Economy Flashcards
Who did M appoint to appease Italys business groups and conservative industrialists?
Alberto De Stefani as minister of finance
What did De StefanI focus on?
Reducing government interference in the economy eg he privatised the telephone sector and cut protective tariffs
What did government debt fall from early on?
74.8% of GDP in 1922 to 50.6% GDP in 1925
What evidence of discontent is there towards early economic policy?
Agricultural groups were unhappy about the reduction in tariffs
What was Italy running early on?
in 1924/5 Italy was running a budget surplus
What happened to socialist TU’s?
Socialist strikes and TU’s were outlawed under the Vidoni pact (1925) which recognised syndicates as the only representative body of Italian workers
What evidence is there of a growth in exports early on?
Many Italian companies were able to sell their products abroad with ease. Exports, particularly cars, textiles and agricultural products doubled from 1922-25
When was the ‘Battle for Lira’ launched?
August 1926
What was the value of the lira before it was artificially fixed vs after It was artificially fixed?
By 1926 the lira had sunk to 150 lira to the British pound
In December 1927 it was artificially fixed at 92.46 to the British pound
What was the motive behind the revaluation of the lira?
It was purely for propaganda purposes, making the Italian economy appear stronger.
It also demonstrated the will of Il Duce and his power to uphold Italian pride, thus increasing his prestige
What was the ramification of the lira 1927 of exports?
It crippled Italian export industries, particularly textiles, went into depression.
What was the ramification of the lira’s revaluation on unemployment?
Unemployment trebled between 1926 and 1928
What exacerbated the effects of the revaluation of the lira?
The revaluation should have helped the Italian consumer because imports of foods and other products should have become cheaper. However, Mussolini prevented this by placing high tariffs on many foreign imports
Evaluate the significance of the revaluation of the lira?
It was the first example of how the economy was shifting towards a greater focus on policies that would represent Mussolini’s power and strength as leader and less on the actual economic needs of the Italian people
What was the corporate state intended to solve?
It was one of M’s key policies, intended to solve social/class conflict in the workplace
When was the Rocco Law? What did it say?
April 1926
The Rocco law allowed syndicates (cooperative groups combining representatives of employers and employees) some rights to represent views/ concerns. However, strikes, go-slow and lock outs were banned
What was set up in July 1926? What did it do?
The ministry of Corporations
The corporations were set up to be an alternative mixed union of workers and employees who would discuss and implement national economic planning that met both their interests
What was the aim of the Ministry of corporations? When was it established?
July 1926
AIM: for employer and employees to work together more efficiently, harmoniously and productively for the good of the nation
What was set up in 1927? (aside from revaluation of lira)
What did it guarantee?
In 1927: the ‘Charter of labour’ was drawn up
It guaranteed workers rights in employment, social insurance and welfare
What happened in 1934?
Another law was passed which implemented corporations representing 22 sectors of industry. In theory, they could fix the price of goods, settle disputes (over hours wages and conditions), regulate apprenticeships and advise the government
What criticism is there of the Charter of Labour?
The charter was simply a programme of intent and was never followed through
What can be said about the reality of the corporate state?
In reality the system was simply propaganda. Although the corporations allowed employers and workers to meet under the guidance of the PNF, only one side was represented.
While employers chose their own representatives, the workers were not represented by workers at all, but by fascist officials approved by Mussolini, who was the Minister of corporations
What did the fascist deputies who were meant to represent the workers do?
They invariably supported the business and factory owners, as a result of the support they gave to the Italian government. Workers therefore had little say in labour disputes
YET this appeased industrialists
What can be said about the success of these fascist economic policies on the economy?
Damaging industrial disputes were generally avoided. Along with close state control, this limited the effects of the depression
What blatant criticism is there of the Corporate state?
Conflict between employer and employee were not solved, only suppressed. Martin Blinkhorn, a British academic adds that ‘Corporativism in practice involved the thinly disguised exploitation and oppression of Labour’
What did plans put forwards by the corporations have to be approved by? What is the significance of this?
Any plans put forwards but the corporations had to be approved by the CENTRAL CORPORATIVE COMMITTEE headed by Mussolini, who alone decided what became law.
Real power over the economy was thus held by Mussolini, who came to decisions in consultation with large industrial groups
Was the corporate state efficient?
The system was inefficient, with a vast, complex and extensive bureaucracy that never achieved its stated aims
Was there corruption?
Yes eg the building of mock factories to secure subsidies
How was the corporate state excellent propaganda?
It was used to prove that Mussolini had overcome the problems of class conflict and had constructed a ‘third way’ between capitalism and communism
The corporate state was studied by economic and political scientists all around the world, who acclaimed this as a new and original economic system
What did Salvemini state about the corporate state?
trying to understand its function was like ‘looking in a dark room for a black cat which is not there’
In what instance did the corporation further workers interests?
Only on issues such as sick Pay for workers, and the belated introduction of paid national holidays in 1938
When was the Battle of the Births announced?
What was its aim?
May 1927
It had the aim of increasing the Italian population from 40 million to 60 million by the 1950’s. This was since a larger economy would make Italy stronger economically, militarily and M hoped improve relations with the Catholic Church as the family was seen to be at the heart of catholic values
What laws were brought in under the Battle of the births?
-Married men with six or more children paid no tax
-Contraception and abortions were banned
-Medals for women with large numbers of children
-Employment made more available to married men with children
-Loans to married couples not to be paid back if they had six children
Was the Battle of the Births a success? What did Birth rates change from?
Overall this was a failure. Marriage rates stagnated and birth rates declined from 1927-36.
In the late 1930’s the birth rate of 102 births per 1000 was lower than the 1911 birth rate of 147 per 1000
What was the Battle of the grain linked to?
Autarky and the idea of making Italy self-sufficient in grain. It was launched in 1925
What did the Fascists make a considerable effort doing to farmers under the Battle for grain?
Educating growers on new farming techniques and providing fertilisers
What evidence is there of the Battle for grain being a success in northern and central Italy?
Wheat production increased by 50% 1914-38 and imports of grain were reduced by 75%
What evidence is there of the Battle for grain being entrenched with propaganda?
M ensured that press photographers were on hand to record him visiting farms and helping with the harvests
What limitations were there to the south under the battle for grain
Many in the south stopped growing olives and fruit and cattle farming was greatly reduced, further damaging exports
What can be said about the self-sufficiency Italy achieved during the Battle of the grain?
Although Italy became self-sufficient in crops, it was not self-sufficient in fertiliser which led to a lower grain yield
What evidence is there of families paying more for food despite the battle of the grain?
By the late 1930’s Families were paying around 400 lire extra in food costs in comparison to the late 1920’s and living standards declined eg meat & egg production declined
What was Italy still dependent on?
By 1933 Italy was still dependent on imports
When was ruralisation announced? What was it?
May 1927, it was the idea that Italy had to retain its rural/peasant population to maintain its traditions and increase the birth rate.
For example, peasants were encouraged to stay in rural areas and land was reclaimed to be used as farmland
Was the ruralisation policy successful?
only 5% of the 475 million hectares of land that was reclaimed was actually improved and used by farmers
HOWEVER the drained marshes did reduce malaria by 50%
Overall land reclamation was successful as it improved public health and provided thousands of jobs during the depression
What schemes were set up following the great depression to keep employment levels stable?
Large public work schemes such as road building and house construction
What did gov funding for road building increase by following the GD?
Gov funding for road building doubled between 1929 and 1933
How did the gov ensure the stability of major banks following the GD?
The gov ensured that major banks that had loaned millions of lire to Italian businesses were protected from possible collapse through IMI.
This helped Italian companies survive the GD and industrial development was considerable in comparison to when the fascists had taken over in 1922
What other policy helped the gov to prop up the economy and prevent companies from going bankrupt?
IRI
Through this policy the gov brought up shares in banking and industry to help prop the Italian economy up and ensure these companies didn’t collapse
This was largely successful and meant that Italy was in a relatively strong position in 1934
What did welfare spending increase by during the GD?
went from 6.9% to 20.6% between 1930 and 1940, putting a huge strain on government finances
How did the gov restrict closures during the GD?
Workers wages were cut and companies were merged so there were fewer closures
What was Autarky driven by?
A decline in overseas trade, sanctions placed on Italy in response to 1936 aggression in Abyssinia and in preparation for was in the late 1930’s
What was stockpiled (autarky)?
Agricultural products such as cereals and wool to boost reserves meaning supply and prices were stable
What did gov spending on Autarkic measures increase from?
It doubled from 30 billion lire in 1934 to 60 billion by 1938
What synthetic substitutes were developed in the quest for Autarky?
Lanital instead of wool
What evidence is there raw materials were low?
Raw materials like iron and oil were vary scarce. In the late 1930’s Italy produced 1.8 million tonnes of iron ore annually; this was less than a tenth of German production at this time
Which industries suffered in the quest for Autarky?
Textiles, as they were not prioritised
What was introduced that favoured domestic goods?
Quotas on foreign imports
How did autarky exacerbate national deficit?
As a result of autarky, goods were produced that would be cheaper to buy from abroad thus adding to national deficit
What did Italian firms have to do in the quest for autarky?
Find new energy sources that didn’t mean oil and gas
How else did autarky worsen government financial difficulties?
Autarky worsened government financial difficulties as the government was spending huge sums on contracts related to the armament programme and had to fund expensive military ventures in abysinnia and Spain
What evidence is there that state control expanded during autarky?
State control was expanded until 80% of ship building and 50% of steel production was directed by the state
How many Italians were unemployed in 1933?
2 million
What did real wages change by for Italians?
Fell by 10% from 1925-38
