Franco’s Spain: From Autarky to Economic Miracle (1939-1975)

Franco’s Era: Political and Economic Changes

Autarky and International Isolation (1939 – mid 1950s)

The initial stage of Franco’s regime, known as the “Blue Stage” due to Falange’s prominence, was marked by political repression and purges. During WWII, Spain adopted a “non-belligerent” stance, later shifting to “neutrality.” Post-war, Spain faced international isolation due to its totalitarian regime and Axis ties.

Economic Policy: Autarky

• Control of the economy by the government for self-reliance.
• Regulation of imports, exports, production, prices, and food distribution.
• Ration cards and the emergence of a black market.

Military Directory

A government formed solely by the military, led by Primo de Rivera, aimed to restore order by:

• Suspending the 1876 Constitution and constitutional rights.
• Banning the CNT and dissolving parliament.
• Suppressing Catalan language and abolishing the Commonwealth of Catalonia.
• Creating the Patriotic Union, a single-party movement.
• Enacting laws to prevent political office holding and ensure civil servant integrity.
• Achieving military victory in Alhucemas (1925) and increasing the military budget.

Civil Directory

A government composed of military and civilians, led by Primo de Rivera, focused on:

• Establishing political institutions like the National Consultative Assembly (a non-elected advisory body).
• Creating labor institutions such as the Corporate-National Organization (non-vindictive labor organizations without the right to strike).
• Boosting the economy through state enterprises, public works, and education investment.

Consolidation of the Regime (Mid 1950s – 1973)

During the Cold War, Spain’s anti-communist stance led to Western interest and an end to its isolation. Spain joined the UN (1955) and IMF (1958), receiving US Marshall Plan support.

Economic Development

• 1957: Franco formed a technocratic government (Opus Dei members) to foster economic growth.
• 1959: Stabilization Plan – neoliberal policies, public deficit reduction, export promotion, foreign investment attraction, and rural exodus encouragement.
• 1964: Development Plans – creation of “Development Poles” in less industrialized areas, attracting foreign capital, and promoting the private sector under state guidelines.

This period, often called the “Spanish economic miracle,” saw GDP growth driven by foreign investment, remittances from emigrants, and tourism.

Social and Political Transformations

• Reduced Falange influence in government.
• 1966: New press law easing censorship.
• 1967: Organic Law of the State (separation of head of state and government functions).
• 1969: Succession Act.
• 1970: Education Act.
• 1960s: Significant demographic changes – “Baby Boom,” emigration to Western Europe, and shifts in population structure (decline in the primary sector, growth in secondary and tertiary sectors, and urban population increase).

SEAT 600 and the General Law of Education were emblematic of this era.

Don Juan de Borbón sought to claim the legitimacy of Franco’s parliamentary monarchy (Manifesto of Lausanne) during this period of post-war economic development.