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Contemporary History
1. CL4 English Language
and Culture for Business
Module IV B1
Contemporary Italian History
Dr. Peter Cullen
www.cl4englishlistening.wordpress.com
2. Memory and History: Perception
and Methodology
What is history?
The study of the past
Contextualisation of social structures,
systems and events
Access to cultural understanding
An internalisation of the concept of time
3. Memory and History: Perception
and Methodology
Why do we want to know about history?
curiosity
explanation about the present
prediction about the future
Common perceptions: a) history repeats itself
b) we can learn from history
to avoid making mistakes
made in the past
WRONG!!!
4. Memory and History: Perception
and Methodology
Historical knowledge must respect historical contexts.
Historical knowledge is also culturally informed.
CONTEXT AND CULTURAL VALUE CHANGE OVER TIME
(Remember Bourdieu!!!)
So, historical knowledge CAN help us understand
periods in the past and understand context and
situations in the present, but CANNOT obviate
mistakes or predict the future.
How CAN we trust what we learn about history?
5. Memory and History: Perception
and Methodology
What is historical thought?
David Hacket-Fischer, Historian’s Fallacies: Toward a
Logic of Historical Thought (New York, Harper &
Row, 1970)
“History is a problem-solving discipline. A historian
is someone (anyone) who asks an open-ended
question about past events and answers it with
selected facts which are arranged in the form of an
explanatory paradigm”. (p. xv)
6. Memory and History: Perception
and Methodology
How do we know about historical “facts”?
It depends on the questions we ask, where we look to
answer those questions and the logical criteria we
apply to the information we find to create an
explanation.
What questions can we ask?
This depends on what we want/need to know and
the CATEGORIES we apply to our questions.
Categories of inquiry are based on culturally informed
concepts of time, place, and significance.
7. Memory and History: Perception
and Methodology
For example:
North American students learn about:
1) Mesopotamia
2) Ancient Egypt
3) Ancient Greece
4) The Roman Empire
5) Medieval England, Germany, France and Crusades
6) Renaissance Italy
De de
De de
of
Enlightenment courts
of
7)
ve mo
ve mo
8) The British and French Empires
lo cr
lo cr
pm a
pm ac
9) The French Revolution
Industrialisation
en y
en y
10)
WWI – USA, UK, Germany, France
t
t
c
11)
12) WWII – USA, UK, Germany, Japan
13) A bit about pre WWII Soviet Russia and then the Cold
War
8. Memory and History: Perception
and Methodology
What makes a good story?
Authority of the story teller.
Relevance of the story to the audience.
Significance of the events of the story.
Credibility of the story.
History and its telling are no different.
9. Memory and History: Perception
and Methodology
Teaching history fills a need in the knowledge market.
Who identifies the need?
Who do you trust for the information?
a) the professional historian
b) journalists and celebrities
c) politicians
d) mum, dad, granny and grandpa
Who tells you the story you want to hear?
Why do you trust them?
common analytical framework
personal relationships
coercion and/or availability
others?
10. Memory and History: Perception
and Methodology
How do you know which story you want to hear?
1) Depends on the person who tells it.
2) Depends your personal interest and imagination.
3) Depends on the utility of the story to your context.
Is there an obbligation to provide the audience with the best
possible story – therefore the best possible historical
account?
Social utility of history: understanding or manipulating, or
something else?
Relevant to what? Propaganda, current affairs, cultural
understanding, family history, macro and micro economic
history.
History helps explain the way agents in society have behaved
in the past.
11. Memory and History: Perception
and Methodology
Relevance, significance and memory
Relevance – utility to the audience
Significance – importance of the story to any other
given context
Memory – mental record of events, contexts, historical
situations that selects relevent and significant
historical information.
a) memory of historical information
b) significance of memory of historical information
Memory is part of any learning process. What
information from the “contemporary” period is
important to keep in memory?
12. Memory and History: Perception
and Methodology
Whose memory?
Individual memory
Collective memory
Public memory
Private Memory
Memory, as part of the learning process, is culturally
informed. Culture is necessarily dynamic, so the
“knowledge market” changes.
i.e. – Today English is a global language because of business;
in the 18° century, French was – because of politics;
in the medieval period, Latin was, because of the
Church.
13. Memory and History: Perception
and Methodology
Do all generations have the same needs for memory?
Can we identify the relevance of memory from
generation to generation?
i.e. What are the memories of post-war Italy?
What are the memories of post-war Britain?
What about the United States?
Is there a change in the convergence of relevance and
significance in Italian collective memory today?
If so – why?
14. Memory and History: Perception
and Methodology
Credibility – a mixture of logic and authority
How can historical fact be manipulated?
Inclusion, omission, moralising,imposition or cry to
authority.
How can historical fact be confirmed?
Transparent demonstration of the logic applied to the inquiry
and presentation of the facts.
i.e. Robert Boyle (1627-1691) proposed that the pressure of a
gas varies inversely to its volume at constant temperature
– known as Boyle’s law. This became accepted as he
became socially accepted in the Royal Academy in England.
i.e.2 Galileo
15. Memory and History: Perception
and Methodology
Where do we get information about the past?
Sources: Primary – produced during the period
studied
Secondary – produced after the period
studied but about the period
studied
Written documents
Visual documents
Architechture
Geology and natural science
Oral history
16. Memory and History: Perception
and Methodology
Why is historical knowledge important for business?
Concepts of time: short-term, medium-term, long-term
were developed in western tradition
in the field of economic history
(Kondratieff, “The long waves
of economic life”, 1935; Braudel,
The Mediterranean... 1947)
Economics (macro and micro) is a form of behaviour based on
cultural learning – which has its own cycles, convergences,
events and conjunctures over time.
Historical knowledge helps contextualise and explain this in a
way we can understand in the present.
17. Memory and History: Perception
and Methodology
Why is this knowledge important for business?
Businesses are social structures
Business involves culturally informed behaviour
Business involves change over time
Business may involve international/intercultural
exchange
what else?
History IS NOT predictive
Historical knowledge informs our understanding of
the present.
18. Memory and History: Perception
and Methodology
Memory and history: Who, What, Where, When, Why?
How? and WATCH OUT!!!
Being critical of the story you are hearing.
Understand the author.
Understand the events, situations and contexts
presented.
Understand the relevance and significance of the story
to you, the audience (or consumer) and the author
(or producer).
Understand the presentation logic of the story.
The business of culture has its own logic and cycles.
!!!Think critically!!!
38. Italy in WWI
Entered in 1915 after pressure from UK and France
Motive – to capture or receive Trento, Trieste, and
Istria, Dalmatia, and some territories in Turkey
(promised by UK and France)
They fought against the Austro-Hungarians in the
Alps
Consequences:
600,000 killed
Post-war economic collapse with high inflation and
unemployment
Italy only received Trento, Trieste, and Istria –
considered a “mutilated victory”
39. The Italian Campaign – Fighting in
the Alps
Altitude
Temperature
Terrain
Semi-Permanent winter war
Little movement – intense
labour
43. Fascism
1921, Bourgeois socialist movement
without ties to industry or agriculture
prone to violent conflict with radical socialists
1921 – Mussolini’s attempt to make
a pact with the socialists fails (internally)
The March on Rome 26-30/10/1922 – Fascists under
Mussolini take control
prompted by weak central government under Luigi
Facta and a general strike called by the socialists –
Mussolini seizes the moment for Fascist squads to
break the strike
Vittorio Emmanuele “invites” the Fascists to Rome by
refusing to sign a decree supressing their “march” by
force
(this receives support from England and the US as an anti-
communist solution. The New York Times called Mussolini
“Garibaldi in a Black Shirt”)
44. Facsism and the Economy 1922-
1943
Monetary policy is orthodox – based on gold standard and tending
to increase liquidity = creates inflation
Fiscal policy 1° emphasises balanced budget then increases public
spending as central authority increases
The Fascist govt. Must repay war debt to US and UK and reached a
repayment accord in 1925 of nominal favour but relative severity
(until which no FDI)
April, 1926 – the Lira tanks but Mussolini is able to scale back
prices and wages – without great difficulty. Benefits of
dictatorship
1927-28 = relative currency stability but industry is fragmented
and artisanal:
and the 1929 Stock Market Crash
Hits gold standard economies hard
Mussolini – like the US etc. Manages to save the economy through
public spending (war in Ethiopia) and economic development
projects
More money printed = inflation = 10/1936 Italy abandons the gold
standard
Price and wage discipline keeps the economy afloat internally
WWII allows massive public spending (also on industrial goods)
45. Wages in the Fascist Period
WAGES (index 1913 = 100 at constant prices)
total
private
consumption IV cat . XII cat.
cat.
per capita day labour factories rail state emp.
emp. state emp.
________________________________________________________________
1923 115 129 133 145 67 94
1925 116 113 126 135 75 80
1927 118 123 125 140 75 78
1929 122 130 110 155 85 80
1931 114 132 110 162 109 95
1934 115 135 119 160 114 106
1936 112 125 105 158 103 99
1938 120 120 106 153 100 95
1941 111 nd nd nd 86 95
46. Fascism and Foreign Affairs
Fascism had significant support in the UK and the US as a
way of bringing order to fragmented post-WWI Italian
politics and economy
(until 1929)
Mussolini wanted German guarantee of Italian border with
Austria and signed the Kellog-Briand Pact (1928) of non-
agression in Europe – hinted at war with France over
borders as long as Austria remained a buffer with Germany
Mussolini held UK in high regard, initially. Churchill called
him “the greatest legislator alive” after a visit in 1927.
Italy’s foreign policy was to be “the weight that tips the
balance” (Foreign Minister Grandi – 1931)
1935 war with Ethiopia was a way to leave the “gold block”
and excercise direct govt. control over trade through
ministerial licences
47. Fascism and Foreign Affairs – Build
up to War
1932 – Mussolini assumes personal control over the
Ministry of Foreign Affairs
1933 – he pushes for a “Pact of Four” between UK, France,
Italy and Germany – taking for granted Grandi’s “weight
that tips...” policy without having the real economic or
military weight needed. Only UK signs
1934 – after a Nazi coup attempt in Vienna – Mussolini
mobilised 4 divisions on the north-east border to thwart
German expansion
5/10/1935 – Italian troops enter Ethiopia – upsetting
African colonial powers. UK sends the fleet and Mussolini
sends 3 divisions to the border with Egypt. Diplomatically
resolved – Italy is allowed use of the Suez – but economic
sanctions are imposed by the League of Nations on exports
and oil/weapons imports
1936 – Mussolini sends 60,000 troops to Spain to support
Franco
48. Fascism and the Build-up to War –
Relations with Germany
1936 – Mussolini cedes the Foreign Ministry to Galeazzo Ciano
The Spanish Civil War is a meeting point for Hitler and Mussolini
24° Oct. 1936 – Ciano and his counterpart Neurath form the Rome-
Berlin axis to counter bolshevism – inviting all European countries
to participate – this indicates a return to German influence in the
East
1938 – Anschluss with Austria must be accepted
Hitler guarantees Italian influence in the Med.
to cover the southern theatre in case of war with
UK and France
German ministers court Italy in 1937-38
1937 status quo in Med = Gentlemen’s agreement
with the UK
29/09/1938 Munich meeting – Hitler states his confidence that
Italy will stay by Germany in any eventuality – Mussolini attempts
neutrality on Sudetenland
22/05/1939 – Italy and Germany sign the Pact of Steel, binding
military alliance – Vittorio Emanuele III is not consulted
49. Italy in the Mediterranean: WWII
09/1939 – Ciano forwards to Hitler logistical reasons
Italy cannot enter the war
The Mediterranean secures logistics for land war in
the surrounding theatres. Italy’s primary objective
was to resolve border disputes with France
1940 – Italy enters the war on June 10 1940 –
sending troops to France
(guaranteeing a place at peace talks and assuaging
German reprisal for non-intervention)
June 11 Italy lays naval siege to the port of Malta
(under British Control) this was a naval and air battle
To support the Italian Air effort, and German advance
in North Africa – the Luftwaffe sent a bomber wing to
Sicily
UK reinforces by aircraft carrier and by 1942
defended the island with modern Spitfire aircraft –
Gibraltar and Suez are in British hands
Malta later offered air cover for shipping and the
amphibious invasion of Sicily
50. Italy in the Mediterranean: Invasion
July 9 1943 –US 7° army and British 8° army invade Sicily
Idea was to take Sicily for strategic bombing and pressure
Mussolini’s hold on the country
Sicily would act as a staging ground for land invasion of the
peninsula – but this was planned only after the invasion of
Sicily. (9/9/1943 – Salerno; 22/01/1944 – Anzio)
24-25 July, ’43 – The General Council (with Grandi and
Ciano) vote to limit Mussolini’s power – 25/07 Vittorio
Emanuele nominates Pietro Badoglio as President of the
Council – VE takes command of the Army and has the
Carabinieri arrest Mussolini – 8/09/1943 – Badoglio signed
an armistice with the allies AFTER VE had promised Hitler
that Italy would not abandon the Axis – Hitler turns his
troops against the Italian army and occupies the peninsula
as far south as Naples
The Italian campaign was primarily fought between
Germans and Allies, with Italy decending into civil war –
Stalin offers support to Italian communist partisans but
forbids “revolution” so as not to upset his allies – rather,
he supports “ a long slow march towards the institutions”
53. The Bretton Woods Agreement
July 1944. This was the first fully negotiated monetary order
intended to govern monetary relations among independent
nation-states.
Obligation for each country to adopt a monetary policy that
maintained its currency exchange value at +- 1% of the
value of gold.
Fixes the US dollar as a reserve currency –”pegged” to gold.
This is an adaptation of the pre-WWI gold standard
Effectively tranfers global financial power to the US
Set up the International Bank for Reconstruction and
Development (now part of the World Bank System)
and the International Monetary Fund (operational after 1946)
The IMF would cover temporary imbalances
54. Bretton Woods
The system had its origins among people who thought that
economic discrimination and trade warfare were primarily
responsible for WWII
i.e. The trade and exchange controls systems of Nazi Germany
AND
British Imperial preferential treatment in trade.
This is probably true.
Keynesian economics asserts the need for government
intervention in the economy = putting a leash on the old
economic oligarchies.
This creates a system of exchangeable currencies that
promotes free trade = with substantial positive results for
the US economy, politics and belief system
55. Export Growth 1820-1992
Export Volume Index
(1913 = 100)
Territory
1820 1870 1913 1950 1992
UK 3 31 100 100 494
Germany 4 18 100 35 1071
France 4 31 100 149 2090
Italy 7 39 100 126 3853
Russia - - 100 97 612
USA 1 13 100 225 2350
Japan - 3 100 210 17,784
World 3 24 100 128 1602
56. Average Annual Growth
1820-1870 1870-1913 1913-1950 1950-1992
UK 4.6 2.7 0.0 3.8
Germany 3.0 3.8 -1.3 8.1
France 3.9 2.7 1.1 6.3
Italy 3.4 2.1 0.6 8.1
Russia - - -0.1 4.3
USA 5.1 4.7 2.2 5.6
Japan - 8.1 2.0 10.6
World 4.2 3.3 0.7 6.0
60. ERP
Developed by Sec. of State
George Marshall
Active July 1947 – July 1951
13 billion USD in economic and
technical assitance to countries
joining the EECo-op group
Offered to Soviets – rejected
as Dollar Imperialism
Proposed by Joint Chiefs of Staff to contain
communism
61. Agricultural Production 1861-
1950 production based on
The South: Latifundia – agricultural
large, extensive land ownership worked by day labourers
and employees/bondsmen who owed loyalty to the
landowner. Labourers lived in agro-towns. Clientage
relationships dominate.
Latifundia Reform 1882-1890 parcel out land to
small holders/day labourers
Pre-mechanical grain economy = low productivity
high birth rates
complemented by sheep
seasonal productivity
1861-1907: labourer salaries reduced due to presence of
grain threshers
1882-1890 reforms failed because large landowners were
too influential in government: 1.5 million Sicilians
emigrated to US, Canada, S. America between 1876 and
1925.
62. Agricultural Production 1861-
1950
The Centre and North: Largely seft-sufficient markets
based on mixed cultivation produced in the mezzadria
system – peasant family leases the podere from the
landlord (1 year renewable) and pays rent in kind at a rate
of 50% of harvests.
Small-medium farms
family operated
5-6 people per family
Mixed agriculture = intense labour and high yield/hectare
Centre and North have access to oxen = smaller units can
work more land.
North/South divide – in Southern Europe raising 1 ox
requires +- 10-12 hectares. In northern Europe only 2-3
hectares needed.
64. The 1950 Land Reform
700,000 hectares taken from
2805 large landowners
and assigned to
109,000 families
(of small landholders
and landless peasants)
1950-1975 = % drop in:
Poderi 22.4
Quote 14.3
Lotti 25.6
66. Population Resident by Class of
Demographic Concentration
Demographic class
(urban concentration in %)
1931 1936 1951 1961 1971 1981 1991
< 20,000 64.3 63.0 58.7 53.0 47.6 46.6 47.4
20,000-
250,000 23.5 23.8 25.0 27.7 31.7 33.9 35.3
>250,000 12.2 13.2 16.3 19.3 20.7 19.5 17.3
Total 100 100 100 100 100 100 100
67. Poor but Beautiful
Sofia Loren teaches Italian working class women to be
beautiful.
Sofia Villani Scicolone (Rome: 1934)
(“L’oro di Napoli” – 1954 by De Sica)
little make-up
authentic
accessible
=?
69. The Economic Miracle 1950-
1975
Transportation revolution: the FIAT 500
allowed commuting in rural/provincial areas
inexpensive
reliable
efficient
Transportation revolution: the Piaggio Vespa
individual transport
An urban solution
77. The Convertability Crisis
The period 1958-1968 put increasing strains on US
balance of payments as Europe recovered and war in
asia “heated up”
By 1969 – the Cold War and the war in Vietnam created
incredible financial pressure on the US
1971 – Richard Nixon took the US dollar off the Bretton
Woods convertablity plan, pegging the US dollar to
GDP growth.
This is solidifies modern dynamics of politics based on
energy policy.
78. 1968-2007 The From Industry to
Services
The “Anni di Piombo” – political parties must manage a
politicised youth.
Italy: the population, like in the UK, US, France and
Germany – is young and becoming university
educated.
There is much tension between extreme right and
extreme left groups.
Economic growth is fast – prompting youth to push for
faster social change
Violence was used by both Left and Right wing groups –
with corrupt government officials tending to support
the Right
79. Extremism 1968-1987
1960’s the Italian Socialist Party is formally recognised in
Parliament and immediately contrasts the traditional
Democratic Christian Party (DC)
Feb. 1968 – the Tet offensive spurs radical communism
among youth
translating into a vehement political need for improving
the standards of factory workers in Europe and Italy.
PCI influenced groups radicalise (mainly youth) and form
splinter extra-parlimentary groups: Lotta Continua, Potere
operaio, Avanguardia operaia – workers rights become the
cause of the student generation
By 1970 the istituzione delle regioni confer political power to
new regional governments
AUTUNNO CALDO – Fall 1969 “New Left” members occupy the
FIAT factory in Milan
80. Extremism 1968-1987
December 1969 – 4 bombs struck the Altare della
Patria and the Banca Nazionale del Lavoro in Rome,
and the Banca Commerciale and Banca Nazionale
dell’Agricola in Milan.
The police arrested 4000 left wing extremists and
party associates – causing hot protest among
students
One of the young people arrested – anarchist
Giuseppe Pinelli “fell” out of a window while in
prison and died. Lotta Continua accused police officer
Luigi Calabresi of murdering him.
Lotta Continua accused extreme right wing groups of
the bombings and using support within the police
forces to blame the Left – court procedings in the
1980’s proved them right.
December 1970 – Junio Valerio Borghese ex Colonel
of the X°MAS led (as a figurehead) a fascist coup plot
– which was diffused at the beginning of 1971
81. Extremism 1968 - 1987
Summer 1971 – Richard Nixon suspends the
“convertability” of the US $ into gold – removing the
$ from the gold exchange standard. (managing US
debt was a form of managing the balance of
payments in most of the non-Soviet world)
May 17, 1972 – Calabresi is assassinated in Milan –
the Carabinieri attempt to blame Lotta Continua but
in 1974 – two neo-fascist activists are indicted. This
is the 1° political assassination of the 1970’s
1972 – Peteano – 3 Carabinieri killed in a bomb
attack. Lotta Continua is blamed and some of its
members are arrested. In the 1980s it was
discovered that the bomb was made with military C-4
explosive, and neo-fascist Vincenzo Vinciguerra
confessed.
1972 – 1974 sees a series of these right wing de-
stabilising bombings.
82. Extremism 1968 - 1987
July 1974 – another attempt at Neo-Fascist coup
Protagonist Count Edgardo Sogno wrote in his memoirs
quot;the United States would have supported any initiative tending to
keep the communists out of government.quot; The CIA and Italian
secret service supported this.
1974-1976 Potere operaio, Lotta Continua, and the Brigate
Rosse disband or split apart after the 1974 arrest of the
Red Brigade leaders Renato Curcio and Alberto
Franceschini.
1973 Enrico Berlinguer, secretary of the PCI pushed
through the Compromesso Storico – partially uniting and
pacifying differences between the PCI, the socialists, and
the DC – and afferming the non-Soviet characteristics of
the PCI (condemned the invasion of Czech in 68).
The Centre-Left splintered by 76, allowing the PCI to take
Italian politics further to the left.
83. Extremism 1968 - 1978
The governments of this time were not able to discipline the forces
of order to combat either left or right wing terrorism.
It is a period in which the Italian economy suffered the high prices
of oil brought about by the political affermation of OPEC.
Unemployment was high, particularly among young people.
In 1975, the govt. introduced the scala mobile – or moving scale –
to equate wages with the cost of living.
1977 – Autonomia operaia launches a series of bomb attacks and
assassination attempts, primarily against PCI targets =
Dissaffection with Labour Leadership!!!
84. Extremism 1968 - 1978
6 March, 1978 – president of the DC , Aldo Moro, was
kidnapped by the Brigate Rosse and after 55 days,
assassinated on May 9.
1978 – Inflation dropped to 13.6% - the lowest since 1974
– and the govt. attempted to rationalise the tax structure.
Consensus govt. applying Keynesian economics. High
degree of fiscal intervention. Italy joins the European
Monetary System
In industry – 1962-72 saw the beginning of privatisation of
state industries – particularly in chemicals.
1962 – Enrico Mattei stipulates and accord between ENI
and the “Seven Sisters” (the largest oil companies). He
then dies.
1972 – Eni’s director Cefis becomes head of the Montedison
company – afferming the importance of the managerial
class while public companies were in the red
85. Italy at the Crossroads: Challenges
in the 21° Century
86. Italy at the Crossroads: Challenges
in the 21° Century
87. Italy at the Crossroads: Challenges
in the 21° Century
88. Italy at the Crossroads: Challenges
in the 21° Century
89. Italy at the Crossroads: Challenges
in the 21° Century
90. Italy at the Crossroads: Challenges
in the 21° Century
91. Italy at the Crossroads: Challenges
in the 21° Century
92. Italy at the Crossroads: Challenges
in the 21° Century
93. Italy at the Crossroads: Challenges
in the 21° Century
94. Italy at the Crossroads: Challenges
in the 21° Century
95. Italy at the Crossroads: Challenges
in the 21° Century
96. Italy at the Crossroads: Challenges
in the 21° Century
97. Italy at the Crossroads: Challenges
in the 21° Century
98. Italy at the Crossroads: Challenges
in the 21° Century
99. Italy at the Crossroads: Climate
Change
Italy’s “third path” creates some difficulties in
adapting to climate change realities in terms of:
The economy
Politics
Society
102. Italy at the Crossroads: Climate
Change
The Economic Impact of Climate Change in Italy:
Assumptions:
Option 1 = no reaction: The Stern Report (2006)
estimated this would cost
20% of global GDP
Option 2 = diversified reaction: Stern stated that this
should cost 1% of global GDP
Fragmented data for Italy.
Estimates for:
weather impacts
sea-level rise
103. Italy at the Crossroads: Climate
Change
Weather impacts of climate change in Italy:
Sectors affected are: agriculture, forests, water,
tourism and health
Study compared projected impact in Sicily and
Lombardy:
Adaptive behaviour:
The south: hot summers = more time at beach and
pool
The North: hot summers = less use of transport
and private cars
104. Italy at the Crossroads: Climate
Change
Economic effects:
Cost of mitigation vs. Benefits
Dangers: increase average 328 forest fires
per region
coastal flooding
drought
tourisim
agriculture