Spain’s Economy and Resistance Under Franco: The 1940s-50s
As a result of the war and the government’s economic policy, the 1940s decade was economically disastrous.
Autarchy and Economic Policy
The only economic policy followed was autarchy. With this, Franco aimed to be self-sufficient, in order to avoid importing foreign products.
Limited Imports and Support for Spanish Industries
Imports were limited. Franco stated that they could only buy the products that could not be produced in Spain. Moreover, he offered Spanish industries economic help and lighter taxes to protect them.
Regulation of Cereal Production
Cereal production was regulated. Franco forced peasants to sell their production to the SNT (Servicio Nacional de Trigo). This service decided the prices and sold the cereal to producers.
The Creation of the INI
In 1941, the INI (Instituto Nacional de Industria) was created to develop Spanish industry. The INI was created with a group of public companies that left capital and management in the hands of the State. Unfortunately, the products manufactured in Spanish industries were of poor quality and they could not be sold in foreign countries.
Interventionism and Favoritism
The interventionism of the state was aimed at favoring those who helped them during the war; this is, landowners, businessmen, and bank managers.
Economic Decline
The amount of money per citizen (per capita) was reduced; production of Spanish industry reduced due to the lack of raw materials, capital, and technology; inflation increased and money lost its value; the payment balance was disequilibrated (Spain bought more than it sold)…
Recovery from the 1950s Onward
From the 1950s on, a period of recovery started, due to US help and the new economic policy. The Spanish government decided to open to the international market. As a result, the Spanish economy grew, but the payment balance was disequilibrated and the state was close to going bankrupt.
The Stabilization Plan
Franco put in the government technocrats of the Opus Dei, who designed a Stabilization Plan to innovate and liberalize the Spanish economy. Some of the measures taken were the devaluation of the peseta and facilities for other countries to invest in Spain.
Results of the Stabilization Plan
This plan reduced inflation and solved the disequilibrium of the payment balance. On the other hand, unemployment rose, but in general, this Stabilization Plan was positive and made possible the growth of the 1960s.
Resistance and Opposition
Until 1950, there were 10,000 soldiers in the mountains, the maquis, who attacked fascist settlements and councils. A majority of them were communist and they did not receive the support of the citizens.
Strikes and Protests
In the 1940s decade, the first strikes started in industrial areas to protest against the political system. In May 1947, Eusko Jaurlaritza in exile tried to take advantage of the international isolationism to call 30,000 workers to a strike. This was the resistance against Franco. In 1951, the conflicts became more frequent and police occupied factories and many workers were made redundant.
Repression and Lack of Results
Repression was harsh and the government punished the actions of unions or political parties with imprisonments or death penalties. The actions of the republican government in exile did not have any result.
Don Juan and the Monarchy
In 1945, Don Juan, who was going to be the king, asked for the restoration of the monarchy, but after a meeting with Franco, Don Juan only agreed to send his son Juan Carlos to study in Spain and receive Francoist formation.
Internal Stability and Continued Opposition
During the 1950s, the regime obtained internal stability. Anyway, there were several groups opposing the regime: workers’ strikes, university students’ actions, activity of exiles…
Increased Opposition and Repressive Policies
At the end of the 1940s decade, opposition increased and the regime continued with its repressive policy and answered with police violence.