Difference between revisions of "Italy"

The Italian peninsula is a geologically young land formation and therefore contains few mineral resources, especially metalliferous ones. What few exist are poor in quality, scant in quantity, and widely dispersed. The meagreness of its natural resources partially explains Italy’s slow transition from an agricultural to an industrial economy, which began only in the late 19th century. The lack of iron ore and coal especially hindered industrial progress, impeding the production of steel necessary for building machines, railways, and other essential elements of an industrial infrastructure.

The Italian peninsula is a geologically young land formation and therefore contains few mineral resources, especially metalliferous ones. What few exist are poor in quality, scant in quantity, and widely dispersed. The meagreness of its natural resources partially explains Italy’s slow transition from an agricultural to an industrial economy, which began only in the late 19th century. The lack of iron ore and coal especially hindered industrial progress, impeding the production of steel necessary for building machines, railways, and other essential elements of an industrial infrastructure.

Half of Italy’s iron output comes from the island of Elba, one of the oldest geologic areas. Another important area of production is Cogne in the Alpine region of Valle d’Aosta; that deposit lies at 2,000 feet (610 metres) above sea level. Little iron-bearing ore has been produced in Italy since 1984. Coal is found in small amounts principally in Tuscany, but it is of inferior quality, and its exploitation has been almost negligible. The vast majority of Italy’s coal is imported, mostly from Russia, South Africa, the United States, and China.

Half of Italy’s iron output comes from the island of Elba, one of the oldest geologic areas. Another important area of production is Cogne in the Alpine region of Valle d’Aosta; that deposit lies at 2,000 feet (610 metres) above sea level. Little iron-bearing ore has been produced in Italy since 1984. Coal is found in small amounts principally in Tuscany, but it is of inferior quality, and its exploitation has been almost negligible. The vast majority of Italy’s coal is imported, mostly from Russia, South Africa, the United States, and China.

During the late 20th century, production of almost all of Italy’s minerals steadily decreased, with the exception of rock salt, petroleum, and natural gas. In the early 1970s Italy was a major producer of pyrites (from the Tuscan Maremma), asbestos (from the Balangero mines near Turin), fluorite (fluorspar; found in Sicily and northern Italy), and salt. At the same time, it was self-sufficient in aluminum (from Gargano in Puglia), sulfur (from Sicily), lead, and zinc (from Sardinia). By the beginning of the 1990s, however, it had lost all its world-ranking positions and was no longer self-sufficient in those resources.

During the late 20th century, production of almost all of Italy’s minerals steadily decreased, with the exception of rock salt, petroleum, and natural gas. In the early 1970s Italy was a major producer of pyrites (from the Tuscan Maremma), asbestos (from the Balangero mines near Turin), fluorite (fluorspar; found in Sicily and northern Italy), and salt. At the same time, it was self-sufficient in aluminum (from Gargano in Puglia), sulfur (from Sicily), lead, and zinc (from Sardinia). By the beginning of the 1990s, however, it had lost all its world-ranking positions and was no longer self-sufficient in those resources.

Italy is one of the world’s leading producers of pumice, pozzolana, and feldspar. Another mineral resource for which Italy is well-known is marble, especially the world-famous white marble from the Carrara and Massa quarries in Tuscany. However, the reputation of these exceptional stones is disproportionately large when compared with the percentage of gross national product (GNP) accounted for by their exploitation.

Italy is one of the world’s leading producers of pumice, pozzolana, and feldspar. Another mineral resource for which Italy is well-known is marble, especially the world-famous white marble from the Carrara and Massa quarries in Tuscany. However, the reputation of these exceptional stones is disproportionately large when compared with the percentage of gross national product (GNP) accounted for by their exploitation.

Italy’s lack of energy resources undoubtedly hindered the process of industrialization on the peninsula, but the limited stocks of coal, oil, and natural gas led to innovation in the development of new energy sources. It was the dearth of coal in the late 19th century that encouraged the pioneering of hydroelectricity, and in 1885 Italy became one of the first countries to transmit hydroelectricity to a large urban centre—from Tivoli to Rome, along a 5,000-volt line. Rapid expansion of the sector developed in the Alps (with water passing efficiently over nonporous rocks) and also in the Apennines (with less efficient transport over porous rocks). Though uneven precipitation on the peninsula marred continuing growth in hydroelectricity, it comprised a healthy slice of the country’s energy consumption by 1920. In the aftermath of World War II, more than half of Italy’s electric power was accounted for by hydroelectricity, but there was little room left for expansion, and the country was in need of energy to feed its rapid industrialization. By the 21st century, hydroelectric power, its output unable to keep pace with increasing demand, amounted to less than 20 percent of the country’s electricity production. This led to the development of thermal electricity generation fired by coal, natural gas, oil, nuclear power, and geothermal energy.

Italy’s lack of energy resources undoubtedly hindered the process of industrialization on the peninsula, but the limited stocks of coal, oil, and natural gas led to innovation in the development of new energy sources. It was the dearth of coal in the late 19th century that encouraged the pioneering of hydroelectricity, and in 1885 Italy became one of the first countries to transmit hydroelectricity to a large urban centre—from Tivoli to Rome, along a 5,000-volt line. Rapid expansion of the sector developed in the Alps (with water passing efficiently over nonporous rocks) and also in the Apennines (with less efficient transport over porous rocks). Though uneven precipitation on the peninsula marred continuing growth in hydroelectricity, it comprised a healthy slice of the country’s energy consumption by 1920. In the aftermath of World War II, more than half of Italy’s electric power was accounted for by hydroelectricity, but there was little room left for expansion, and the country was in need of energy to feed its rapid industrialization. By the 21st century, hydroelectric power, its output unable to keep pace with increasing demand, amounted to less than 20 percent of the country’s electricity production. This led to the development of thermal electricity generation fired by coal, natural gas, oil, nuclear power, and geothermal energy.

Natural gas has been the most significant discovery. It was first found in the 1920s, and its most important exploitation was in the Po valley. Later exploration focused on offshore supplies along the Adriatic coast. Increased reliance on imports began in the 1970s, and by the beginning of the 21st century about three-fourths of Italy’s natural gas was imported, primarily from Algeria, Russia, and the Netherlands. There are about 19,000 miles (30,000 km) of pipelines. The use of natural gas has risen at the expense of oil, which in the 1990s was the dominant energy source for electricity production in Italy. By the 21st century natural gas provided more than half of Italy’s total energy production. Overall, fossil fuels comprised some 90 percent of Italy’s total energy consumption.

Natural gas has been the most significant discovery. It was first found in the 1920s, and its most important exploitation was in the Po valley. Later exploration focused on offshore supplies along the Adriatic coast. Increased reliance on imports began in the 1970s, and by the beginning of the 21st century about three-fourths of Italy’s natural gas was imported, primarily from Algeria, Russia, and the Netherlands. There are about 19,000 miles (30,000 km) of pipelines. The use of natural gas has risen at the expense of oil, which in the 1990s was the dominant energy source for electricity production in Italy. By the 21st century natural gas provided more than half of Italy’s total energy production. Overall, fossil fuels comprised some 90 percent of Italy’s total energy consumption.

Mining is not an important sector of the Italian economy. Minerals are widely dispersed, and, unlike other industries, mining and quarrying traditionally have been more prevalent in the south than in the north. In the early 21st century, increased demand for construction materials and fertilizers led to the expansion of northern-based quarrying industries specializing in lime and chalk (for the production of fertilizers and cement, an important industry), along with coloured granites and marbles. Conversely, in the north, extraction of metalliferous minerals (such as iron ore, manganese, and zinc) declined. Nonmetalliferous minerals, including graphite, amianthus (a type of asbestos), and coal, shared a similar fate throughout Italy. As a primary fuel, coal satisfied just over one-tenth of the country’s energy demands in the early 21st century. Mining has fared badly on the islands, where it once prospered, with a decline in the extraction of sulfur in Sicily and of lead and zinc in Sardinia. Industrial minerals that remain significant are barite, cement, clay, fluorspar, marble, talc, feldspar, and pumice.

Mining is not an important sector of the Italian economy. Minerals are widely dispersed, and, unlike other industries, mining and quarrying traditionally have been more prevalent in the south than in the north. In the early 21st century, increased demand for construction materials and fertilizers led to the expansion of northern-based quarrying industries specializing in lime and chalk (for the production of fertilizers and cement, an important industry), along with coloured granites and marbles. Conversely, in the north, extraction of metalliferous minerals (such as iron ore, manganese, and zinc) declined. Nonmetalliferous minerals, including graphite, amianthus (a type of asbestos), and coal, shared a similar fate throughout Italy. As a primary fuel, coal satisfied just over one-tenth of the country’s energy demands in the early 21st century. Mining has fared badly on the islands, where it once prospered, with a decline in the extraction of sulfur in Sicily and of lead and zinc in Sardinia. Industrial minerals that remain significant are barite, cement, clay, fluorspar, marble, talc, feldspar, and pumice.

The most remarkable feature of Italian economic development after World War II was the spectacular increase in manufacturing and, in particular, manufacturing exports. The most significant contributory factors to this growth were the Marshall Plan (1948–51), a U.S.-sponsored program to regenerate the postwar economies of western Europe; the 1952 foundation of the European Coal and Steel Community (ECSC), later under the European Federation of Iron and Steel Industries; the start in 1958 of the EEC, which contributed to the liberalization of trade; and the abundance of manpower that fueled the growth of northern industrial concerns.

The most remarkable feature of Italian economic development after World War II was the spectacular increase in manufacturing and, in particular, manufacturing exports. The most significant contributory factors to this growth were the Marshall Plan (1948–51), a U.S.-sponsored program to regenerate the postwar economies of western Europe; the 1952 foundation of the European Coal and Steel Community (ECSC), later under the European Federation of Iron and Steel Industries; the start in 1958 of the EEC, which contributed to the liberalization of trade; and the abundance of manpower that fueled the growth of northern industrial concerns.

The main branches of metalmeccanica included arms manufacture, textile machinery, machine tools, automobiles and other transport vehicles, and domestic appliances. The automobile industry has been dominated by Fiat since the founding of the company in Turin in 1899. Milan and Brescia became the other main auto-making centres until Alfa Romeo opened its plant near Naples, leading to a decentralization of the industry. Automobile production took off in the 1950s and soared until the mid-1970s, when it began to stagnate. In the 1980s imports from Japan and an economic recession further dampened the industry, though new markets were opened in eastern Europe at the end of the Cold War in the early 1990s. In 2011 Fiat acquired a majority stake in the American auto company Chrysler, and Fiat’s involvement saw the car maker return to profitability for the first time in years. Today Italy has one of the highest numbers of cars per capita in the world.

The main branches of metalmeccanica included arms manufacture, textile machinery, machine tools, automobiles and other transport vehicles, and domestic appliances. The automobile industry has been dominated by Fiat since the founding of the company in Turin in 1899. Milan and Brescia became the other main auto-making centres until Alfa Romeo opened its plant near Naples, leading to a decentralization of the industry. Automobile production took off in the 1950s and soared until the mid-1970s, when it began to stagnate. In the 1980s imports from Japan and an economic recession further dampened the industry, though new markets were opened in eastern Europe at the end of the Cold War in the early 1990s. In 2011 Fiat acquired a majority stake in the American auto company Chrysler, and Fiat’s involvement saw the car maker return to profitability for the first time in years. Today Italy has one of the highest numbers of cars per capita in the world.

Notable large firms notwithstanding, the manufacturing sector is characterized by the presence of small and medium-size industries, which are found mainly in northeastern and north-central Italy. This area, concentrated in industrial districts within Veneto, Emilia-Romagna, and Tuscany, is referred to as the “third Italy,” to distinguish it from the “first Italy,” represented by the industrial triangle formed by the cities of Milan, Turin, and Genoa, and from the “second Italy,” which includes the Mezzogiorno. Each industrial district in the third Italy generally specializes in a particular area of light manufacturing, such as textiles or paper products, although more traditional manufacturing is also present. For instance, in Prato, Tuscany, the specialty is textile products; Sassuolo and Cento, both in Emilia-Romagna, engage in ceramic tile production and mechanical engineering, respectively; while Nogara, in Veneto, is known for wooden furniture.

Notable large firms notwithstanding, the manufacturing sector is characterized by the presence of small and medium-size industries, which are found mainly in northeastern and north-central Italy. This area, concentrated in industrial districts within Veneto, Emilia-Romagna, and Tuscany, is referred to as the “third Italy,” to distinguish it from the “first Italy,” represented by the industrial triangle formed by the cities of Milan, Turin, and Genoa, and from the “second Italy,” which includes the Mezzogiorno. Each industrial district in the third Italy generally specializes in a particular area of light manufacturing, such as textiles or paper products, although more traditional manufacturing is also present. For instance, in Prato, Tuscany, the specialty is textile products; Sassuolo and Cento, both in Emilia-Romagna, engage in ceramic tile production and mechanical engineering, respectively; while Nogara, in Veneto, is known for wooden furniture.

The food and beverage industry is also important, in particular the traditional products olive oil, wine, fruit, and tomatoes. Additionally, the pulp and paper, printing and publishing, and pottery, glass, and ceramics industries are prominent.

The food and beverage industry is also important, in particular the traditional products olive oil, wine, fruit, and tomatoes. Additionally, the pulp and paper, printing and publishing, and pottery, glass, and ceramics industries are prominent.

The housing sector was affected by three main factors following World War II: the postwar economic boom, massive rural-to-urban migration, and government incentives to the private construction sector. Approximately 500,000 homes were destroyed in the war and another 250,000 severely damaged. A period of frenzied building ensued, reaching a peak during 1961–65, when an average of 380,000 houses were built each year. Much of the building was undertaken by private companies that engaged heavily in speculative construction and paid scant regard to regulations. This led to overcrowding and a severe lack of services in peripheral urban areas. The problem was exacerbated by the migration of hundreds of thousands of southern Italians to the big northern towns in search of work.

The housing sector was affected by three main factors following World War II: the postwar economic boom, massive rural-to-urban migration, and government incentives to the private construction sector. Approximately 500,000 homes were destroyed in the war and another 250,000 severely damaged. A period of frenzied building ensued, reaching a peak during 1961–65, when an average of 380,000 houses were built each year. Much of the building was undertaken by private companies that engaged heavily in speculative construction and paid scant regard to regulations. This led to overcrowding and a severe lack of services in peripheral urban areas. The problem was exacerbated by the migration of hundreds of thousands of southern Italians to the big northern towns in search of work.

Construction slackened during the late 1960s and ’70s as a result of economic recession, although many Italians were still living in substandard dwellings and awaiting rehousing. A 1980 earthquake in the Naples area destroyed a quarter of a million homes and resulted in a localized building boom lasting almost a decade. In the late 1990s the construction sector showed signs of recovery mainly related to investments in public works and the availability of financial incentives for residential housing. As the Italian economy declined near the end of the first decade of the 2000s, the construction industry was especially hard-hit. New building of both private homes and public works contracted sharply as financing became more difficult to secure and government funding for infrastructure improvement dried up.

Construction slackened during the late 1960s and ’70s as a result of economic recession, although many Italians were still living in substandard dwellings and awaiting rehousing. A 1980 earthquake in the Naples area destroyed a quarter of a million homes and resulted in a localized building boom lasting almost a decade. In the late 1990s the construction sector showed signs of recovery mainly related to investments in public works and the availability of financial incentives for residential housing. As the Italian economy declined near the end of the first decade of the 2000s, the construction industry was especially hard-hit. New building of both private homes and public works contracted sharply as financing became more difficult to secure and government funding for infrastructure improvement dried up.

Italy’s financial and banking system has a number of unique features, although its framework is similar to that of other European countries. The Bank of Italy is the central bank and the sole bank of issue. Since the introduction of the euro in 2002, the Bank of Italy has been responsible for the production and circulation of euro notes in accordance with EU policy. Execution of monetary policy is vested in the Interministerial Committee for Credit and Savings, headed by the minister for the economy and finance. In practice, the Bank of Italy enjoys wide discretionary powers (within the constraints of the Maastricht Treaty and other agreements that govern the euro zone) and plays an important role in euro-zone economic policy making. The bank’s primary function also includes the control of credit.

Italy’s financial and banking system has a number of unique features, although its framework is similar to that of other European countries. The Bank of Italy is the central bank and the sole bank of issue. Since the introduction of the euro in 2002, the Bank of Italy has been responsible for the production and circulation of euro notes in accordance with EU policy. Execution of monetary policy is vested in the Interministerial Committee for Credit and Savings, headed by the minister for the economy and finance. In practice, the Bank of Italy enjoys wide discretionary powers (within the constraints of the Maastricht Treaty and other agreements that govern the euro zone) and plays an important role in euro-zone economic policy making. The bank’s primary function also includes the control of credit.

The bond market in Italy is well-developed. Mainly as a result of the special structure of government-sponsored institutions for development finance and subsidized interest rates, the growth of the capital market and stock exchanges was far less important than in other Western industrialized countries. The development of the stock exchange in Italy was initially hampered by the archaic structure and rules of the markets and by tax problems connected with the registration of shares. More recently, however, the market was modernized; the Borsa Italiana, which manages the stock exchange, became operational in 1998.

The bond market in Italy is well-developed. Mainly as a result of the special structure of government-sponsored institutions for development finance and subsidized interest rates, the growth of the capital market and stock exchanges was far less important than in other Western industrialized countries. The development of the stock exchange in Italy was initially hampered by the archaic structure and rules of the markets and by tax problems connected with the registration of shares. More recently, however, the market was modernized; the Borsa Italiana, which manages the stock exchange, became operational in 1998.

Italy has a great trading tradition. Jutting out deeply into the Mediterranean Sea, the country occupies a position of strategic importance, enhancing its trading potential not only with eastern Europe but also with North Africa and the Middle East. Italy has historically maintained active relations with eastern European countries, Libya, and the Palestinian peoples. These links have been preserved even at times of great political tension, such as during the Cold War and the Persian Gulf War of 1991. Membership in the EC from 1957 increased Italy’s potential for trade still further, giving rise to rapid economic growth. However, from that time, the economy was subject to an ever-widening trade deficit. Between 1985 and 1989 the only trading partner with which Italy did not run a deficit was the United States. Italy began showing a positive balance again in the mid-1990s. Trade with other EU members accounts for more than half of Italy’s transactions. Other major trading partners include the United States, Russia, China, and members of the Organization of the Petroleum Exporting Countries (OPEC).

Italy has a great trading tradition. Jutting out deeply into the Mediterranean Sea, the country occupies a position of strategic importance, enhancing its trading potential not only with eastern Europe but also with North Africa and the Middle East. Italy has historically maintained active relations with eastern European countries, Libya, and the Palestinian peoples. These links have been preserved even at times of great political tension, such as during the Cold War and the Persian Gulf War of 1991. Membership in the EC from 1957 increased Italy’s potential for trade still further, giving rise to rapid economic growth. However, from that time, the economy was subject to an ever-widening trade deficit. Between 1985 and 1989 the only trading partner with which Italy did not run a deficit was the United States. Italy began showing a positive balance again in the mid-1990s. Trade with other EU members accounts for more than half of Italy’s transactions. Other major trading partners include the United States, Russia, China, and members of the Organization of the Petroleum Exporting Countries (OPEC).

Membership in the EEC was the most beneficial economic factor in Italian trade during the post-World War II period. The later accession of Greece, Spain, and Portugal to the EEC created stiff competition for Mediterranean agricultural products, especially fruit, wine, and cooking oil. At the beginning of the 21st century, however, the expanded EU and the weakness of the new euro currency allowed for export growth in Italy. As the euro reached and ultimately surpassed parity with the U.S. dollar, this advantage was lost, and for the first decade of the 21st century Italy maintained a negative trade balance.

Membership in the EEC was the most beneficial economic factor in Italian trade during the post-World War II period. The later accession of Greece, Spain, and Portugal to the EEC created stiff competition for Mediterranean agricultural products, especially fruit, wine, and cooking oil. At the beginning of the 21st century, however, the expanded EU and the weakness of the new euro currency allowed for export growth in Italy. As the euro reached and ultimately surpassed parity with the U.S. dollar, this advantage was lost, and for the first decade of the 21st century Italy maintained a negative trade balance.

The service sector is one of the most important in Italy in terms of the number of people employed. If the definition extends to cover tourism, the hotel industry, restaurants, the service trades, transport and communications, domestic workers, financial services, and public administration, well over half of the workforce operates in the sector. A fully accurate measure is impossible, however, because of the existence of a burgeoning black market.

The service sector is one of the most important in Italy in terms of the number of people employed. If the definition extends to cover tourism, the hotel industry, restaurants, the service trades, transport and communications, domestic workers, financial services, and public administration, well over half of the workforce operates in the sector. A fully accurate measure is impossible, however, because of the existence of a burgeoning black market.

A plentiful supply of labour has nourished the service sector, especially in the large urban areas, since the 1950s. This labour came initially from rural areas of northern Italy such as Veneto; later the Italian peasantry from the Mezzogiorno migrated north; and more recently immigrants from less-developed countries—many of whom work for low wages, without job security, and under substandard work conditions—have filled low-grade urban service jobs. High-level service jobs include those involved with information technologies, which are used by one-third of Italian business. Factors that have contributed to the growth of the service sector include the rise in the standard of living in Italy and Europe in general, leading to an increase in mobility, financial transactions, business, demand for leisure activities, and tourism.

A plentiful supply of labour has nourished the service sector, especially in the large urban areas, since the 1950s. This labour came initially from rural areas of northern Italy such as Veneto; later the Italian peasantry from the Mezzogiorno migrated north; and more recently immigrants from less-developed countries—many of whom work for low wages, without job security, and under substandard work conditions—have filled low-grade urban service jobs. High-level service jobs include those involved with information technologies, which are used by one-third of Italian business. Factors that have contributed to the growth of the service sector include the rise in the standard of living in Italy and Europe in general, leading to an increase in mobility, financial transactions, business, demand for leisure activities, and tourism.

Italy is renowned as a tourist destination; it attracted more than 40 million foreign visitors annually in the early 21st century. Conversely, less than one-fifth of Italians take their holidays abroad. The tourist industry in Italy experienced a decline from 1987 onward, including a slump during the Persian Gulf War and world recession, but it rebounded in the 1990s, posting gains in the number of overseas and domestic tourists. In addition, the Jubilee celebrations promoted by the Roman Catholic Church in 2000 to mark the advent of its third millennium attracted millions of tourists to Rome and its enclave, Vatican City, the seat of the church.

Italy is renowned as a tourist destination; it attracted more than 40 million foreign visitors annually in the early 21st century. Conversely, less than one-fifth of Italians take their holidays abroad. The tourist industry in Italy experienced a decline from 1987 onward, including a slump during the Persian Gulf War and world recession, but it rebounded in the 1990s, posting gains in the number of overseas and domestic tourists. In addition, the Jubilee celebrations promoted by the Roman Catholic Church in 2000 to mark the advent of its third millennium attracted millions of tourists to Rome and its enclave, Vatican City, the seat of the church.

The tourist industry has flourished under both national and international patronage. The most popular locations, apart from the great cultural centres of Rome, Florence, Venice, and Naples, are the coastal resorts and islands or the Alpine hills and lakes of the north; the Ligurian and Amalfi rivieras; the northern Adriatic coast; the small islands in the Tyrrhenian Sea (Elba, Capri, and Ischia); the Emerald Coast of Sardinia; Sicily; Gran Paradiso National Park and the Dolomites; and Abruzzo National Park.

The tourist industry has flourished under both national and international patronage. The most popular locations, apart from the great cultural centres of Rome, Florence, Venice, and Naples, are the coastal resorts and islands or the Alpine hills and lakes of the north; the Ligurian and Amalfi rivieras; the northern Adriatic coast; the small islands in the Tyrrhenian Sea (Elba, Capri, and Ischia); the Emerald Coast of Sardinia; Sicily; Gran Paradiso National Park and the Dolomites; and Abruzzo National Park.

Women constitute about two-fifths of the labour force, though they are more likely to take on fixed-term and part-time employment than men. The activity rate of male employment is consistent throughout Italy, but females have a much lower rate of participation in the south.

Women constitute about two-fifths of the labour force, though they are more likely to take on fixed-term and part-time employment than men. The activity rate of male employment is consistent throughout Italy, but females have a much lower rate of participation in the south.

The government has undertaken reforms in tax collection. Historically, it has been unsuccessful in gathering income taxes with consistency, in part because of tax evasion and a black market on goods.

The government has undertaken reforms in tax collection. Historically, it has been unsuccessful in gathering income taxes with consistency, in part because of tax evasion and a black market on goods.

Water transport was the first important means of linking Italy with its Mediterranean trading partners, even though its only navigable internal water is the Po River. At the time of unification in the 19th century, the ports of Venice, Palermo, and Naples were of great significance, and the Italian merchant fleet was preeminent in the Mediterranean Sea. The 4,600 miles (7,400 km) of Italian coastline are punctuated by many ports, and a large majority of imports and exports arrive and leave the country by sea. The principal dry-cargo ports are Venice, Cagliari, Civitavecchia, Gioia Tauro, and Piombino, while those handling chiefly petroleum products are Genoa, Augusta, Trieste, Bari, and Savona. Naples and Livorno handle both types of cargo. Half of the commercial port traffic is concentrated on only one-tenth of the coastline. The industries of Piedmont and Lombardy make heavy demands on the maritime outlets, particularly Genoa, which is the most extensive and important Italian port but which has great difficulty expanding because of the mountains surrounding it.

Water transport was the first important means of linking Italy with its Mediterranean trading partners, even though its only navigable internal water is the Po River. At the time of unification in the 19th century, the ports of Venice, Palermo, and Naples were of great significance, and the Italian merchant fleet was preeminent in the Mediterranean Sea. The 4,600 miles (7,400 km) of Italian coastline are punctuated by many ports, and a large majority of imports and exports arrive and leave the country by sea. The principal dry-cargo ports are Venice, Cagliari, Civitavecchia, Gioia Tauro, and Piombino, while those handling chiefly petroleum products are Genoa, Augusta, Trieste, Bari, and Savona. Naples and Livorno handle both types of cargo. Half of the commercial port traffic is concentrated on only one-tenth of the coastline. The industries of Piedmont and Lombardy make heavy demands on the maritime outlets, particularly Genoa, which is the most extensive and important Italian port but which has great difficulty expanding because of the mountains surrounding it.

The main period of railway construction was about the time of unification, from 1860 until 1873. The heavy costs involved in laying down the infrastructure caused the government to sell off its stake in 1865. By this time the networks serving Milan, Genoa, and Turin in the north were well-developed. These were followed by links through the Po valley to Venice; to Bari, along the Adriatic coast; down the Tyrrhenian coast, through Naples, to Reggio di Calabria; and from Rome to the Adriatic cities of Ancona and Pescara. The Sicilian and Sardinian networks also were built. A period of rationalization and modernization followed in 1905 when the network was renationalized; building of new rail lines continued throughout the 20th century. An exceptional feature was the early electrification of the lines, many of which ran through long tunnels and were ill-suited to steam power. This modernization was due to Italy’s early development of hydroelectricity.

The main period of railway construction was about the time of unification, from 1860 until 1873. The heavy costs involved in laying down the infrastructure caused the government to sell off its stake in 1865. By this time the networks serving Milan, Genoa, and Turin in the north were well-developed. These were followed by links through the Po valley to Venice; to Bari, along the Adriatic coast; down the Tyrrhenian coast, through Naples, to Reggio di Calabria; and from Rome to the Adriatic cities of Ancona and Pescara. The Sicilian and Sardinian networks also were built. A period of rationalization and modernization followed in 1905 when the network was renationalized; building of new rail lines continued throughout the 20th century. An exceptional feature was the early electrification of the lines, many of which ran through long tunnels and were ill-suited to steam power. This modernization was due to Italy’s early development of hydroelectricity.

The Italian railways are connected with the rest of Europe by a series of mountain routes, linking Turin with Fréjus in France, Milan with Switzerland via the Simplon Tunnel, Verona to Austria and Germany via the Brenner Pass, and Venice to eastern Europe via Tarvisio. In the late 20th century routes were expanded, extended, and modernized, including the addition of high-speed lines and computerized booking and freight control systems. The railway network extends some 10,000 miles (16,000 km).

The Italian railways are connected with the rest of Europe by a series of mountain routes, linking Turin with Fréjus in France, Milan with Switzerland via the Simplon Tunnel, Verona to Austria and Germany via the Brenner Pass, and Venice to eastern Europe via Tarvisio. In the late 20th century routes were expanded, extended, and modernized, including the addition of high-speed lines and computerized booking and freight control systems. The railway network extends some 10,000 miles (16,000 km).

The Italian road network is subdivided into four administrative categories—express highways (autostrade) and national, provincial, and municipal roads (strade statali, strade provinciali, and strade comunali, respectively). Road construction in Italy flourished between 1955 and 1975. Between 1951 and 1980, surfaced roads, excluding highways and urban streets, increased by 72 percent to cover more than 183,000 miles (295,000 km). Automobile sales increased faster than in any other western European economy during this period. Much of this was due to mass production of cheap models by Fiat. Road construction in the south particularly benefited from funds released by the Southern Development Fund.

The Italian road network is subdivided into four administrative categories—express highways (autostrade) and national, provincial, and municipal roads (strade statali, strade provinciali, and strade comunali, respectively). Road construction in Italy flourished between 1955 and 1975. Between 1951 and 1980, surfaced roads, excluding highways and urban streets, increased by 72 percent to cover more than 183,000 miles (295,000 km). Automobile sales increased faster than in any other western European economy during this period. Much of this was due to mass production of cheap models by Fiat. Road construction in the south particularly benefited from funds released by the Southern Development Fund.

The Italian road network is subdivided into four administrative categories—express highways (autostrade) and national, provincial, and municipal roads (strade statali, strade provinciali, and strade comunali, respectively). Road construction in Italy flourished between 1955 and 1975. Between 1951 and 1980, surfaced roads, excluding highways and urban streets, increased by 72 percent to cover more than 183,000 miles (295,000 km). Automobile sales increased faster than in any other western European economy during this period. Much of this was due to mass production of cheap models by Fiat. Road construction in the south particularly benefited from funds released by the Southern Development Fund.

The Italian road network is subdivided into four administrative categories—express highways (autostrade) and national, provincial, and municipal roads (strade statali, strade provinciali, and strade comunali, respectively). Road construction in Italy flourished between 1955 and 1975. Between 1951 and 1980, surfaced roads, excluding highways and urban streets, increased by 72 percent to cover more than 183,000 miles (295,000 km). Automobile sales increased faster than in any other western European economy during this period. Much of this was due to mass production of cheap models by Fiat. Road construction in the south particularly benefited from funds released by the Southern Development Fund.