Fascist Italian Corporatism

1. Fascist Italian Corporatism Corporatism in Fascist Italy

4. censorship & gov’t control of news Strong military Extreme nationalism Fascism Use of fear and violence State control of economy Blind loyalty to a leader Secret police Rule by dictator

5. Overview • The Fascist regime created a corporatist economic system in 1925, in which the Italian employers’ association and Fascist trade unions agreed to recognize each other as the sole representatives of Italy’s employers and employees. The Fascist regime created a Ministry of Corporations that organized the Italian economy into 22 sectoral corporations, banned workers’ strikes and lock-outs, and in 1927 created the Charter of Labour, which established workers’ rights and duties and created labour tribunals to arbitrate employer-employee disputes. In practice, the employee organizations were rarely led by employees themselves but instead by appointed Fascist party members.

6. Fascism is therefore opposed to Socialism to which unity within the State (which amalgamates classes into a single economic and ethical reality) is unknown, and which sees in history nothing but the class struggle. Fascism is likewise opposed to trade unionism as a class weapon. But when brought within the orbit of the State, Fascism recognises the real needs which gave rise to socialism and trade-unionism, giving them due weight in the guild or corporative system in which divergent interests are coordinated and harmonised in the unity of the State. Extract from The Doctrine of Fascism. 1932. Giovanni Gentile and Benito Mussolini. p. 15.

7. Mussolini early on claimed to be planning on a corporatist state in Italy that would underpin Fascist rule and demonstrate its superiority to the rest of the world. • This was a 'prestige' piece of Fascist ideology, but did it work?

8. What it corporatism? • The basic idea of corporatism is that the society and economy of a country should be organized into major interest groups (sometimes called corporations) and representatives of those interest groups settle any problems through negotiation and joint agreement. • In contrast to a market economy which operates through competition, a corporate economy works through collective bargaining. Unlike a communist system, the aim is to keep the element of profit to encourage industries to grow and prosper.

9. Simply put, • Corporatism is the theory of organizing society into corporations subordinate to the state. – • The fascist theory includes the management of sectors of the economy by private and government controlled corporations. • Employers and workers are placed into professional and industrial corporations which serves as an organ of political representation. – • Most of the person’s activities within their jurisdiction is controlled

10. Mussolini's 'Third Way'The early years.. • Early on in his rule Mussolini followed traditional 'laissez-faire' economic policies- he reduced taxation, cut public spending, removed regulation and limited government interference in the economy. • However, after 1925, there were disagreements with Stefani, his finance minister and replaced him with Count Volpi. • This heralded a shift in economic policy with the aim of bringing it more in line with fascist thinking- the emergence of the corporatist state.

11. The new structure • Each industrial sector was to form workers and employers syndicates, which were to be organised and coordinated by the government. • These syndicates where to be a complex network set up at local, provincial and national level. At the top would a National Council of Corporations.

12. Within the Corporate State • - Fascists were in control and gave orders to negotiating • sides. • - Trade unions and strikes were banned. • - Every industry and profession had its own corporation. • - Problems were solved through negotiation. • - Main goal was to stop the conflict between the workers • and employers. • - Living standards remained low.

13. What Mussolini Was Trying to Achieve Through a Corporate State • ➔ Economy, or the production of goods, would be organized by corporations in which both worker and owner would be represented • ➔ Industrial sectors were to form worker and owner syndicates, coordinated by the government • ➔ The corporations were to be state bodies to ensure that the interests of the state were prioritized • ➔ The corporations would set plans for production, stimulate enterprise, encourage the production of wealth, get rid of the conflict between the working and the management and stimulate enterprise • ➔ This was exactly what Italy needed after WWI

14. Each corporation would organise and agree production, pay and working conditions in its own industry, with both sides working together as equals to reach agreement. • If they could not agree, then they would take it to a labour court, administered by the new Ministry of Corporations, where the dispute would be sorted out quickly and amicably....

15. Also, • Corporate state was also a great use of propaganda for the Fascist Regime in the eyes of Mussolini • ◆ Presented the perfect middle between the failure of capitalism and the strict economy of communism • ➔ Wanted to give Fascist ideology a way to stand out in the crowd • ➔ Mussolini continued wanting a favorable image of him and the Fascist party to stay in circulation • ➔ Wanted a vibrant and model state of Italy

16. What really happened • It ended up never being a partnership between the worker and the owners • ◆ Most important economic decisions were made without even contact to these two parties • ➔ Fascist syndicates broke the power of the catholic and socialist trade unions; leaving the syndicates as the protector of the workers • ➔ 1926 Alfredo Rocco provides the sole ideology for the laws regulating labor relations • ◆ Declared only state recognized bodies could negotiate labor relations and in each area of production there would be 1 body recognized • ◆ Regulated the power of the worker syndicates • ◆ Did not require the owners to form their own corporations • ➔ Only role of the corporate states for 8 years was to discuss labor rights and payments • ◆ Did not involve the corporation of the workers, only state appointed officers

17. Worker syndicates ended up being extremely separated into 6 different district parts instead of one large group • ➔ Which proved to be incapable of defending the interests of the members • ◆ Especially during hard economic times • ➔ Bottai, the minister of the Ministry of Corporations, scared the employers by implementing the Charter of Labour, which defended workers rights • ◆ But this was only on paper it never did anything • ➔ 1930 the National Council of Corporations was set up with 7 sections across the economy • ◆ Seemed it was intended to have national planning role • ➔ 1934 final structure of 22 corporations was in existence • ➔ Mussolini speaks proudly of it all

18. For the corporate state ● Mussolini - was the one to implement it, believed it would eliminate labour problems and would create an efficiently functioning economy ● Employers - it reassured those who feared they were about to lose control of their factories ● Government - since they were allowed to intervene in the economy much more than other (democratic) countries during this time

19. Against the corporate state ● Syndicalist fascists (Edmondo Rossoni) - people like him believed the new corporations would control the factories and define economic policy ● Many industrialist were unsure of the corporate state and they were given no assurance

20. Debate • The corporate state was created with the intentions that the economy (the production of goods and services) would be organized by corporations in which both employers and workers are represented. These corporations would bring about good labor relations, provide rational plans for production, stimulate enterprise and generally encourage the production of wealth in a setting free from traditional class conflicts between labor and management. To some people the corporate state was very successful. Such as small businesses (little shops). Small peasants were also unaffected by state planning. However this corporate system worked ineffectively and often stifled economic activity. Hence why many were not fond of it.

21. How successful was the new Corporatist State? • In simple terms, not very. • It required a massive bureaucracy which tended to favour the employers. Any sense of equality was an illusion • The workers were disillusioned- they could not chose their representatives instead being allocated Fascist officials who were not interested in furthering workers rights. • Industrialists were allowed to keep their own non fascist employers organisations and largely ignored Fascist corporations.

22. How successful was the new Corporatist State? • There was massive corruption and inefficiency within the bureaucracy with little of the money intended for economic development actually reaching where it was needed. • The power of the Corporations was an illusion. As their regulations were usually only advisory, this meant that often employers ignored them and were able to maintain thier power and independence.  • As one historian described it as ' an elaborate piece of imposing humbug'

23. How successful was Mussolini's 'Third Way'?Corporatism in Fascist Italy • 1925- The Vidoni Palace Pact- agreement that the Confidustria would only negotiate with Fascist Trade Unions, represented by officials from the Fascist Labour Corporations. • 1927- The Carta Del Lavoro (Labour Charter)- set out the rights of the workers, confirmed the authority of the syndicates and emphasised the continued state support for the capitalist system and the of superiority of private over public ownership. It also included provision for social insurance to cover sickness, injury and unemployment

24. Timeline- • 1923- Palazzo Chigi Pact- agreed between the Confidustria, the employers Confederation of Industry and the Confederation of Fascist Corporations that represented the workers. This set up a Commission to oversee the establishment of the Corporate State • 1926- Syndicalist Law- bans strikes and lock outs and set up 16 Syndicates of employers and workers that covered every industry and profession. Each syndicate was controlled by Fascist appointed officials and controlled by the Ministry of Corporations which had the power to draw up contracts ,fix wages and settle disputes.

25. Timeline- • 1928- Confederation of Fascist Trade Unions split into six smaller federations and brought tightly under the control of Fascist officials1930- National Council of Corporations set up with responsibility for economic policy decision and to give advice on economic issues.1934- The Law on the Formation and functions of Corporations- revised the structure to 22 Corporations, each given power to fix salary scales for its employees and also prices for the consumer, subject to approval by the NCC.

26. 1939- Law on Creating the Chamber of Fasces and Corporations. Replaced the Chamber of Deputies with this new body, whose members were to be drawn from the National Council of the National Fascist Party- an end to the last vestiges of democracy.It did however do one thing- it achieved Mussolini's aim of strengthening his own dictatorship and ensured that industrialists were supportive of him by giving them the power over their workers.

27. “Incoherent in concept and unworkable in practice” • It failed to fully stimulate the Italian economy which was the model’s main goal • ▪ The corporate state stifled economic activity, as it protected large existing firms, but because of licenses and investment controls, it prevented the expansion of smaller firms. It also failed to follow one of the model’s basic guidelines • ▪ There was never a partnership between the worker and the owners, as most important economic decisions were made without even contact to these two parties. Workers found themselves unrepresented and unsupported • ▪ Worker syndicates ended up being separated into 6 different parts instead of one large group, which proved to be incapable of defending the interests of the members. ⬞ Workers rights were also unsupported with the Charter of Labour, as it didn’t really do anything at all

28. Mussolini’s failed corporate state, cont’d Mussolini had created this model in part to settle social differences and eliminate civil unrest, as he believed that both capitalist and communist approaches to economic strategy caused it. This clearly did not work: • ▪ Too many Italians were bitterly opposed to Mussolini, and were not going to work hard to ensure him success. • ▪ Italians had not forgotten about Matteotti, the socialist leader kidnapped and murdered by the Blackshirts, or the beatings-up so many of them had received on the street. • Socialists bitterly resented losing their trade unions; the south of Italy still resented the wealth concentrated in the North; in short - Mussolini was not popular enough in Italy, and this was one reason his scheme collapsed.