Postwar Franco Regime & Autarky in Spain: History & Policies
The Postwar Franco Regime and Autarky
Franco’s Rise to Power
The Nationalist victory in the Spanish Civil War led to the establishment of a dictatorship under Francisco Franco. Franco, who rose quickly through the military ranks after serving in North Africa, achieving the rank of general at 33, gained popular support and became “El Caudillo” (The Leader). He presented himself as Catholic, nationalist, and anti-communist.
Francoist Spain
The Franco regime concentrated power in Franco himself. As head of state, government, and the armed forces, he held absolute authority, enacting laws without constraint after the 1939 FET manifesto. The regime, supported by the Falange, the Church, the military, monarchists, and Opus Dei technocrats, lacked a formal constitution, operating under a series of fundamental laws. Germany’s prominence in Europe led to the rise of the Falangists, led by Serrano Suñer, who gained significant influence until 1942, even influencing the regime’s adoption of the fascist salute.
Repression and Exile
The civil war caused significant human and material losses. The early Franco regime employed harsh repression to consolidate power, targeting those who opposed the uprising or challenged the new order. Laws like the Law of Political Responsibilities and the suppression of Freemasonry and Communism led to the purging of officials who served the Republic, along with imprisonment and executions. The use of Catalan and Basque languages in public life was banned. Many Spaniards opposed to the regime fled into exile in France, Mexico, and even the USSR.
World War II and Non-Belligerency
The outbreak of World War II presented a dilemma for Franco. Spain, devastated by the civil war, was ill-prepared for another conflict. Initially declaring neutrality, Spain shifted to non-belligerency in 1940, though the regime collaborated with Germany. Franco met with Hitler in Hendaye in October 1940, agreeing in principle to join the war, but without a firm date. Spain ultimately avoided full participation, though it sent the Blue Division to fight against the Soviets. Pressure from the U.S. and Britain forced Franco to revert to neutrality in 1943.
Autarky and Economic Hardship
The regime initially pursued autarkic policies, aiming for self-sufficiency and independence from foreign trade. This led to excessive government intervention in the economy, including tight control of foreign trade through the Ministry of Industry, protectionist laws for domestic industry, and the creation of the INI (National Institute of Industry). Vertical unions, mandatory for employers, technicians, and workers, were established. However, excessive protectionism stifled industrial development, leading to shortages and rationing, forcing people to turn to the black market.
Postwar Diplomacy and Institutional Changes
Germany’s defeat posed a threat to the Franco regime. In 1945, Franco formed a new government, promoting non-fascist institutional changes (empowering Catholics) and a diplomatic push to end Spain’s international isolation. New fundamental laws were introduced, including the Law of the Rights of Spaniards and the Referendum Act (1945), and the Law of Succession (1947), which declared Spain a kingdom with Franco choosing his successor. The Allied powers blocked Spain’s entry into the UN and withdrew their ambassadors. However, the Franco-Perón treaty provided crucial food aid from Argentina. The Cold War offered Spain a new strategic importance as an anti-communist platform, leading to the Concordat with the Holy See and the Hispano-American Agreement with the U.S. (both in 1953). Spain finally joined the UN in 1955.
Further Institutional Changes and Economic Liberalization
In the 1950s, institutional legislation expanded with laws related to state administration and the Movement. Carrero Blanco’s influence grew, culminating in his appointment as Prime Minister in 1973. The regime began considering a transition to a monarchy under Juan Carlos. Spanish foreign policy focused on strengthening ties with Europe and the U.S. Negotiations with the UK over Gibraltar failed, and Spain ceded Ifni to Morocco in 1969, also signing an agreement dividing Western Sahara between Morocco and Mauritania.
The Spanish economy of the 1950s saw market liberalization, aided by U.S. economic assistance and foreign capital inflows. Technocrats from Opus Dei and Carrero Blanco implemented stabilization measures, including peseta devaluation, wage freezes, and Spain’s entry into the OECD, IMF, and World Bank. The 1959 Stabilization Plan addressed external debt and limited government spending, aiming to dismantle corporatism. These measures initially caused a recession, but the economy recovered and began to grow again in 1961.