Franco’s Spain: Economy and Society Under Dictatorship
Economy Under Franco
Economic developments can be divided into two periods:
- A period that coincides with the regime’s totalitarian phase, characterized by depression and stagnation.
- A period of economic expansion, facilitated by the Stabilization Plan.
The Civil War brought great devastation and high economic costs. The result was a significant reduction in agricultural and industrial production. Stagnation and economic depression lasted almost 20 years. In contrast, European countries that participated in the Second World War began a period of economic expansion shortly after. The economic situation in Spain was also influenced by the decisions taken by the Franco dictatorship. Initially, Franco opted for economic autarky. This was a period of power restrictions, hunger, and misery, a situation caused by:
- The will of the state to be isolated from the outside.
- State intervention in the production and distribution of goods.
In 1941, the National Institute of Industry (INI) was created so that the state could manufacture necessary products that private enterprise was unable to produce. State intervention in production led to food rationing, the black market, and conscious and deliberate attempts to deindustrialize Catalonia and the Basque Country. Individuals engaged in the black market benefited from this situation, as there were no laws banning trade unions or strikes. In summary, autarky involved:
- General impoverishment of the population.
- Corruption in public administration.
- Lack of stimulus for industrial production.
Between 1951 and 1957, Spain began to recover economically, removing some interventionist measures that allowed for moderate growth. This growth was not balanced and had two consequences: an increase in inflation and a decrease in state currencies to pay for imports, to the point where the state declared itself insolvent. This prompted the need for a Stabilization Plan in 1959, which marked the beginning of the so-called “Spanish Miracle.”
Society Under Franco
The dictatorship was supported by a series of powerful groups. In exchange for their loyalty, they received preferential treatment:
The Army: Was an advocate of national unity and public order. Many senior military officers held positions in government and public enterprises.
The Catholic Church: The state was declared denominational, and all secular laws of the Republic were eliminated. Civil marriage and divorce disappeared. The Church supported the regime, obtaining in return many privileges in society and education.
The Falange: Provided the regime’s ideology and symbols. It was not a union, but a system of control of the working class, and the Sindicato Español Universitario (SEU) was in charge of social activities.
The Rest of the Spanish Population: Was forced to abruptly change their behaviors and ideas. Many left Spain; Spanish emigration to America is one of the notable events of the post-war period.
Members of Political Parties: Those who remained in the country suffered heavy prison sentences and continued marginalization.
The Intellectuals: Many left the country.