Economics of the First Francoism 1939–1959

Abstract

Francoism in the initial period of its existence focused on building a self-sufficient economic system. The policy pur-sued by the fascist countries, primarily Italy, was taken as a model. This choice was due not only to the ideological close-ness and assistance that these states provided to the Fran-coists during the civil war, but also to objective factors. The World War II limited international trade, and afterwards Spain was in international isolation. Under these conditions, the main task was to reduce dependence on imports. To do this, the government actively intervened in the economy, setting prices and controlling the distribution of resources. The re-sults of the first decade were modest, some of the worst among non-belligerent countries in Europe. In the 1950s the policy was adjusted: control over the economy was relaxed, equipment purchases abroad were more active. This allowed for significant growth. The growing trade deficit was covered by US loans, as well as tourism income. Nevertheless, the basic principles of the autarkic policy persisted, which led to a severe economic crisis in the late 1950s.