When Political Rights Do Not Translate into Economic Power: The Rise and Fall of the Slovenian Minority's Economy in Italy (1954-2020)

Abstract

Lack of economic data based on ethnicity makes the study of minority economies in linguistically or ethnically mixed regions problematic. Yet, there is much to learn from these hard cases of economic development in terms of the policies that guarantee ethnic or linguistic survival and reproduction. The present article investigates the long-term economic development of the Slovenian minority in Italy between 1954 and 2020. It does so by applying the theoretical framework by new institutional economists Daron Acemoglu, Simon Johnson, and James Robinson (2005), which looks at the dynamic role of political and economic institutions for the generation of economic growth. The parable of this community's economy shows that political power and economic success can be flimsy and ephemeral. Strategic, long-term economic planning and, especially, contingent planning against foreseeable risks, both of which require the systematic collection of accurate data and the coordination of representative organizations, are key to successful reproduction and sustained growth.