Italy

The end of the Second World War marked a radical turnaround of the Italian economy. The inward-looking, autarkic policies followed in the 1930s were abandoned and the economy was opened up to the process of integration into Europe and to the intense adoption of American technology and management principles. Reconstruction was achieved swiftly and Marshall Aid was used to expand industry, especially in its modern branches. The legacy of the past put Italy in a rather low position compared to other European economies, but the ‘social capabilities’ ¹ on which to base a process of catching up with the most advanced leaders were not missing: well established, though still too small, firms in the crucial fields; widespread basic education, with flourishing technical and commercial secondary and higher level institutions; a high propensity to invest; a government willing to support industrialization. A period of sustained economic growth started at the end of the 1940s, driving Italy through a profound structural change into the club of the wealthiest countries in Europe.