One of Mussolini's first acts was to fund the metallurgical trust
Ansaldo to the height of 400 millions Liras. Following the deflation crisis which started in 1926, banks such as the
Banco di Roma, the
Banco di Napoli or the
Banco di Sicilia were also assisted by the state
[16]. In 1924, the
Unione Radiofonica Italiana (URI) was formed by private entrepreneurs and part of the
Marconi group, and granted the same year a
monopoly of radio broadcasts. URI became after the war the
RAI. Starting in 1925, Italy's policies became more
protectionist. Tariffs of grains were increased in an attempt to strengthen domestic production ("
Battle for Grain"), which was ultimately a failure. Thus, according to historian
Denis Mack Smith (1981), "Success in this battle was... another illusory propaganda victory won at the expense of the Italian economy in general and consumers in particular". He also pointed out "Those who gained were the owners of the
Latifondia and the propertied classes in general... his policy conferred a heavy subsidy on the Latifondisti".
[17]Affected by the
Great Depression, the Italian state attempted to respond to it both by elaborating
public works programs such as the taming of the
Pontine Marshes, developing
hydroelectricity, improving the railways which in the process improved job opportunities, and launching military rearmement.
[18] The Istituto per la Ricostruzione Industriale (IRI) institute was created in 1933, with the aim of subsiding floundering companies. It soon controlled important parts of the economy, through government-linked companies, including Alfa Romeo.
Economically Italy improved with the
GNP growing at 2% a year; automobile production was increasing especially those owned by
Fiat,
[19] its
aeronautical industry was making advances.
[5] Mussolini also championed
agrarianism as part of what he called battles for
Land, Lira and Grain; in aims of propaganda, he physically took part in these activities alongside the workers creating a strong public image.
[20][21]