• Until the 1960s, manufacturing activities in the Messogiorno were very poorly developed.
• The region had very poor inputs into manufacturing industry, which prevented growth and development.

Few Energy Resources

• There was no hydroelectric power in the region as a result of drought and permeable limestone rock.
• The area had no abundant supply of natural resources, such as coal, oil or gas, which caused energy problems.

Poor Transport

• There was very little investment into roads and ports in the region. This, coupled with the natural landscape of the Apennines, resulted in little economic growth.

Raw Materials

• Deforestation had removed most of the wood from the region. Along with a shortage of natural resources, this denied the manufacturing industry of required raw materials.
• Although there was some agriculture in the region, it was largely inefficient and didn’t help to provide a proper foundation for industry.
• The labour force in the region was largely unskilled. Illiteracy rates were as high as 25%, which drove away outside investment.
• Many of the skilled workers in the Messogiorno migrated to Northern Italy, Germany or the USA, where pay and conditions were vastly superior.
• Local Markets were small and poor and provided no attraction to investment. These markets could not compete with foreign markets.

Cassa per il Messogiorno

• The Cassa managed investment by the Italian government into the Messogiorno between 1950 and 1986.
• Money was invested into poles of development such as Naples, Brindisi, Palermo and Cagliari. It was hoped local regions would benefit from the multiplier effect.
• The Cassa also developed local infrastructure and aimed to attract labour and capital intensive industries, such as iron, steel and oil refineries.
• 50% of investment by Italian companies also had to be in the Messogiorno.

European Union Aid (1960-2005)

• The Messogiorno was classed as an Objective I Region between 1960 and 2005.
• It benefited from aid in the form of the Regional Development Fund and the European Social Fund.