Italian Rearmament and Economic Policies

This set of flashcards covers the aims, policies, and economic impacts of Italy's rearmament and the invasion of Abyssinia during the 1930s.

What were the primary aims of Italian rearmament under the Fascist regime?

To make Italy a great power, build an Italian Empire, and prepare for war.

What is the IRI and what was its primary function?

The IRI, established in January 1933, was to fund struggling industries.

What industrial control did the IRI exert over steel and shipbuilding?

By 1940, the IRI controlled Ansaldo steel (accounting for $50\%$ of production) and directed $80\%$ of shipbuilding for the Italian navy.

Which major company diversified into what as part of rearmament policies?

Fiat - machinery and mining

What were the three main goals of the invasion of Abyssinia?

To expand the empire, boost national pride/restore Roman glory, and redeem the humility of the Battle of Adowa in 1896.

What was the international economic consequence of the invasion of Abyssinia?

The League of Nations imposed economic sanctions that cut off imports of essential raw materials.

What percentage of overall public spending was prioritized for military annual spending?

$30\%$, which prioritised militarisation over welfare and lowered living standards.

How much did the government spend on the military?

Nearly $60\text{ billion}$ lire was spent between 1939 and 1940.

What happened to the Italian lira

The lira was forced to devalue by $40\%$, which led to inflation in October 1936.

Due to economic sanctions and a lack of natural resources, which country did Italy become dependent on for coal and oil?

Germany.

What was the overall outcome of Italy's rearmament efforts regarding World War 2?

They were extremely counterproductive, leaving Italy unprepared for WW2 with a lack of resources and insufficient preparation for a modern war.