The corporate state


The economic batles: Battle for lira


  • fix lira at 90 to £ (reached 150 to £ in 1926),
  • Reduce inflation, harming sectors of middle class
  • confirm image of Fascism bring stability to italy
  • show the world the lira+Italy=mighty power!


  • Banks instituted tight controls on money supply
  • economy deflated to drive up value of lira
  • quota 90 (90 lira to £) achieved 1927 when lira returned to gold standard and exchange rate fixed


  • Showed authority of regime and boosted economy and prestige
  • harmed economy by hitting exports as now italian goods were expensive abroad
  • Undermined smaller firms which were taken over by larger ones
  • Helped industried dependant on imports eg. steel
  • Caused serious deflation
  • 20% wage cut
  • 1936 gov. forced to devalue lira
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The economic batles: Battle for marshes


  • Show dynamic gov. action; impress foreigners
  • Increase land available for cereal production
  • Privode more jobs
  • Improve health by reducing malaria


  • Laws passed on reclamation (1923, 8 33), extending previous schemes
  • private landowners incouraged to co-operate with drainage schemes


  • 1928-30 only 80,000 hectacres reclaimed. 1/20 of 1/6
  • Pontine marshes near rome drained
  • 3/4 land reclaimed in nort, south neglected
  • ambitious plans blocked by southern landowners
  • new towns - Latina+Sabaudia=showpieces
  • bigger impact in providing jobs+improving public health than boosting farming
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The economic batles: Battle for grain


  • Boost cereal production to make italy self-sufficient in grain
  • Reduce balance of trade deficit
  • Free Italy 'from the slavery of foreign bread'
  • Make Italy less dependant on imports when war came
  • Show Italy as major power


  • Battle announced 1925. High tarrifs on imported grain
  • New marginal land used (expensive to farm)
  • Gov. grants to farmers to buy machinery+fertilisers


  • Cereal production increased (x2 1922-39) at expense of other agriculture (animals)
  • Wheat imports fell 75% 1925-35
  • Italy became almost self-sufficient cerealwise 1940, not fertilisers
  • Raised cost of grain+bread
  • Decline in quality of diet
  • protection benefited grain producers, especially insufficient southern landowners
  • increased imports of meat+eggs
  • cereal production fell during war time as imported fertilisers restricted
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Other economic battles


  • See battle for Marshes + grain


  • Autarky, self sufficiency
  • average real wage went up 1919-21. Wage reductions after that. Never regained height of 1921


  • emigration fell due to Great Depression
  • Decline in Meat, fruit, veg, tobacco, fats, coffe due to Autarky
  • See battle for Marshes + grain

Taxation Policies

  • imittially, wealthy benefitted
  • with state intervention 1930s, everyone screwed
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Corporate State


  • Alternative to capitalism and socialism- a 'Third Way'
  • Developed 1925-29/ Ministry of Corporations created in 1926- headed by Mussolini/ Corporation ran by fascist officials
  • Individual freedom is dangerous- people could act against the interests of the State


  • Workers, employers
  • Middle/ upper classes, elites, business/land owners
  • 7 sectors divided into 22 categories with 2 syndicates
  • Chamber... meant government was based on economy
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Cost of Living

Living Standards

  • Battle For Births
  • Financial rewards such as marriage loans which became unrepayable (no need to repay) once the family bore 4 children and if there were 10 children in a family, that household were excused from income tax.


  • Battle For Births
  • He also improved services and provided better healthcare so mothers and their babies would not die.


  • Art
  • Sport


  • The Opera Nazionale Dopolarvaro (after work) set up in 1925 to coordinate leisure time of adults, controlled a large number of social organisation(all football clubs by 1932).
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