Fascist Economic Policy Flashcards
First fascist economic minister
de Stefani
What did de Stefani try to do to Italy’s budget deficit?
try to tackle it via Liberal economics
Policies implemented under Fascism’s initial economic policy of Liberal economics
- cuts in public spending
- reduced taxation (encourage business)
- deregulation
- privatised government owned companies
Was de Stefani’s economic policy a success?
Mixed success
Did debt shrink under de Stefani - what happened to debt?
shrunk from 75% of GDP (1922)
to 50.6% of GDP (1935)
What happened to industrial production under de Stefani?
Up 57% (1922-25)
What was a limitation of the Fascists initial years economically?
Poor 1924 harvest created inflation
When was the Ministry of Corporations set up?
1926
Who was the Ministry of Corporations led by?
Bottai
What was the MoC an attempt for the state to do?
extend control over the economy
bring state, workers and managers together to increase efficiency and productivity
What was the idea of the corporate state?
corporations set up for each industry sector
Who was the head of the Fascist trade union movement?
Rossoni
Which organisation was determined to have businessmen keep control of industry?
Confindustria
How many corporations by 1934?
22
By when were there 22 corporations set up?
1934
Who wrote a “labour charter” that set out the rights of workers?
Bottai
Why were workers still repressed under the corporate state?
- can’t chose representatives
- workers representatives often side w employers over key issues
- Bottai’s regulations to corporations from state only advisory - still maintain independence
What development for workers was there under the corporate state?
sick pay and paid national holidays (1938)
Unemployment in 1928
under 0.5million
Unemployment in 1935
2million
What X3 things did the fascist state do in reaction to the depression?
- introduce public works schemes
- bail out banks
- creation of IRI in 1933
What is the IRI (1933)
Institute for Industrial Reconstruction
What did the IRI do and mean for the state?
Assisted with bailouts
So state essentially became shareholder in many companies
When was the battle for grain introduced?
1925
What did the battle of grain give farmers?
grants to buy machinery / fertiliser
guaranteed high prices
Was the battle for grain a success?
Yes - increase in grain production
In 1925 what % of imports were grain
50%
Within 10yrs what were grain imports down by from 1925 levels?
75%
In the 1930s how many tonnes of grain was Italy producing annually
7million tonnes
In the 1920s how many tonnes of grain was Italy producing annually
5.5million tonnes
How many more tonnes of grain was Italy producing in 1930s from 1920s
2.5million tonnes
What limitation was there in the battle for grain?
Italian citrus farmers convert to grain
= decrease in citrus export income
Mussolini criticised for not tackling poverty of the south - give X3 pieces of evidence for this
- only visits Sicily once after 1924
- 0.5million people leave rural areas 1920-30
- population of Rome X2
Battle for the Lira - when was it introduced?
Dec 1927
What revaluation was the lira to the pound in December 1927
90 to the £
Who benefitted greatly from the revaluation of the Lira and battle for the lira
Steel / rearmament / shipbuilding who could buy tariff-free imported raw materials
What did the revaluation of the lira mean for Italy’s exports
Uncompetitive
export industries e.g textiles go into depression
What happened to employment 1926-28?
X3 increase
Did consumers receive benefits from the revaluation of the lira?
Not as much
don’t benefit on cheap imports since high tariffs placed
When was the policy of autarky in place
1935-43
Why was autarky first introduced?
form of protection against any LoN sanctions after Italy invaded Abyssinia
What % of shipbuilding state controlled under autarky policy
80%
What new material replaced imported synthetics?
e.g Lanital
What % of oil needs were met under autarky policy?
1/4
What % of total goods needed did Italy produce w policy of autarky?
20%
Why did the government not increase taxes in 1930s? What did this lead to?
To maintain popularity
Massive government deficits
Despite a decline in unemployment what was the average annual GDP growth 1922-38?
1.9%
When did average annual GDP growth increase 1.9%
1922-38
in the 1930s what was Italy unemployment compared to German
15% compared to Germany’s 30%
What were examples of the public works schemes to tackle unemployment?
reclamation of land at Pontine Marshes
motorway construction
hydroelectric
What happened to arms spending 1935-36
doubled
7mil to 14mil lira
What evidence is there for Italy’s economy not being ready for war
had to have Germany’s economic aid during WWI
Evidence for Mussolini having no faith in corporatism
Didn’t use corporations to stimulate economy during depression
Why did Mussolini think the economy being difficult may benefit italy
create tougher Italians
dismiss bourgeois lifestyle
What did standard of living decline for working class (1925-38)
11%
What did real wages decline (1925-38)
10%
What happened to land prices during the battle for grain?
land dropped 40-50% in price every 5yrs
What did standard of living decline for peasants? (1922-30)
40%
Where was there still job growth within the state even when unemployment high?
Ministry of Corporations and Dopolavoro
How many km of railway line were electrified under Mussolini
5000km
In what year did the government achieve a budget surplus?
1924
By what % was industrial production up between 1922-25?
57%
What did Liberal economic policies coincide with internationally and domestically?
European economic recovery (boosts exports)
Decline of Italian socialist left
Who replaced Stefani in 1925
Volpi
When was Volpi appointed finance minister
1925
What was Volpi’s background? What did this show about Mussolini?
industrialist and banker
shows Mussolini wanted good relations with big business
When was the Bank of Italy nationalised?
1936
What type of economic policy did Volpi follow
deflationary and protectionist policies
Who backed state intervention in the economy, Volpi or Stefani?
Volpi
What was happening economically 1925-26?
rising inflation - falling value of lira
When was a system of unemployment benefit, sick pay and pensions introduced
1933
proportion of state spending on social security in late 1930s
20%
1936 import level decline since 1929
1/2
wage cuts for state employees due to great depression
12%
wage cuts for farm workers due to great depression
25%
Why was Mussolini continuing to stay with gold standard until 1936 damaging
overvalued the lira currency
Until when did Mussolini stay on the gold standard
1936
Public works investment provided how many new jobs between 1929-34?
240,000
