Franco’s Spain: Initial Years, WWII, and Autarky (1939-1950)

The Initial Years of the Franco Regime (1939-1950)

The period from 1939 to 1950 marked the initial years of the Franco regime, characterized by a complex interplay of factors:

  1. Reconstruction of a war-torn country.
  2. Establishment of a new political system for stabilization.
  3. Navigating international events and foreign policy challenges.

Spain’s Attitude During World War II

Spain’s stance during World War II was not uniform, evolving throughout the conflict. Initially, Spain declared neutrality, citing its difficult economic situation. In mid-1940, there were overtures towards the Axis powers, with Franco meeting with German and Italian representatives, though no formal agreements were reached. Ultimately, commercial interests with France and Britain proved more significant.

In 1941, following the German invasion of the Soviet Union, Spain decided to participate by sending troops, known as the Blue Division, to fight against communism on the Russian Leningrad Front in favor of Germany. However, as the Allies and the United States began to gain victories, Spain shifted its position again, attempting to distance itself from the Axis powers.

By 1943, with Italy under Mussolini faltering and facing economic threats from the U.S., Spain signed a neutrality agreement, aligning itself more favorably with the Allies. At the end of the war, Spain’s association with fascist regimes led to international isolation.

In 1947, with the onset of the Cold War, international pressure eased, and Franco moved closer to the Western bloc, primarily due to his staunch anti-communism.

Domestic Policy: The Years of Autarky

During the early years of the regime, Franco implemented a dictatorial state policy and an economic system based on autarky. This involved minimizing foreign relations and prioritizing self-sufficiency.

Political Policies

The Franco regime adopted anti-democratic policies, suppressing freedom of expression and lacking a constitution. Initially, the Falangists held significant influence in politics. However, this gradually shifted as the military, Catholics, and monarchists gained prominence.

Several key laws were enacted during this period:

  • Court-Law (1942)
  • Spanish Forum (1945)
  • The National Referendum Act (1945)
  • Head of State Succession Act (1947)

While these laws appeared to promote openness, their primary purpose was to improve the regime’s image internationally rather than genuinely liberalizing the political system.

Economic Policies

Early Francoist economic policy was characterized by:

  1. State intervention in all economic sectors.
  2. Emphasis on autarky.

In 1941, the National Institute of Industry (INI) was founded with the objectives of:

  1. Strengthening and promoting Spanish enterprises.
  2. Achieving economic self-sufficiency.
  3. Minimizing foreign relations and exchange.

However, these policies had negative economic consequences due to:

  1. Shortages of raw materials and limited support for production.
  2. Price controls and the emergence of a black market, leading to rationing and estraperloa (smuggling).