Around the third or fourth month of life, the infant realises that the good and the bad objects are really facets of one and the same object. He develops the depressive position. This depression [Klein believes that the two positions continue throughout life] is a reaction of fear and anxiety. The infant feels guilty (at his own rage) and anxious (lest his aggression harms the object and eliminates the source of good things).
He experiences loss of his own omnipotence since the object is outside his self. The infant wishes to erase the results of his own aggression by "making the object whole again". By recognising the wholeness of other objects - the infant comes to realise and to experience his own wholeness. The Ego re-integrates.
But the transition from the paranoid-schizoid position to the depressive one is by no means smooth and assured. Excess anxiety and envy can delay it or prevent it altogether. Envy seeks to destroy all good objects, so that others don't have them. It, therefore, hinders the split between the good and the bad "breasts". Envy destroys the good object but leaves the persecutory, bad object intact. Moreover, it does not allow the re-integration ["reparation" in Kleinian jargon] to take place. The more whole the object - the greater the envy. Thus, envy feeds on its own outcomes. The more envy, the less integrated the Ego is, the weaker and more inadequate it is - the more reason for envying the good object and other people. Envy is the hallmark of narcissism and the prime source of what is known as narcissistic rage. The schizoid self - fragmented, weak, primitive - is intimately connected with narcissism through envy. Narcissists prefer to destroy themselves and to deny themselves - rather than to endure someone else's happiness, wholeness and "triumph". They fail an exam - to frustrate a teacher they adore and envy. They fail in therapy - not to give the therapist a reason to feel professionally satisfied. By failing and self-destructing, narcissists deny the worth of others. If the narcissist fails in therapy - his analyst must be inept. If he destroys himself by consuming drugs - his parents are blameworthy and should feel guilty and bad. One cannot exaggerate the importance of envy as a motivating power in the narcissist's life.
The psychodynamic connection is obvious. Envy is a rage reaction at not controlling or "having" or engulfing the good, desired object. Narcissists defend themselves against this acidulous, corroding sensation by pretending that they DO control, possess and engulf the good object. This is what we call "grandiose fantasies (of omnipotence or omniscience)". But, in doing so, the narcissist MUST deny the existence of any good OUTSIDE himself. The narcissist defends himself against raging, all consuming envy - by solipsistically claiming to be the ONLY good object in the world. This is an object that cannot be had by anyone, except the narcissist and, therefore, is immune to the narcissist's threatening, annihilating envy. In order not to be "owned" by anyone (and, thus, avoid self-destruction in the hands of his own envy) - the narcissist reduces others to "non-entities" (the narcissistic solution), or avoids all meaningful contact with them altogether (the schizoid solution).
The suppression of envy is at the CORE of the narcissist's being. If he fails to convince his self that he is the ONLY good object in the universe - he is exposed to his own murderous envy. If there are others out there who are better than he - he envies them, he lashes out at them ferociously, uncontrollably, madly, hatefully and spitefully. If someone tries to get emotionally intimate with the narcissist - she threatens the grandiose belief that no one but the narcissist can possess the good object (the narcissist himself). Only the narcissist can own himself, have access to himself, possess himself. This is the only way to avoid seething envy and certain self-annihilation. Perhaps it is clearer now why narcissists react as raving madmen to ANYTHING, however minute, however remote that seems to threaten their grandiose fantasies, the only protective barrier between themselves and their envy.
There is nothing new in trying to link narcissism to schizophrenia. Freud did as much in his "On Narcissism" [1914]. Klein's contribution was the introduction of immediately post-natal internal objects. Schizophrenia, she proposed, was a narcissistic and intense relationship with internal objects (such as fantasies or images, including fantasies of grandeur). It was a new language. Freud suggested a transition from (primary, object-less) narcissism (self-directed libido) to objects relations (objects directed libido). Klein suggested a transition from internal objects to external ones. While Freud thought that the common denominator of narcissism and schizoid phenomena was a withdrawal of libido from the world - Klein suggested it was a fixation on an early phase of relating to internal objects.
But is the difference not merely a question of terminology?
"The term 'narcissism' tends to be employed diagnostically by those proclaiming loyalty to the drive model [Otto Kernberg and Edith Jacobson, for instance - SV] and mixed model theorists [Kohut], who are interested in preserving a tie to drive theory. 'Schizoid' tends to be employed diagnostically by adherents of relational models [Fairbairn, Guntrip], who are interested in articulating their break with drive theory… These two differing diagnoses and accompanying formulations are applied to patients who are essentially similar, by theorists who start with very different conceptual premises and ideological affiliations."
(Greenberg and Mitchell. Object Relations in Psychoanalytic Theory.
Harvard University Press, 1983)
Klein, in effect, said that drives (e.g., the libido) are relational flows. A drive is the mode of relationship between an individual and his objects (internal and external). Thus, a retreat from the world [Freud] into internal objects [object relations theorists and especially the British school of Fairbairn and Guntrip] - IS the drive itself. Drives are orientations (to external or internal objects). Narcissism is an orientation (a preference, we could say) towards internal objects - the very definition of schizoid phenomena. This is why narcissists feel empty, fragmented, "unreal" (movie-like) and diffuse. It is because their Ego is still split (never integrated) and because they withdrew from the world (of external objects). Kernberg identifies these internal objects with which the narcissist maintains a special relationship with the idealised, grandiose images of the narcissist's parents. He believes that the narcissist's very Ego (self-representation) fused with these parental images.