This graph shows how the war affected Italy economically after the war, as we can see it increased by 500% the price of everything from the beginning of the war until the end, and then it continues increasing. We can consider this, although its not an original document, credible data because those numbers can be the effect of the war after it because every country falls in economic crisis because it ends devastated and furthermore, Italy on that moment was not self-sufficient and needed to use a lot of money in buying imports.

In this graph we can see how the production of wheat change with the years because of certain things. First it decreases 30% from 1913 to 1919 because of the WWI, and then it doubles from 1919 to 1937 because of the Battle of Wheat. Although its not the original data, we can see that it follows practically the same numbers that on the table before.

http://www.youtube.com/watch?v=8eS40OPpFpU&noredirect=1



This video first shows how Mussolini starts being more liberal and then when he gets more power he (the state) starts to intervene in the economy of the country.

How successful were Mussolini’s economic policies?

Mussolini had five main aims in economy. His first aim has autarky, which is a term use for self sufficiency of he country, this was essential for a warrior nation, as he planned. Another aim was to end conflicts between workers and owners and direct Italy’s production that is why he introduced corporatism, which is a third way between communism and capitalism. Other aim, was to decrease unemployment, for that he designed a public work program, which initially seemed very clever. Italy’s larger part depends on agriculture that is why Mussolini put a lot of emphasis on in improving it. Finally, all of this aims, made a major aim, which is to make Italy a strong economy in the world, which was Mussolini’s main goal.

The most significant policy Mussolini introduced to fulfill his aim of autarky, was the Battle of Wheat, on 1925. This policy consisted mainly, in persuading farmers to plant wheat instead of other production. This was successful at a certain extent, because although imports in wheat were cut by a 75%, it wasn't a suitable grain to plant on the south,were most of he farmers are. Climate on the south made grazing, orchards and other vegetables, a much more suitable place to plant, instead of wheat. That is why agriculture remained inefficient, and farmers were still the poorest class in the country. So the aim of self sufficiency was mostly failed.

As we explained on question 1, the corporate state was properly introduced. Mussolini had two main aims, which were control workers and direct the economy, and he accomplished this. But the measures used by Mussolini to accomplish corporatism, were negative for Italy’s economic situation. The Battle of Wheat introduced on 1925, as we exposed above, affected negatively in Italy’s economy; this measure was an example of how Mussolini did to guide Italy’s economy and production. Another policy he introduced to accomplish this objectives was the encouragement of industry, by providing subsidies. At first this policy was seen as an effective policy, because iron and steel production doubled, and also hydroelectric power doubled. But little had been done to increase oil and coal productions, which are vital for industry to function. Also, as we saw n source A, steel and iron productions not even match a small state as Belgium. So corporatism failed on the economic aspect of it, because it controlled workers but the measures were negative for economy.

To decrease unemployment, Mussolini effectively launched an impressive public work program. This consisted on building motorways, bridges, blocks of flats, railways stations, sports stadiums, schools, and new towns on reclaimed land. But most of these promised buildings were not done by the government, making the unemployment insurance scheme very poor, and it was not even improved during the great depression of 1929. All of these factors, made unemployment rise to 1.1 million on 1930´s.

To give the artificial impression of a strong economy, on 1926 Mussolini reevaluates the lira, and raise it up very high compared to how it really was. This policy was a complete failure, because exportation decreased radically, because they were now too expensive, intensifying Italy’s economic situation. Again, demonstrating luck of knowledge of Mussolini on economics; and another erroneous policy.

Finally to improve agriculture, Mussolini initiated the land reclamation campaign. This policy consisted on planting forests on mountainous areas, to increase agricultural yield. The best example and more effective was the Pontine Marshes near Rome. This policy was very popular in Italy because of the great investment on publicity Mussolini made for this. It was a policy where Mussolini invest a lot of propaganda, so at first it illusion many of the people in Italy; as most of his policies, and then were a disappointment. According to “Modern World History” book written by Norman Lowe, “in spite of al these propaganda, only one-tenth of the program had been carried out.” Which, in my opinion, is a very small value; remarkably by the importance he gave to this policy.

To conclude, I will end by saying that I could interpret a pattern in most of the policies launched by Mussolini, this is that they are effectively promoted, and introduced but they end by being mostly failures. This can be an effect of international context, or Mussolini’s lack of understanding on economics.

Analyze how the international context affected Italian economy during Fascist rule?

Fascists ruled Italy form 1922 till 1943; it was lead by Benito Mussolini. Some sources, as the modern world history book, written by Norman Lowe, say that Mussolini new few about economics. Maybe that can explain some of his policies, but he also ruled in a period where economies where not so strong globally, and where Italy suffered several conflicts that affected those policies, and the economy.

To begin with, Italy was one of the few powers that did not have colonies; this made the aim of self sufficiency (autarky) even more difficult. Fascists arise on 1922, just after WW1 which devastated Europe and their economies, also a factor that affected negatively on Italy's economy, because it made countries to follow a policy of protectionism, where imports have to be lower than exports.

Mussolini promised a strong economy, he wanted Italy to be a great power again. On 1926, Mussolini reevaluated the lira, which was Italy’s currency, and raises it to 90 to the pound sterling instead of 150; this was to demonstrate to the World that Italy had a strong currency. This made Italy’s situation worsened, because with your currency too high exports will be more expensive so countries will by less. This decision, also affected negatively on workers, who’s salaries were reduce by 10-20%, all of this just before the world economic crisis on 1929.

The Great Depression, which began on 1929 with the Wall Street crash in the USA intensify Italy’s economic problems. Exportations were already in decay because of the raise of the lira, now, with the economic crisis they fell further. Unemployment, which was one of the problems Mussolini, promised to solve, increase up to 1.1 million. Salaries were cut, and although the cost of living was falling because of the depression, wages fell even more than prices. And after seeing all of these problems in Italy’s economy, Mussolini refused to devalue the lira, until 1936.

In spite of  the great economic problems Italy had, cause by the context and several bad decisions of it ruler, Mussolini kept on giving the impression that Italy was a powerful country, making his foreign policy very aggressive, this and the need for colonies made Mussolini invade Abyssinia, one of the few countries in Africa that were not colonies. This invasion also cost a high price to Italy, not only because it required money for the actual fighting, but also because the League of Nations impose economic sanctions to Italy. The League ordered it members to impose these economic sanctions, and this restrict economic advance in Italy.

I will end my answer saying that although Italy had a bad leader, in terms of economy, the international contexts deepen its economic situation. This is clearly shown in the example of the great depression of 1929, where is demonstrated that Italy had already economic problems, provoked by bad decisions of Mussolini; but the international context remarked this issues.

Can the Battle of Wheat be considered a positive policy for Italy?

In 1922 Italian economy was very bad and it needed of foreign imports of grain to survive. In 1925 Mussolini placed high taxes on bread imports to oblige Italian people to produce their own wheat for bread. As it was so expensive to use the unfertile lands to grow crops, he helped the farmers by giving them money to buy machinery and fertilizers. As we can se, Benito Mussolini promoted wheat production because he wanted to: reach autarky, reduce the balance of trade deficit, stop importing bread and to show Italy as a major force. It can be described as a victory at a high price because although the production doubled and the imports of grain were reduced by 75%, the rearing of animals and the growing of vines decreased because they only concentrated in the grain production. So, to conclude, we can say that to a certain extent it was a positive policy for Italian economy.

Italian iron and steel output (in million tons)
Source A	Iron			Steel
	1918	1930	1940	1918	1930	1940
Italy	0.3.	0.3	1.0	0.3	0.5	1.0
Belgium	-	3.4	1.8	-	3.4	1.9
Germany	11.9	9.7	13.9	15.0	11.5	19.0
USA	39.7	32.3	43.0	45.2	41.4	60.8

With reference to the origin and purpose, assess the value and limitations of Source A for a historian studying Italian economy during fascism.

Source A is a table taken from the book ¨Modern World History¨ written by Norman Lowe (Page 295) with the purpose of showing the small Italian progress in production of iron and steel from 1918 to 1940, we can also see that USA and Germany started on 1918 with millions of tons of production and decreased a little bit because of the crisis and then increased again; on the other hand, Italy shows a constant increase in production but we can see that it’s a small producer of iron and steel according to the figures in the Source. This source can be important for a historian because it shows Italian information about iron and steel production at three different moments between 1918 and 1940 and at the same time it’s being compared with three other countries such as USA, Germany and Belgium. However, it can be said that this Source can’t be used by a historian because it doesn't show the measures and method that each country uses to accomplish those tons of production and it isn't an original document so it can be biased.