Franco’s Spain: Economic History and Impact
**Franco’s Economy**
Autarky (1939-1950)
After General Franco won the Spanish Civil War, his regime was dictatorial. Franco had economic control of all three stages of Spain. The first stage was Autarky (1939-1950). During this period, the modernization process was halted.
Major Depression (1950-1960)
The second stage was a Major Depression (1950-1960). The economy began to improve, but it did not reach the levels of other European countries. The characteristics of democracy were not accepted in Francoist Spain. There was no constitution, and all the power resided in the Head of State. There was only one political party and one trade union. Spain suffered international isolation in the 1940s, further hindering the economy. Franco enacted “The Law of Succession”, declaring Spain a monarchy and naming Don Juan Carlos, Prince of Spain, as the next Head of State.
There was a high mortality rate, significant emigration, and a low birth rate. Prices increased, and the country began to sink into economic collapse. The primary and secondary sectors were particularly affected. Land was abandoned, livestock was not replenished, and machinery and industry suffered. Unemployment was high, and there were fewer worker arrests due to the social impact of the economic situation. Power was concentrated in the hands of the oligarchy, the church, and the Falange.
Late 19th and 20th Centuries
In the last third of the 19th century and the first part of the 20th century, inequality increased in Spain compared to other European states. Spain had a poor standard of living, and per capita income did not reach pre-1939 levels until 1953. This decade was a dark period in Spain’s contemporary history.
Turning Point: The Cold War and Economic Opening
The Cold War era marked a turning point. Spain joined the UN in 1955. In 1953, the USA and Spain signed an agreement allowing NATO to establish military bases in Spain. A new economic plan, the Stabilization Plan, was launched in 1959 to stimulate the economy and end autarky. This plan fostered better relations with the outside world and opened the market. It was one of the most important economic operations in 20th-century Spain.
Technocrats came to power, leading to a change in economic orientation. Development plans were created, and tourism was promoted. The “Press Law” of 1966 removed censorship. However, the “Organic Law of the State” did not allow citizens to elect their representatives. The presence of ETA became significant in the early 1960s.
Succession and the End of Francoism
In 1969, Franco designated Don Juan Carlos as his successor. Admiral Carrero Blanco, the Prime Minister, was assassinated by ETA in Madrid. Reactionary sectors (known as the “bunker”) did not accept the proposed changes. Franco died in 1975, and Don Juan Carlos became King of Spain.
The 1960s and 1973
The third stage spanned the 1960s until 1973. The Stabilization Plan of 1959 continued with policies such as cheap energy, low prices for food and primary materials, and increased internationalization of the Spanish market. In the last two decades of Francoism, companies adopted a new consumption model.
Economic growth during Francoism was significant, but it was not as robust as other European economies that had begun their recovery earlier. Spain started to catch up with the rest of Europe, but the economic crisis of the time was harder to bear for most of the Spanish population.