The corporate state

Aims:

• 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!

Actions

• 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

Effects:

• 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

Aims:

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

Actions:

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

Effects:

• 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

Aims:

• 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

Actions:

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

Effects:

• 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

Agriculture

• See battle for Marshes + grain

Industry

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

Trade

• 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

Establishment

• 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

Structure

• 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

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.

Welfare

• Battle For Births

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

Leisure

• Art
• Sport

OND

• 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).