Key areas of the economy

Question 1

What were the five key areas of the economy?

Answer 1

1) Agriculture
2) Industry
3) Transport
4) Trade
5) Taxation

Question 2

Agriculture: did the govt intervene?

Answer 2

Yes, considerably, but apart from a shift to wheat production, F policies failed to tackle basic problems like poverty and the backwardness of S agriculture.

Question 3

Agriculture: what did the Govt rhetoric stress?

Answer 3

the importance of peasantry and the rural life (bfG and BfM)

Idealised the virtuous life of the peasantry in comparison to the decadent life of the cities.

Question 4

Agriculture: What was BM’s ruralisation campaign designed to do?

Answer 4

-reverse the drift to the cities.

By restricting migration and investing funds to help establish a prosperous landowning peasantry.

HOWEVER, life in the countryside remained hard and the flight from the countryside CONTINUED.

Question 5

Agriculture: how did the govt help?

Answer 5

1) Tariffs (1926 on imported grain)
2) Grants for fertilisers and machinery
3) Spreading scientific knowledge

Question 6

Agriculture: how many fled from the countryside to the city?

Answer 6

1.5M

Question 7

Agriculture: the South

Answer 7

• Govt’s close ties to latifundi restricted major agrarian reform
• yields remained LOW
• 20% drop in cattle and sheep farming

Question 8

Agriculture: The depression led to a cut in agricultural workers’ wages- by how much?

Answer 8

20-40%

Question 9

Agriculture: the N

Answer 9

Considerable advances in yields, 50% more wheat per acre.

BUT some small farmers hit by world slump in food prices.

Question 10

Industry: did industry benefit from govt policies?

Answer 10

Most of industry did.

The growth of CARTELS and large firms continued.

Question 11

Industry: which industries flourished during F?

Answer 11

newer industries such as chemicals and synthetic fibres

Question 12

Industry: major firms

Answer 12

• FIAT (cars)
• Montecatini (chemicals)
• Pirelli (rubber)
• ILVA (steel)

Question 13

Industry: what was govt assistance more geared towards?

Answer 13

preserving existing structure than encouraging efficient reorganisation

Question 14

Industry: growing govt intervention began when?

Answer 14

From 1929, especially 1933 (IRI)

Question 15

Transport: Was there progress?

Answer 15

Only in prestige projects, not necessarily the most economically vital projects.

E.g. autostrada and railways but many local roads in agricultural areas were left untouched

Question 16

Transport: How many km of railway were electrified?

Answer 16

5000

Question 17

Transport: New autostradas opened

Answer 17

• Milan to the lakes, Rome to the sea
• Few Italians owned cars
• S neglected

Question 18

Transport: Railways

Answer 18

• ran on time; illustrated F efficiency?

- Increasingly electrified; over 50% of traffic

Question 19

Trade: is it important?

Answer 19

YES, for a country lacking many basic resources.

HOWEVER, BM sought autarky.

Question 20

Trade: what increasingly affected the direction and nature of Italian trade in the 1930s?

Answer 20

FP entanglements

Question 21

Trade: where did exports shift to from 1936?

Answer 21

From W. Europe to Germany

Question 22

Trade: govt agencies to control trade

Answer 22

1934: Institute of Foreign Exchange
1937: Ministry of Currency Exchange

Question 23

Trade: Imports

Answer 23

• Unintentionally encouraged by lira overvaluation (1927-36): GOES AGAINST AUTARKY
• controlled by quotas from 1935
• attempts to restrict imports in order to establish autarky
• loss of gold currency to pay for imports

Question 24

Trade: frequent…

Answer 24

Balance of payment problems

Question 25

Trade: Sanctions

Answer 25

Abyssinia (1935-36)

excluded oil

Question 26

Taxation: 1920s

Answer 26

wealthy: taxes reduced to stimulate investment
masses: INDIRECT taxes raised

Question 27

Taxation: 1930s

Answer 27

Wealthy: TAXES RAISED
Elite support for regime declined

Masses: still high taxes.
1935 National Prices Committee to control prices. Inflation controlled until 1943

Question 28

Taxation- when were taxes raised and by how much?

Answer 28

1934

Direct taxes 40%

Indirect taxes 60%

Question 29

Taxation: What was established in 1935 to control prices?

Answer 29

National Prices Committee.

Inflation controlled until 1943

Question 30

Taxation: what were the 1934 tax increases used for?

Answer 30

GOVT EXPENDITURE:

• state bureaucracy (thanks to CS)
• prestige projects
• help to industry
• public works
• welfare measures
• armaments, wars

Question 31

Trade: US loans?

Answer 31

1924-29