Southern Italy - Economy

Economy

Starting from the Unification of Italy in 1861-1870 a growing economic divide between the northern provinces and the southern half of Italy became evident. In the early decades of the new kingdom, the lack of effective land reform, heavy taxes, and other economic measures imposed on the South, along with the removal of protectionist tariffs on agricultural goods imposed to boost northern industry, made the situation nearly impossible for many tenant farmers, small businesses and land owners. Multitudes chose to emigrate rather than try to eke out a meagre living, especially from 1892 to 1921. In addition, the surge of brigandage and mafia provoked widespread violence, corruption and illegality. Prime Minister Giovanni Giolitti once conceded that places existed "where the law does not operate at all".

After the rise of Benito Mussolini, the "Iron Prefect" Cesare Mori tried to defeat the already powerful criminal organizations flowering in the South with some degree of success. However, when connections between mafia and the Fascists emerged, Mori was removed and the Fascist propaganda declared the mafia defeated. Economically, Fascist policy aimed at the creation of an Italian Empire and Southern Italian ports were strategic for all commerce towards the colonies. Naples enjoyed a demographic and economic rebirth mainly due to the interest of the King Victor Emmanuel III who was born there.

Starting from the 1950s, the Cassa per il Mezzogiorno was set up as a huge public master plan to help industrialising the South, that aimed to do this in two ways: by land reforms creating 120,000 new small farms, and through the "Growth Pole Strategy" whereby 60% of all government investment would go to the South, thus boosting the Southern economy by attracting new capital, stimulating local firms, and providing employment. However, the objectives were largely missed, and a result the South became increasingly subsidised and state dependent, incapable of generating private growth itself. Presently huge regional disparities still persist. Southern Italy continues to be poor and underdeveloped. Problems still include widespread political corruption, pervasive organised crime (except Sardinia) and very high unemployment rates.