Franco’s Spain: Dictatorship, Economy, and International Relations

Overview: Franco’s regime established a military dictatorship characterized by authoritarianism, social conservatism, and the suppression of political freedoms. The Catholic Church and Spanish nationalism played paramount roles.

Social Protection: The regime protected four major groups: the military, the Catholic Church, Falangists, and Monarchists. Franco aimed to maintain a balance of power without consolidating absolute authority. Social protection extended to large landowners, financial-industrial figures, the bourgeoisie, many small farmers, and a significant portion of the northern and central peninsula. Opposition was met with harsh repression, and education and media were controlled through propaganda.

Insulation and International Autarky (1939-1950)

International Politics: World War II began in September 1939. Spain initially declared neutrality, facing economic hardship. Franco met with German and Italian leaders in 1940, but no agreements were reached. In 1941, Spain sent troops to fight alongside Germany against the Soviet Union. After the Axis powers’ defeat, Spain aligned closer to the West during the Cold War due to its anti-communist stance.

Domestic Policy: The state was anti-democratic, denying freedom of speech. Key legislation included the Courts Act (1942), the Spanish Forum (1945), the National Referendum Act (1945), and the Head of State Succession Act (1947).

Economy: The early years were marked by interventionism and autarky. All production was controlled. The National Institute of Industry (INI) was created in 1941 to strengthen Spanish companies, promote economic self-sufficiency, and limit foreign relations and trade. This policy failed due to lack of raw materials and support for production. Price controls led to a black market and rationing, known as estraperlo.

Limited Acceptance and International Liberalization (1950-1959)

International Policy: The Cold War and Franco’s anti-communist stance eased international pressure. The French border reopened in 1948, leading to trade agreements. In 1956, Spain granted independence to Spanish Morocco after France did the same. International support for the regime grew, notably with agreements with the United States (economic and military, including military bases) and the Vatican (Konkordatua) in 1953, increasing the Church’s influence. Spain also gained access to the UN and UNESCO.

Domestic Policy: Franco’s government maintained a balance among the four protected groups. Education saw some liberalization, leading to the return of exiled intellectuals. Political opposition was suppressed, and several ministers were replaced in 1956 to appease conservative factions.

Economy: The 1950s saw increasing liberalization, reduced state participation in companies, foreign investment, and imports. American support was crucial. Price controls were lifted, leading to price increases, anti-regime protests, and the first general strikes. Despite this, the economy began to develop, with the industrial sector surpassing agriculture in importance.

Economic Liberalization and Social Development (1959-1975)

Interior Policy: Lack of freedom and political continuity were dominant. Two factions emerged within the government: kontinuistak (Carrero Blanco) and aperturistak (Fraga). The balance among the four groups continued. Technocrats gained influence through stabilization policies. The Press Law of 1966, promoted by aperturistak, allowed greater publishing freedom but maintained censorship, leading to tensions. The MATESA scandal exposed these divisions. Key legislation included the Law on the Principles of the National Movement (1958) and the Organic Law of the State (1967), which functioned as a constitution. In 1969, Franco named Juan Carlos of Bourbon as his successor.

Foreign Policy: The main event was the decolonization of Equatorial Guinea.