Mussolini's Economic Policies 1925-1940

Mussolini's Economic Policies 1925-1940

1. Autarky

   • Expensive work schemes 1930s - put the unemployed back to work, Roads, railways and power plants were built without foreign help. Italy did not suffer the effects of the Depression as bad
   • Suffered from a massive lack of raw materials at the start of WWII - had to import materials, this was expensive and meant Italy could not match its enemies in weapons and shipbuilding
   • Expensive military activities in Ethiopia (1935) and Spain (1937) showed limitations in Italy's military power and the failure of the Autarky programme - valuable equipment and raw materials were wasted
   • 1925 Battle of the Grain - aimed to increase grain production so that Italy could feed itself in wartime. Grants were given to farmworkers and advised them on modern methods
     • Grain production increased - 5.5 million tonnes in 1925 to 7 million tonnes in 1935. Imports dropped by 75%

2. Propaganda

   • Wheat production - increased by 100% between 1929-39, the Battle of Grain appeared successful
   • 5,000km of railways built 1925-40 - showed strength of industry
   • Employed a huge civil service, protected the middle class from poverty. Dopolavoro - distracted from every day life and maintained Fascist popularity during WII
   • National holidays introduced 1938
   • Battle for the Marshes - Pontine Marshes (near Rome) were a source of malaria. These were drained and farms were set up - public health improved

3. Living Standards

   • Wages fell 10% 1925-38
   • Food prices rose steeply and consumption of meat, fruit and vegetables fell - middle classes did better but most standards fell
   • Traditional exports (wine and olive oil) declined - land had been turned over to grain production. This land was unsuitable and made farming expensive, as well as food prices - many farm workers lost their jobs

4. Industrial Control

   • Large shipbuilding contracts were placed on companies - to make Italy more self sufficient. 50% of steel production and 80% of shipbuilding was under government control
   • Corporate state (Fascist control) was resisted by the Confindustria (big businesses) - Mussolini did not want to anger this group.
     • 1927 - Labour charter drawn up to support private ownership of businesses - employers controlled working and hours and didn't have to give holiday pay
   • Industrailists - supported Mussolini, he took a non-threatening stance towards them. They enjoyed power and independence and ignored Corporations
   • Mussolini feared alienating big businesses - Ministry of Corporations became weak and ineffective, workers had little choice in labour disputes