1) List all the reasons provided by Ginsborg for the Italian “economic miracle”
The economic miracle occurred in the 1950s, and the end of protectionism was the main factor for it to happen as it restarted Italy's economic productive system. The presence of cheap labor was also a contributing factor since it increased the profit margin allowing the entrepreneurs to expand their firms. New sources of energy like methane allowed firms to reduce their production cost, therefore encouraging entrepreneurs to establish companies. Monetary stability allowed the economy to grow on an upward scale. The non-taxation of business interests and the maintenance of favorable lending rates by the Bank of Italy encouraged companies to borrow money to expand.
2) Describe what role was played by ENI
ENI is an Italian multinational company established in 1953 involved in petroleum energy. The company's role is to explore, mine, refine, and transport petroleum products internationally and across Italy. During the economic miracle, the company ensured Italy had enough energy to run the industries and motor vehicles. ENI discovered methane in the Val Padano, which provided an affordable alternative to imported coal and enabled Italian entrepreneurs to cut their costs. After the Second World War, ENI was an economic growth agent by providing cheap power for industries' automation. It was also used by the ruling party, Democrazia Cristiana, to bring and maintain consensus.
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3) Describe what role was played by IRI
The Institute for Industrial Reconstruction, abbreviated as IRI, oversaw the development of a modern steel industry that involved considerable state investment in modem steelworks at Cornigliano. It provided cheap steel for Italian firms. After the Second World War, IRI took part in financing major infrastructure projects such as constructing roads and building telephone networks. The state agency was able to revive most industries that were helping in the reconstruction of Italy's economic sector.
4) Describe which important infrastructures helped the economic miracle.
Electricity was a vital infrastructure that contributed to the economic miracle; it was used to mold steel and power other important factories like the motor production companies. Automation processes required electric power to run the machines. Transportation systems also helped in the economic miracle; good roads enabled more comfortable and fast transportation of manufactured goods and raw materials and ensured businesses saved time while carrying out logistic operations. As part of the infrastructure, schools equipped students with skills to operate machines or even start their firms.
5) Describe the monetary policy of Italy during the economic miracle
Italy had to maintain favorable interest rates; the federal bank ensured that commercial banks would offer loans to entrepreneur firms at a minimal interest rate. This was done to encourage lending for the firms to finance their mass production and expand their businesses.
6) Name 2 South American countries which received Italian immigrants
Venezuela and Argentina; each had 128000 and 380000 Italian immigrants. They were, for the most part, artisans and peasant proprietors rather than landless laborers. Nearly 70 percent were from the South.
7) Name 2 European countries that received Italian immigrants .
The migrants from Italy moved to West Germany; as of June 1962. Switzerland also received many Italian migrants who mostly worked in the construction industry.
8) Name 2 North American countries that received Italian immigrants.
The United States had 138000 immigrants who stayed even after the economic miracle occurred in Italy, while Canada had 165000 immigrants. In 1957 many became citizens of the country they had migrated to.
9) Did the Unions suffer from the economic miracle? (answer just yes or no) Why?
No, the trade unions thrived during the economic miracle as the employment rate was increasing, and many workers had to join unions for their grievances to be better represented. During the miracle, workers were underpaid, prompting more to join the trade unions. Unions thrive with more members joining in, and this was the case during the economic miracle. The unions even gained power bargaining to reduce the working hours in a week from forty-four to forty hours, and five working days rather than a six working days week.
10) How did Italian families change sociologically?
The economic miracle led to rural to urban migration, which led to a reduction in the size of Italian families as town centers were no conducive to raising prominent families in the north-west regions and the South. Nuclear structures comprising of father, mother, and children were embraced rather than extended families. The miracle also brought isolation among families, which led to common festivals shared being done away with within the urban centers. The youth in the family also became radicalized and found new forms of freedom and leisure activities. 11) What role was played by the new media in the change of the Italian way of life?
The new media television and magazines were of significant influence. The magazines, especially women's editions, opened a timid discussion about pre-marital sex. Other magazines started exposing infidelity in women. These all radical changes in sexual mores were new and more people began to embrace it. The television made people embrace it as a leisure activity; therefore, the Italians did not need to socialize with others and conduct mutual celebrations. The media also led to liberalism; it made people free-minded as it passed ideas from diverse people from different backgrounds.
12) What is “ Fordism ” ?
Fordism refers to the automation of the mass production of consumer goods. It' combines technological advancements to increase production and also encourages consumerism. Fordism was important during the economic miracle as the demand for manufactured goods increased. Manufacturing firms had to use technological innovations to increase their supply . Mass production was thriving because of market demand. Fordism was based on the assembly lines technique, and it resulted in few companies like FIAT dictating the market and what consumers were to be offered.
13) Describe what happened to sharecropping during the economic miracle
Sharecropping was the system by which the landowner provided the farm, the peasant family provided labor, the expenses, and the crop was shared between the two. Sharecropping began to wane as young peasant farmers became disinclined to embrace the farming system which their parents used. The landowners were forced to sell their land to the sharecropping families as their profits from sharecropping were diminishing. The number of sharecroppers dwindled from 2,241,000 in 1941 to 1,114,000 in 1964. This decline was caused by rural migration.
14) Describe the evolution of the appliance production
The economic miracle led to extraordinary growth in the domestic appliance industry. After world war two, the industries that came to succeed were more than artisan concerns that manufactured home appliance products. In 1951 Italy was making just 18,500 fridges. By 1957 this number had exponentially increased to 370,000; by 1967, it had reached a high production of about 3,200,000 fridges. Italy ranked third in the production of fridges globally and number one in Europe. The evolution resulted from the entrepreneurial skills of new Italian firms' owners, their ability to finance themselves in the early 1950s, and their willingness to adopt new techniques and to renovate their plant continuously.
15) Was the Italian miracle well planned or rather a spontaneous phenomenon?
The miracle was a spontaneous process that occurred autonomously. Vanoni scheme had laid out a well-planned economic transformation that would have included social and geographical factors. The miracle responded to the free play of market forces. Export-led growth meant an emphasis on private consumer goods, often of a luxury nature, without any corresponding development in public consumption. This led to the distortion of consumer patterns. Dualism was also unplanned, both small and big firms existing in the market.
16) Were Italian engineers and entrepreneurs ready to accept the challenges of the economic miracle?
The engineers adapted well to the economic trade, meaning they were ready for the economic miracle. The entrepreneurs were able to finance themselves; they also used their skills to manage their firms appropriately. They readily adapted to the new techniques of achieving mass production. Engineers became innovative in order to increase their scale of production. The entrepreneurs took advantage of the cheap labor to increase their profits margin.
17) How did the economic miracle affect the religious sentiment of the Italian people?
The influence of the church declined as the miracle caused urbanization. The church had a more significant impact on those living in rural areas. The number of those attending the church reduced from 69% in 1956 to 40% in 1962. Recruitment to priesthood declined dramatically, leaving the clergy to an aging diocese. In congested urban centers, church-going plummeted to only 11% out of a population size of 300000. Progressive and liberalism spread was high in urban centers. Most young people did not see the need to attend church.
18) What is FIAT?
FIAT is a motor production company established in 1899 in Turin, Italy. During the economic boom, FIAT played a more substantive role. The company used the Fordism method of production; this means that they used automated processes to increase their production. FIAT had more employees who were well compensated, and even during the strikes, the company was able to retain their workers. FIAT produced many motor vehicles, and the company was among the pillar factors for the economic miracle.
19) Who was Mattei?
Enrico Mattei was born in Acqualunga in the Marches in 1906. He was the son of an officer in the Carabinieri. Mattei was an entrepreneur who established his own chemical company. After the war, Mattei was given charge of AGIP, the state petrol company, which did not succeed under Fascism. Mattei salvaged it when methane gas was discovered in large quantities in the Po valley in 1946 and 1949. He fought many private companies to be the sole person with the right to exploit the Po valley's natural resources, thus becoming the ENI father. During his tenure, Mattei built up an unparalleled industrial empire within the state sector. He was also a great Christian Democrat partisan.
20) Who was Valletta?
Vittorio Valletta was FIATs president and managing director, respectively. In 1953 he decided to invest in a gigantic production line for FIAT's latest model, precisely the FIAT 600. Valletta was a firm supporter of the Christian Democrat version of the Centre-left, and this prompted him to visit the United States. He encouraged the sitting President Kennedy that if he had to support the socialists financially, he should do so through the DC so that the US could use the money leverage to cooperate with the Socialist party.
