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Italy

’s Economic Struggles Essay, Research Paper

Italy?s Economic Struggles

In the time period between 1700 to 1900 Italy?s economic situation was greatly effected by it?s disunity and it?s distribution among the many countries of Europe. Previous to 1860, Italy was not united, it was divided into separate city-states, or controlled by a foreign power. One of these being Spain, who had undergone a disastrous decline in it?s economy, leading to a decrease in Italy?s as well. In 1815, with the Congress of Vienna, Italy was reorganized and the disunity and separation became more severe. It was because of this disunity that Italy experienced a financial failure. With out territorial unity, Italy could not construct economic stability. Distracted by the hope and dream of a unified Italy, Italians focused on their political position rather than their economic situation . Although the Industrial Revolution began in the late 1700?s Italy remained predominately agricultural and unindustrialized up into the late 1800?s. This greatly affected Italy because agriculture encountered a fall in prices among foreign markets. In 1878 with the abolition of the Free Trade System and the introduction of tariffs, Italy was able to expand it?s industry largely (8% a year). But even with the close of the nineteenth century, a century since the start of the Industrial Revolution, three out of four Italians depended on the production of cereal, olives, vines, fruit, sheep or some other means of agriculture to survive. While the majority of the rest of Europe was controlled by it?s industry, Italy remained under the poverty of farming. With economic hardship rising a vast amount of Italians (19%), essentially being from the small land owning classes, migrated to other countries with economic stability and prosperity. With the separation of Italy also came a separation in the regions of Northern and Southern Italy. The North, having been under the rule of the French and other economically advanced countries, had a base in Industry. The North was in constant contact with the rest of Europe and became known as a part of the “inner zone” of Europe The South however, retained it?s agriculturally based economy and also it?s position in the “outer zone” of Europe. The wealthier North gaining all the benefits of industrialization and the impoverish South beset by the downfall of agriculture in an industrialized world. Thus the gap between these two regions, and also the social classes, grew seemingly larger as the 19th century concluded. But although Italy began to see industrial prosperity with it?s unification, agriculture still provided employment to half of Italy?s population. The Industrial market was not large enough, yet, to provide for the countless numbers of jobs in demand. This shortage of jobs led many families to seek employment in other countries. These persons would leave for an average of 5 months to harvest wheat that was being produced in Argentina, this allowed these families to survive with out being permanently uprooted from Italy. But despite these tactics to remain in Italy, by 1900 two out of every three immigrants were Italian. This new nation faced many serious financial problems. Italy had amounted a large amount of debt and still remained firmly established in agriculture, with few resources. It wasn?t until the first World War that Italy was able to emerge as a predominant figure in the European World. With it?s unity, Italy began it?s ascend to the 5th world power in the world today