THE FIRST PRIVATIZATION: SELLING SOEs AND PRIVATIZING PUBLIC MONOPOLIES IN FASCIST ITALY (1922-1925) Germà Bel Universitat de Barcelona (GiM-IREA) & Barcelona Graduate School of Economics (FORTHCOMING IN CAMBRIDGE ECONOMIC JOURNAL ) Abstract: Italy’s first Fascist government applied a large-scale privatization policy between 1922 and 1925. The government privatized the state monopoly of match sale, eliminated the State monopoly on life insurances, sold most of the State-owned telephone networks and services to private firms, reprivatized the largest metal machinery producer, and awarded concessions to private firms to build and operate motorways. These interventions represent one of the earliest and most decisive privatization episodes in the Western world. While ideological considerations may have had a certain influence, privatization was used mainly as a political tool to build confidence among industrialists and to increase support for the government and the Partito Nazionale Fascista . Privatization also contributed to balancing the budget, which was the core objective of Fascist economic policy in its first phase. Key Words : Privatization, Public Enterprise, Government. JEL Codes : G38, H11, L32, L33 Contact data: Germà Bel Dep. Política Econòmica i EEM. Torre 6, planta 3 Facultat d’Econòmiques – UB Avd. Diagonal 690, 08034 Barcelona – SPAIN Tel: 34.93.4021946 e-mail:
[email protected] Acknowledgements: This research received financial help from the Spanish Ministry of Science and Innovation under Project ECO2009-06946, and the Regional Government of Catalonia under project SGR2009-1066. Much of the work on the paper was done while I was Visiting Scholar at the European University Institute (Florence School of Regulation-RSCAS) in spring/summer of 2009.