Spain’s Autarky Era and Dictatorship Consolidation: 1939-1959
Spain’s Era of Autarky: Early Autarkic System Until 1951
Autarky refers to the policies of a state trying to rely solely on its own resources (self-sufficiency). Autarky was determined by the economic dislocations from the war. In 1945, the world, by refusing to trade with Spain, attempted to react to the international boycott.
The pinnacle of the autarkic ideal was the elimination of imports, for which there were two instruments:
- Tariff: A tax at the border for any product that is introduced into the country.
- Contingency imports: Import restrictions that produced arbitrary licensing and a network of economic clientele.
Autarkic policy provided an increased concentration of power in the dictator. The small black market was necessary for the survival of the weakest economies, serving as the justification:
- Currency Traffic
- Import licensing
- Devastated areas to rebuild facilities
Dirigisme was just a bureaucratic economy, through the following elements:
- National Grain Service (NTS)
- Commissariat of Supplies and Transport
However, these did not eliminate corruption. Ration cards were used from 1939 to 1951. The black market affected household economies and small and medium-sized enterprises. The black market became an excellent instrument of political, social, and economic control for the state. For the industry, the INI (National Institute of Industry) was born on September 25, 1941, in order to maximize the removal of imports. The INI took advantage of existing enterprises and created new ones.
Agriculture suffered less after the war than livestock. Between 1939 and 1950, agricultural production and yields per hectare decreased (perhaps due to a lack of stimulation or because of the economy caused by agricultural interventionism). This caused a food crisis.
The Depletion of Autarky: 1951 Onwards
From 1951 to 1960, the autarkic model was exhausted, moving towards liberalization. We highlight the following milestones:
- In 1951, some international barriers were eliminated.
- In 1953, a pact was made with the USA.
- In 1957, the government implemented liberalizing performances.
- In 1959, the Stabilization Plan was dictated, the prelude to Development Plans.
The context of international growth in the 1950s, led by the USA, affected everyone and was characterized by:
- Liberalization of exchanges.
- Establishment of a monetary system with fixed exchange rates.
- Institutionalized global economic cooperation (World Bank, IMF).
- Keynesian policies that led to growing Western economies.
In the early 1950s, the autarkic system was unable to supply the domestic market and ensure production. In the 1950s, the situation changed compared to the 1940s. GDP grew by 5% annually. Per capita income grew by 30%, and industry boosted growth.
Dictatorship Consolidation: 1951-1959
Reorganization Policy
Overview of an Epoch
Some key dates should be noted:
- In 1951, there were social, economic, and political tensions due to the depletion of autarky.
- In 1953, Spain defined itself internationally, signing a concordat with the Vatican and an agreement with the USA.
- In 1956 and 1957, a political crisis occurred that restored the regime’s policies and economic approaches.
- In 1959, the Stabilization Plan was established, prior to development, which involved the stabilization of the currency to prepare for trade in international markets.
In 1951, Spain was tired, hungry, and isolated. The protests of the population indicated that the autarkic model was exhausted. External insulation also put the country in a fragile position. However, in 1959, the regime had softened the initial protests. The debate between political families bore fruit in the predominance of technocrats closely associated with Opus Dei. They were responsible for the direction of economic change that began in those years.
Changes in Government and Calculated Approach
In July 1951, there was another change of government. Franco saw the exhaustion of autarky and realized that Spain should take advantage of the Cold War context. The global polarization would be beneficial: alignment with the USA would soon occur. Since 1945, the weight of Catholics was higher in the government but shared the limelight with the Falange. To prevent and control each other, Franco appointed monarchists, traditionalists, and economic technicians. Moreover, there was another character, Carrero Blanco, Deputy Minister of the Presidency, who would end up as the dictator’s right hand.
The monarchy was set up, but it depended on Franco’s inclinations: either Bourbons or Carlists. In any case, the succession was consistent with the logic of the Movement, and the monarchy alternatives were suspended.
The Military and Controlled Reserve Power
In the 1950s, the army was loyal to Franco, the custodian of the values of July 18, without political involvement. After the purge of Republicans, the military became the trustworthy men of the government. Carrero Blanco in the Army institution was ideologically very radical in his role as defender of the regime. Until 1975, codes of conduct remained unchanged, unrelated to any modernization. He projected order and discipline in political organization and maintained the conviction that the military should save the homeland. The military also participated in the state apparatus: they were military governors but were also present in ministries, and even had assigned police and judicial work. Their preparation was minimal, as were their salaries, and they hardly evolved technically. A significant ideological or technical delay. This problem was compounded by macrocephaly, a product of previous wars. In 1953, the Reserve Act hosted 20% of 14,000 commanding officers.