Misplaced Pages

#284715

135-574: In 1936 the region was integrated into Italian East Africa as the Eritrea Governorate . This would last until Italy's loss of the region in 1941, during the East African campaign of World War II . Italian Eritrea then came under British military administration , which in 1951 fell under United Nations supervision. In September 1952 it became an autonomous part of Ethiopia , until its independence in 1991 . The leading figure of

270-578: A coaling station . As they were not a party to the Hewett Treaty , the Italians began restricting access to arms shipments and imposing customs duties on Ethiopian goods immediately. In the disorder that followed the 1889 death of Yohannes IV, Gen.  Oreste Baratieri occupied the highlands along the Eritrean coast and Italy proclaimed the establishment of a new colony of Eritrea (from

405-445: A "domestic manufacture has attained to perfection… it invariably becomes cheaper. In this report, Hamilton also proposed export bans on major raw materials, tariff reductions on industrial inputs, pricing and patenting of inventions, regulation of product standards and development of financial and transportation infrastructure. The U.S. Congress adopted the tariffs but refused to grant subsidies to manufactures. Hamilton's arguments shaped

540-532: A common myth about United States trade policy is that low tariffs harmed American manufacturers in the early 19th century and then that high tariffs made the United States into a great industrial power in the late 19th century. A review by the Economist of Irwin's 2017 book Clashing over Commerce: A History of US Trade Policy notes: Political dynamics would lead people to see a link between tariffs and

675-821: A conference for the independence of Eritrea, promoted by the Vatican. After the war DiMeglio was named director of the Comitato Rappresentativo Italiani dell' Eritrea (CRIE). In 1947 he supported the creation of the Associazione Italo-Eritrei and the Associazione Veterani Ascari , in order to ally with the Eritreans favorable to Italy in Eritrea. As a result of these creations, he cofounded

810-440: A huge increase in population: in 1935 there were only 4,000 Italians and 12,000 Eritreans; in 1938 there were 48,000 Italians and 36,000 Eritreans. Historian Gian Luca Podesta wrote that practically Asmara has become an Italian city ("in pratica Asmara era diventata una citta' italiana"). The Italian government continued to implement agricultural reforms but primarily on farms owned by Italian colonists (exports of coffee boomed in

945-520: A negative effect on economic growth and economic welfare, while free trade and the reduction of trade barriers has a positive effect on economic growth . Although trade liberalisation can sometimes result in large and unequally distributed losses and gains, and can, in the short run , cause significant economic dislocation of workers in import-competing sectors, free trade has advantages of lowering costs of goods and services for both producers and consumers. The economic burden of tariffs falls on

1080-503: A notion believed by some to offer lessons for developing countries today. As its share of global manufacturing powered from 23% in 1870 to 36% in 1913, the admittedly high tariffs of the time came with a cost, estimated at around 0.5% of GDP in the mid-1870s. In some industries, they might have sped up development by a few years. But American growth during its protectionist period was more to do with its abundant resources and openness to people and ideas. The Economist Ha-Joon Chang argues, on

1215-475: A percentage of the price) or variable (the amount varies according to the price). Tariffs on imports are designed to raise the price of imported goods and services to discourage consumption. The intention is for citizens to buy local products instead, thereby stimulating their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products. Tariffs are meant to reduce pressure from foreign competition and reduce

1350-405: A population estimated in about 1.5 million, with a population density of 6.4/km (16.7/sq mi); Ethiopia with an area of 790,000 km (305,000 sq mi) and a population of some 9.5 million, had a resulting density of 12/km (31/sq mi); sparsely populated Italian Somaliland finally, with an area of 700,000 km (271,000 sq mi) and a population of just 1.1 million, had

1485-506: A protective tariff, and we will have the greatest nation on earth" . Once elected, Lincoln implemented a 44-percent tariff during the Civil War —in part to pay for railroad subsidies and for the war effort, and to protect favored industries. After the war, tariffs remained at or above wartime levels. High tariffs were a policy designed to encourage rapid industrialisation and protect the high American wage rates. The policy from 1860 to 1933

SECTION 10

#1732764791285

1620-614: A role in the subsequent contraction." As of 2011, Milton Friedman held the opinion that the tariffs of 1930 caused harm but were not responsible by themselves for the Great Depression, which instead he blamed the lack of sufficient action on the part of the Federal Reserve. Peter Temin , an economist at the Massachusetts Institute of Technology, agrees that the contractionary effect of the tariff

1755-554: A small deposit to the Danakil chiefs at Assab Bay in return for their promise to sell their territory to him on his return. Meanwhile, the government had been in touch with Raffaele Rubattino , whose company was planning to establish a steamship line through the newly opened Suez Canal and the Red Sea to India. It was agreed that the company would buy the territory in its own name and with its own funds, but should undertake to use it in

1890-437: A source of revenue for the government, import duties can also be a form of regulation of foreign trade and policy that taxes foreign products to encourage or safeguard domestic industry. Protective tariffs are among the most widely used instruments of protectionism , along with import quotas and export quotas and other non-tariff barriers to trade . Tariffs can be fixed (a constant sum per unit of imported goods or

2025-541: A speech in the House of Lords in which he defended fiscal retaliation against countries that applied high tariffs and whose governments subsidised products sold in Britain (known as "premium products", later called " dumping "). The retaliation was to take the form of threats to impose duties in response to goods from that country. Liberal unionists had split from the liberals , who advocated free trade, and this speech marked

2160-457: A succession of Italian governors maintained a notable degree of unity and public order. Nicknamed Colonia Primogenita ("First-born Colony") in contrast to the newer and less-developed territories of Italian Somaliland and Libya , Eritrea boasted a larger native Italian settlement than the other lands. The first few dozen families were sponsored by the Italian government around the start of

2295-856: A threat to Egypt and those in the Italian East Africa a danger to the British and French territories in the Horn of Africa . Italian belligerence also closed the Mediterranean to Allied merchant ships and endangered British supply routes along the coast of East Africa, the Gulf of Aden , Red Sea and the Suez Canal . (The Kingdom of Egypt remained neutral during World War II, but the Anglo-Egyptian Treaty of 1936 allowed

2430-447: A time. During the late twentieth century Assab would become Ethiopia 's main port, but it was long overshadowed by nearby Djibouti , whose railway (completed to Dire Dawa in 1902) permitted it to quickly supplant traditional caravan -based routes to Assab and Zeila . Massawa remained the primary port for most of northern Ethiopia, but its relatively high customs dues, dependence on caravans, and political antagonism limited

2565-541: A turning point in the group's slide toward protectionism . Lansdowne argued that the threat of retaliatory tariffs was similar to gaining respect in a room of gunmen by pointing a big gun (his exact words were "a gun a little bigger than everyone else's"). The "Big Revolver" became a slogan of the time, often used in speeches and cartoons. In response to the Great Depression , Britain abandoned free trade in 1932, recognizing that it had lost production capacity to

2700-487: A variety of practical tasks useful to the Fascist regime as well as to indoctrinate them with the tenets and lifestyle of Fascist ideology with the aim of creating citizens obedient and subservient to the state. Their propagandistic nature was especially apparent in history textbooks issued to African children, which entirely omitted any discussion of events such as Italian disunity, Giuseppe Mazzini's "Young Italy" movement,

2835-637: A very low density of 1.5/km (4/sq mi). In February 1937, following many murders of Italian and Eritrean soldiers and an assassination attempt on Italian East Africa's Viceroy , Marshal Rodolfo Graziani , Italian soldiers raided the famous Ethiopian monastery Debre Libanos , where the assassins were believed to have taken refuge, and executed the monks and nuns. Afterwards, Italian soldiers destroyed native settlements in Addis Ababa , which resulted -according to Ethiopian estimates- in nearly 30,000 Ethiopians being killed and their homes left burned to

SECTION 20

#1732764791285

2970-401: Is declining...faster than international trade is declining." If this decrease (in international trade) had been the cause of the depression that the countries have experienced, we would have seen the opposite". "Finally, the chronology of events does not correspond to the thesis of the free traders... The bulk of the contraction of trade occurred between January 1930 and July 1932, that is, before

3105-666: The Linea dell'Impero , a flight connecting Addis Ababa to Rome . The line was opened after the Italian conquest of Ethiopia and was followed by the first air links with the Italian colonies in Africa Orientale Italiana (Italian East Africa), which began in a pioneering way since 1934. The route was enlarged to 6,379 km and initially joined Rome with Addis Ababa via Syracuse , Benghazi , Cairo , Wadi Halfa , Khartoum , Kassala , Asmara , Dire Dawa . There

3240-548: The Partito Nuova Eritrea Pro Italia (Party of Shara Italy) in September 1947 as an Eritrean political party favorable to the Italian presence in Eritrea. It obtained more than 200,000 applications for membership in a single month, the majority of whom were former Italian soldiers and Eritrean Ascari . The organization was even backed by the government of Italy. The main objective of this party

3375-866: The Egyptian–Ethiopian War and by the success of the Mahdi 's uprising in the Sudan . In 1884, the British Hewett ;Treaty promised the Bogos —the highlands of modern Eritrea —and free access to the Massawan coast to Emperor Yohannes IV in exchange for his help evacuating garrisons from the Sudan; In the vacuum left by the Egyptian withdrawal, though, British diplomats were concerned about

3510-730: The French : tarif , lit.   'set price' which is itself a descendant of the Italian : tariffa , lit.   'mandated price; schedule of taxes and customs' which derives from Medieval Latin : tariffe , lit.   'set price'. This term was introduced to the Latin-speaking world through contact with the Turks and derives from the Ottoman Turkish : تعرفه , romanized :  taʿrife , lit.   'list of prices; table of

3645-405: The Horn of Africa : Italian Eritrea and Italian Somaliland , combined with the recently conquered Empire of Ethiopia . Victor Emmanuel III of Italy consequently adopted the title of " Emperor of Ethiopia ", although this was not recognized by any country other than Nazi Germany and Imperial Japan . The territory was divided into the six governorates : Eritrea and Somalia , consisting of

3780-614: The Italian East African lira . Italian East Africa Italian East Africa ( Italian : Africa Orientale Italiana , AOI) was an Italian colony in the Horn of Africa . It was formed in 1936 after the Second Italo-Ethiopian War through the merger of Italian Somaliland , Italian Eritrea , and the newly occupied Ethiopian Empire . Italian East Africa was divided into six governorates . Eritrea and Somalia, Italian possessions since

3915-474: The Italians also started to set up new factories, which in turn made due contribution in enhancing trade activities. The newly opened factories produced buttons, cooking oil, and pasta, construction materials, packing meat, tobacco, hide and other household commodities. In the year 1939, there were around 2,198 factories and most of the employees were Eritrean citizens, some even moved from the villages to work in

4050-699: The Latin name for the Red Sea ), with capital Asmara in substitution of Massawa . In the Treaty of Wuchale (It.  Uccialli ) signed the same year, King Menelik of Shewa —a southern Ethiopian kingdom—recognized the Italian occupation of his rivals' lands of Bogos , Hamasien , Akele Guzay , and Serae in exchange for guarantees of financial assistance and continuing access to European arms and ammunition. His subsequent victory over his rival kings and enthronement as Emperor Menelik II (r. 1889–1913) made

4185-657: The National Bureau of Economic Research highlights the predominant influence of currency instability (which led to the international liquidity crisis ) and the sudden rise in transportation costs in the decline of trade during the 1930s. Other economists believe that the record tariffs of the 1920s and early 1930s adopted by the Republicans exacerbated the Great Depresssion in the U.S., in part because of retaliatory tariffs imposed by other countries on

Italian Eritrea - Misplaced Pages Continue

4320-597: The Ottoman Empire and Egypt — was not settled by the Italians until 1880. Two years later, Italy formally took possession of the nascent colony from its commercial owners. Most of the western coast of the Red Sea was then formally claimed by the Khedivate of Egypt (under the notional rule of the Ottoman Empire, who held the eastern coast) but the region was thrown into chaos by major Egyptian defeats in

4455-638: The Ottoman Empire , were portrayed through an unflattering lens. Use of the Fascist salute was mandatory in schools for African children, who were constantly encouraged to become "little soldiers of the Duce ", and every day there was morning ceremony at which the Italian flag was hoisted and patriotic songs were sung. Italian children, whose education the Fascist government prioritised over that of Africans, received education similar to that in Fascist Italy's metropole , though with some aspects of it tailored to

4590-450: The Suez Canal neared completion, he began to visualize the establishment of a coaling station and port of call for Italian steamships in the Red Sea. Sapeto won over the Italian minister for foreign affairs, and King Victor Emmanuel II , to whom he explained his ideas. In the autumn of 1869 he, together with Admiral Acton , was sent by the government to the Red Sea to choose a suitable port and arrange for its sale. This he did by paying

4725-649: The United Nations Trust Territory of Somaliland , administered by Italy from 1950 until its independence in 1960. Occupied Eritrea became an autonomous part of Ethiopia in 1952, and was later annexed by the Ethiopian Empire in 1962. It would remain annexed by Ethiopia until it gained independence as Eritrea . Historians are still divided about the reasons for the Italian attack on Ethiopia in 1935. Some Italian historians such as Franco Catalano and Giorgio Rochat argue that

4860-556: The Whig Party under the name " American System " which consisted of protecting industries and developing infrastructure in explicit opposition to the "British system" of free trade. Before 1860 they were always defeated by the low-tariff Democrats. From 1846 to 1861, American tariffs were lowered but this was followed by a series of recessions and the 1857 panic, which eventually led to higher demands for tariffs than President James Buchanan signed in 1861 (Morrill Tariff). During

4995-621: The repeal of the Corn Laws in 1846, which was equivalent to free trade in grain. The Corn Acts had been passed in 1815 to restrict wheat imports and to guarantee the incomes of British farmers; their repeal devastated Britain's old rural economy, but began to mitigate the effects of the Great Famine in Ireland. Tariffs on many manufactured goods were also abolished. But while free-trade was progressing in Britain, protectionism continued on

5130-536: The revolutions of 1848 , or Giuseppe Garibaldi's Expedition of the Thousand and instead stressed the "glories" of the Roman Empire and those of the Italian state that claimed to be its successor. Glorification and lionisation of Mussolini and his "great work" likewise pervaded them, while periods during which Libya and other then-Italian possessions had been controlled by older, non-Italian empires, such as

5265-768: The 1880s, were enlarged with captured Ethiopian territory and became the Eritrea and Somalia Governorates . The remainder of " Italian Ethiopia " comprised the Harar , Galla-Sidamo , Amhara , and Scioa Governorates . During the Second World War , Italian East Africa was occupied by a British -led force including colonial units and Ethiopian guerrillas in November 1941. After the war, Italian Somalia and Eritrea came under British administration, while Ethiopia regained its independence. In 1950, occupied Somalia became

5400-417: The 1930s). In 1940, in the area of Asmara, there were more than 2,000 small and medium-sized industrial companies, which were concentrated in the areas of construction, mechanics, textiles, food processing and electricity. Consequently, the standard of living in Eritrea in 1939 was considered among the best on the continent for both the local Eritreans and the Italian settlers. Mussolini's government considered

5535-472: The 20th century and settled around Asmara and Massawa . The Italian-Eritrean community then grew from around 4,000 during World War I to nearly 100,000 at the beginning of World War II . While tolerating Islamic adherence, the Italians endorsed a huge expansion of Catholicism in Eritrea and constructed many churches in the highlands around Asmara and Keren , centered on the Church of Our Lady of

Italian Eritrea - Misplaced Pages Continue

5670-430: The 784 km long Djibouti-Addis Ababa , was acquired following the conquest of the Ethiopian Empire by the Italians in 1936. The route was served until 1935 by steam trains that took about 36 hours to do the total trip between the capital of Ethiopia and the port of Djibouti . In 1938 following the Italian conquest, train speed was increased with the introduction of four high capacity railcars "type 038" derived from

5805-712: The American Civil War (1861–65), agrarian interests in the South were opposed to any protection, while manufacturing interests in the North wanted to maintain it. The war marked the triumph of the protectionists of the industrial states of the North over the free traders of the South. Abraham Lincoln was a protectionist like Henry Clay of the Whig Party, who advocated the "American system" based on infrastructure development and protectionism. In 1847, he declared: "Give us

5940-660: The American producer. It upholds the American standard of wages for the American workingman". In 1913, following the electoral victory of the Democrats in 1912, there was a significant reduction in the average tariff on manufactured goods from 44% to 25%. However, the First World War rendered this bill ineffective, and new "emergency" tariff legislation was introduced in 1922 after the Republicans returned to power in 1921. According to economic historian Douglas Irwin,

6075-455: The Ascari become the main source of paid employment for the indigenous male population of Italian Eritrea. During the expansion required by the Italian invasion of Ethiopia in 1936, 40% of eligible Eritreans were enrolled in these colonial troops. According to the Italian census of 1939 the city of Asmara had a population of 98,000, of which 53,000 (54.0%) were Italians . This fact made Asmara

6210-546: The British to occupy Egypt and Anglo-Egyptian Sudan .) Egypt, the Suez Canal, French Somaliland and British Somaliland were also vulnerable to invasion, but the Comando Supremo (Italian General Staff) had planned for a war after 1942. In the summer of 1940, Italy was far from ready for a long war or for the occupation of large areas of Africa. Hostilities began on 13 June 1940, with an Italian air raid on

6345-656: The Civil War even more explicitly protectionist than before, Germany under Bismarck rejected free trade, and the rest of Europe followed suit. After the 1870s, the British economy continued to grow, but inexorably lagged behind the protectionist United States and Germany: from 1870 to 1913, industrial production grew at an average annual rate of 4.7% in the USA, 4.1% in Germany and only 2.1% in Great Britain. Thus, Britain

6480-785: The Depression, partly as a consequence of deflation." According the historian Paul Bairoch , the years 1920 to 1929 are generally misdescribed as years in which protectionism increased in Europe. In fact, from a general point of view, the crisis was preceded in Europe by trade liberalisation. The weighted average of tariffs remained tendentially the same as in the years preceding the First World War: 24.6% in 1913, as against 24.9% in 1927. In 1928 and 1929, tariffs were lowered in almost all developed countries. Douglas A. Irwin says most economists "doubt that Smoot–Hawley played much of

6615-524: The East Asian countries, he argues that the longest periods of rapid growth in these countries do not coincide with extended phases of free trade, but rather with phases of industrial protection and promotion. He believes infant industry protection policy has generated much better growth performance in the developing world than free trade policies since the 1980s. In the second half of the 20th century, Nicholas Kaldor takes up similar arguments to allow

6750-683: The Ethiopian birr initially circulated in Italian Eritrea and Italian Somalia . Since 1890, the Eritrean tallero was minted in Rome, divided into 5 lire , which joined the previous coins without finding favor with the local population, such as the italicum thaler minted in 1918. With the annexation to the Italian East Africa, the official currency for all the colonies of the Horn of Africa became

6885-512: The Ethiopian colony, with most going to Eritrea and Somalia. While Italian Eritrea enjoyed some degree of development, supported by nearly 80,000 Italian colonists , by 1940 only 3,200 farmers had arrived in Ethiopia, less than ten percent of the Fascist regime's goal. Continued insurgency by native Ethiopians, lack of natural resources, rough terrain, and uncertainty of political and military conditions discouraged development and settlement in

SECTION 50

#1732764791285

7020-457: The Ethiopian forces, especially in air power, and they were victorious. Emperor Haile Selassie was forced to flee the country, with Italian forces entering the capital city, Addis Ababa , to proclaim an " Italian Empire of Ethiopia " by 5 May 1936. Some Ethiopians welcomed the Italians and collaborated with them in the government of the newly created Italian Empire , like Ras Seyoum Mengesha , Ras Getachew Abate and Ras Kebbede Guebret. In 1937

7155-480: The Ethiopian guerrillas were still in control of some areas of Harar and the Galla-Sidamo Governorate . Amedeo's conciliatory efforts obtained that Abebe Aregai , then the last leader of the " Arbegnoch " (as the guerrilla fighters were called in Ethiopia) made a surrender proposal to the Italians in the spring of 1940 (after the 1939 surrender of Ethiopian leaders Zaudiè Asfau and Olonà Dinkel). The Italian declaration of war on 10 June 1940 and British influence blocked

7290-410: The European mainland and in the United States. Customs duties on many manufactured goods were also abolished. The Navigation Acts were abolished in 1849 when free traders won the public debate in the UK. But while free trade progressed in the UK, protectionism continued on the Continent. The UK practiced free trade unilaterally in the vain hope that other countries would follow, but the USA emerged from

7425-419: The Fascist regime in Italy in World War II . Italian East Africa was formed on 1 June 1936, shortly after the conquest, by merging the pre-existing colonies of Italian Somaliland and Italian Eritrea with the newly conquered territory. The maintenance and creation of Ethiopian colonies was very costly. On 10 June 1940, Italy declared war on Britain and France , which made Italian military forces in Libya

7560-508: The French over a railway brought things to a head: the Italian —but not Amharic —version of the Treaty of Wuchale had prohibited Ethiopia with foreign negotiations except through Italy, effectively making the realm an Italian protectorate . Secure both domestically and militarily (thanks to arms shipments via French Djibouti and Harar ), Menelik denounced the treaty in whole and the ensuing war , culminating in Italy's disastrous defeat at Adwa , ended their hopes of annexing Ethiopia for

7695-456: The Italians in the area of Asmara and Massawa , but the beginning of World War II stopped the blossoming industrialization of Eritrea. When the Allies captured Italian-held Eritrea in January 1941, most of the infrastructure and the industrial areas were extremely damaged and the remaining ones (like the Asmara-Massawa Cableway) were successively removed and sent to India and Kenya as war reparations . The subsequent Italian guerrilla war

7830-486: The Rosary in the capital. By the early 1940s, Catholicism was the declared religion of around 28% of the colony's population, while Christianity was the religion of more than half the Eritreans. Benito Mussolini 's rise to power in Italy in 1922 brought profound changes to the colonial government in Eritrea. After il Duce declared the birth of Italian Empire in May 1936, Italian Eritrea (enlarged with northern Ethiopia's regions) and Italian Somaliland were merged with

7965-762: The Second World War. In Report on Manufactures , considered the first text to express modern protectionist theory, Alexander Hamilton argued that if a country wished to develop a new activity on its soil, it would have to temporarily protect it. According to him, this protection against foreign producers could take the form of import duties or, in rare cases, prohibition of imports. He called for customs barriers to allow American industrial development and to help protect infant industries, including bounties (subsidies) derived in part from those tariffs. He also believed that duties on raw materials should be generally low. Hamilton argued that despite an initial "increase of price" caused by regulations that control foreign competition, once

8100-454: The South denounced it as a " Tariff of Abominations " and it almost caused a rebellion in South Carolina until it was lowered. Between 1816 and the end of the Second World War, the United States had one of the highest average tariff rates on manufactured imports in the world. According to Paul Bairoch, the United States was "the homeland and bastion of modern protectionism" during this period. Many American intellectuals and politicians during

8235-414: The UK's technological advance was achieved “behind high and durable tariff barriers”. In 1846, the rate of industrialization per capita was more than double that of its closest competitors. Even after adopting free trade for most goods, Britain continued to closely regulate trade in strategic capital goods, such as machinery for the mass production of textiles. Free trade in Britain began in earnest with

SECTION 60

#1732764791285

8370-435: The United States and Germany, which remained protectionist. The country reintroduced large-scale tariffs, but it was too late to re-establish the nation's position as a dominant economic power. In 1932, the level of industrialization in the United States was 50% higher than in the United Kingdom. Before the new Constitution took effect in 1788, the Congress could not levy taxes – it sold land or begged money from

8505-426: The United States to achieve the fastest economic growth in the world throughout the 19th century and into the 1920s. Paul Krugman writes that protectionism does not lead to recessions. According to him, the decrease in imports (which can be obtained by introducing tariffs) has an expansive effect, that is, it is favourable to growth. Thus, in a trade war, since exports and imports will decrease equally, for everyone,

8640-677: The United States. States resorting to protectionism invoke unfair competition or dumping practices: According to the economists in favour of protecting industries, free trade would condemn developing countries to being nothing more than exporters of raw materials and importers of manufactured goods. The application of the theory of comparative advantage would lead them to specialise in the production of raw materials and extractive products and prevent them from acquiring an industrial base. Protection of infant industries (e.g., through tariffs on imported products) may be needed for some developing countries to industrialise and escape their dependence on

8775-418: The abolition of export duties on most manufactured goods. Thus, the UK was the first country to pursue a strategy of large-scale infant-industry development. These policies were similar to those used by countries such as Japan, Korea and Taiwan after the Second World War. Outlining his policy, Walpole declared: Nothing contributes as much to the promotion of public welfare as the export of manufactured goods and

8910-497: The average tariff level remained around 12.5%, which was too low to encourage consumers to buy domestic products and thus support emerging American industries. When the Anglo-American War of 1812 broke out, all rates doubled to an average of 25% to account for increased government spending. The war paved the way for new industries by disrupting manufacturing imports from the UK and the rest of Europe. A major policy shift occurred in 1816, when American manufacturers who had benefited from

9045-425: The base of 1 Squadron Southern Rhodesian Air Force (237 (Rhodesia) Squadron RAF) at Wajir in the East Africa Protectorate (Kenya). In August 1940, the protectorate of British Somaliland was occupied by Italian forces and absorbed into Italian East Africa. This occupation lasted around six months. By early 1941, Italian forces had been largely pushed back from Kenya and Sudan . On 6 April 1941, Addis Ababa

9180-465: The beginning of that century, the average tariff on British manufactured goods was about 50%, the highest of all major European countries. Despite its growing technological lead over other nations, the UK continued its policy of industrial promotion until the mid-19th century, maintaining very high tariffs on manufactured goods until the 1820s, two generations after the start of the Industrial Revolution . Thus, according to economic historian Paul Bairoch ,

9315-448: The budget for the fiscal year 1936-37 had been set at 19.136 billion lira to create the necessary infrastructure for the colony. At the time, Italy's entire yearly revenue was only 18.581 billion lira. The architects of the Fascist regime had drafted grandiose urbanistic projects for the enlargement of Addis Ababa, in order to build a state-of-the-art capital of the Africa Orientale Italiana , but these architectural plans -like all

9450-469: The city state of Athens , the port of Piraeus enforced a system of levies to raise taxes for the Athenian government. Grain was a key commodity that was imported through the port, and Piraeus was one of the main ports in the east Mediterranean . A levy of two percent was placed on goods arriving in the market through the docks of Piraeus. The Athenian government also placed restrictions on the lending of money and transport of grain to only be allowed through

9585-429: The colonists stuck to the production of raw materials and never became a competitor to British manufacturers. Policies were established to encourage the production of raw materials in the colonies. Walpole granted export subsidies (on the American side) and abolished import taxes (on the British side) on raw materials produced in the American colonies. The colonies were thus forced to leave the most profitable industries in

9720-651: The colony as a strategic base for future aggrandizement and ruled accordingly, using Eritrea as a base to launch its 1935–1936 campaign to conquer and colonize Ethiopia. Even in World War II the Italians used Eritrea to attack Sudan and occupy the Kassala area. Indeed, the best Italian colonial troops were the Eritrean Ascari , as stated by Italian Marshall Rodolfo Graziani and legendary officer Amedeo Guillet . Furthermore, after World War I , service with

9855-405: The colony proved to be a failure in the end, with only one twentieth of Italian colonial soldiers possessing any literacy. During World War II, which saw the liberation of Italian East Africa from Fascism, few Africans displayed any loyalty to the Fascist state that the state's schools had so fervently tried to instill, and Ethiopia post-World War II found itself impoverished of skilled workers due to

9990-435: The contrary, that the United States developed and rose to the top of the global economic hierarchy by adopting protectionism. In his view, the protectionist period corresponded to the golden age of American industry, when US economic performance outstripped that of the rest of the world. The U.S. adopted an interventionist policy to promote and protect their industries through tariffs. It was this protectionist policy that enabled

10125-450: The country did not want to see developed. Walpole forced Americans to specialize in low-value-added products. The UK also banned exports from its colonies that competed with its own products at home and abroad. The country banned imports of cotton textiles from India, which at the time were superior to British products. It banned the export of woollen fabrics from its colonies to other countries (Wool Act). Finally, Britain wanted to ensure that

10260-470: The country soon became involved in a violent process of independence (from the British in the late 1940s and after 1952 from the Ethiopians, who annexed Eritrea in that year). During the final years of World War II some Italian Eritreans like Vincenzo DiMeglio defended politically the presence of Italians in Eritrea and successively promoted the independence of Eritrea. He went to Rome to participate in

10395-534: The country's catching-up period felt that the free trade theory advocated by British classical economists was not suited to their country. They argued that the country should develop manufacturing industries and use government protection and subsidies for this purpose, as Britain had done before them. Many of the great American economists of the time, until the last quarter of the 19th century, were strong advocates of industrial protection: Daniel Raymond who influenced Friedrich List , Mathew Carey and his son Henry, who

10530-433: The countryside. The Italians invested substantively in Ethiopian infrastructure development. They created the " imperial road " between Addis Ababa and Massaua , Addis Ababa and Mogadishu and Addis Ababa - Assab . 900 km of railways were reconstructed or initiated (like the railway between Addis Ababa and Assab ), dams and hydroelectric plants were built, and many public and private companies were established in

10665-659: The duration, and in 1950, it became part of Ethiopia. After 1945, Britain controlled both Somalilands, as protectorates . In November 1949, the United Nations granted Italy trusteeship of Italian Somaliland under close supervision, on condition that Somalia achieve independence within ten years. British Somaliland became independent on 26 June 1960 as the State of Somaliland , the Trust Territory of Somalia (ex-Italian Somaliland) became independent on 1 July 1960 and

10800-618: The early 1860s, Europe and the United States pursued completely different trade policies. The 1860s were a period of growing protectionism in the United States, while the European free trade phase lasted from 1860 to 1892. The tariff average rate on imports of manufactured goods in 1875 was from 40% to 50% in the United States, against 9% to 12% in continental Europe at the height of free trade. From 1871 to 1913, "the average U.S. tariff on dutiable imports never fell below 38 percent [and] gross national product (GNP) grew 4.3 percent annually, twice

10935-545: The early history of Italian enterprises in the Red Sea was Giuseppe Sapeto . When a young monk, preparing himself in Cairo for missionary work, he had been dispatched in 1837 into Abyssinia . Afterward, he became an active advocate of European penetration, initially encouraging the French to establish themselves in the area. After 1866, following the political unification of Italy, he sought to develop Italian influence instead. As

11070-419: The economic cycle that was not there. A boom would generate enough revenue for tariffs to fall, and when the bust came pressure would build to raise them again. By the time that happened, the economy would be recovering, giving the impression that tariff cuts caused the crash and the reverse generated the recovery. Mr Irwin also methodically debunks the idea that protectionism made America a great industrial power,

11205-438: The factories. The establishment of industries also made an increase in the number of both Italians and Eritreans residing in the cities. The number of Italians residing in the country increased from 4,600 to 75,000 in five years; and with the involvement of Eritreans in the industries, trade and fruit plantation was expanded across the nation, while some of the plantations were owned by Eritreans . The capital of Eritrea experienced

11340-448: The final official surrender of the Italians, the British signed an interim Anglo-Ethiopian Agreement with Selassie, acknowledging Ethiopian sovereignty. Makonnen Endelkachew was named as Prime Minister and on 19 December 1944, the final Anglo-Ethiopian Agreement was signed. In the peace treaty of February 1947 , Italy officially renounced sovereignty over its African colonies. Eritrea was placed under British military administration for

11475-577: The friendship of Seyoum Mengesha with the Italian Viceroy Prince Amedeo, Duke of Aosta enabled this Ras to play an influential role in securing the release of 3,000 Ethiopian POWs being held in Italian Somaliland . Mussolini's international popularity decreased as he endorsed the annexation of Austria by Nazi Germany , beginning a political tilt toward Germany that eventually led to the downfall of Mussolini and

11610-549: The ground. The massacre has come to be known as Yekatit 12 . After the massacres, Graziani became known as "the Butcher of Ethiopia". He was subsequently removed by Mussolini and replaced by Prince Amedeo, Duke of Aosta , who followed a more conciliatory policy towards the natives, obtaining a huge success in pacifying Ethiopia. By the eve of the Italian entry into the Second World War (January/February 1940)

11745-469: The hands of the United Kingdom. In 1800, Britain, with about 10% of Europe's population, supplied 29% of all pig iron produced in Europe, a proportion that had risen to 45% by 1830. Per capita industrial production was even higher: in 1830 it was 250% higher than in the rest of Europe, up from 110% in 1800. Protectionist policies of industrial promotion continued until the mid-19th century. At

11880-460: The import of all kinds of manufactured imports, resulting in a huge drop in US trade and protests from all regions of the country. However, the embargo also had the effect of launching new, emerging US domestic industries across the board, particularly the textile industry, and marked the beginning of the manufacturing system in the United States. An attempt at imposing a high tariff occurred in 1828, but

12015-490: The import of foreign raw materials. Walpole's protectionist policies continued over the next century, helping British manufacturing catch up with and then leapfrog its continental counterparts. Britain remained a highly protectionist country until the mid-19th century. By 1820, the UK's average tariff rate on manufactured imports was 45-55%. Moreover, in its colonies, the UK imposed a total ban on advanced manufacturing activities that

12150-444: The importer, the exporter, and the consumer. Often intended to protect specific industries, tariffs can end up backfiring and harming the industries they were intended to protect through rising input costs and retaliatory tariffs. The notion that bilateral trade deficits are per se detrimental to the respective national economies is overwhelmingly rejected by trade experts and economists. The English term tariff derives from

12285-430: The introduction of protectionist measures, even self-sufficient, in some countries, with the exception of those applied in the United States in the summer of 1930, but with very limited negative effects. He noted that "the credit crunch is one of the main causes of the trade crunch." "In fact, international liquidity is the cause of the trade contraction. This liquidity collapsed in 1930 (-35.7%) and 1931 (-26.7%). A study by

12420-492: The invasion was an act of social imperialism , contending that the Great Depression had badly damaged dictator Benito Mussolini 's prestige, and that he needed a foreign war to distract public opinion. Other historians such as Pietro Pastorelli have argued that the invasion was launched as part of an expansionist program to make Italy the main power in the Red Sea area and the Middle East . A middle way interpretation

12555-405: The just conquered Ethiopia in the new Italian East Africa ( Africa Orientale Italiana ) administrative territory. This Fascist period was characterized by imperial expansion in the name of a "new Roman Empire". Eritrea was chosen by the Italian government to be the industrial center of Italian East Africa: After the establishment of new transportation and communication methods in the country,

12690-475: The life of Rodolfo Graziani , educated Ethiopians, already having been distrusted by colonial government authorities and many having already been placed in concentration camps, became victims of state-sponsored mass murder, with much of the intelligentsia of Ethiopia being executed and the remainder exiled to penal colonies on Italian-controlled islands in the Mediterranean Sea . Fascist education in

12825-494: The local situation in East Africa. Fascist Italy sought to neutralise any educational institutions which provided instruction to Africans beyond the level expected by Fascist ideology, in particular the secondary education network that prior to the Italian invasion had prepared and enabled a relatively small but significant amount of Ethiopians to study abroad at universities in Europe. In February 1937, following an attempt on

12960-454: The main "Italian town" of the Italian empire in Africa. Furthermore, because of the Italian architecture of the city, Asmara was called Piccola Roma (Little Rome). The total number of Italians in all of Eritrea was 75,000 in that year. Asmara was known to be an exceptionally modern city, not only because of its architecture, but Asmara also had more traffic lights than Rome did when the city

13095-579: The model Fiat ALn56 . These diesel trains were able to reach 70 km/h and so the time travel was cut in half to just 18 hours: they were used until the mid 1960s. At the main stations there were some bus connections to the other cities of Italian Ethiopia not served by the railway. Additionally, near the Addis Ababa station was created a special unit against fire, that was the only one in all Africa. However Ethiopia and Africa Orientale Italiana (AOI) proved to be extremely expensive to maintain, as

13230-409: The national interest. Sapeto returned to the Red Sea on behalf of the company, completed the purchase and bought more land to the south. By March 1870, an Italian shipping company had thus become claimant to territory at the northern end of Assab Bay, a deserted but spacious bay about half-way between Annesley Bay to the north and Obock to the South. However, the area, — which had been long dominated by

13365-460: The negative effect of a decrease in exports will be offset by the expansionary effect of a decrease in imports. Therefore, a trade war does not cause a recession. Furthermore, he points out that the Smoot-Hawley tariff did not cause the Great Depression. The decline in trade between 1929 and 1933 "was almost entirely a consequence of the Depression, not a cause. Trade barriers were a response to

13500-560: The other developments- were stopped by World War II. Prior to Fascism, education in Italian East Africa had primarily been the responsibility of both Roman Catholic and Protestant missionaries . With Mussolini's rise to power, government schools were created which eventually incorporated the Catholic missionaries' educational programmes while those of the Protestant missionaries became marginalised and circumscribed. Andrea Festa , who

13635-470: The pace in free trade Britain and well above the U.S. average in the 20th century," notes Alfred Eckes Jr, chairman of the U.S. International Trade Commission under President Reagan. After the United States caught up with European industries in the 1890s, the Mckinley Tariff 's argument was no longer to protect “infant industries”, but to maintain workers' wages, support agricultural protection and

13770-427: The pattern of American economic policy until the end of World War II, and his program created the conditions for rapid industrial development. Alexander Hamilton and Daniel Raymond were among the first theorists to present the infant industry argument . Hamilton was the first to use the term "infant industries" and to introduce it to the forefront of economic thinking. Hamilton believed that political independence

13905-492: The port of Piraeus. In the 14th century, Edward III took interventionist measures, such as banning the import of woollen cloth in an attempt to develop local manufacturing. Beginning in 1489, Henry VII took actions such as increasing export duties on raw wool. The Tudor monarchs, especially Henry VIII and Elizabeth I , used protectionism, subsidies, distribution of monopoly rights, government-sponsored industrial espionage and other means of government intervention to develop

14040-478: The principle of reciprocity. In 1896, the Republican Party platform pledged to "renew and emphasize our allegiance to the policy of protection, as the bulwark of American industrial independence, and the foundation of development and prosperity. This true American policy taxes foreign products and encourages home industry. It puts the burden of revenue on foreign goods; it secures the American market for

14175-436: The production of raw materials. Economist Ha-Joon Chang argued in 2001 that most of today's developed countries have developed through policies that are the opposite of free trade and laissez-faire such as interventionist trade and industrial policies to promote and protect infant industries. In his view, Britain and the United States have not reached the top of the global economic hierarchy by adopting free trade. As for

14310-450: The rapid expansion of French Somaliland , France 's colony along the Gulf of Tadjoura . Ignoring their treaty with Ethiopia, they openly encouraged Italy to expand north into Massawa , which was taken without a shot from its Egyptian garrison. Located on a coral island surrounded by lucrative pearl -fishing grounds, the superior port was fortified and made the capital of the Italian governor. Assab, meanwhile, continued to find service as

14445-594: The rates of customs'. This Turkish term is a loanword of the Persian : تعرفه , romanized :  taʿrefe , lit.   'set price, receipt'. The Persian term derives from Arabic : تعريف , romanized :  taʿrīf , lit.   'notification; description; definition; announcement; assertion; inventory of fees to be paid' which is the verbal noun of Arabic : عرف , romanized :  ʿarafa , lit.   'to know; to be able; to recognise; to find out'. In

14580-564: The respective former colonies, enlarged with territory from Ethiopia. The remainder of " Italian Ethiopia " consisted of the Harar , Galla-Sidamo , Amhara , and Addis Abeba Governorates . The Addis Abeba Governorate was enlarged into the Scioa Governorate with territory from neighboring Harar, Galla-Sidamo and Amhara in November 1938. Italian East Africa was briefly enlarged in 1940, as Italian forces invaded British Somaliland , thereby bringing all Somali territories, aside from

14715-544: The small colony of French Somaliland , under Italian administration. However, the enlarged colony was dismembered only a year later, when in the course of the East African campaign the colony was occupied by British forces. Fascist colonial policy in Italian East Africa had a divide and conquer characteristic. To weaken the Orthodox Christian Amhara people who had run Ethiopia in the past, territory claimed by Eritrean Tigray-Tigrinyas and Somalis

14850-511: The states. The new national government needed revenue and decided to depend upon a tax on imports with the Tariff of 1789 . The policy of the U.S. before 1860 was low tariffs "for revenue only" (since duties continued to fund the national government). The Embargo Act of 1807 was passed by the U.S. Congress in that year in response to British aggression. While not a tariff per se, the Act prohibited

14985-450: The surrender proposal. Main colonial governors: Agenore Frangipani ; Guglielmo Nasi ; Enrico Cerulli ; Pietro Gazzera ; Luigi Frusci ; Alessandro Pirzio Biroli 9°2′48″N 38°45′28″E  /  9.04667°N 38.75778°E  / 9.04667; 38.75778 Customs duties A tariff is a tax imposed by the government of a country or by a supranational union on imports or exports of goods. Besides being

15120-475: The tariffs lobbied to retain them. New legislation was introduced to keep tariffs at the same levels —especially protected were cotton, woolen, and iron goods. The American industrial interests that had blossomed because of the tariff lobbied to keep it, and had it raised to 35 percent in 1816. The public approved, and by 1820, America's average tariff was up to 40 percent. In the 19th century, statesmen such as Senator Henry Clay continued Hamilton's themes within

15255-469: The territories united as the Somali Republic . The colony was administered by a Viceroy of Ethiopia and Governor General of Italian East Africa , appointed by the Italian king. The dominion was further divided for administrative purposes into six governorates , further divided into forty commissariati. When established in 1936, Italian East Africa consisted of the old Italian possessions in

15390-475: The trade deficit. They have historically been justified as a means to protect infant industries and to allow import substitution industrialisation (industrializing a nation by replacing imported goods with domestic production). Tariffs may also be used to rectify artificially low prices for certain imported goods, due to 'dumping', export subsidies or currency manipulation. There is near unanimous consensus among economists that tariffs are self-defeating and have

15525-494: The treaty formally binding upon the entire country. Once established, however, Menelik took a dim view towards Italian involvement with local leaders in his northern province of Tigray ; while the Italians, for their part, felt bound to involvement given the regular Tigrayan raiding of tribes within their colony's protectorate and the Tigrayan leaders themselves continued to claim the provinces now held by Italy. Negotiations with

15660-444: The underdeveloped country. The most important were: "Compagnie per il cotone d'Etiopia" (Cotton industry); "Cementerie d'Etiopia" (Cement industry); "Compagnia etiopica mineraria" (Minerals industry); "Imprese elettriche d'Etiopia" (Electricity industry); "Compagnia etiopica degli esplosivi" (Armament industry); "Trasporti automobilistici (Citao)" (Mechanic & Transport industry). Italians even created new airports and in 1936 started

15795-559: The very limited and propagandistic education provided to its non-Italian inhabitants under Mussolini's rule. In 1939, there were 165,267 Italian citizens in the Italian East Africa, the majority of them concentrated around the main urban centres of Asmara , Addis Ababa and Mogadishu . The total population was estimated around 12.1 million, with a density of just over 6.9 inhabitants per square kilometre (18/sq mi). The distribution of population was, however, very uneven. Eritrea, with an area of 230,000 km (90,000 sq mi), had

15930-466: The volume on its trade with Ethiopia. Seeking to develop their own lands, the Italian government launched the first development projects in the new colony in the late 1880s. The Eritrean Railway was completed to Saati in 1888 and reached Asmara in the highlands in 1911. The Asmara–Massawa Cableway (dismantled by the British as war reparations in World War II) was the longest line in

16065-433: The wool industry, leading to England became the largest wool-producing nation in the world. A protectionist turning point in British economic policy came in 1721, when policies to promote manufacturing industries were introduced by Robert Walpole . These included, for example, increased tariffs on imported foreign manufactured goods, export subsidies, reduced tariffs on imported raw materials used for manufactured goods and

16200-447: The world during its time. Italian administration of Eritrea also brought improvements in the medical and agricultural sectors of Eritrean society. Despite an imposition of racial laws, all urban Eritreans had access to modern sanitation and hospital services. The Italians also employed local Eritreans in public service, particularly the police and public works departments. In a region marked by cultural, linguistic, and religious diversity,

16335-489: Was Eritrean freedom, but they had a pre-condition that stated that before independence the country should be governed by Italy for at least 15 years. With the peace treaty of 1947 , the new Italian Republic officially accepted the end of the colony. As a consequence the Italian community started to disappear, especially after the Ethiopian Empire took control of Eritrea in 1952. Both the Maria Theresa thaler and

16470-619: Was a change of aircraft in Benghazi (or sometimes in Tripoli ). The route was carried out in three and a half days of daytime flight and the frequency was four flights per week in both directions. Later from Addis Ababa there were three flights a week that continued to Mogadishu , capital of Italian Somalia . The most important railway line in the African colonies of the Kingdom of Italy,

16605-427: Was being built. The city incorporates many features of a planned city. Indeed, Asmara was an early example of an ideal modern city created by architects, an idea which was introduced into many cities across the world, such as Brasilia , but which was not altogether popular. Features include designated city zoning and planning, wide treed boulevards, political areas and districts and space and scope for development. Asmara

16740-531: Was denied the use of tariffs to protect its new industries. This explains why, after independence, the Tariff Act of 1789 was the second bill of the Republic signed by President Washington allowing Congress to impose a fixed tariff of 5% on all imports, with a few exceptions. The Congress passed a tariff act (1789), imposing a 5% flat rate tariff on all imports. Between 1792 and the war with Britain in 1812,

16875-464: Was finally overtaken economically by the United States around 1880. British leadership in fields such as steel and textiles was eroded, and the country fell behind as new, more technologically advanced industries emerged after 1870 in other countries still practicing protectionism. On June 15, 1903, the Secretary of State for Foreign Affairs, Henry Petty-Fitzmaurice, 5th Marquess of Lansdowne , made

17010-543: Was given to the Eritrea Governorate and Somalia Governorate . Reconstruction efforts after the war in 1936 were partially focused on benefiting the Muslim peoples in the colony at the expense of the Amhara to strengthen support by Muslims for the Italian colony. Italy's Fascist regime encouraged Italian peasants to colonize Ethiopia by setting up farms and small manufacturing businesses. However, few Italians came to

17145-501: Was made director of the central office governing primary education in Eritrea in November 1932, declared in 1934 that Fascist efforts in education needed to ensure that native Africans were "acquainted with a little of our civilisation" and that they needed to "know Italy, its glories, and ancient history, in order to, become a conscious militia man in the shade of our flag." Such education initiatives were designed to train Africans in

17280-645: Was not built for the Eritreans however; the Italians built it primarily for themselves and made the city a typical Italian city with even its own car race (called the Asmara circuit ). The city has been regarded as "New Rome" due to its quintessential Italian touch, not only for the architecture but also for the wide streets, piazzas and coffee bars. While the boulevards are lined with palms and indigenous shiba'kha trees, there are numerable pizzerias and coffee bars, serving cappuccinos and lattes, as well as ice cream parlours. Many industrial investments were endorsed by

17415-622: Was occupied by the 11th (African) Division , which received the surrender of the city. The remnants of the Italian forces in the AOI surrendered after the Battle of Gondar in November 1941, except for groups that fought an Italian guerrilla war in Ethiopia against the British until the Armistice of Cassibile (3 September 1943) ended hostilities between Italy and the Allies. In January 1942, with

17550-459: Was offered by the American historian MacGregor Knox , who argued that the war was started for both foreign and domestic reasons, being both a part of Mussolini's long-range expansionist plans and intended to give Mussolini a foreign policy triumph that would allow him to push the Fascist system in a more radical direction at home. Unlike forty years earlier , Italy's forces were far superior to

17685-463: Was one of Lincoln's economic advisers. The intellectual leader of this movement was Alexander Hamilton , the first Secretary of the Treasury of the United States (1789–95). The United States rejected David Ricardo 's theory of comparative advantage and protected its industry. The country pursued a protectionist policy from the beginning of the 19th century until the middle of the 20th century, after

17820-530: Was predicated upon economic independence. Increasing the domestic supply of manufactured goods, particularly war materials, was seen as an issue of national security. And he feared that Britain's policy towards the colonies would condemn the United States to be only producers of agricultural products and raw materials. Britain initially did not want to industrialise the American colonies, and implemented policies to that effect (for example, banning high value-added manufacturing activities). Under British rule, America

17955-525: Was small. According to William J. Bernstein , most economic historians now believe that only a fraction of the GDP loss worldwide and in the U.S. resulted from tariff wars. Bernstein argued that the decline "could not have exceeded 1 or 2% of world GDP, a far cry from the 17% recorded during the Great Depression." Jacques Sapir argues that the crisis has other causes than protectionism. He points out that "domestic production in major industrialized countries

18090-413: Was supported by many Eritrean colonial troops (like the hero of Eritrean independence, Hamid Idris Awate ) until the Italian armistice in September 1943. Eritrea was placed under British military administration after the Italian surrender in World War II . After the defeat of Italy, there were 70,000 Italian settlers in Eritrea. The British initially maintained the Italian administration of Eritrea, but

18225-401: Was usually high protective tariffs (apart from 1913 to 1921). After 1890, the tariff on wool did affect an important industry, but otherwise the tariffs were designed to keep American wages high. The conservative Republican tradition, typified by William McKinley was a high tariff, while the Democrats typically called for a lower tariff to help consumers but they always failed until 1913. In

#284715