How did Mussolini’s government try to increase Italy’s military strength through economic policy?

To increase Italy’s military strength, Benito Mussolini’s government implemented state-led economic interventions designed to boost national prestige and industrial capacity. Key strategies included:

• State-Led Industrialization: Following the Great Depression, the government established holding companies like the Institute for Industrial Reconstruction (IRI) to bail out failing firms and provide capital for new investments. This created a massive state-led sector focused on strategic industries, including armaments, steel, shipping, and hydroelectricity.12
• Autarky: After the League of Nations imposed sanctions following the invasion of Ethiopia, the regime intensified its drive for self-sufficiency. The government shifted resources toward heavy industry and armaments, replacing imports with native products.12
• Agricultural Policy: Through the "battle for wheat," the government encouraged grain production to reduce reliance on foreign imports, using high tariffs and artificial price supports to boost domestic output.12

These policies, while aimed at military preparedness, often led to budget deficits and tax increases to fund colonial wars in Africa and Spain.12