Franco’s Spain: Economic Stages, Impacts, and Legacy
The Spanish economy under Franco experienced three distinct stages.
First Stage: Autarky (1939-1950)
This period was characterized by depression and a dramatic scarcity of goods. There was an interruption of modernization and a drastic reduction in growth. The government initiated public works projects.
Second Stage: Hesitant Opening (1950-1960)
This phase saw a hesitant opening to liberalization and external markets. It generated an incipient economic recovery, although it lagged behind the expansion experienced by the rest of Europe.
Third Stage: International Development (1960-1974)
The Spanish economy was favored by international economic development, thanks to the availability of cheap labor, currency advantages, and the influx of emigrants and tourists.
Characteristics of the Franco Regime
The regime rejected representative democracy. There was no constitution guaranteeing basic rights and freedoms. Power was concentrated in the head of state. A single party controlled politics and labor unions. The state organized unions, limiting fundamental freedoms such as expression, assembly, and demonstration.
Key Stages of Franco’s Spain
Early Franco Years (1940s): Franco was the head of state and government. This period was marked by severe repression of political opposition and international isolation, leading to economic stagnation. Rationing of basic foods lasted until 1952. The succession was established, with Spain as a monarchy and Prince Juan Carlos as Franco’s successor.
Consequences of the Civil War
Demographic Consequences:
- High mortality rates.
- Forced emigration.
- A decline in birth rates.
- A significant number of people were imprisoned.
Economic Consequences:
- Depletion of gold and foreign exchange reserves due to war financing.
- Huge expenses with severe repercussions for economic reconstruction.
- Collapse of the economy, especially in the primary and secondary sectors, due to land abandonment, destruction of livestock, factories, and machinery.
- Reduction of the working population due to detentions, exile, and unemployment.
- Increased social imbalances.
The defeat in the Civil War particularly affected the middle and lower classes, leading to increased social imbalances. The distribution of income worsened due to food rationing, agricultural counter-reforms, and wage controls.
Social Consequences:
The consolidation of power by the victorious sectors led to political and economic control throughout the period. This included the financial and industrial oligarchy, landowners, the army, the church, and the Falange.
The initial stage of Franco’s rule had a dual dimension: it marked the end of a moderate growth process that had been maintained in Spain since the early 19th century, and it widened the gap between Spain and other European countries. The autarkic and interventionist approach led to economic stagnation. The standard of living for Spaniards was lower than before the war, and per capita income did not reach pre-1936 levels until 1953. This decade was one of the most negative periods in Spain’s contemporary economic history, marked by political and social regression.
The 1950s: A Pivotal Decade
The world was polarized by the Cold War. Spain began a timid opening to the world. Spain joined the UN in 1955. In 1953, the U.S. and Spain signed an agreement establishing NATO military bases in Spain. The regime’s rhetoric became less fascist, and there were attempts at cultural renewal through education. However, repression continued. There were strikes in Catalonia and Asturias in 1956.
A New Economic Planning
New political leaders initiated a process of economic liberalization, linking Spain to the capitalist economy. The intention was to end autarky with the Stabilization Plan of 1959. This plan aimed to transition from a closed economy with strong state control to a more open market economy with greater private initiative. Obstacles to international trade were removed, and measures were enacted to favor foreign investment. This plan, along with Spain’s incorporation into international markets, was a significant event in the 20th-century Spanish economy. The pace of growth followed the pattern of other Southern European countries, particularly in external relations (commercial transactions, remittances from emigrants, capital flows, and tourism).
The Expansion of the 1960s
There was a change in economic orientation with the arrival of the “technocrats” (linked to the Opus Dei religious organization). Economic development was pursued through development plans. There was a strong influx of tourism. In 1966, press censorship was eliminated, and media monitoring was reduced. Vatican II (1966) reformed Catholic dogma, recognizing religious freedom. In 1966, the Organic Law of the State established non-popularly elected courts. The emergence of ETA in the early 1960s was a fundamental challenge to the Franco regime. In 1968, ETA was accused of assassinating Commissioner Melitón Manzanas, and six members were sentenced to death. This trial mobilized international opinion against the regime. In 1969, Don Juan Carlos was designated as Franco’s successor. In 1973, Franco relinquished his functions as head of state and government, which were taken over by Admiral Carrero Blanco, who died in an ETA attack. Between 1973 and 1975, opposition to the regime grew. The most reactionary sectors of the regime opposed any type of change. On November 20, 1975, Franco died, and Juan Carlos was proclaimed King of Spain.
The Stabilization Plan and liberalization of April 1959 marked the great stage of the third phase of the Spanish economy during Franco’s rule, which extended until 1973. The accumulation and growth process adjusted to the dominant pattern in Western countries: cheap energy, favorable relative prices, extended possibilities of external financing, and access to an expansive international market. The availability of a large workforce (from the agricultural population and potential female workers) also contributed to growth. From the 1960s, Spain rapidly moved towards the consumer society model. Women gained more influence in society, with increased employment opportunities outside the family.
The Legacy of Francoism: An Economic Perspective
The legacy of Francoism is ambivalent. During the last two decades of Franco’s rule, there was significant economic growth, both in absolute terms and compared to previous periods. However, it was not exceptional compared to other Western economies, particularly those in Southern Europe. The situation of generalized interventionism and autarky meant that Spain’s economic recovery could have started earlier and been more in line with international economic trends. The Franco regime had its own limits, both in terms of its nature and the economic and institutional changes it imposed. These changes, particularly in the public sector, labor relations, and the external sector, were necessary for further progress. The productive transformations and the momentum of the growth process were also significant.