Secondary Economic Activities

Secondary Activities, like manufacturing, have been impacted by the Peripheral Location, Population and Cassa per il Mezzogiorno.

Peripheral Location impact on Manufacturing

• Reggio, at the southernmost point of the Mezzogiorno, is 1,100km from major Italian markets like Milan. This distance hinders market access for goods.
• 85% of the Mezzogiorno is upland, making it difficult and expensive to develop road and rail networks. This reduces the efficiency of transporting goods.
• Efficient transport links were not available until the 1950s with the Autostrada del Sole. This late development delayed industrial growth in the region.
• Being far from markets increases transport costs for manufacturers, reducing their profits. Industries in the Mezzogiorno struggle to compete with those closer to larger markets.

Population impact on Manufacturing

• The Mezzogiorno has few big cities apart from Naples and Palermo, limiting the concentrated workforce and local markets that industries need.
• The population is poorer than in Northern Italy, meaning less buying power and lower local demand for products. This also limits the capital available for starting new industries.
• The region lacks a strong manufacturing tradition, leading to an unskilled workforce. This discourages industries from establishing themselves due to the need for extensive worker training.
• Outward migration is a major issue, with young and educated individuals leaving for better opportunities. This results in a brain drain, depriving industries of skilled labour.

Cassa per il Mezzogiorno impact on Manufacturing

• Introduced in the 1950s, this scheme invested €2.3 billion from 1957 to 1983, creating over 300,000 jobs. It focused on industrial development.
• 40% of new state companies had to be located in the Mezzogiorno, boosting local industry presence. Tax relief, grants, and subsidies were offered to attract private companies.
• Infrastructure improvements, such as the Autostrada del Sole and a new international airport in Calabria, reduced transport costs and improved market access.
• Growth poles like the Bari-Brindisi-Taranto industrial triangle focused on heavy industry, although success was mixed, with heavy industry sometimes failing to create the intended spin-off employment.