Fascist Economy

Question 1

What were the economic aims of the Fascist regime?

Answer 1

• To win acceptance from conservative business interests to consolidate his regime
• To give people a sense of economic wellbeing and rising living standards
• To control the trade unions
• To put an end to industrial unrest that had almost paralysed Italy between 1919-1922
• To please the radical Fascists

Question 2

What characterised early Fascist policies up to 1925?

Answer 2

• The North-South division
• Post-war economic crisis e.g. inflation and breakdown of industrial relations
• Alberto de Stefani appointed as Finance Minister
• Taxes were lowered and telephone industry was given back to private ownership
• Government money was used to help Ansaldo steel and shipping firm
• Boom in industrial production
• By 1925, balanced budget (much of success due to Stefani)
• 1925, Stefani sacked and replaced by Volpi
• Rocco prepared for introduction of Corporate State

Question 3

How effective was the economic battles?

Answer 3

• Battle for Grain: make the country self-sufficient in wheat
• Battle for Lira
• Battle for Births: boost the birth rate
• Battle for Land: drain and resettle the Pontine marshes
  Italians could be mobilised in a non-class, non-political way for nationalistic economic ends. The aims were a decisive aspect of the national consensus around Mussolini

Question 4

What was the Corporate State?

Answer 4

• 1926, Justice Minister Rocco brought in Syndical Law, which set up structure of Corporate State
• Bottai called CS third way between Capitalism and Communism
• Fitted Fascist ideology of unity and dynamic state action to solve problems
• Employers and workers brought together as part of a national plan
• Exploitation of workers by special interests would be prevented
• Strikes would become unnecessary

Question 5

How was Italy agriculturally between 1925 and 1935?

Answer 5

• Landlords maintained economic power and many labourers became sharecroppers
• Decline in rural standard of living
• Declined in relation to industry
• Backward and inefficient in the South
• Promoted ruralisation, trying to stop people moving to cities

Question 6

Battle for Grain

Answer 6

• July 1925
• Emphasised self-sufficiency and making Italy less dependent on imports
• Assumption made that Italy’s population would soon be growing so more food would need to be produced
• High tariffs placed on foreign imports
• Price of Italian wheat rose higher than the price on world markets
• Government grants given to farmers for investment in machinery and fertilisers
• Wheat production increased by 50%
• Other crops neglected e.g. olives and fruit
• Decline in animal farming, fallen by 500,000
• Meat and egg production fell
• Italy still dependent on foreign imports; 1933 500 million tonnes imported

Question 7

Battle for Land

Answer 7

• Launched 1928
• Drained marshlands to conquer malaria and improve health of nation
• Provided employment and stimulated economy
• New towns built on land e.g. Pontina
• Towns provided jobs but were also show pieces of architecture
• Successful in terms of propaganda as Pontine marshes near Rome (tourists dazzled by it)
• Only 58% of reclamation projects and 1/3 irrigation schemes were completed

Question 8

Battle for Lira

Answer 8

• After war, £1 = 138 Lira, compared to 90 Lira in 1922
• Launched 1926
• 1927, Mussolini pegged Lira at £1 = 90 Lira. This value was larger than Italian business’ could cope with (Volpi wanted £1 = 120 Lira)
• Big cuts to prices and wages, living standards worsened
• Savings banks closed down and small businesses were taken over by larger firms
• Benefitted steel, chemical and armament industries because imports were cheaper
• Caused intense economic difficulties, when world depression hit 1929, Italy just recovering from Battle for Lira

Question 9

Why was autarky introduced?

Answer 9

• Self-sufficiency by reducing imports and maximising domestic production
• Major priority after Mussolini developed his plans for military expansion and war
• Italy lacked natural resources and was dependent upon foreign imports for vital raw materials
• An attempt to overcome lack of natural resources and lessen pressure on Italy’s payments
• Mattered most as an expression of national pride and ensuring Italy’s status as a world military power
• State intervention within industry increased; controlled production of coal, copper and nickel

Question 10

What were the aims of the corporate state and how did it work?

Answer 10

• Did not truly exist outside of Fascist propaganda
• First aim was to solve problems of class conflict and industrial unrest
• Second aim was to increase extent of State intervention in the economy
• Increased tensions within Fascist movement as key groups and individuals had rival ambitions and wanted to pursue different policies
• 1922-25, driving force behind corporatist ideas was Rossoni, leader of Fascist syndicates (unions)
• Fascist Unions memberships increased hugely, whereas socialist unions were divided and losing support
• Fascist unions had right to negotiate with employers under Palazzo Vidoni Pact
• 1926, Rocco introduced Syndical Law, banning strikes and providing cooperation between workers’ syndicates and employers
• 1926 Ministry corporations put under state control
• 1927 Charter of Labours
• 1928 Fasicst syndicates broken up

Question 11

Did the corporate state achieve economic modernisation and social unity?

Answer 11

• No, the system of power in Italy too complicated to implement policies
• ## Unions weak so NCC could not adopt policies unpopular with employees

Question 12

What impact did Great Depression have on Italy?

Question 13

To what extent had Mussolini achieved his economic aims by 1940?

Question 14

What impact did Fascist economic policies have on the living standards of Italians?