Nomenklatura Rule Under Democracy

This paper attempts to explain the puzzling features of the Italian political system up to 1992 by means of an economic model of a democratic Nomenklatura, in which the normal operation of a democratic system is distorted by the self-perpetuation of a ruling elite - `Nomenklatura' - which co-opts members of the opposition into its ranks to secure re-election and maximize per capita rent from political office. Competition for the field is thus suppressed and competition within the field enhanced. The Nomenklatura regime arose as a response to a non-democratic opposition and could not survive the downfall of Communism in the early 1990s. Thus the model yields an explanation for the regime's collapse after 1992.