Franco's Spain: Dictatorship to Economic Liberalization

Franco's Spain was characterized by a personal dictatorship, militarism, Catholicism, and Spanish unitary nationalism. It operated as a single-party state, with the Spanish Falange suppressing political opposition and trade unions. The country experienced a permanent division between the victors and the vanquished.

Social support for the regime came from the army, the church, the Falange, traditionalists, landowners, financiers, business owners, small and medium agricultural owners, and the middle class.

The totalitarian stage saw the establishment of a new political regime without a constitution or democratic freedoms, concentrating all power in Franco. Institutions from the Republican era were dismantled, including the 1931 Constitution with its individual and collective guarantees, political parties, and autonomous regions like Catalonia and the Basque Country.

Fundamental laws were enacted during this period:

• The Work Charter (1938) regulated the workday and rest, banned strikes, and created vertical syndicates.
• The Constitution of the Cortes (1942) established a consultative assembly.
• The Charter of the Spanish (1945) outlined fundamental rights as defined by the dictator.
• The Law of Succession to the Head of State (1947) granted Franco the privilege to name his successor and establish succession rules.

The state structure placed Franco at the top as Head of State, leading what was termed an 'organic democracy'. In the economic field, rationing of food was implemented, and the policy of autarky (economic self-sufficiency) led to international isolation.

Internationally, after the defeat of fascism, the Franco regime faced a phase of international isolation. This ended during the Cold War when the United States became interested in establishing military bases in Spain.

The technocratic stage aimed to liberalize the economy, integrate Spain into the Western capitalist market, and justify the regime through economic results. Spain joined international economic organizations such as the IMF and World Bank in 1959. Following their recommendations, a stabilization plan was implemented, liberalizing the economy and increasing foreign investment.

Economic development plans were created to drive industry. Importing technology and energy from other countries became easier due to income from tourism, remittances from emigrants, and exports of agricultural products. Industry benefited from cheap labor and favorable markets. Agriculture saw mechanization, increased use of fertilizers, and crop specialization.