Istituto per la Ricostruzione Industriale
Encyclopedia
The Istituto per la Ricostruzione Industriale (Italian: "Institute for Industrial Reconstruction", IRI) was an Italian public company set up by the fascist government
in 1933 to combat the effects of the global depression
on the Italian economy. Its function was to rescue floundering companies which could no longer afford to repay their creditors.
Although set up as a temporary measure, the IRI continued to run for as long Benito Mussolini
was in power. It was able to reorganise companies so that production was maintained. The main action of the IRI was to buy shares of failing companies from banks. In 1937 the IRI's powers were extended so that it could nationalise companies, although no effective nationalisation were carried out. By 1939 the IRI controlled 20% of the Italian industry through government-linked companies (GLCs), including Alfa Romeo
, Italsider steel company (1934), integrated to IRI's Finsider's holding; 75% of pig iron production
and 90% of the shipbuilding
industry. Also, by the late 1930s, the activities of this organisation led to the Italian state
owning a bigger share in the economy than in any other country except the USSR.
Even long after World War II
, the IRI became one of the largest state conglomerates in Italy, owning many diverse businesses such as the autostrada system, the airline Alitalia
and many banks and telecom companies.
It was disestablished in 2002.
Italian Fascism
Italian Fascism also known as Fascism with a capital "F" refers to the original fascist ideology in Italy. This ideology is associated with the National Fascist Party which under Benito Mussolini ruled the Kingdom of Italy from 1922 until 1943, the Republican Fascist Party which ruled the Italian...
in 1933 to combat the effects of the global depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
on the Italian economy. Its function was to rescue floundering companies which could no longer afford to repay their creditors.
Although set up as a temporary measure, the IRI continued to run for as long Benito Mussolini
Benito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....
was in power. It was able to reorganise companies so that production was maintained. The main action of the IRI was to buy shares of failing companies from banks. In 1937 the IRI's powers were extended so that it could nationalise companies, although no effective nationalisation were carried out. By 1939 the IRI controlled 20% of the Italian industry through government-linked companies (GLCs), including Alfa Romeo
Alfa Romeo
Alfa Romeo Automobiles S.p.A. is an Italian manufacturer of cars. Founded as A.L.F.A. on June 24, 1910, in Milan, the company has been involved in car racing since 1911, and has a reputation for building expensive sports cars...
, Italsider steel company (1934), integrated to IRI's Finsider's holding; 75% of pig iron production
Pig iron
Pig iron is the intermediate product of smelting iron ore with a high-carbon fuel such as coke, usually with limestone as a flux. Charcoal and anthracite have also been used as fuel...
and 90% of the shipbuilding
Shipbuilding
Shipbuilding is the construction of ships and floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to before recorded history.Shipbuilding and ship repairs, both...
industry. Also, by the late 1930s, the activities of this organisation led to the Italian state
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
owning a bigger share in the economy than in any other country except the USSR.
Even long after World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, the IRI became one of the largest state conglomerates in Italy, owning many diverse businesses such as the autostrada system, the airline Alitalia
Alitalia
Alitalia - Linee Aeree Italiane S.p.A. , in its later stages known as Alitalia - Linee Aeree Italiane S.p.A. in Extraordinary Administration, was the former Italian flag carrier...
and many banks and telecom companies.
It was disestablished in 2002.
Sources
- Vera Lutz, Italy: A Study in Economic Development, Oxford, Oxford University Press, 1962.
- Pasquale Saraceno, Il sistema delle imprese a partecipazione statale nell'esperienza italiana, Milano, Giuffrè, 1975.
- Bruno Amoroso - O.J. Olsen, Lo stato imprenditore, Bari, Laterza, 1978.
- Nico PerroneNico PerroneNico Perrone is an Italian essayist, historian and journalist. He firstly discovered papers on the plot for killing Enrico Mattei, the Italian state tycoon for oil in the 1950s....
, Il dissesto programmato. Le partecipazioni statali nel sistema di consenso democristiano, Bari, Dedalo, 1992, ISBN 8-82206-115-2
See also
- Economics of Fascist Italy
- Autostrade per l'Italia (highways)
- FincantieriFincantieriFincantieri - Cantieri Navali Italiani S.p.A. is a shipbuilding company based in Trieste, Italy. It was formed in 1959 and is the largest shipbuilder in the Mediterranean, and one of the largest in Europe...
(naval construction) - FinmeccanicaFinmeccanicaFinmeccanica S.p.A. is an Italian conglomerate. Finmeccanica is the second largest industrial group and the largest of the hi-tech industrial groups based in Italy. It works in the fields of defence, aerospace, security, automation, transport and energy...
(mechanics and automobiles) - STETStetStet is a Latin word used by proofreaders and editors to instruct the typesetter or writer to disregard a change the editor or proofreader had previously marked....
(telephone company owned by IRI and founded by it in 1933; merged with Telecom ItaliaTelecom ItaliaTelecom Italia is the largest Italian telecommunications company, also active in the media and manufacturing industries. Now a private concern listed on the Borsa Italiana, it was founded in 1994 by the merger of several state-owned telecommunications companies, the most important of which was...
in 1997)