Italy and the GD of the early 1930s

Question 1

Although Italy was hit badly by the GD, how did it fair in comparison with the other powers?

Answer 1

US- 17M unemployed, hoovervilles

UK- 3M unemployed, hunger marches

Italy- 2M unemployed but there many more living on reduced incomes caused by PT employment

Question 2

Why was Italy unable to escape the effects of the world slump?

Answer 2

Had received considerable investment from the US following the post-WW1 debt settlements of 1924-25. Much of this WITHDRAWN.

Farmers, unable to diversify from wheat due to BfG, were hit by the collapse of demand.

Wages decreased, unemployment rose

Question 3

The Depression led to…

Answer 3

greater govt intervention: IMI and IRI

Question 4

What was the IRI?

Answer 4

A govt agency set up in 1933 to help industry.

It took over industrial shares previously held by banks, and those of other companies in trouble.

Question 5

When was the IRI established?

Answer 5

1933

Question 6

Although only intended as a temporary solution, the IRI was made PERMANENT in?

Answer 6

1937

Question 7

By 1939, how much of industry did the IRI control?

Answer 7

over 20% of industry

Including-
75% pig iron production
90% of ship building

Question 8

Why is the IRI an interesting feature of F economic policy?

Answer 8

• it shows the pragmatic nature of F policy.
• The IRI acted as a kind of hospital service for existing firms, and did not attempt broader policies of rationalisation (organising things in the most efficient way), which might have benefited the economy more.

Question 9

Why does the IRI highlight the CS’s insignificance?

Answer 9

when the govt intervened in a major way in the economy, it set up this new body, and bypassed the structures of the CS.

Question 10

What was the IMI?

Answer 10

An organisation to support the banks.

Bought up worthless shares from banks and granted long term loans.

Question 11

How else did the govt help industry?

Answer 11

• encouraged price fixing and cartels

- imposing further wage cuts

Question 12

What reduced the misery caused by the GD?

Answer 12

• increased public works
• reductions of the working week to 40 hours to help share out work
• lifted the ban on emigration
• extensions of welfare

Question 13

BM was one of the few…

Answer 13

European rulers who did not lose office during the GD.

Question 14

Decline in GNP (1927-33)

Answer 14

Average for rest of W. Europe: 7%

Italy: 5%

Question 15

Did govt policies help prevent the widespread unrest and pol turmoil seen elsewhere?

Answer 15

Yes, even though none of these policies were particularly impressive, and the CS was largely irrelevant.

Question 16

During the period 1929-32, how much did steel production fall by?

Answer 16

35%

Question 17

During the GD, how much was the national income reduced to?

Answer 17

It nearly halved

Question 18

How did Volpi plan to tackle the country’s economy problems?

Answer 18

by following deflationary and protectionist policies.

Question 19

How much did Volpi reduce public wages by?`

Answer 19

12%

meant that people had less money to spend and, as prices fell, the country began to suffer a deflationary spiral.

Question 20

How did industrialists cope with this deflationary spiral?

Answer 20

they moved towards creating cartels, a situation in which “the big fish eat the small fish”.

cartels- companies merge together to gain advantages of monopoly, and thus control production and drive competitors out of business.

Question 21

Obvious advantages of monopolies

Answer 21

• can control output and thereby influence prices.

Question 22

What did the govt reduce the working week to in 1934?

Answer 22

40 hours.

as rates of pay weren’t increased, it was effectively a pay cut

Question 23

What was set up to provide relief for worker victims of the recession?

Answer 23

Agencies for Welfare Activities

Industrialists and syndicates made to pay a proportion of their profits and wages to it.

Question 24

The use of public work schemes helped to…

Answer 24

reduce unemployment

gave the F regime the chance to realise some aspects of its ambitious programme for rejuvenating Italy

Question 25

Examples of public work schemes:

Answer 25

• the building of autostrada (first motorway in europe).
• electrification and modernisation of the railways
• development of hydroelectric power
• production of alternative sources of power (oil refineries built to help counter FI’s counter coal shortage)
• a major construction programme (public buildings, etc)
• restoration of the buildings that represented the splendour of Ancient Rome (e.g. amphitheatre and the Colosseum)

Question 26

By 1935, how much electricity was being generated by Italy?

Answer 26

12.6M kW

most from hydroelectrics