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Mussolini's Autarky Policy - Coggle Diagram
Mussolini's Autarky Policy
Autarky - an economic system of self-sufficiency and limited trade
Mussolini wanted Italy to produce for itself all its major needs (food, raw materials and manufactured goods)
He believed that this would lead to several positive outcomes
Militarism - to prepare Italy for war
Nationalism - to make Italy great, and not dependent
To justify imperial expansion - gaining 'spazio vitale' (living space)
Avoid repetition of the 1935-36 League of Nations boycott - Abyssinian Crisis
Measures to achieve Autarky
Increase controls on currency
Quotas on imports (limits of qty of imports)
Increased tariff protection
Govt intervention to produce domestic substitutes to imports (rayon for cotton)
Locate new mineral sources with the help of the govt
State agencies (AGIP) searched for new energy sources
1937 - High Commission on Autarky to supervise policies
As a realist, Mussolini knew total self-sufficiency was impossible
The Reality
Virtually no coal supplies, little iron, no discovered oil
Even by 1940 domestic production met only 1/5 of Italy's industrial raw material needs
Grain battle cut wheat imports, but other food imports rose
Italy really needed to increase its exports to pay for essential imports
Increased prices
Some industries were adversely affected (textile)
Issues faced
Italy continued to suffer a balance of trade deficit
Difficult to import necessary resources
In 1939 domestic production only met 1/5 of its raw material needs (coal and iron ore)
Basic raw materials were very expensive
