Autarky in Spain (1936-1959): Policies, Effects, and Assessment
Autarky in Spain (1936-1959)
Autarkic Policy. Media and the reasons for the delay in the transport situation were very poor: production equipment was destroyed, and many crops and livestock were lost. In addition, the Bank of Spain used 150 tonnes of gold to pay for war material, and measures to stimulate the economy had a negative impact. However, after 15 years of war, this is not a sufficient reason for the delay of the Spanish economy.
The importance of autarky explains the delay. The most important objective of economic activity in this country was self-sufficiency; foreign imports had to be produced domestically, and all efforts were focused on this. Local and international networks were avoided, and foreign capital was rejected. Ultra-nationalist schemes were used, especially those distinctive of fascism:
- Political interventionism
- External insulation
- Sub-imports
- Consumption and saving as speculation
These were mistakes. Foreign economic relations faced difficulty with the modernization of production:
- Technology innovation was more difficult.
- Competitiveness was affected.
Period: Spain remained in autarky between 1936-1959.
Effects of Autarky
- A huge bureaucratic system was organized to regulate the entire economy. Intervention occurred in production, foreign trade, and prices.
- Corporatism: Tax exemption allocations for public works favored oligarchic groups and the financial sector. Corporatism, as a working relationship with the organization system, discarded class syndicalism; the State controlled all professional groups.
- The Civil War, autarkic policies, drought, and bad harvests led to slow industrial production. As a result, many had to return to agriculture.
- The State, in this economic autarky, created companies regulated by the main sectors to be developed and specified in the arrival of foreign capital in the block. This led to a deficit of supply. Given the low private investment, the INI (National Institute of Industry) was founded with public capital (banks also had a high participation).
Autarkian Agricultural Policy
After the Civil War, Spain was plunged into a deep agricultural crisis. Hunger increased, and the consumption of basic products was rationed. Large plots of land expropriated during the Republic had been returned. In 1939, the National Institute of Colonization was set up. Irrigated crop land affected the settlers, and the new goal was to organize campaigns, but these achieved very poor results.
- The National Wheat Service (SNT) was set up to protect the interests of laborers. This entity purchased wheat at a set price to ensure a certain level of consumption of basic agricultural products and to maintain modest salaries in the industry.
- The Commissioner of Transport (CAT) was created to facilitate the marketing of agricultural products.
The results were not positive. Most crop land was owned by small producers who were forced to sell quickly due to product, price, and rate controls. Meanwhile, large landowners hoarded grain and hid crops to enrich themselves during moments of great shortage.
Social and Economic Status in 1940
Assessment: Autarky was a complete failure. The Spanish economy was dependent on the international economy and lacked the capacity to promote growth due to economic factors, including trade.
The lack of resources and rationing led to speculation and the accumulation of products, known as estraperlo (black market). As a result, living conditions were lower than before the war, and the potential lack of workers hindered the weak recovery in trade.
To maintain the dictatorship, Spain closed its doors to the international expansion of the economy after the reconstruction of Europe.
Features of Autarky
- Protectionist policies
- Bureaucracy in the state of the economy
- Heavy interventionism
- Economic recession