Franco’s Spain: Foreign Policy and Autarky (1939-1950s)
Franco’s Foreign Policy: From Isolation to International Recognition
A few months after the end of the Spanish Civil War, the Second World War broke out. Franco, initially secure in the triumph of the Axis powers, joined the Anti-Comintern Pact, left the League of Nations, and declared neutrality. Spain’s dire domestic situation prevented active intervention. In 1941, Spain’s status changed from neutral to non-belligerent, providing logistical support to German ships, submarines, and planes. With the Soviet Union entering the war, the Spanish government decided to send a detachment of volunteers, the Blue Division, to fight against communism.
As the war progressed, and with the belief that the Axis would not win, Franco shifted Spain back to neutrality. He withdrew the Blue Division but continued sending aid to Germany, especially tungsten for the war industry.
After Hitler’s defeat, Franco distanced himself from fascist ideology. Serrano Suñer was dismissed, the government changed, and measures of grace were granted to some political prisoners (in the 1940s, there was an average of 100,000 prisoners a year). There was a lack of domestic opposition, but Republican parties abroad denounced the regime’s atrocities. Communists and anarchists carried out guerrilla actions (the maquis), mainly in 1946 and 1947. The heir to the throne, Don Juan de Borbón, published the Lausanne Manifesto, highlighting the regime’s illegality and calling for the restoration of the monarchy. However, the dictator remained unmoved. The UN excluded Spain from the organization and recommended breaking international relations with the regime. Franco responded with a mass rally of support in the Plaza de Oriente. Those years were difficult for the regime, with closed borders and trade policies. Spain was isolated, supported only by Portugal and Argentina.
The Cold War and fear of the Soviet Union changed the international situation. Against all odds, the Franco era survived.
Autarky and Economic Hardship in Post-War Spain
The new state’s labor relations were governed by the Fuero del Trabajo (Labor Law), adopted during the war (1938), which established vertical unionism. In 1940, the Law on Trade Union Unity and the Law on the Establishment of Trade Unions were promulgated. The entire labor movement was paralyzed, and any action outside the current legislation was considered a crime.
Spain suffered terrible years of poverty and misery. Autarkic policies were followed, with the state regulating all economic activity. The Instituto Nacional de Industria (INI) marked the industry. State-owned enterprises emerged (IBERIA, SEAT, ENASA, ENSIDESA), and the telephone company and RENFE were nationalized. Agriculture received no aid; land reform was rejected, collectivized lands were returned to their owners, and agricultural production was controlled through the National Wheat Service, regulating crops and prices.
Consequences of Autarky
The consequences of autarkic policies were disastrous. Instead of regaining pre-war levels, the situation deteriorated further. The 1931 level of economic activity was not reached until twenty years later. Agricultural production decreased, food had to be rationed (ration cards were in use until 1952), which fueled a speculative black market (estraperlo). Energy constraints increased, homes were missing, and inflation rose. Extreme levels of poverty were reached, and diseases such as tuberculosis, typhus, and smallpox multiplied.