Franco Spain: Economy, Society & Politics (1939-1959)
The First Franco Period (1939-1959)
Economic Developments: Autarky (1939-1951)
Definition and Causes
The Franco regime adopted an economic policy of autarky due to:
- Huge material losses and depletion of human capital from the Civil War.
- International isolation and barriers to external sourcing for the Spanish economy.
- Protectionist economic nationalism as the official ideology.
Negative Economic Consequences
Agriculture
Agriculture entered a deep crisis. State interventionism and protectionism prevailed, causing stagnation and lack of investment. The coordinating body for agricultural policy was the National Wheat Service, setting fixed prices.
Industry
Industry experienced a standstill, partly due to intervention, as all industries were required to apply for permits to produce, import, and export.
Wages and Finances
Wages fell while prices increased, causing a loss in living standards and purchasing power. Inflation in the 1940s was among the highest in Spain’s history. This generated a huge public debt. The Franco regime primarily benefited the wealthy elite.
Economic Developments: Abandonment of Autarky (1951-1959)
Causes of Gradual Economic Liberalization
- Sustained economic growth, particularly in industry.
- Agricultural growth levels recovered to those of the 1930s. Mechanization and fertilizer use began to expand.
- Conservative technical land reforms were initiated.
The Stabilization Plan (1959): New Economic Management
Measures were implemented to control inflation. Credits were reduced, and many regulations and subsidies were eliminated. State expenditures were adjusted to match income. This marked a step towards a more liberal economic model.
Consequences of Liberalization in the 1950s
Successes and limitations included:
- Increased dependence on external economic conditions.
- Partial liberalization, retaining autarkic features that prevented Spain from fully integrating into the international free market economy.
- Significant regional imbalances persisted. Industry remained concentrated in Catalonia, the Basque Country, and Asturias.
- Lack of tax reform led to social costs due to shortages in public goods and social services.
- Private banks controlled the economy, concentrating economic power among the financial bourgeoisie.
Social Evolution (1940-1960)
Early Francoist Spain
Spanish society of the 1940s and 1950s was marked by backwardness and poverty due to war casualties and exile, resulting in the ruralization of the country and the impoverishment of the middle classes.
In these circumstances, the beneficiaries of autarky were primarily those able to maintain a high standard of living.
Incipient Transformation of Society
Demographic Trends
The population began to recover from the pre-1950 crisis caused by the war, increasing until the end of the Franco regime. Spain’s population increased.
Urbanization and Social Mores
Towns began to show greater dynamism. During the 1950s, a million people migrated from rural to urban areas. Nevertheless, Spain remained a predominantly rural and agricultural country. Public morals were dominated by fundamentalist values defended by the Church in its efforts to Christianize the country.
The Church ensured state power served its religious monopoly.
Political Opposition to the Regime (1939-1959)
Opposition During the First Franco Period
Various groups posed little danger due to repression, including the Law of Political Responsibilities.
- Republican groups in exile: Highly fragmented. Anarchist influence declined.
- Monarchists (Bourbons): After Alfonso XIII’s death, his son Don Juan advocated for a constitutional monarchy. However, under the Law of Succession, Don Juan eventually renounced his claim in favour of his son, Juan Carlos, who was educated in Spain under Franco’s supervision.
- The Maquis: Communist and anarchist guerrillas operated within Spain, notably attempting an invasion of the Aran Valley. Their activity significantly decreased after 1952.
Opposition in the 1950s: Rise of Internal Opposition
- Strikes: Spontaneous social protests arose, led by workers’ committees (often composed of individuals who grew up under the regime) negotiating specific labor issues. These contributed to the removal of Education Minister Ruiz Jiménez.