Mussolini’s Economic Policies

After WW1, it was evident that Italy suffered many social, economic and International problems. Crippled by debts and Church state relations being poor, as well as a unstable democratic system, its was obvious Italy needed a drastic governmental change. This brought about the rise of Benito Mussolini and his fascist party. In this essay I will explain his economic policies, his social reforms and his foreign policy. I will analyse the successes and failings of these changes, and the events leading up to Mussolini’s eventual downfall.

    When Mussolini took power in 1922 after the March on Rome it was evident that he planned  for a dictatorship. In March 1919 he founded the first combat group the Combattimento, as well as a fascist press, Il popolo d’Italia. Ultra nationalism, totalitarianism, almighty leader, racism and anti communism were top priority. With the introduction of the Acerbo Law, Mussolini achieved total domination when gaining two thirds of votes. The fascists gained control of parliament in the 1924 election. The Grand Council of fascism was introduced and made all appointments of key jobs. Mussolini now had complete control and referred to himself as Il Duce.

    After Mussolini’s failure in the 1919 elections, he realised that he had much to gain by healing the first between Church and State. He introduced legal measures against abortion and contraceptives. In 1923 the government rescued the Catholic bank of Rome. In 1979 the Lateran Treaty was signed. This treaty ended the conflict between church and state. The treaty restored the popes control over the Vatican City. It was an independent state. Catholicism was to be the states religion. The church was given control of religious education in schools. These improved relations resulted in a huge increase in Mussolini’s national popularity.

    Economic successes were also evident. Mussolini’s solution to making Italy great was based on Autarky. After 1925, Mussolini launched a series of “Battles”. The battle for grain doubled grain production between 1925-1929. The battle for land controlled migration, and drained the Pontine marshes, reclaiming vital land that could now be used for agriculture. The battle for Lira revalue the Lira, however this was not sound economics as exports became expensive resulting in a decrease in income. The economy became severely depressed. The battle for births aimed at providing soldiers for Italy’s empire, these soldiers would be used to conquer land, and populate it with settlers and administrate it. Despite the measures put in place to grow the population, the birth rates remained constant.

    Fascism aimed to eliminate the struggles between employer and employee. This was to be achieved by creating a new Corporative System. Mussolini dissolved trade unions, which he regarded as communist outlook. Strikes and lockouts were forbidden. In 1939 a central committee of corporations replaced the chamber of deputies. However between 1925-1938 wages fell by 10%, living standards remained the lowest in Europe. Corporations never became the Fascist institutions par excellence that Mussolini had hoped. A costly and often corrupt bureaucracy failed to prevent economic collapses during the war.

    Other reforms did succeed however. Mussolini reformed Italy’s transport system. The building of bridges, canals, and major road systems improved communications throughout the country. Mussolini’s government educational standards were high. The school leaving age was raised, new schools were built and higher standards of attainment were set. Between 1922 and 1939, the number of secondary schools increased by 120%. Physical fitness became a priority. Mussolini also had a measure of success in dealing with the Sicilian Mafia. The ruthless methods of the fascist curbed the mafia’s power. Many gangsters emigrated to the USA.

    Mussolini’s economic policies were at best, only moderately successful. When Italy was faced with the economic strains of the second world war, it became apparent that the country’s economy was extremely weak. However it is agreed that it was Mussolini’s disastrous foreign adventures rather than economic weaknesses that led to his downfall. Mussolini was extremely vain and arrogant and saw himself as the new Caesar who should have an empire.

    In 1923 Mussolini occupied the Greek island of Corfu after the assassination of four Italians by Greek terrorists. In 1927 Mussolini occupied Fiume. The city was temporarily governed by the nationalist D’Annunzio.