Economic Autarky and Rationing in Francoist Spain

Autarky and Rationing in the Franco Regime

One of the primary objectives during the initial stage of the Franco regime was economic self-sufficiency, known as autarky. This policy focused on three main areas of action:

1. Regulation of Foreign Trade

The state exerted complete control over imports and exports, requiring official authorization for all international trade transactions.

2. Industrial Development

The government implemented measures to favor public enterprises and the nationalization of essential industries:

• Transportation: Nationalization of all railway companies and the establishment of the Spanish National Railways Network (RENFE).
• Telecommunications: Nationalization of the National Telephone Company of Spain (CTNE) in 1945.
• Industrial Policy: The 1941 founding of the Instituto Nacional de Industria (INI) promoted the creation of public companies to produce goods deemed unprofitable for the private sector, including Iberia, Banco Exterior, Endesa, Enher, Ensidesa, and SEAT.

3. Agricultural Intervention

The state regulated the production, marketing, pricing, and consumption of agricultural goods. Low official prices for staples—such as cereals, legumes, wine, oil, and potatoes—led to a significant decline in production.

Consequences of Autarkic Policies

The result of these policies was deep economic stagnation, characterized by the collapse of foreign trade, a sharp decrease in production and consumption, and a decline in the population's standard of living.

The Black Market and Rationing

Agricultural producers were forced to surrender their harvest at fixed prices, which the administration then sold to consumers. This led to severe food shortages and the implementation of ration cards. Consequently, many farmers diverted their production to the black market, where prices were three to four times higher than official rates.

Social and Demographic Impact

During the 1940s, the population faced extreme poverty and hunger due to low wages and high inflation. The cost of living increased by 500% compared to pre-war prices, with basic foodstuff costs rising by over 700%. By 1941, the mortality rate reached 18‰, and infant mortality hit 143‰. By 1945, the natural population increase dropped to 0.9‰, with life expectancy at 47 years for men and 53 for women.