Prathmesh Rai, B.A. (Hons.) Global Affairs 2019.
Benito Mussolini. Photo from Encyclopædia Britannica, Inc.
Benito Mussolini came to power in 1922 after his infamous ‘March on Rome’ and had gained a somewhat authoritarian control over Italy by the end of 1924. Mussolini had inherited a weak, divided and unstable Italy, which was made weaker after WW1 and was betrayed by the Triple Entente. To help the Italian economy Mussolini led some ‘battles’ which were economic reforms such as the battle for grain, battle for land and the battle for the lira to help the Italian economy and to make it self-sufficient or create an autarkical economic system which could eventually fund and enable Mussolini’s aggressive foreign policy. However, most of his economic policies up to 1929 remained unsuccessful as they did help the Italian economy to a certain degree, but the gains were minimal and were never able to reach the targets that Mussolini had set. Overall, In the short-term, there were economic successes, but they were outweighed by its long-term failures. However, these economic reforms were a huge propaganda success for the fascists as the PNF (Italian Fascist Party) gained support, through its various methods of economic propaganda.
Mussolini’s battle for Grain was launched in 1925, the main aim of this policy was to make Italy economically stronger and become self-sufficient primarily in the production of cereals and wheat products. Hence, Mussolini desired to grow grain in surplus quantity so that Italy could be prepared for an aggressive foreign policy which included his aim of creating a ‘Second Roman Empire’. The Italian government imposed a high tariff on foreign cereal goods, at the same time the Italian government provided subsidies for local domestic producers who, therefore, were able to gain access to easy purchasing of agricultural machinery and fertilizers. Propaganda was a major focus for Mussolini as there were posters and banners depicting Mussolini working in farms and helping the farmers, this act made Mussolini popular in the grassroots of Italian social hierarchy and further helped him in his consolidation of power as the Italian public respected and admired his efforts. The imposition of the tariff led to a reduction in wheat and cereal exports by 75% in 1927. However, the plan led to a huge surplus in grain production at the expense of various agricultural products, thus the battle for grain led to a steady decline in the production of other agricultural goods creating shortages throughout Italy.
Meanwhile, Italian grain became expensive at home, which led to an increase in the price of wheat and cereal. The worst affected due to higher prices were the poor as bread was a major part of their diet. At the same time, richer farmers did well as they were guaranteed ‘good’ price for what they produced. Overall, in the short-term the battle for grain was successful, yet in the long-term, the subsidized fertilizers were unable to keep up with production. By 1928, poverty increased and there was a reduction in living standards, however, it was a huge propaganda success for Mussolini as his popularity grew, which helped him in consolidating power.
The battle of the Marshes was introduced in 1923 and was designed to increase the availability of agricultural land and provide employment to a very divided and backward Italian society. Mussolini planned to get rid of huge swaths of previously uninhabitable and mosquito-infected marshlands. The marshy land was converted to useful and agriculturally suitable lands for the development of infrastructure and farming. Some of the major successes that arose from this policy were in the area known as the ‘Pontine Marshes’, which were drained and new villages/cities were created on that drained land. Italian propaganda celebrated this achievement and published many images of Mussolini working with the workers in draining the marshes, propaganda was a factor that Mussolini relied on heavily and used it to strengthen his power in Italy and worldwide.
Some other successes seen in the battle of the marshes were in Aprilia, Latina, and Sabaudia, where Italy was praised internationally and Italian propaganda strengthened Italy’s praise internationally. However, in reality, the scheme had mixed success as only, 80,000 hectares were claimed to have been drained, which is a large quantity of land, yet was not even ⅙ of the area of Italy. In general, the battle for the marshes was seen largely as a success in terms of propaganda as Italy was praised internationally and nearly 80,000 hectares of land was converted to adequate usable land which was used for either farming or infrastructure, yet the scheme fell short of the target placed by Mussolini, however, the battle of the marshes was somewhat successful, nonetheless, it was poorly planned and disorganized.
The battle for the Lira was devised to strengthen the market value of the Lira (Italian currency), from 150 lire to 1 pound to 90 lire, and to reduce the impact of steady inflation by the end of 1927. Mussolini artificially inflated the value of the lira making exports more expensive. However, a problem that arose due to this policy was that it created unemployment at home as many industries and firms could not sell their goods to domestic consumers. “The economic policy, battle of the Lira was miscalculated”, believes Italian-American historian Gaetano Salvemini. The price of Italian goods abroad increased exponentially and went on to harm exports, which caused further deflation of the Italian currency; the lira. The impact of the failing battle for the lira led to a lowered standard of living, reduction in wages, and led to high unemployment by 1930. Yet, the propaganda that supported this policy was ostensibly high and gained popularity in the short-term, but by 1929 it started to turn to resentment, as its long-term adverse effects outweighed its short-term successes.
This particular battle proved a failure primarily as the economic base of Italy was too small to implement such an economic reform. Thus leading to ultimately hampering any economic gains Italy made and devasted its industry that was weak and unstable from the start. However, Italy got through the Depression in the 1930s with greater success and was in a much better state simply because Italy was mainly an agricultural nation as its industry was small and less developed. Similarly, this was a huge propaganda victory for Mussolini and it helped him consolidate his power, nevertheless, the battle for the lira was the worst of his economic policies for Italy as it went on to hurt more than assistant the already unstable Italian economy.
In conclusion, Italy was never capable of transforming at a rapid pace primarily because it was an agriculture-based economy, yet Mussolini forcefully conducted rapid reforms in the Italian economy which came through the three battles. The most successful was, the battle of the marshes wherein 80,000 hectares of land were drained in order to make it useful, however, the other battles failed in the long-term, but had somewhat of a success in the short-term. Yet, the battle for the lire was the worst as it caused the richer and stable Northern Italy to become weaker and led to a rise in poverty.
However, Mussolini was aggressive with his economic reforms because he wanted an aggressive foreign policy which could only happen if Italy was an autarkic economy, nevertheless, Mussolini failed to do so, yet surprisingly all his battles led to his consolidation of power in Italy as Italian propaganda was highly attractive and successful as it presented Mussolini as a true leader, Il Duce. So, the economic reforms were in general an economic failure, however, contrastingly the propaganda that accompanied the economic reform was highly successful.
Sources:
1) Spinelli, A., 2016. The Outlook For Italian Foreign Policy. [online] Taylor & Francis. Available at: <https://www.tandfonline.com/doi/full/10.1080/03932729.2015.1086054> [Accessed 31 August 2020].
2) Carillo, M., 2020. Agricultural Policy And Long-Run Development: Evidence From Mussolini's Battle For Grain*.Economic Journal. Available at: <https://academic.oup.com/ej/advance-article-abstract/doi/10.1093/ej/ueaa060/5836228> [Accessed 31 August 2020].
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