Autarky

Question 1

driven by?

Answer 1

Quest for economic self sufficiency, driven by:
general decline in overseas trade (overvalued lira, great depression)
1936 sanctions placed on Italy in response to militaristic actions in Africa
Preparation for war, particularly in 1930’s

Question 2

bilateral agreements

Answer 2

Trade conducted through bilateral agreements; ensured value of imports strictly matched value of exports

Question 3

foreign currency

Answer 3

Ensured Italy could minimise control imports and would not use its foreign currency or gold reserves to pay for them

Question 4

mussolini’s actions

Answer 4

Mussolini strengthened country’s control of foreign currency and its import licensing system and boosted Italy’s export industry by devaluing lira in October 1936
hoped Italy would become more economically self-sufficient and be able to rely less on overseas imports
IRI scheme took over private firms if justified for national defence, autarky and imperialist goals of government
These companies made responsible to improving Italy’s economic self-sufficiency by finding sources of energy, metals and raw materials within Italy and colonies
Agricultural products (cereals, wool, raw materials) stockpiled in order to boost Italian stocks and guarantee consistent supply at regular prices

Question 5

govt spending on autarky

Answer 5

1934: 30B, 1938: 60B

Question 6

autarky impossible

Answer 6

lacked raw materials, had to import coal and oil
products produced would have been cheaper to import; added to national deficit
economy distorted on focus on autarky and 4 direct taxes on property, capital and shareholdings introduced 1935-39; wages fell below cost of living
PNF unpopular, but Mussolini growing in cities 1936-39