The Liberal State: Economic Problems

Question 1

What was the economic state of Italy at the beginning of this period?

Answer 1

• There was a prominent North and South divide
• Economic growth was concentrated mostly in the North
• Well-intentioned agricultural policies affected the people of the South negatively
• Many people did not feel that the government’s economic policies had improved their lives
• This later led to support for increasingly radical political groups

Question 2

What was industry like under Prime Minister Giovanni Giolitti?

Answer 2

• Considerable economic growth
• State invested in industries and encouraged the use of new technologies
• Most of the growth was in industry, particularly new industries

Question 3

Give some examples of new industries in this period:

Answer 3

• Cheaper iron and steel imports led to the founding of motor and engineering companies such as Fiat, Isotta Fraschinin Alfa and Lancia between 1899 and 1906
• Pirelli and Montecatini began producing sulphuric acid, rubber and electric cables
• Profits grew by 10.6% between 1896 and 1906
• Exports increased at a rate of 4.5% per year
• Number of industrial workers increased by 2 million between 1901 and 1911

Question 4

What was the problem with these industrial investments?

Answer 4

• They were geographically restricted

- They were of limited size in comparison to Italy’s rivals

Question 5

What was industrial development like in the north?

Answer 5

• Industry was generally restricted to Northern Italy
• There were only some developments elsewhere in Naples, Veneto, Tuscany and some sulphur mines in Sicily
• The north-west specialised in engineering and textiles
• The north produced chemicals
• The north-east produced steel and heavy machinery in Sesto San-Giovanni

Question 6

Why was the north-west in particular so successful?

Answer 6

• Its geographical closeness to the rest of Europe
• Its transport links
• Pre-existing industry
• Accessible markets
• Power sources

Question 7

How was development in the north spread?

Answer 7

• It was spread unevenly

- In 1911, Milan, Genoa and Turin accounted for 55% of industrial income

Question 8

Why was Italian industrial development limited and localised?

Answer 8

• There was a need to import iron, steel and coal because of a lack of resources
• Italy had a large but unskilled workforce
• Industrial machinery needed to be imported
• Communications, transport and energy were all underdeveloped in most areas

Question 9

What was industrial development like in the south?

Answer 9

• The south was far less modernised than the north and Giolitti’s government tried to remedy this
• Economist Nitti introduced policies to try and encourage development such as laws to encourage growth, the construction of aqueducts and tax incentives and loans

Question 10

What effect did the ending of internal tariffs and introduction of free trade have on the south after 1900?

Answer 10

• It damaged the economy
• Southern elites wanted to protect their original privileges rather than introduce change and modernity
• In 1910 northern Italy had 48% of the nation’s wealth and paid 40% of the taxes
• While the south had 27% of wealth and paid 32% of the taxes

Question 11

What were agricultural developments like as a whole in Italy at the time?

Answer 11

• When it unified in 1870 it largely depended on its agriculture
• Most of the population dependent on the land to support themselves and their families
• Despite this, Italy was not self sufficient in terms of food

Question 12

How did the north manage agricultural developments?

Answer 12

• The north benefited from the introduction of new crops in the period 1890-1910
• Production levels of key crops such as wheat increased
• Rich land in the north e.g. the Po Valley
• Improvements in mechanisation and fertilisation improved productivity in the north
• Irrigation and drainage systems protected farms from flooding
• Larger farms whose owners enjoyed landless labourers when they needed them, and sacked them when they did not
• This lead to problems later in the period

Question 13

How did the south manage agricultural developments?

Answer 13

• It produced some luxury items like wine, oil and citrus fruits
• On the whole, though, the land was of poorer quality, partly due to deforestation
• Disease and drought were regular occurrences in the summer
• A series of natural disasters from 1905-1908 damaged the economy
• Government financial support was slow to arrive making southerners believe that the northern politicians did not care about them