Mezzogiorno -- Secondary economic activity

Manufacturing Activities

Did not experience the Industrial and Agricultural revolutions. Industry bypassed Mezzogiorno because of : Workforce poor and uneducated. Poor local markets and upland terrain. Region's peripheral location makes it difficult to attract MNCs. Region lacks natural resouces - water supply limited (porous bedrock). Limited range of agricultural products. Before 1950s, rail brought cheap mass-produced goods from north Long distance from EU markets. Little lock capital in area and is far from government sphere of influence. Brain drain. - ageing population.

Cassa per il Mezzogiorno

Positive Effects: Government introduced grants, subsidies and tax relief. New law; 40% of new state companies set up in Mezzogiorno. Industrial estates, tax exemptions and transport subsidies were provided for new companies; fund for training employees. New international airport at Calabria. Autostrada del Sole. -- efficient and fast transport. Heavy industries make up 60% of new investment. Four growth poles; Bari-Brindisi-Taranto was a industrial triangle. EU structural funds - 13 mil euro.

Cassa per il Mezzogiorno

Negative Effects: Very little spin-off employment created. Oil refineries: capital intensive and created few jobs. Environment not a priority - - polluted the region's waters. 2 million jobs lost in agriculture due to mechanisation. 57% of workforce worked in agriculture up to 1950s -- 10% today. Overreliance on state investment in Mezzogiorno rather than local activities. Unemployment rates in region high - 20%. Spread of industries is not even ~ Naples attracted more  23% of families still live in poverty. Infant mortality rate is 4 times that of northern Italy. Housing is substandard. 24% of children drop out after primary school. Foreign companies too nervous about influence of Mafia.