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Concept
Italian economic miracle
Summary
The Italian economic miracle or Italian economic boom ( il miracolo economico italiano or il boom economico italiano) is the term used by historians, economists, and the mass media to designate the prolonged period of strong economic growth in Italy after World War II to the late 1960s, and in particular the years from 1958 to 1963. This phase of Italian history represented not only a cornerstone in the economic and social development of the country—which was transformed from a poor, mainly rural, nation into a global industrial power—but also a period of momentous change in Italian society and culture. As summed up by one historian, by the end of the 1970s, "social security coverage had been made comprehensive and relatively generous. The material standard of living had vastly improved for the great majority of the population."
After the end of World War II, Italy was in ruins and occupied by foreign armies, a condition that worsened the chronic development gap towards the more advanced European economies. However, the new geopolitical logic of the Cold War made possible that the former enemy Italy, a hinge-country between Western Europe and the Mediterranean, and now a new, fragile democracy threatened by the proximity of the Iron Curtain and the presence of a strong Communist party, was considered by the United States as an important ally for the Free World, and therefore a recipient of the generous aid provided by the Marshall Plan, receiving $1.5 billion from 1948 to 1952. The end of the Plan, that could have stopped the recovery, coincided with the crucial point of the Korea War (1950–1953), whose demand for metal and other manufactured products was a further stimulus to the growth of every kind of industry in Italy. In addition, the creation in 1957 of the European Common Market, of which Italy was among the founder members, provided more investments and eased exports.
The above-mentioned highly favorable historical backgrounds, combined with the presence of a large and cheap stock of labour force, laid the foundations of a spectacular economic growth.
Official source
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