How successful were Mussolini's domestic policies between 1925 and 1939?

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How successful were Mussolini’s domestic policies between 1925 and 1939?

In domestic matters Mussolini was not an original thinker. In opposition he had thought about little other than getting into power. Once he became prime minister he had three main aims for Italy: to become a military power, to play a major role in European affairs and to create a Mediterranean empire like that of ancient Rome. To achieve these aims, Italy would need a strong economy and also create a tough and disciplined population prepared for war. However this would require a transformation of the Italian character. It will be necessary look at Mussolini’s policies for industry, agriculture and society to consider the impact and see how successful he was.

The economy suffered a number of structural weaknesses: there were limited raw materials and although the North was developed the South was very backward and there was a high level of illiteracy. When Mussolini came to power he was very lucky as the economy was recovering from the post war slump. Industrialists were pleased when taxes on industry were reduced and trade unions and strikes were banned. The economy boomed as exports increased and unemployment fell and Mussolini, of course, took the credit.

In 1925, Mussolini took personal control of the economy, but by 1927 the economy was weakening and the lire began to fall against other currencies. This was unacceptable in Mussolini’s eyes; he believed a strong currency was a matter of national pride, so he revaluated the lire. This was meant to raise Italy’s prestige but it badly damaged the economy. Italian products were now expensive and exports fell rapidly. Imports should have been cheaper but high tariffs on foreign products meant the consumer did not benefit. The only winners were industries such as steel, shipbuilding and armaments, which needed large supplies of cheap tariff free raw materials. These were the industries that Mussolini wanted to promote, and Mussolini may have regarded it as a success but raising the lire hurt the economy badly.

In the 1930s Italy, like the rest of the world, was caught up in the depression. Industrial production fell, a large number of firms went bankrupt and unemployment rose to 2 million. Mussolini got it spot on when it came to combating the effects of the depression. He introduced work schemes such as building motorways; hydroelectric schemes and he bailed out banks which had lent money to companies and could not rely on their loans. This kept banks in business. He also set up the Institute for Industrial Reconstruction (IRI), which took over the banks’ task of providing loans for Italian industry. Mussolini reacted faster than any other nation and was exactly right when dealing with the depression. Although it cost the taxpayer a lot of money, unemployment rapidly fell and Italy began to recover more quickly than many other nations.

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In the mid 1930s, however, Mussolini’s economic policies yet again caused problems. From 1936 onwards he began to stress the need for self-efficiency, autarky, which Italy would need in the event of a war. Mussolini’s main aim was to create an economy ready for war which meant a strong armaments industry. Heavy industries such as steel, chemicals and shipbuilding were encouraged. Increasing wealth had never been a priority so, for ordinary Italians, living standards fell and the economy suffered. The invasion of Abyssinia in1935 seemed to prove Mussolini’s point about the need for a strong economy. On the other hand, ...

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