Economic and Political Changes in Spain (1951-1959)
The Partial Liberalization of the Interventionist Economy
Between 1951 and 1959, a series of changes occurred in the orientation of Spanish economic policy, moving from autarky to a free trade model. In 1951, voices from the business and industry sectors were heard through the Chambers of Commerce and Industry. They demanded a streamlining of economic policy and increased productivity. The economic elites that were linked to autarky were suspicious of any change, fearing the loss of their power. We also find that international conditions were favorable. All of this translated into growth.
The GDP grew in the decade to 5%. The per capita income grew more than 30% and the industrial sector was the one that advanced the most. The production rate at the industrial level doubled. The first symptoms of transformation were present with a few isolated government measures. But the prospect was to achieve a comprehensive framework that would enable industrial growth, monetary stabilization, control of inflation, rising exports, and openness to foreign funding channels (international organizations established to provide loans). Ration cards were deleted and the sale of certain products was liberalized.
Despite this, in the second half of the decade, the Republican production rates of cereals, potatoes, and oil had not been surpassed. In addition, some elements of interventionism were retained, such as the National Grain Service (NTS). Regarding colonization work to increase production, changes were made to increase yields, such as “parcel concentration.” In 1952, colonization projects were created. The construction of wetlands led to the creation of new towns and colonization villages. Highlights include the Badajoz Plan and the Jaén Plan. The United States aid was linked to the construction of bases and the industrial fabric that supported it, but this allowed the country to start its industrial growth by purchasing machinery.
Purchasing power remained weak. Oil required currency reserves, leading to an energy bottleneck. In the internal market, on the other hand, it was difficult to control prices. All of this meant an inflationary spiral, which was only overcome with development plans. Externally, we maintained a negative balance of payments. There was no foreign exchange and exports were limited. The deficit was mitigated with the bases. In 1957, a report by the Chambers of Commerce insisted on tax reform.
Tensions Between Catholics and Falangists. The Education Law.
The Minister of Education, Ruiz Jiménez, was an open Catholic. This caused irritation among Falangists, demonstrating the return of some opposition. This was also shown with the press law because Falangists did not want its implementation to depend on a chain of newspapers in the hands of the Movement, whose main alibi was the maintenance of the spiritual and moral purge of the population. The Secondary Education Law was passed in February 1953 and replaced the one from 1938. The new law avoided the previous notions and made it clear that the intellectual and moral [content unclear]. However, the Press Act (enacted during the war) remained in force, which allowed for massive Francoist principles. Thus, the rhetoric of imperial Spain disappeared. A two-year elementary baccalaureate and a four-year higher baccalaureate were created. General Basic Education was compulsory until age 14. The industrial universities, typical creations of Franco, attempted to combine education with technical and vocational training. Somehow, they were largely related to the philosophy of the regime.
Overcoming External Isolation
The pacts with the U.S. in 1953 brought Spain out of isolation. The reality is that there were some unequal agreements at this time. Lobbying congressmen met with Franco, Latin American companies, and associations, and through this, the general appropriation bill was approved in August 1950, which included a provision for 62.5 million. In June 1951, during the Korean War, the U.S. chose to redirect its approach to Spain in terms of bilateralism without consulting its allies, France and Britain. Admiral Scherman arrived in Madrid in July. The U.S. linked the principles to economic issues concerning the military conversations. The bases pact contained three Hispanic-American conventions: the Defensive-Mutual Aid Convention, the Defense Convention, and the Economic Convention. The U.S. took the initiative in putting on alert and using the bases to be built in the future, becoming a small aid to Spain. The U.S. assisted with military services, aid, and equipment.
The Marshall Plan was established for the European countries that emerged from the doldrums of the Second World War, but in the case of Spain, the aid was scarce and always subordinate to the military. Economic aid episodically helped to alleviate the balance of payments and redirect the economy in a more liberal direction.