13. Recovering from the depression in Italy
The Italian economy rebounded from the Great Depression faster than most western nations, with its industrial growth exceeding that of Germany until 1938. The effects of the depression were likewise less keenly felt by the Italian population due to the social welfare programs which had been instituted during the 1920s. It was the model of Mussolini and the Fascist success which served as the basis for many of Hitler’s programs in Germany, though fascism and socialism were two entirely different political systems. Under Mussolini, the state controlled most of the country’s industry and agriculture, as well as the unions. It established levels of production, wage scales, and the level of crops. During the 1930s the state increased the production of wheat to the level where Italy was self-sustaining, ending the importation of wheat and flour from the United States and Canada.
Because the Italians produced more wheat, less land was available for other crops, such as feed for cattle and hogs, which led to the Italian government establishing new dietary standards which stressed eating bread and pasta while consuming less meat. Much of what in a later day would become known as the Mediterranean diet can be traced to the Italian government’s dietary standards prior to World War II. Though Italy recovered strongly from the effects of the near-global depression of the early 1930s, it then damaged its own economy through its territorial ambitions in East Africa. The colonization efforts weakened the Italian economy, creating shortages of cash which were felt by the Italian people in the form of increased taxes and lower wages. Combined with the shortages of some foods in the shops, the pinch led to an increase in black markets, which in turn led to aggressive activities against them by OVRA.