Fascist Economy

Question 1

What did the economy have successes in?

Answer 1

-Rail/road transport
-Land reclamation
-Wheat production
-Policies during depression helped save banks & businesses from complete closure

Question 2

What were the failures in the economy?

Answer 2

-Export industries suffered in Battle for the Lira
-South remained neglected/impoverished
-Drive for autarky & League of Nations sanctions failed to make Italy ready for WW2
-Corporate state failure

Question 3

Who were the winners and losers in the Fascist economy?

Answer 3

-Winners; industrialists/big landowners maintained wealth & power
-Losers; agricultural workers faired worst & industrial works gained accident/sick pay BUT lost their right to strike + suffered repeated wage cuts

Question 4

How was the biggest economy achievement generating propaganda opportunities?

Answer 4

-Battles’ promoted as examples of fascist dynamism & energy
-Building of Autostrada (motorways) showed how fascism was modernising Italy
-Corporate state = revolutionary solution to ending class conflict

Question 5

What were the aims for the economy?

Answer 5

-Had little knowledge/interest in the workings of the economy
-1922; had no coherent programme for reform
-Adopted policies to make Mussolini more secure (early years)
-Later more ambitious to idea of transformation; eg idea of corporate state (which would outweigh the economies of USA, GB & USSR)
-Later 1930s; prepared for war = autarky

Question 6

What old problems of the country were largely ignored?

Answer 6

-Industrial underdevelopment
-Rural poverty
-North/south divide
-Illiteracy

Question 7

What were the impacts of the fascist economy on industry?

Answer 7

-1922; beginning of boom= many companies able to sell products w/ ease
-Exports doubled betw 1922-5 (esp cars & textiles)
-Unemployment fell & de Stefani’s policies curbed inflation
-Although 1925-6 saw banning of independent trade unions & abolition of right to strike
-Many Italian industries were successful; Alfa Romeo produced luxury cars

Question 8

How did the fascist economy impact transport and was this successful?

Answer 8

-First motorway in Italy was the Autostrada of the lakes & linked Milan w/ Lake Como
-800 miles of roads upgraded (highly prestigious)
-These upgrades/constructions also provided jobs
-One of first countries to opt for electrification of extensive rail network; 5000 km of track electrified, made a fast & modern connection betw north + south and ‘made the trains run on time’
-Greatly boasted aviation; Balbo led 2 highly publicised flights across Atlantic to Brazil in 1930 & USA in ‘33. This was highly promoted but had little impact on economy. Propaganda made out Mussolini as qualified pilot
-Two ocean liners built in 1931/32
-Although had many successes -> not apply to south as much as north

Question 9

What did Mussolini claim credit for and who did he attempt to win support from?

Answer 9

He claimed credit for increasing company profits & attempted to win support from industrialists by appointing de Stefani + treasury minister

Question 10

What was Mussolini’s policy like and what did it include?

Answer 10

-Traditional & reassured industrialists as limited gov spending (helped fight inflation)
-Reduced state intervention in industry; eg telephone networks privatised
-Taxes levied on industries that had made profits in WW1 reduced/abandoned

Question 11

What did the Vidoni Palace Pact 1925 do?

Answer 11

Outlawed socialist & catholic trade unions

Question 12

What did the 1926 Rocco Law do?

Answer 12

Made strikes & lock outs illegal

Question 13

What did the 1927 labour charter do?

Answer 13

Gave rights, insurance, welfare rights to benefit employers

Question 14

What organisation was set up in 1928 and what did this cause?

Answer 14

National syndicate organisation set up; unions all collapse

Question 15

What policy was implemented in 1934?

Answer 15

Corporations for major economic sectors -> more employment but fixed wages

Question 16

Why were the causes of the Battle for the Lira?

Answer 16

-Post 1925; less focus on business interests
-1925; Volpi replaced de Stefani
-Mussolini felt debts to USA were controlling economic trends
-1926; boom ending & exchange rate of lira fell (150 lire to a £)
-Unacceptable as thought currency should be strong & vibrant

Question 17

What measures were taken in the Battle for the Lira?

Answer 17

-December 1927; decided to make it 90 lire instead 150 to 1 pound (as had been October 1922), reduce inflation which was harming to middle class & show Italians/world they were mighty power
-Increased prestige w/ Italian & foreign bankers; way of restricting gov spending
-Banks instituted tight controls on money supply & economy deflated
-Quota achieved

Question 18

Why were the effects of the Battle for the Lira on the economy far from beneficial?

Answer 18

-Italian goods nearly 2x as expensive
-Italian export industries went into depression
-Unemployment trebled 1926-28 (nearly ½ million)
-Even fiat suffered
-Gov imposed 20% cut in wages
-1938; gov forced to devalue lira
-Should’ve helped Italian consumer as imports became cheaper but heavy tariffs prevented this

Question 19

Who were the only winners in the Battle for the Lira?

Answer 19

Steel, armament & ship building industries that needed cheap, tariff free imported raw materials; they were most promoted during fascist rule

Question 20

What were the aims of the Battle of the Marshes?

Answer 20

-Show dynamic gov action -> impress foreigners
-Increase land available for cereal production
-Provide jobs
-Improve health by reducing malaria

Question 21

What actions were taken in the Battle of the Marshes?

Answer 21

-Laws passed in 1923/28/33; on reclamation, extending previous schemes
-Private landowners encouraged to co-operate w/ drainage schem

Question 22

What were the effects of the Battle of the Marshes?

Answer 22

-1928-38; only 80,000 hectares reclaimed -> 1/20 of propaganda claim of 1/6 Italy
-Pontine marshes near Rome drained
-¾ of land reclaimed was in north -> south neglected
-Ambitious plans blocked by southern landowners
-New towns; Latnia & Sabaudia created as showpieces
-Bigger impact & improving health than in boosting farming
-Only about 58% of reclamation projects & about 1/3 irrigation schemes completed

Question 23

What were the aims of the Battle for Grain?

Answer 23

-Boost cereal production to make Italy self-sufficient
-Reduce balance of trade deficit
-Free Italy from the ‘slavery of foreign bread’
-Make Italy less dependent on imports when war came
-Show Italy as a major power

Question 24

What actions were taken in the Battle for Grain?

Answer 24

-Battle announced in 1925 -> high tariffs put on imported grain
-New marginal land used (that was expensive to farm)
-Gov grants & farmers to buy machinery + fertilisers

Question 25

What were the effects of the Battle of Grain?

Answer 25

-Cereal production x2 from 1922-39 but at expense of other agriculture -Wheat imports fell by 75% 1925-35 -Raised cost of grain & bread in Italy -Decline in quality of Italian diet -Protection benefited Italian grain producers, esp in south -Drop in traditional southern agriculture (eg olive oil) & land not meant for wheat production

Question 26

What was the theory for the Corporate State?

Answer 26

-1926; Mussolini became committed to idea that: -Corporations should be set up in each industry sector & in each the employers + fascist trade unions would represent workers -Each corporation would organise production, pay & working conditions in its own industry -Labour court would settle disputes (administered by new ministry of corporations); all done amicably -Projected that Italy would see employers & workers co-operating for the maximisation of production for good of the nation, & lack of bitter disputes would help end class conflict

Question 27

Reality of the Corporate State

Answer 27

· Rossoni (head of fascist trade union movement) envisaged major role for his unions · He was opposed by the confindustria who favoured the employers · Bottai led ministry of corporations and distrusted Rossoni, saw little role for unions and wanted to see corporations dominated by employers and men from his ministry · All sides looked to Duce -> 1927: ordered Bottai to draw up the workers’ charter o Posed no threat to employers o Private ownership of business declared most efficient o Worker’s rights: § Employers might (but are not obliged to) provide annual paid holidays § Employers given power to alter working hours and night shifts without consultation · Rossoni further reduced in 1928 when his single confederation of fascist trade unions was split into 6 smaller federations and his followers within removed from their posts · 1929: ministry of corporations claimed success: o Had ‘removed all class conflict’ and ‘revolutionised’ economy o By 1934: 22 corporations covering nearly every area of economy o BUT o Workers unable to choose own union representatives and instead had fascist nominees pushed to them o These officials sided with employers o Only in 1938 did sick pay and paid national holidays become mandatory o Industrialists allowed to keep their non-fascist employers’ existence of these corporations o Regulations only advisory o It truth it nevermaterialised organisations and largely ignored the