2.3.4. Post-War Italy: Democracy and Economic Growth

• On June 2, 1946, Italy held a referendum and the country was declared a democracy.
• Political life in Italy is characterized by continuous crises.
• Italy entered a path of economic development later than other Western European countries.
• Development rates were high, despite a lack of homogeneity across the entire country.
• The Italian economy suffered significant losses during the war, especially in industry and agriculture.
• Parallel to economic difficulties, Italy suffered from a lack of political organization.
• Many parties operated in Italy and France.
• The Christian Democratic party sought a leading role.
• Governments often alternated, and the monarchy issue remained unresolved.
• The Italian monarchy had collaborated with fascism.
• On June 2, 1946, a referendum on the form of government in Italy took place.
• Most Italians voted for democracy, ending the monarchy in Italy.
• The Italian economy entered a growth trajectory later than other European countries.
• This was due to political instability in the country.
• However, it achieved high growth rates.
• The economy acquired the necessary stability to enter a growth phase after 1950.
• During the 1950s and 1960s, industry developed rapidly.
• Reasons include the strengthening of private capital and Italy's accession to the Marshall Plan.
• Italy avoided the mistakes made by other countries in their development efforts.
• Rapid growth rates were observed in the 1960s in industrial sectors such as car manufacturing and electrification.
• Existing factories were modernized and new ones were constructed.
• Tourism experienced rapid growth.
• The modernization of the economy was accompanied by problems such as rising unemployment.
• The population moved from the south to the north and from the countryside to the city.
• Agriculture remained fragmented into small farms, hindering rapid development and modernization.
• The difference between the northern and southern parts of Italy became more pronounced during the 1950s and 1960s.
• This situation contributed to the movement of Italians from the south to the north.
• The domestic problems of Italy did not negatively affect the development of the Italian economy.
• A referendum is a democratic way for people to exercise their will through direct vote on vital issues affecting the entire country or its parts.

Following WWII, Italy faced economic difficulties and political disorganization. The referendum on June 2, 1946, marked a pivotal moment, establishing democracy and ending the monarchy. Despite initial challenges, Italy experienced significant economic development, albeit with regional disparities.