Francoist Spain: Economic Crisis, US Aid, and the End of Isolation (1950s)

The End of Autarky and Early Reorientation (1950s)

The decade of the 1950s started to clear the economic strangulation and depletion caused by autarkic policies. This period began to sketch the need for some economic and political reorientation of the regime.

Exhaustion of Autarkic Policies and Social Crisis

The autarkic economic policy impoverished much of the population and increased inequality in income distribution. The reduction of wages, rising prices, and the impossibility of workers making any claims led to very difficult living conditions for many citizens.

Worker and Citizen Mobilizations

The first major worker and citizen mobilizations occurred in 1951, when a major protest movement broke out in Barcelona. Its origin was the rising price of a tram ticket, but it quickly escalated into a protest over wages and the lack of freedom.

These mobilizations were fueled by dissatisfaction with:

• The dire economic situation.
• Poor harvests.
• Arbitrary price policies.

Economic bottlenecks forced the regime to increase imports of food, which did alleviate hunger for many Spaniards. However, foreign exchange shortages, and its use in buying food, prevented the import of essential raw and manufactured products. Despite the regime's refusal to devalue the peseta, the official exchange rate fell in the second half of the 1940s as a result of the lack of competitiveness of Spanish products.

The Weight of the International Situation: Ending Isolation

In the context of the Cold War, U.S. willingness to help Spain economically increased. International relations entered a more favorable stage, thanks to Spain becoming a staunch Western ally in the fight against Communism. This period marked the definitive end of international isolation:

• 1950: Spain was admitted to international agencies (e.g., FAO and UNESCO).
• 1953: The signing of a new Concordat with the Holy See.
• 1953: The signing of military treaties with the U.S., granting land for military bases in exchange for military and economic aid.
• 1955: The UN recommended the return of ambassadors to Madrid and allowed Spain's entry into this international body.

These agreements with great powers helped assure the international peace and future of the regime.

Timid Policy Changes and Renewed Unrest

Franco decided to carry out a government reshuffle in 1951, combining Falangists and Catholics. He introduced Admiral Luis Carrero Blanco, a person who would be key to the continuity of the regime.

The regime sought international approval that would allow it to end isolation and achieve foreign policy success. The financial contributions received between 1953 and 1956 managed to save the distressing economic situation, but the first signs of discontent began to emerge on the street.

Between 1956 and 1958, a new wave of labor protests unfolded, primarily in the principal industrial centers, including strike movements and student movements of dissent in Madrid and Barcelona.