Political and Economic Reforms of the Dictatorship (1923-1924)

Military and Political Reform (1923-1924)

Administrative Restructuring and Decentralization

Political regeneration was one of the dictator's most cherished goals. During September 1923 and April 1924, the regime attempted to pursue warlords and prohibit recommendations in the municipalities. The behavior of members was inspected, leading to the dissolution of municipalities and county councils. These were replaced by associated boards of civil and military governors.

New administrative structures were established:

• Deputy Governors were created in the provinces.
• The Chief of the Army officer served as the Civil Governor, responsible for reporting municipal problems and proposing solutions.

Government intervention was completed with the drafting of a Municipal Statute and a Provincial Statute, intended as weapons to fight despotism. With these statutes, the regime sought municipal autonomy and administrative decentralization.

Civil and Economic Policy of the Regime

State Interventionism and Economic Nationalism

The political economy of the dictatorship was based on strong state interventionism and economic nationalism. To articulate this intervention, the regime created the National Economic Council in 1924, a committee responsible for industrial regulation. Production and prices were regulated by this state council. This apparatus led to the creation of the Ministry of Economy.

The basic aspects of this economic policy were:

1. Fostering Domestic Production

   This policy focused on strengthening the domestic market and supporting internal production. In 1924, a decree on the protection of domestic industry was approved, which provided loans and state aid. The primary beneficiaries included railway companies, followed by shipping companies.

2. Policy of Public Works

   This initiative was intended to reactivate the economy. To achieve this, a National Infrastructure Plan was created (the work of Count Guadalhorce), which developed road construction and railways.

   • Through the National Circuit of Special Signatures, road delineation was improved.
   • A policy was initiated for managing water and the agricultural and hydroelectric use of river flows. This involved the construction of dams and reservoirs.

   The financing for these works came from the issuance of public debt, resulting in the emergence of a deficit.