Spanish Economy and Politics Under Franco (1939-1975)
Economy Under Franco (1939-1975)
Autarky (1939-1950)
The Spanish economy during Franco’s regime had three distinct stages. The first, autarky (1939-1950), was characterized by depression, shortages, and the disruption of modernization and growth initiated by the Republican government. Post-Civil War efforts focused on rebuilding infrastructure and implementing rationing.
Spain closed its borders to goods, services, and foreign capital. This policy stemmed from political isolation due to affiliations with defeated powers in World War II and a belief in self-sufficiency. Strong government intervention included price and interest rate controls and industrial development through the Instituto Nacional de Industria (INI).
However, lacking resources and technology, this policy failed to generate competitive businesses capable of exporting and importing necessary materials. This led to a change in strategy with the 1959 Stabilization Plan.
Liberalization and Growth (1950-1974)
Stabilization Plan (1959)
Implemented by Franco, the plan aimed to liberalize the economy, moving away from autarky towards global trade. It marked a shift in economic policy, controlled growth, and laid the groundwork for Spain’s entry into the European Economic Cooperation Organization.
Desarrollismo (1960s-1970s)
This period, led by Opus Dei technocrats, saw significant economic development, trade liberalization, and the implementation of development plans. Tourism boomed. Luis Carrero Blanco assumed the Presidency in 1973 but was assassinated. Franco’s death in 1975 marked the end of the dictatorship and the beginning of the transition period.
Domestic Affairs
Franco’s rule centered around his dictatorship. He was proclaimed head of state, of the armed forces, and of the Falange party. Opposition parties and trade unions were banned, and dissent was repressed. The government aimed to dismantle Republican legislation, repealing laws like divorce. Economic and social reforms were introduced, including a new press law.
The regime saw the re-establishment of the Jesuit order in Spain. Franco’s government lasted for decades, marked by periods of stabilization, economic development, and social unrest. The Press Law and the Organic Law were significant developments. Carrero Blanco’s appointment as President ended with his assassination, and Arias Navarro was subsequently named President of the Council of Ministers.
Foreign Policy
The early years of the Franco era were years of international isolation, the context of both domestic and international post-war period did not allow large movements of the dictatorship of General Franco.Pese that it was one of the last dictatorships in Europe , next to Salazar’s Portugal, the fifties were the beginning of Spain’s international crimp in the international context, a context, recall, drawn by the victorious powers of World War II. the Cold War context in which the regime sided with the First World countries and another that offered general decolonization process in which Spain attended the independence of Equatorial Guinea. This was movements mainly came forced from outside. The rHE SYSTEM Franco was characterized by resistance to change, however, did not prevent the integration of directly or indirectly in international institutions or the opening of commercial channels with countries in the Atlantic area, the Mediterranean and one of the elements americano.Quizás most grotesque of this stage were Spanish policy-substitution policies. Born from the frustration of the system by failing to join the European club, the arguments de la Hispanidad or Spain Africans try to give international prestige that was lacking. These policies generated among certain sectors of Spanish society unreal vision of the position of Spain in the mundo.La death of Franco in 1975 resulted, apart from the initial concern, the release of the Spanish bonds in international politics giving rise to learned very important opportunities that take advantage during the transition stage.