The International Political Economy is shaped by many different factors. The part that helps to shape it that will be focused on in this paper is the fashion industry, specifically, the fashion industry in Italy. The typically thought of Italian “high fashion” plays a role in shaping the economy and structure of a very important city in northern Italy, Milan. Milan is an important player in Italy’s economy, and Italy is an important player in Europe’s economy as well as the global economy. Milan in particular has been able to separate itself from other large Italian cities such as Rome and Florence to become the clear-cut leader in fashion through a variety of unique characteristics. In an article published by The Enterprise World, the many characteristics of Milan are listed as “art, commerce, design, entertainment, fashion, healthcare, finance, media services, and tourism.” There is more to Milan than just fashion. By separating itself from other Italian cities, the fashion industry is able to flourish, and by flourishing it is able to positively impact Italy’s economy as well as the global economy. In this paper I will analyze how Milan has separated itself from other Italian cities, the uniqueness that has allowed Italian fashion to expand into foreign global markets, the job statistics of the industry, exports, and effects on other industries in the Italian economy.

First and foremost, the structure of Milan has been a vital aspect of its ascension to the top when it comes to fashion. In a journal by Elisabetta Merlo and Francesca Polese, the success of Milan in becoming this important fashion and economic center “was based on a long, steady accumulation of resources and the ability to harness its creative and managerial capabilities.” In regards to the fashion industry, materials and other resources are the literal building blocks of the products; they end up being vital to the industry. Through the accumulation of these resources, through imports from other countries or regions, or by other means, the economy is being affected by putting goods and commerce into the cycle. Another thing mentioned by Merlo and Polese is the creative capability of those in the industry in Milan. Another way that Italian fashion was able to gain such notoriety was through its creativeness and uniqueness. Claudio Marenzi describes Italy as “a creative hotbed for expertise and craftsmanship, rooted in centuries of culture and beauty.” He also states that “Italy has always had the taste for the beautiful, with foundations in the early days of the Italian renaissance.” This uniqueness and creativity has been a factor as to why Italian fashion has become so popular and desirable, leading those who wish to purchase it to play into the global economy.

In an article by Meg Miller, she analyzes how Italian fashion was able to separate itself from other countries such as France. She writes, “During the ‘50s and ‘60s, while French labels like Christian Dior and Jacques Fath turned their focus fully on couture, only Italian fashion designers truly understood the need for women to have comfortable, versatile clothing that was also tailored and refined. Italian day wear took off in America.” It is through this creativity and uniqueness that Italian fashion was able to grow prominently in foreign markets, such as America. In regards to American markets, an article by Marianna d’Ovidio and Valentina Pacetti analyzes the so-called “Americanization” of European cities. They discuss a paper by Häusserman in which he writes, “’Americanization’ of the European city seems to be under way, and this would mean a movement toward the market-driven organization of the cities.” This is important to consider, especially with how Italian fashion took off in America and how moving into foreign markets in America was a big move for this industry. Not just in America, but foreign markets all over the world are able to benefit economically from this industry – whether by selling finished products or by exporting the raw materials and resources needed to manufacture the finished products.

Also analyzed by Miller is the timeline of Italy’s rise to prominence in the fashion industry. “Before the war, Italian fashion was always following the direction of French fashion, just like everyone else was. It wasn’t until after the war that Italy’s fashion industry got the confidence and the economic support to come into its own.” Like mentioned before, Italy’s creative ability to step out of the norms of fashion allowed them to expand into more global markets, specifically American. By creating this unique style, Italian fashion has been able to reach global markets and this industry serves as a very important part of the country’s economy.

Like big industries in any country, the fashion industry in Italy is a large source of jobs, manufacturing, and economic growth, which all three play into the international political economy. According to Merlo and Polese, “In 2004, the sector comprised close to 67,500 companies of different sizes, employing some 540,000 workers and accounting for roughly 10 percent of the added value of the country’s entire manufacturing sector.” This is very important because employment and manufacturing are very large factors in the economy, so having so much manufacturing that would lead to employment and exports and sales will greatly benefit the economy. What I found to be surprising was the figure of 67,500 companies. This is many more than I had expected and it shows the size and importance of this industry. In an article by Claudio Marenzi, he writes that “The Italian fashion, textile and accessories sector is one of the most important in the world for revenue generated, number of people employed, and the number of companies involved.” To take it a step further from the importance this sector is in Italy, Marenzi also shows the importance this sector has on the world.

In addition, “In the same year, turnover in Italian fashion-related industries amounted to over sixty-six billion euros.” (Merlo and Polese). These numbers show the shear impact this industry has on the economy. “Fashion-related industries” refers to similar industries as well, such as textiles and jewelry.

A large part of Italy’s economy comes from exports, not just in the fashion industry but in many manufacturing sectors. According to Merlo and Polese “The importance of fashion-related industries in the overall performance of the country’s economy is also reflected in their remarkable export strength, an achievement that contradicts critics claims that the Italian economy is incapable of overcoming the obstacles posed by its limited national market.” Like many countries, exports are very important to Italy and play an important role in their economy. Another important part of Italy’s economy comes from the yearly Milan Fashion Week. In regards to the show, Katrina Pirner writes, “The weeklong event provides a substantial jolt to the local economy. While Milan Fashion Week attracts fewer visitors than Paris, New York, and London, the city’s visitors spend more on average than at other fashion events – nearly 2,000 euros each. This means Milanese businesses such as restaurants, retailers, and hotels tend to earn in excess of 37 million euros per season.” This shows how the fashion industry impacts the economy indirectly. This industry, by holding its weeklong fashion show drives up income for many other industries and benefits the local economy of Milan as a whole. I found this statistic to be very interesting in regards to the interconnections between different industries in the economy of Milan.

Milan has been able to proclaim itself as the fashion capital of Italy by practices such as accumulations of resources, creative and managerial capabilities, and has positively impacted the Italian economy and the IPE through the creation of many jobs, exporting many goods, and opening up international markets. Creativity in fashion has allowed Italy to expand into other global markets, exports have affected economies in Italy as well as the countries receiving these exports, and the industry is able to impact other industries such as restaurants and hotels due to the amount of visitors coming to Milan Fashion Week.