Economy

Question 1

Who did M appoint to appease Italys business groups and conservative industrialists?

Answer 1

Alberto De Stefani as minister of finance

Question 2

What did De StefanI focus on?

Answer 2

Reducing government interference in the economy eg he privatised the telephone sector and cut protective tariffs

Question 3

What did government debt fall from early on?

Answer 3

74.8% of GDP in 1922 to 50.6% GDP in 1925

Question 4

What evidence of discontent is there towards early economic policy?

Answer 4

Agricultural groups were unhappy about the reduction in tariffs

Question 5

What was Italy running early on?

Answer 5

in 1924/5 Italy was running a budget surplus

Question 6

What happened to socialist TU’s?

Answer 6

Socialist strikes and TU’s were outlawed under the Vidoni pact (1925) which recognised syndicates as the only representative body of Italian workers

Question 7

What evidence is there of a growth in exports early on?

Answer 7

Many Italian companies were able to sell their products abroad with ease. Exports, particularly cars, textiles and agricultural products doubled from 1922-25

Question 8

When was the ‘Battle for Lira’ launched?

Answer 8

August 1926

Question 9

What was the value of the lira before it was artificially fixed vs after It was artificially fixed?

Answer 9

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

Question 10

What was the motive behind the revaluation of the lira?

Answer 10

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

Question 11

What was the ramification of the lira 1927 of exports?

Answer 11

It crippled Italian export industries, particularly textiles, went into depression.

Question 12

What was the ramification of the lira’s revaluation on unemployment?

Answer 12

Unemployment trebled between 1926 and 1928

Question 13

What exacerbated the effects of the revaluation of the lira?

Answer 13

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

Question 14

Evaluate the significance of the revaluation of the lira?

Answer 14

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

Question 15

What was the corporate state intended to solve?

Answer 15

It was one of M’s key policies, intended to solve social/class conflict in the workplace

Question 16

When was the Rocco Law? What did it say?

Answer 16

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

Question 17

What was set up in July 1926? What did it do?

Answer 17

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

Question 18

What was the aim of the Ministry of corporations? When was it established?

Answer 18

July 1926

AIM: for employer and employees to work together more efficiently, harmoniously and productively for the good of the nation

Question 19

What was set up in 1927? (aside from revaluation of lira)

What did it guarantee?

Answer 19

In 1927: the ‘Charter of labour’ was drawn up

It guaranteed workers rights in employment, social insurance and welfare

Question 20

What happened in 1934?

Answer 20

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

Question 21

What criticism is there of the Charter of Labour?

Answer 21

The charter was simply a programme of intent and was never followed through

Question 22

What can be said about the reality of the corporate state?

Answer 22

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

Question 23

What did the fascist deputies who were meant to represent the workers do?

Answer 23

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

Question 24

What can be said about the success of these fascist economic policies on the economy?

Answer 24

Damaging industrial disputes were generally avoided. Along with close state control, this limited the effects of the depression

Question 25

What blatant criticism is there of the Corporate state?

Answer 25

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’

Question 26

What did plans put forwards by the corporations have to be approved by? What is the significance of this?

Answer 26

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

Question 27

Was the corporate state efficient?

Answer 27

The system was inefficient, with a vast, complex and extensive bureaucracy that never achieved its stated aims

Question 28

Was there corruption?

Answer 28

Yes eg the building of mock factories to secure subsidies

Question 29

How was the corporate state excellent propaganda?

Answer 29

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

Question 30

What did Salvemini state about the corporate state?

Answer 30

trying to understand its function was like ‘looking in a dark room for a black cat which is not there’

Question 31

In what instance did the corporation further workers interests?

Answer 31

Only on issues such as sick Pay for workers, and the belated introduction of paid national holidays in 1938

Question 32

When was the Battle of the Births announced?
What was its aim?

Answer 32

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

Question 33

What laws were brought in under the Battle of the births?

Answer 33

-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

Question 34

Was the Battle of the Births a success? What did Birth rates change from?

Answer 34

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

Question 35

What was the Battle of the grain linked to?

Answer 35

Autarky and the idea of making Italy self-sufficient in grain. It was launched in 1925

Question 36

What did the Fascists make a considerable effort doing to farmers under the Battle for grain?

Answer 36

Educating growers on new farming techniques and providing fertilisers

Question 37

What evidence is there of the Battle for grain being a success in northern and central Italy?

Answer 37

Wheat production increased by 50% 1914-38 and imports of grain were reduced by 75%

Question 38

What evidence is there of the Battle for grain being entrenched with propaganda?

Answer 38

M ensured that press photographers were on hand to record him visiting farms and helping with the harvests

Question 39

What limitations were there to the south under the battle for grain

Answer 39

Many in the south stopped growing olives and fruit and cattle farming was greatly reduced, further damaging exports

Question 40

What can be said about the self-sufficiency Italy achieved during the Battle of the grain?

Answer 40

Although Italy became self-sufficient in crops, it was not self-sufficient in fertiliser which led to a lower grain yield

Question 41

What evidence is there of families paying more for food despite the battle of the grain?

Answer 41

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

Question 42

What was Italy still dependent on?

Answer 42

By 1933 Italy was still dependent on imports

Question 43

When was ruralisation announced? What was it?

Answer 43

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

Question 44

Was the ruralisation policy successful?

Answer 44

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

Question 45

What schemes were set up following the great depression to keep employment levels stable?

Answer 45

Large public work schemes such as road building and house construction

Question 46

What did gov funding for road building increase by following the GD?

Answer 46

Gov funding for road building doubled between 1929 and 1933

Question 47

How did the gov ensure the stability of major banks following the GD?

Answer 47

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

Question 48

What other policy helped the gov to prop up the economy and prevent companies from going bankrupt?

Answer 48

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

Question 49

What did welfare spending increase by during the GD?

Answer 49

went from 6.9% to 20.6% between 1930 and 1940, putting a huge strain on government finances

Question 50

How did the gov restrict closures during the GD?

Answer 50

Workers wages were cut and companies were merged so there were fewer closures

Question 51

What was Autarky driven by?

Answer 51

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

Question 52

What was stockpiled (autarky)?

Answer 52

Agricultural products such as cereals and wool to boost reserves meaning supply and prices were stable

Question 53

What did gov spending on Autarkic measures increase from?

Answer 53

It doubled from 30 billion lire in 1934 to 60 billion by 1938

Question 54

What synthetic substitutes were developed in the quest for Autarky?

Answer 54

Lanital instead of wool

Question 55

What evidence is there raw materials were low?

Answer 55

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

Question 56

Which industries suffered in the quest for Autarky?

Answer 56

Textiles, as they were not prioritised

Question 57

What was introduced that favoured domestic goods?

Answer 57

Quotas on foreign imports

Question 58

How did autarky exacerbate national deficit?

Answer 58

As a result of autarky, goods were produced that would be cheaper to buy from abroad thus adding to national deficit

Question 59

What did Italian firms have to do in the quest for autarky?

Answer 59

Find new energy sources that didn’t mean oil and gas

Question 60

How else did autarky worsen government financial difficulties?

Answer 60

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

Question 61

What evidence is there that state control expanded during autarky?

Answer 61

State control was expanded until 80% of ship building and 50% of steel production was directed by the state

Question 62

How many Italians were unemployed in 1933?

Answer 62

2 million

Question 63

What did real wages change by for Italians?

Answer 63

Fell by 10% from 1925-38