Franco Regime: Political and Economic Evolution

Political and Economic Developments of the Franco Regime

1. The Postwar Period (1939-1950)

• a) World War II (1939-1945)
  • Foreign policy: (1939-1941) neutrality, (1941-1943) non-belligerence, sympathy towards the Axis, Blue Division, (1943-1945) neutrality.
  • Autarky (self-sufficiency), hunger.
  • Institutionalization of the Spanish courts law regime (1942), jurisdiction of the Spanish (1945).
• b) International Isolation (1945-1950)
  • Political: Withdrawal of ambassadors from Spain, Spain did not join the UN.
  • Economy: No commercial relationships with Spain, hunger.
  • Franco presents international isolation as a Judeo-Masonic conspiracy against Spain.
  • Institutionalization of the regime: The National Referendum Act (1945), Law of Succession (1947).

2. The Cold War and First Attempts at Opening (1951-1959)

• a) International Tension between USA and USSR, Cold War.
• b) Anti-Franco Spain and strategic location for U.S. military interest in the showdown with the USSR.
• c) USA attitude change: UN cancels isolation, American military bases and American aid, Spain admitted to the UN.
• d) Moderate economic recovery: Commercial aid and exchanges.
• e) Institutionalization of the regime: Fundamental Principles of the National Movement (1958).

3. Technocratic Phase: Economic Development (1959-1973)

• a) Technocrat ministers: Technocrats gain power, Falangists and military lose power.
• b) Stabilization Plan (1959): Modification of self-sufficiency and encouragement of external opening.
• c) Influx of new resources: Tourism, foreign capital investment, export of labor, emigration.
• d) Economic expansion: Electrical appliances, popularization of the Seat 600, tourism, beach resorts.
• e) New resources allowed development plans: Three four-year plans (1964-1975).
• f) Institutionalization of the regime: Organic Law of the State (1966), second organic law, appointment of Juan Carlos de Borbón as successor (1969).

4. Crisis of the Regime (1973-1975)

• a) Two events marked the beginning of the crisis:
  • Political: ETA attack against Carrero Blanco, president of the government (1973).
  • Economic: Oil crisis of the 3rd Arab-Israeli war (1973).
• b) Progressive alienation of the Catholic Church following the Second Vatican Council (closed 1966).
• c) Mobilizing capacity of the underground opposition between workers and students.