Italy Booklet 6: The Fascist Economy

Question 1

When the PNF was founded, what was its economic policy based around? How popular was this?

Answer 1

Very socialist in nature
very unpopular - only 5000 votes

Question 2

Who was De Stefani and when was he appointed?

Answer 2

He was the minister of finance in 1922 and was removed in 1925 when Mussolini wanted to get more involved in Italian economics.

Question 3

What were three examples of policies implemented by De Stefani?

Answer 3

Privatised phone sector and other public owned industries
reduced government expenditure
deregulated the economy and reduced protective tariffs

Question 4

Who was appointed finance minister in 1925?

Answer 4

Count Giuseppe Volpi

Question 5

Why did Mussolini begin the battle for Lira?

Answer 5

to achieve more economic independence for Italy
and because he thought that the strength of the Lira represented the strength of the fascist regime

Question 6

Who were the main losers of the battle for Lira?

Answer 6

Export industries as Mussolini’s policy overvalued Italian products in overseas markets

Question 7

What were the policies of the battle for Lira?

Answer 7

Lira was artificially fixed at 92.46 to the British pound sterling

Question 8

What was the value of Lira like between 1922 and 1925?

Answer 8

In 1922 it was 90 Lira to one pound, then dropped to 150 by 1925

Question 9

When was the corporate state?

Answer 9

1925-1929

Question 10

Describe the charter of labour and how successful it was.

Answer 10

a ganentree of workers rights in employment, social insurance and welfare written up in 1927, however was never passed

Question 11

What was the ministry of corporations meant to be?

Answer 11

A ministry which gave equal representation to the employers and the workers, so that they could discuss economic planning that was conductive to both of their interests

Question 12

What was the reality of the ministry of corporations?

Answer 12

Gave representation to the employers, but all of the ‘workers’ were fascist selected fascist officials, so would favour the ideals of the fascist party rather than the workers.

Question 13

In 1924, a law was passed which implemented mixed corporations. What did they do in theory?

Answer 13

fix the prices of goods and rates of service, settle industrial disputes, regulate apprenticeships and help create a more productive economic system

Question 14

When was the ministry of corporations set up?

Answer 14

in 1926

Question 15

How did the corporate state affect the workers?

Answer 15

It looked as if it gave them more power, however didn’t actually as they weren’t really represented.

Question 16

How did the corporate state affect industrialists?

Answer 16

They get an advantage as the PNF kept the workers weak and they had the power to set some prices and wages. However, they had more restrictions than between 1922 and 1925.

Question 17

How did the corporate state benefit Mussolini?

Answer 17

Excellent propaganda as it proved that Mussolini had overcome the problems of class conflict - obtained worldwide renown (n he found a third way between capitalism and communism)

Question 18

What was Autarky?

Answer 18

The quest for economic self sufficiency

Question 19

What did the IMI policy do?

Answer 19

provided credit to the banks to guan entrée they wouldn’t collapse

Question 20

How were workers wages affected by the great depression?

Answer 20

In November 1930 they were dropped by 12%

Question 21

What is cartelisation?

Answer 21

The merging of companies which do similar things, to create one large company so that prices can be controlled - stops the companies from going under

Question 22

How was Italian employment affected by the great depression and what was done to help?

Answer 22

unemployment increased from 300,000 to over 1 million
Employment was provided through large public work schemes such as road building

Question 23

How much did the government spend on Autarky? in 1934 compared to 1938

Answer 23

30 million in 1934 - 60 million in 1938

Question 24

What were some of the policies of Autarky?

Answer 24

Stockpiling products
through the IRI scheme, companies were made responsible for finding resources within Italy
Trade was conducted through bilateral agreements - imports = exports
Devaluation of the Lira in October 1936

Question 25

What was the main aim of the battle for births?

Answer 25

To expand the population to 60 million by 1950 (in 1930, 40 million people)

Question 26

What were some of the policies of the battle for births?

Answer 26

Tax reduction and loans for latger families
birth control banned
Opposition to women’s employment
prises to women who had more children

Question 27

What was the reason for the battle for births?

Answer 27

to increase the size of Italy’s military (compared to Germany and Russia)

Question 28

What was the main aim of the battle for grain?

Answer 28

Increase grain production so Italy wouldn’t be as reliant on other countries

Question 29

What were some of the policies of the battle for grain?

Answer 29

grants were given to provide technology to increase production
Grain production increased by 50% compared to 1914 numbers.

Question 30

What was the main aim of the battle for land?

Answer 30

Increasing the amount of farming land

Question 31

What were some policies of the battle for land?

Answer 31

1928 - made it illegal to move from the countryside to the city
475 million hectares were recovered for farming (e.g marshes drained)

Question 32

What are three examples of how Italy was affected by the Great depression? (not unemployment)

Answer 32

Stocks and shares declined by more than 35%, manufacturing dropped 14% and Italy’s balance of payments deficit increased

Question 33

What were the consequences of De Stefani’s economic policies?

Answer 33

Between 1921 and 1924, Italy’s manufacturing production improved and Italy achieved a budget surplus
Agricultural groups were unhappy about this reduction in tariffs and De stefani struggled with the inflationary problems and class pressure on the lira in foreign markets that Italy’s rapid economic growth produced