Chapter 6 - mussolini's economic policy

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How did M treat economic policy at the start of his rule
pursued liberal policies that would secure his position - De Stefani
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How did this develop as he became more secure
more ambitious for an economic transformation in Italy. Mid 1930s ethiopian war/ german friendship convinced him economic transformation was vital and Italy should become self-sufficient
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What did autarky and the corporate state mean for Italy
M was so focused on this that Italy's old provlems of industrial underdevelopment, rural poverty, the north south divide and illiteracy were ignored. Only tackled if involved w M aims
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What were the policies under de Stefani?
limited gov spending help to fight inflation, reduced state intervention in industry (telephone network), taxes levied on industries who profited from ww1 reduced or abandoned, pleased industrialists (vidoni palace pact 1925) outlaw sclist/cthlic TU
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What after 1925 showed M less interested in big businesses interests
Revaluation of the italian currency and dismissal of de Stefani - 'battle for the lira'\
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What was the battle for the lira?
exchange rate falling - 150 lira to the pound. M changed to 90 lira to the pound Dec 1927
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positive effects?
New value was the same as what it was when M came to power in 1922, therefore increased prestige with foreign bankers and italian public as policy restricted gov spending
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negative effects?
foreign buyers found goods x2 expensive, export industries went into depression (textiles), would have helped imports be cheaper but M placed high tariffs on them, unemployment trebled 1926-8
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Who were the overall winners of the battle for lira?
heavy industry eg shipbuilding, steel, armaments as needed large supplies of tariff-free imported raw materials.Profited from domestic market while export industries depressed
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What was the theory of the corporate state
corporations in each sector of industry w fascist trade unions within to represent workers, organise production/pay/working conditions in each industry/ labour courts for disputes via Ministry of Corporations
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What were the objectives of the corporate state
avoid industrial disputes unlike Britain/ France, maximise output for good of nation, role for businessmen and private business unlike communist russia (maintain dynamism)
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Did workers have a real say
Intially appeared so but rivalries in fascist party and M reluctance to alienate big businesses stopped this. Confindustria hated all trade unions and wanted to keep businessmen in control.
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What was bottati's view on the situation?
Head of ministry of corporatioins. saw little role for the unions and wanted corporations to be a partnership of employers and experts from his ministry
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How did Mussolini curb the power of the unions?
Bottati 1927 labour charter - set out workers rights but declared private business ownership most efficient and employers not obliged to provide annual paid holidays. Could also change working hours/ night shifts wo consultation
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How were workers actually repressed by the corporate state?
fascist officials tended to side w employers representatives over wages and working conditions
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What was furthered in workers interests though
introduction of sick pay and paid national holidays from 1938
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Why were industrialists pleased overall
They could keep their own employers organisations and largely ignored the existence of fascist corporations in the main
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Why did employers maintain their power and indepence
regulations issued by the corporations were only advisory
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When was parliament replaced by the chamber of fasces and corporations
1939 - meant nothing as parliament had long been powerless so the chamber was the same
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What was the effect of the Great depression (wall street crash 1929)
Many companies collapsed, car production fell by 50%, unemployment rose to 2mil by 1933
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How did the gov respond (public works?)
building of motorways and hydroelectric powerstations put unemployed back to work which increased money in circulation and increased demand for jobs
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How did the gov respond (banks)
created the IMI to bail out bamks who couldnt pay their investors (as the industries they'd invested in could no longer repay their loans)
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What was the result of bailing out the banks
The IRI created jan 1933 took control of major shareholdings in major italian companies meaning the state now effectively owned the companies. IRI also took over from banks when providing loans for industry.
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How successful were these methods overall
cost the taxpayer a lot of money but italy could weather the depression better than its democratic neighbours.
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What did m believe causing him to pursue Autarky
war in europe or africa inevitable and needed to be prepared for, armament industries were to be promoted and italys economy had to become self sufficient
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What seemed to prove him right w this idea
The sanctions imposed by the League of Nations after italys invasion of Ethiopia 1935
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What were the actions taken to develop autarky?
heavy industries encouraged steel chemicals shipbuilding etc. state control expanded 80% of shipbuilding 50% steel production directed by state, major companies merged into near-monopoly organisations eg fiat dominated car manufacturing
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What were the limits of autarky
key materials eg coal iron ore had to be imported large qualities, didnt match enemies levels of production (couldnt replace losses in shipping etc. since ww1), gov spent lots if related to armament on top of military activity in ethiopia/ spain
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Why was gov spending a problem
didnt raise taxes despite heavy spending for fear of alienating big businesses/ conservatives so expenditure greatly exceeded income by late 1930s
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How did industrial policy impact the workers standard of living
open conflict declined but bc trade unions banned/ strikes illegal, serious decline living standard, wage cuts late 1920s-30s, 1930s prices rose steeply as autarky pushed up cost of imported goods, estimate 10% wage fall, unemployment rose 2mil 1933
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How did industrial policy affect the middle classes standard of living
number of gov employees doubled, not made redundant during depression,growth in fascist organisations especially dopolavoro + ministry for corporations, suffered wage cuts in 1930s but nowhere near as bad as workers
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Why did Mussolini never really care about living standards
Never committed to rasising the standard of living and economic hardship would create harder, tougher italians dismissive of a soft bourgeois lifestyle
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Why didnt mussolini involve himself with underlying agricultural issues eg poor classes, land hungry peasants, inefficient farming??
he wanted to occupy himself w projects to increase personal power and prestige, make italy prepared for war/ autarky
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What was the battle for grain? (1925 onwards)
italy traditionally imported lots of grain to feed its poeple. seen as weakness as italy could be held ransom by other nations in times of war, campaign to increase grain would solve and show dynamic/ productive fascist state
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What were the methods used in the battle for grain?
gov grants to farmers to buy tractors, fertiliser and other machinery to increase wheat produce, free advice on latest farming techniques, guaranteed high price for the grain they produced
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What were the positive effects?
avg harvest rose from 5.5m tonnes early 1920s to 7mil 10 years later, grain imports declined by 75%, propaganda victory as M shown getting hands dirty in the fields - success overall
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Negative effects?
lots of land in southern/ central farms used for wheat unsuitable - soil conditions and hotter climate suited wine production/ olive oil better. therefore exports of these things declined sharply
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What was the battle of the marshes
M expanded existing regimes to drain/ irrigate farmland - Pontine marshes 50km from Rome prime example of this. Malarial swamps drained and small farms set up owned by ex-servicemen
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How was the battle of the marshes a success?
improved public health and provided thousands of jobs during the depression. propaganda victory as pontine marshes easily accessed by journalists
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How did agricultural policy affect living standards?
workers suffered even heavier wage cuts than industrial workers, 1920 USA stopped immigration so lots went to towns/ cities to find better standard of living (half a mil 1920s/30s)
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What was M's view on rural italy
claimed to love it and to have created a lot of prosperous peasants devoted to fascism but did nothing to bring about as policies benefitted landowners more! North/ south gap grew wider. Calorie intake lowest in south -18th in table of european state
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Card 2

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How did this develop as he became more secure

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more ambitious for an economic transformation in Italy. Mid 1930s ethiopian war/ german friendship convinced him economic transformation was vital and Italy should become self-sufficient

Card 3

Front

What did autarky and the corporate state mean for Italy

Back

Preview of the front of card 3

Card 4

Front

What were the policies under de Stefani?

Back

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Card 5

Front

What after 1925 showed M less interested in big businesses interests

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