Ask the Scholar
Page 21 of 78
I can add historical knowledge about this page.
Page image
OCR
SECRET
SECTION II
ECONOMIC SITUATION
1.
GENESIS OF THE PRESENT ECONOMIC SYSTEM.
Although industry has become increasingly important since the beginning of the
century, about half of the Italian people still depend on agriculture for a livelihood not
SO much from personal inclination as from lack of alternative employment oppor-
tunities. Because Italy possesses few of the natural resources essential to modern in-
dustrial development, industry provides employment for only about one-third of the
working population. Even at this rate, industry contributes as much as agriculture to
the national income.
Land, rather than labor, is the limiting factor of agricultural production. Efforts
have been made to increase the productivity of the soil, but only in the Po Valley have
the measures been extensive enough to raise the level of production to that prevailing in
Northern Europe. The South has become known as the agricultural region of Italy not
SO much for the richness of its land as for the almost complete absence of industry. The
wartime destruction of land and buildings in southern Italy has made even more pro-
nounced the difference between the economic and social status of North and South.
Dependent on large imports of raw materials to maintain its industry and small
imports of food to supplement its domestic supply, Italy has normally paid a good part
of the bill by the export of manufactured goods and agricultural products. The dif-
ference was made up - or largely SO - by the income from a flourishing tourist trade,
the earnings of a large merchant fleet, and the remittance of Italian emigrants. This
delicate balance has been at least temporarily destroyed by the loss of tourists and of
merchant marine, and by the reduced productivity of factory and farm.
The two decades of Fascism gave proof of the impossibility of Italy's providing for
even a modest standard of living without imports from abroad. Indeed, if the standard
of living is to be raised, the orientation of productive activities will have to be in the
direction of favoring the economic activities to which the resources and the people are
best suited.
An aftermath of the world depression was the acquisition by the Fascist Govern-
ment of the industrial holdings of certain large banks which were threatened with bank-
ruptcy. To handle these investments the Institute for Industrial Reconstruction (IRI)
was set up. The organization was retained beyond the depression to finance the devel-
opment of uneconomic industries built to support the Fascist self-sufficiency campaign.
Eventually it came to own one-half of Italian heavy industry. The Italian Government
retains these large financial interests, but exerts no real control over the administration
of the industries it backs. The ultimate disposition of the IRI holdings has yet to be
decided: whether they are to be the basis of an extensive program of nationalization or
whether they are to be entirely liquidated.
II-1
SECRET
Page data
- Page
- 21
- Source index
- 0
- Type
- photo
- Media ID
- 044654e3f0c570fd
- Size
- unknown
Document data
- ID
- 486499771
- Core
- doc
- Type
- document
DTO data
{
"id": "486499771",
"sourceUrl": "https://catalog.archives.gov/id/486499771",
"contentType": "document",
"title": "Report, Central Intelligence Agency, Italy, Situation Report 15",
"citationUrl": "https://catalog.archives.gov/id/486499771",
"collections": [
"President's Secretary's Files (Truman Administration)",
"Intelligence Files"
],
"iiifBase": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"thumbnailUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"largeImageUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"imageCount": 78,
"hasImages": true,
"source": "import",
"hasTranscription": false
}
Context sent to Scholar
Document identity
{
"localId": "486499771",
"label": "Report, Central Intelligence Agency, Italy, Situation Report 15",
"core": "doc",
"dtoType": "document",
"citationUrl": "https://catalog.archives.gov/id/486499771"
}
Document source metadata
{
"id": "486499771",
"sourceUrl": "https://catalog.archives.gov/id/486499771",
"contentType": "document",
"title": "Report, Central Intelligence Agency, Italy, Situation Report 15",
"citationUrl": "https://catalog.archives.gov/id/486499771",
"collections": [
"President's Secretary's Files (Truman Administration)",
"Intelligence Files"
],
"iiifBase": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"thumbnailUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"largeImageUrl": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-001.tif",
"imageCount": 78,
"hasImages": true,
"source": "import",
"hasTranscription": false
}
Document source extras
{
"url": "https://catalog.archives.gov/id/486499771",
"naId": 486499771,
"levelOfDescription": "item",
"productionDates": [
{
"logicalDate": "1948-01-01",
"month": 1,
"year": 1948
}
],
"recordType": "description",
"ocrSource": "nara-archive"
}
Page context
{
"seq": 21,
"pageIndex": 0,
"type": "photo",
"url": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875504/875504-02-021.tif",
"mediaId": "044654e3f0c570fd",
"ocrText": "SECRET\nSECTION II\nECONOMIC SITUATION\n1.\nGENESIS OF THE PRESENT ECONOMIC SYSTEM.\nAlthough industry has become increasingly important since the beginning of the\ncentury, about half of the Italian people still depend on agriculture for a livelihood not\nSO much from personal inclination as from lack of alternative employment oppor-\ntunities. Because Italy possesses few of the natural resources essential to modern in-\ndustrial development, industry provides employment for only about one-third of the\nworking population. Even at this rate, industry contributes as much as agriculture to\nthe national income.\nLand, rather than labor, is the limiting factor of agricultural production. Efforts\nhave been made to increase the productivity of the soil, but only in the Po Valley have\nthe measures been extensive enough to raise the level of production to that prevailing in\nNorthern Europe. The South has become known as the agricultural region of Italy not\nSO much for the richness of its land as for the almost complete absence of industry. The\nwartime destruction of land and buildings in southern Italy has made even more pro-\nnounced the difference between the economic and social status of North and South.\nDependent on large imports of raw materials to maintain its industry and small\nimports of food to supplement its domestic supply, Italy has normally paid a good part\nof the bill by the export of manufactured goods and agricultural products. The dif-\nference was made up - or largely SO - by the income from a flourishing tourist trade,\nthe earnings of a large merchant fleet, and the remittance of Italian emigrants. This\ndelicate balance has been at least temporarily destroyed by the loss of tourists and of\nmerchant marine, and by the reduced productivity of factory and farm.\nThe two decades of Fascism gave proof of the impossibility of Italy's providing for\neven a modest standard of living without imports from abroad. Indeed, if the standard\nof living is to be raised, the orientation of productive activities will have to be in the\ndirection of favoring the economic activities to which the resources and the people are\nbest suited.\nAn aftermath of the world depression was the acquisition by the Fascist Govern-\nment of the industrial holdings of certain large banks which were threatened with bank-\nruptcy. To handle these investments the Institute for Industrial Reconstruction (IRI)\nwas set up. The organization was retained beyond the depression to finance the devel-\nopment of uneconomic industries built to support the Fascist self-sufficiency campaign.\nEventually it came to own one-half of Italian heavy industry. The Italian Government\nretains these large financial interests, but exerts no real control over the administration\nof the industries it backs. The ultimate disposition of the IRI holdings has yet to be\ndecided: whether they are to be the basis of an extensive program of nationalization or\nwhether they are to be entirely liquidated.\nII-1\nSECRET"
}