How far were Mussolini’s economic policies a success? Flashcards
what were mussolini’s economic aims
he believed it was necessary to make Italy economically self-sufficient in food
and in raw materials for industry by launching a series of initiatives he called ‘battles’.
-to build a fascist cooperate state
explain the battle for the grain
Aim:
Mussolini aimed to make Italy self-sufficient and balance the trade deficit.
-‘the battle for grain’ was
launched in response to a poor harvest and a con sequent increase in grain
The Fascist state, 1925-45
imports. The aim was to get Italian farmers to grow more cereals, especially wheat, in order to reduce foreign imports. Import controls were imposed, which helped the inefficient farmers in the south to continue farming without having to modernise, and more land for grain growing was made available.
Actions:
In 1925, he put high tariffs on imported grain and provided grants to farmers that would enable them to purchase the necessary machinery and fertilisers to achieve the targets set.
-In addition, medals were awarded to farmers who grew the most and their stories
were reported in the newspapers. In the more prosperous north, farmers shifted from maize to wheat and also became more mechanised. This greater use of tractors and fertilisers also benefited industrial firms such as Fiat, Pirelli (rubber) and Montecatini (chemicals) .
Outcome:
As a result, the production of Cereal grain increased and wheat imports fell by 75% from 1925 to 1935, making Italy more self-sufficient in wheat. However, they were not self-sufficient in fertilisers, and their focus on wheat was at the cost of other forms of agriculture, so there was an increase in meat and egg imports.
Meanwhile, cereal production decreased during the war due to the restriction of imported fertilisers, which Italy still relied on.
Furthermore, higher import tariffs meant that there was a decline in the variety and nutritional value of Italian diets.
Overall, this battle can be seen as a moderate success, as he largely succeeded in terms of wheat
explain The Battle of the Marshes / The Battle for Land
Aim:
To improve health (diseases came from swamps and marshes)
To increase the number of jobs
To make more land for farming
To serve as propaganda and show off to foreigners
Actions:
laws were passed on land reclamation
private landowners were encouraged to contribute in a drainage scheme
The Pontine Marshes near Rome were drained
A few cities were created for show in Italy
Outcome:
¾ of the reclaimed land was in the North
Between 1928 and 1938, only 80,000 hectares of land was reclaimed
Equivalent to just one-twentieth of Fascist propaganda claims
Explain the battle for the lira
Aim:
To fix the lira at 90 lire to the pound
Reduce inflation Show off the mighty power of Italy and the Italian economy
Actions:
Banks put tight controls on the money supply
The government imposed wage cuts of around 20%
The government devalued areas of the economy to support the strength of the currency
Outcome:
Technically, the Battle for the Lira was achieved in 1927 when it was returned to the gold standard. However, in 1936, the government was forced to devalue the lira, so this battle can be seen as a failure.
explain the battle for births
Aim:
To increase the population from 40 million in 1927 to 60 million by 1950
His intention was to build up a large army which would
enable Italy to conquer a large empire, seen as being essential for both raw materials and national pride
Actions:
He gave loans to married couples and reduced or cancelled these for each child born.
Men with six children or more were exempt from taxes, whilst taxes were increased for unmarried young people and he made it more difficult for them to find employment.
Outcome:
He failed to increase the population significantly as Italy’s population only reached 47.5 million by 1950
Fertility only increased from 3.2 to 3.7 from 1920 to 1925, and then decreased even further to 2.6 in the mid-1940s.
what were the aims of a fascist cooperate state
-To strengthen the political system
-To make Italy self-sufficient and to achieve autarky
-Those Fascists who believed that Fascism was a ‘third way’ between capitalism and communism favoured the creation of a corporate state. The corporate state would replace the traditional parliamentary democracy with a political system of corporations that represented the nation’s various economic sectors. Along with state appointees, these corporations, each with equal representation for employers and employees, would enable class conflict to be overcome (thus avoiding strikes and other labour disputes) and instead give p rime consideration
to the interests of the nation. Although this system would increase state influence, there was no thought of eradicating private ownership.
-To fund Italy’s military and expansionist aims
what were the early economic successes before 1925 under mussolini’s government?
in 1922, Mussolini appointed an Economics professor, Alberto de Stefani, as his Minister for Finance, adopting liberal policies of reducing the government’s economic intervention, stimulating investment, reducing taxes on war profits, reducing public spending and taking steps to balance the budget.
In the early years of the Fascist government, the Italian economy was improving.
In 1925, de Stefani was dismissed.
His position was filled by an industrialist and the Fascist Economic Structure was began to develop.
why did mussolini dismiss the economist alberto de stefani?
-Shift Toward a Corporate State – Mussolini initially supported De Stefani’s free-market policies, but by 1925, he wanted to build a state-controlled “Corporate State” instead.
-Too Much Business Freedom – De Stefani reduced state control over industries, but Mussolini wanted more government involvement to strengthen Fascist rule.
-Autarky (Self-Sufficiency) vs. Free Trade – De Stefani encouraged international trade, while Mussolini wanted Italy to be self-sufficient (Autarky).
-Pressure from Big Businesses and Fascist Leaders – Industrialists and Fascist elites wanted more state intervention to protect their interests, leading Mussolini to favor a more controlled economy.
How did Mussolini build a Corporate State?
-Alfredo Rocco’s Law on Corporations
Came into effect in October 1926.
Trade unions were banned and a new law court was set up to deal with political offences
Strikes were deemed illegal.
The National Council of Corporations was initially established by royal decree on 2 July 1926, and inaugurated in 1930.
One of the main aims was managing business operations in foreign countries.
It consisted of 823 members, 66 of whom represented the Fascist Party, with the rest being representatives of the employer and workers confederations.
-General Confederation of Labour (CGL) and Catholic Confederation of Labour (CIL) decided to dissolve themselves in 1927
This was as a result of the Fascist crackdown on workers unions.
-Charter of Labour, 1927
He recognised private enterprises as the most efficient, gaining him support from rich industrialists.
The charter also stated that the state could take control of, manage or encourage enterprises that were considered inefficient.
-The National Confederation of Fascist Syndicates
In November 1928, the National Confederation of Fascist Syndicates, led largely by Edmundo Rossoni, was disbanded.
Under his leadership, membership rose from 250,000 in 1920 to 1.8 million by 1924, surpassing every other labor organisation. It even had more members than the National Fascist Party, which, comparatively, had just 650,000 members.
This was a cause for alarm among Fascist leaders, and they especially resented Rossoni’s autonomous role in controlling the Fascist syndicates.
The General Confederation of Industry decided to dismantle the National Confederation of Fascist Syndicates in November 1928, claiming that his syndicates had failed to achieve the original goal of“educating the masses.” They also disagreed with him as his fascist syndicate wanted to involve workers in the organisation of factories, introduce minimum salaries, working hours and terms for employment, which were unfavourable for employers and industrialists. As a result, his confederation was broken up and re-organised into six smaller syndicates that were arranged by economic sectors.
-The 22 Corporate States
By 1935, twenty-two corporate states had been established, with each being responsible for specific categoria, managing labour contracts and promoting production.
Each of these corporations was controlled by councils where employers and employees were represented equally.
These councils coordinated with a committee that mirrored the Ministry of Corporations, and decisions had to be approved and issued by Mussolini.
Parliament was replaced by the Chamber of Fasces and Corporations
In March 1939, Parliament was replaced by the Chamber of Fasces and Corporations, with members being selected from the various corporations of Italy.
-The Third Way
The Fascists wanted a society where the employers and workers worked together in the national interest. Mussolini claimed that his Corporate State was founded on the strengths of capitalism and socialism. He called this the “third way”.
how did mussolini deal with the depression in italy?
-Once the depression began to take effect, Mussolini began to intervene with private enterprise. At first, this took the form of encouraging job-sharing schemes.
-By 1933, however, unemployment had risen to over 2 million, while millions more still suffered from underemployment, especially in the rural south. At its peak, over 30 per cent of labouring jobs in agriculture were lost and many women were forced to give up their jobs to unemployed men. The situation in the countryside was made worse by controls
on migration from rural areas to the larger urban and industrial areas. This was designed to keep the problem of unemployment hidden in rural areas where the
population was less concentrated.
-In 1931 , in an attempt to deal with these problems, Mussolini’s government decided to use public money to help prevent the collapse of banks and industries hit by the depression. Then in April 1933 the Institute per la Reconstruzione Industriale (Institute of Industrial Reconstruction or I RI) was set up. Initially, it took over various unprofitable industries on behalf of the state. By 1939, the IRI had become a massive state company, controlling many industries, including most of the iron and steel industries, merchant shipping, the electrical industry and even the telephone system.
-However, the intention was n ever that these industries should be permanently nationalised. Parts were regularly sold off to the relevant larger industries still under private ownership, thus helping the formation of huge capitalist monopolies. Examples of this a re the two giant firms of Montecatini and SINA Viscasa, which ended up owning the chemical industry.
-Autarky
The effects of the depression led Mussolini to adopt increasingly protectionist measures and to push for autarky.
This increased after 1935 when many member countries of the League of Nations imposed some economic sanctions on Italy following its invasion of Abyssinia (now Ethiopia)
Once Mussolini began to involve Italy in further military adventures and wars, the push for autarky - and the problems it caused - increased accordingly.
Nonetheless, there were some moderate achievements: by 1 940, industrial production had increased by 9 per cent, resulting in industry overtaking agriculture as the largest proportion of GNP for the first time in Italy’s history. In
addition, between 1928 and 1939, imports of raw materials and industrial goods dropped significantly. Overall, however, the end result of Fascist economic policy was not a significant modernisation of the economy or even increased levels of productivity, and Italy recovered much more slowly from the depression than most other European states. Once Italy was involved in the Second World War, these economic and industrial weaknesses became increasingly apparent.
