Franco's Autarky: Economic Isolation, Rationing and Black Market in Spain
5. Autarky and Rations
Autarky and Its Effects
One of the main objectives of the first stage of the Franco regime was to achieve economic self-sufficiency (autarky). This promoted an economic policy that advocated isolation from the outside world and state intervention in the economy, replacing the free market. Autarkic economy had three main policy areas.
The First Area: Foreign Trade Regulation
Imports and exports were completely controlled by the state. This limited foreign exchange by reducing imports, resulting in higher prices for state-imported products and severe shortages of consumer goods. It also affected raw materials and power, leading to a decline in industrial production.
The Second Area: Industrial Promotion
This focused on promoting...