Domestic economic issues
- After the war
- Finance war effort increased unemployment and inflation
- South of Italy is very poor, mostly agricultural
- Unemployment, dependant on imports
- Until 1925…
- Liberal economic policies
- Increased investment, reactivated economy
- Unemployment dropped from 500k to 100k + huge budget surplus
- After 1925…
- Protectionist
- Achieve autarky/independant ⇒ import duties on many goods
- Battle for Grain ⇒ increased production of cereals (at the expense of wine/olives/traditional italian products)
- After the Great Depression
- Foreign policy became more aggressive to solve economic problems (unemployment reached 1m, decrease in production by 25%)
- Before 1935 – cooperated with the West
- After 1935 – openly aggressive
- Increased state intervention, expanded rearmament => navy expanded
- Short and successful wars ⇒ detract from country’s failures
- Foreign policy became more aggressive to solve economic problems (unemployment reached 1m, decrease in production by 25%)
Impact on foreign policy
- Development of Foreign policy
- 1922-1929: Foreign policy wanted to revise Treaty of St Germain (but constrained by collective security abroad, consolidation of power at home)
- Still tried to cooperate with West
- 1929-1934: Great Depression opened ability for action, Rise of Hitler undermined int’l cooperation
- 1922-1929: Foreign policy wanted to revise Treaty of St Germain (but constrained by collective security abroad, consolidation of power at home)
- Italy was initially equidistant (halfway between France/Britain/GM) – Italy plays sides off
- E.g. when Austria was invaded by Hitler – went to West
- After 1935 – Nah i’m going to Hitler
- More aggressive + state of constant war
- 1935-1940: Invasion of Abyssinia, Spain and Albania, closer connection with Germany (opposed with Britain + France → LON), Radicalisation at home = did not follow policy of equidistance
- Sanctions on Italy by the UN in 1935 (Abyssinia)
IB Wisdom 