Italy Booklet 6: The Fascist Economy Flashcards
When the PNF was founded, what was its economic policy based around? How popular was this?
Very socialist in nature
very unpopular - only 5000 votes
Who was De Stefani and when was he appointed?
He was the minister of finance in 1922 and was removed in 1925 when Mussolini wanted to get more involved in Italian economics.
What were three examples of policies implemented by De Stefani?
Privatised phone sector and other public owned industries
reduced government expenditure
deregulated the economy and reduced protective tariffs
Who was appointed finance minister in 1925?
Count Giuseppe Volpi
Why did Mussolini begin the battle for Lira?
to achieve more economic independence for Italy
and because he thought that the strength of the Lira represented the strength of the fascist regime
Who were the main losers of the battle for Lira?
Export industries as Mussolini’s policy overvalued Italian products in overseas markets
What were the policies of the battle for Lira?
Lira was artificially fixed at 92.46 to the British pound sterling
What was the value of Lira like between 1922 and 1925?
In 1922 it was 90 Lira to one pound, then dropped to 150 by 1925
When was the corporate state?
1925-1929
Describe the charter of labour and how successful it was.
a ganentree of workers rights in employment, social insurance and welfare written up in 1927, however was never passed
What was the ministry of corporations meant to be?
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
What was the reality of the ministry of corporations?
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.
In 1924, a law was passed which implemented mixed corporations. What did they do in theory?
fix the prices of goods and rates of service, settle industrial disputes, regulate apprenticeships and help create a more productive economic system
When was the ministry of corporations set up?
in 1926
How did the corporate state affect the workers?
It looked as if it gave them more power, however didn’t actually as they weren’t really represented.
How did the corporate state affect industrialists?
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.
How did the corporate state benefit Mussolini?
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)
What was Autarky?
The quest for economic self sufficiency
What did the IMI policy do?
provided credit to the banks to guan entrée they wouldn’t collapse
How were workers wages affected by the great depression?
In November 1930 they were dropped by 12%
What is cartelisation?
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
How was Italian employment affected by the great depression and what was done to help?
unemployment increased from 300,000 to over 1 million
Employment was provided through large public work schemes such as road building
How much did the government spend on Autarky? in 1934 compared to 1938
30 million in 1934 - 60 million in 1938
What were some of the policies of Autarky?
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
What was the main aim of the battle for births?
To expand the population to 60 million by 1950 (in 1930, 40 million people)
What were some of the policies of the battle for births?
Tax reduction and loans for latger families
birth control banned
Opposition to women’s employment
prises to women who had more children
What was the reason for the battle for births?
to increase the size of Italy’s military (compared to Germany and Russia)
What was the main aim of the battle for grain?
Increase grain production so Italy wouldn’t be as reliant on other countries
What were some of the policies of the battle for grain?
grants were given to provide technology to increase production
Grain production increased by 50% compared to 1914 numbers.
What was the main aim of the battle for land?
Increasing the amount of farming land
What were some policies of the battle for land?
1928 - made it illegal to move from the countryside to the city
475 million hectares were recovered for farming (e.g marshes drained)
What are three examples of how Italy was affected by the Great depression? (not unemployment)
Stocks and shares declined by more than 35%, manufacturing dropped 14% and Italy’s balance of payments deficit increased
What were the consequences of De Stefani’s economic policies?
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
