivity of labour analysis

In the fifties the role of the IRI was strongly questioned. A special parliamentary commission was set up, the Commission Giachi , to analyse the role of the IRI in the Italian economy and society and mediate between those who wanted a greater and those who wanted a lower level of State intervention. According to Lutz (1962: 284) “the solution adopted was a compromise. […] Aministry of State Holdings was established under a law in December 1956. The law established that “autonomous management bodies” for State holdings should act as intermediaries between the public administration and the operating companies, so that the public administration would not come into direct contact with the management proper of the companies” (see also ACS, ASIRI, ID/492,1; SD 1387). This compromise also satisfied the need for a greater distribution to workers of firms’ profit, given the situation in which the working class experienced. A wider intervention of the State in firms’ governance and a redistribution of wealth from capital to labour through an increase of wages was considered to be necessary (ACS, ASIRI, N 081). All these objectives were pursued through the so called Vanoni Plan of 1953. More than a Plan, Saraceno defined it as a schema because it defined the different sectors (agriculture, public utilities and services, public works) where the State had to intervene in order to favour growth in terms of employment and income in Italy (ACS, ASIRI, Fondo Pasquale Saraceno, 748; Saraceno, 1982). Already towards the mid of the fifties, IRI begun the implementation of systematic four years planning cycles. The first plan covered the period 1957-1960, the first systematic planning exercise after the end of the war and was closely linked to the directives of Vanoni’s Plan. IRI was indeed strongly involved in the development of the sectors which Vanoni’s Plan was considering strategic for Italian economy (ProgrammaQuadriennale IRI 1957-60, ACS, ASIRI, AG/3258). According to Mario Ferrari Aggradi, the Minister for State Holdings during the Sixties: “the Government considers IRI as one of the best tool for a policy of economic development through which to enhance wealth and employment rate, and at the same time to close the existing gap between classes and regions in our Country” (Ferrari Aggradi, 1956: 243). For pursuing such aims, IRI separated the pursuit of social and political agendas from profit seeking ones. The former were to be decided and governed at the level of the holding, while the latter were to be pursued at the level of the subsidiaries (Considerazioni operative sul Piano Quadriennale , IRI, ACS, ASIRI, AG/3258: 7). In the following planningcycle, the structure of the plan was modified in order to go beyond conventional data on investments and financing by economic sector, and included a separate chapter devoted exclusively to the planning of the workforce in the group and its training ( ProgrammaQuadriennale IRI 1957-60, ACS, ASIRI, FIN/235-

sectors. Together with UgoCaprara, another one amongst Zappa’s disciples, he taught in several courses that IRI organized for its personnel (ACS, IRI, ISP/29). 16

236). The planning process was progressively structured identifying roles, deadlines,and procedures (Istruzionisullaprogrammazione del Gruppo IRI 1966, ACS, ASIRI, AG/3262). During the same time period, the parliamentary debate was also increasingly concerned with the amount of value created distributed by IRI’s subsidiaries amongst production factors (i.e. wages, interests, depreciation, profit). This was due to a growing concern on the role played by IRI in the national economy and how this could create inappropriate competitive advantages for its subsidiaries and the need to balance the distribution of value amongst stakeholders (Minutes of the Parliamentary Meeting on 21 st november 1962, see also ACS, ASIRI, ISP/471). Towards the end of the fifties and the sixties, IRI implemented throughout the group a planning system based on the analysis of value added. This made possible measuring and analysing the sources and distribution of value added amongst salaries (as remuneration of labour), dividends and interest (as remuneration of capital), rents (as remuneration of land), in each single operating subsidiaries and at the level of the holding. Figure 2illustrates the report required for planning purposes for the subsidiaries of the group when IRI begun planning and the systematic collection of information on value added.

[INSERT FIGURE 2ABOUT HERE]

Figure 2 clearly shows that even small operating subsidiaries were asked to provide information about the value added produced (the picture shows a statement of AtesSpA– ACS, ASIRI, R2691). The same document shows also the detail used to produce data about the workforce. In the same period the National Statistics Office (ISTAT) was also collecting data about value added produced by Italian corporations, and IRI was therefore asked to collect data and send them to ISTAT. However, the calculation of the amount of value added for national statistics purposes and for IRI’s planning and control purposes was different as exemplified in Figure 3.

[INSERT FIGURE 3ABOUT HERE]

Figure 2 shows the Form F compiled by the ManifattureCotoniereMeridionali , a subsidiary dedicated to the manufacturing of cotton in the Mezzogiorno . Every subsidiary was asked to fill such form. Column (a) shows the value added calculated for ISTAT while the previous column was the information collected to beused for planning purposes at the IRI Holding level.The difference was mainly due to the capitalisation of some cost not recognised in ISTAT’s model and the inclusion of the cost for the decay of stock (ACS, ASIRI, ISP 467). This testifies the different rationales that the two had to pursue: calculation of national GDP in the case of national accounting (ISTAT), and need to mediate between productivity, efficiency and national economic policies in the case of IRI’s internal controls. All the forms collected were then aggregated at the level of the sub-holding as illustrated in Figure 4.

[INSERT FIGURE 4 ABOUT HERE]

17

The form showed in Figure 4was part of the information prepared for the MPPSS. The same law which established the MMPPS also decreed that firms participated by the Treasury had to prepare an annual planning document (RelazioneProgrammatica ) to illustrate the expected results of each state owned company. This document was also the main official act of the MPPSS and according to the statement of the Ministry (Ministerial Memorandum n. 13440 issued in 1959)it was relevant not for the ability of accounting data to represent the financial situation of the participated firms but for the political and economic choices which underpinned such numbers (MinisterodellePartecipazioniStatali, 1960: 102 and ff.). This every year, the MPPSS asked IRI Holding to collect the necessary information to allow the Treasury to prepare the Relazione (Elementi per la RelazioneProgrammatica , ACS, ASIRI, CON/2843). Interestingly, it was the internal data produced by each single subsidiary that was transmitted to the MPPSS through the Form F, and not the data provided to the National Statistics Office.It was the former and not the latter that constituted the basis for drawing and assessing national economic and industrial policies. The calculus of the value added was also used for internal managerial purposes and several comparative analysis were performed by IRI’s internal offices in order to compare value added produced across series of years in each subsidiary and to understand how to bridge gaps in value added amongstdifferent years, as the following figure shows.

[INSERT FIGURE 5ABOUT HERE Analisi VA da recuperare mediante ore di lavoro]

As showed in the previous figures, value added was extensively adopted in IRI. It was an essential metric that was not aimed primarily at planning the future to manage firms and profit. It was mainly an instrument to balance the production and distribution of value added amongst key stakeholders, in a situation where the constant growth of the GDP contributed to the realization, but was also sustained by, the political ideology of compromise that the DC pursued through key figures and practices an organizational and national level.

6. Preliminary conclusions This paper aimed to study IRI’s control practices in the first decades after the end of World War II, when IRI became the operative harm of the US Marshall Plan in Italy and the a key instrument of economic growth and social policy. Our preliminary findings show that accounting constituted the material and practical instrument thanks to which the attempt to diffuse the American model of corporate capitalism in Italy failed due to the pressure of various parties (not last the Vatican, through the Christian Democratic party, and the influence of the Communist party) to make sure that shareholders’ capital was not to be considered the only stakeholder in the interest of which companies should be run, economic system be organized, and societies to be shaped. The development of planning practices based on the notion of value added at IRI and, more broadly, in the development of accounting theories in Italy in this specific historical period, was a key conditions of possibility for the search and operationalization of an alternative model of production and distribution of wealth not only at IRI but, because of its role in the national political economy, at national level. The notion of value added and the related accounting forms of value measurement and 18 representation contributed to define the kind of society that influent coalitions envisaged for the nation in a wise balance between the need to change, because of the new world geopolitics emerging from the war, and the need to preserve the social contract that Italy had until that time. Value added constituted a tool to think, reproduce, and manage a vision of society where the relations amongst family capitalism, the State, workers, and banks had to be wisely orchestrated:none of these parties could be givena clear preeminence, as this would have challenged the precarious equilibrium between the and the communist forces present in Italy after the end of the conflict, both of which were very strong and necessary in keeping Italy united and made of it a key player in the NATO alliance for large part of Italy’s contemporary history. The paper contributes to the literature on the diffusion of business models (e.g. Djelic, 1998; Kipping e Bjarnar, 1998) highlighting a material dimension of translation and how accounting is not simply a neutral instrument of representation but one that allows resistance and the possibility for difference. In the case of IRI, accounting became an instrument for imagining a different kind of society through economic policies. In line with Latour idea of ‘socie-ties ’, where a society is made through a series of ties that link its various members (from Latin soci ) together, we argue that accounting is crucial in conceiving these links and power relations.

19

List of tables and Figures

Table 1: DC results at the general elections YEAR PARLIAMENT BRANCH N. OF VOTES % 1946 Constituent Assembly 8.101.004 35,2 Chamber of Deputies 12.740.042 48,5 1948 Senate 10.864.698 48,1 Chamber of Deputies 10.864.282 40,1 1953 Senate 9.886.651 40,7 Chamber of Deputies 12.522.279 42,4 1958 Senate 10.782.262 41,2 Chamber of Deputies 11.775.970 38,3 1963 Senate 10.032.458 36,5 Chamber of Deputies 12.441.553 39,1 1968 Senate 10.965.790 38,3 Chamber of Deputies 12.919.270 38,7 1972 Senate 11.466.701 38,1 Source: our elaboration on Ministry of Interior database

20

Figure 1. Number of affiliates to the DC and the PCI (1945-1972)

2500000

2000000

1500000

DC 1000000 PCI

500000

0

1945 1947 1949 1951 1953 1955 1957 1959 1961 1963 1965 1967 1969 1971 Source: our elaboration on IstitutoCattaneo

21

Figure 2. First reports showing the importance of planning for the remuneration of labour

22

Figure 3. Value added reporting at IRI: an example

23

Figure 4.Value added at subholding level

24

Figure 5.Value added and working hours

25

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