Italy

D

1

Libraries and Museums

Italy is rich in important library collections. Among the largest and most valuable libraries are the national libraries in Florence, Naples, and Rome. Several universities also have large libraries. Smaller collections, rich in local manuscripts and incunabula (books printed before 1501), are found in most Italian cities.

World-famous art collections are housed in numerous Italian cities. Among the most important art museums are the Uffizi Gallery and Pitti Palace in Florence, the National Museum in Naples, and, in Rome, the Capitoline Museums, the Galleria Borghese, and the Villa Giulia. Vatican City has important art collections in its museums and chapels, the most famous of which is the Sistine Chapel. An international biennial exhibition of visual arts in Venice is world renowned.

IV

Economy of Italy

Italy’s industrial development began at the end of the 19th century, with relatively rapid expansion in the north before and during World War I (1914-1918). Fascist policies under Benito Mussolini and the world depression of the 1930s encouraged restructuring rather than expansion of the economy. By the end of World War II in 1945, nearly half the workforce was still employed in agriculture. After the war Italy developed a diversified industrial base, especially in the north, which contributes significantly to the economy. The rate of economic growth slowed in the 1970s and 1980s, and in the 1990s the government introduced reforms to deal with underlying inefficiencies in the economy. Privatization of public industries began so that Italy could reduce its large public debt and meet European Union (EU) requirements. Government spending also dropped, sparking protests. However, economic stagnation persisted into the early 2000s.

In 2005 Italy’s gross domestic product (GDP) was estimated at $1.76 trillion, or about $30,073.50 per capita. GDP is a measure of the total value of the goods and services a country produces. Industry (including manufacturing, mining, and construction) contributed 27 percent to the GDP, services (including trade, banking, and government) 71 percent, and agriculture (including forestry and fishing) a scant 2 percent. Italy essentially has a private-enterprise economy, although the government formerly held a controlling interest in a number of large commercial and manufacturing enterprises, such as the oil industry (through the Italian state petroleum company) and the principal transportation and telecommunication systems. In the 1990s Italy began transferring government interest in many enterprises to private ownership. The government—at the national, regional, and local levels—remains a major employer in Italy.

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An ongoing problem of the Italian economy has been the slow growth of industrialization in the south, which lags behind the north in most aspects of economic development. Lack of infrastructure and organized crime have hampered development in the south and discouraged large corporations from opening there. Government efforts to foster industrialization in the south through subsidies have met with mixed results. Although public spending in the south increased during the 1980s, efforts to reduce the public debt from the 1990s on meant that less funding was available. The government succeeded in reducing unemployment in the 1990s and early 2000s; however, the unemployment rate remained at about 8 percent of the working-age population. Unemployment remained much higher in the south than in the north.

A large national debt has plagued Italy’s economy: The national budget of Italy in 2005 included revenue of $694 billion and expenditure of $629 billion. In keeping with provisions of the Maastricht Treaty, which created the European Union (EU), Italy reduced its budget deficit and its debt-to-GDP ratio during the 1990s. As a result Italy met the EU single-currency requirement and was able to adopt the euro in 1999. Although the annual deficit dropped below the EU goal of 3 percent, the accumulated debt remained large, at more than 100 percent of GDP, in the early 2000s.

A

Agriculture

Some 35 percent of the land area of Italy is cultivated or used for orchards; agriculture, with fishing and forestry, engages 4 percent of the labor force. Variations of climate, soil, and elevation allow the cultivation of many types of crops. Italy is one of the leading nations in the production of grapes and ranks among the world’s foremost wine producers. Italian wine production totaled about 5 million metric tons at the beginning of the 21st century. Italy also is one of the world’s leading producers of olives and olive oil. Chief field crops included sugar beets, maize (see Corn), wheat, and tomatoes. Other field crops are potatoes, rice, barley, lettuce, soybeans, and artichokes. Orchard crops, prominent in the Italian economy, include apples, oranges, peaches, pears, figs, dates, and nuts. Dairy farming is a major industry. About 50 kinds of cheese are produced, including Gorgonzola, pecorino, and Parmesan. Livestock included cattle, sheep, hogs, goats, horses, and poultry.

B

Forestry and Fishing

The forestry industry is limited in Italy, and much wood must be imported. Most of the old-growth forests were harvested, first by the Romans in antiquity and then in the 19th century. The main forest regions are in the mountainous or hilly areas of the Apennines, Alps, and Dolomites. Italy’s fishing catch is small. The fishing industry is mostly local and small scale. Mussels, anchovies, trout, and clams are among the chief species of seafood harvested.

C

Mining

Italy has few mineral resources, and mining contributes only a very small portion of the annual national product. Natural gas, produced in the Po Valley and offshore in the Adriatic Sea, is Italy’s main mineral fuel resource. Italy also has small petroleum resources, located mainly in Sicily and the south. Production of fossil fuels in 2004 included 35 million barrels of crude petroleum and 13.6 billion cubic meters (479 billion cubic feet) of natural gas. Other mineral resources include rock salt, talc, barites, lignite, fluorspar, and lead.

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