Read e-book online Growth and Crisis in the Spanish Economy: 1940-1993 PDF

By Sima Lieberman

ISBN-10: 0203982169

ISBN-13: 9780203982167

ISBN-10: 041512428X

ISBN-13: 9780415124287

Progress and predicament within the Spanish financial system: 1940-93 appraises the turbulent improvement of the Spanish economic climate over the past fifty years and areas present fiscal difficulties of their old context. Sima Lieberman examines the industrial, political and social difficulties inherited from the Franco period and their evolution into the current.

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Papeles de Economía Española, ‘Las Tres Preguntas Clave de los Años Noventa’, vol. 41, 1989, pp. v-xliii. 1 THE SPANISH ECONOMY UNDER THE FRANCO REGIME Many Spanish economists have interpreted the course of economic policy followed by General Franco’s governments as showing two distinct phases. The first corresponds to a period of economic autarky in which the Spanish economy remained practically closed to the world and which extended from the end of the Civil War to 1959 when the seriousness of Spain’s economic problems induced the Franco regime to accept economic reforms.

Workers and students protested the intensification of inflation and the development of black markets in the country. Two industrial laws, both enacted in 1939, clearly expressed the strong support given by the Franco regime to economic autarky. The first of these laws was the Law of Protection and Development of National Industry of 24 October 1939. The preamble to this law stressed ‘the capital importance in the life of the nation of the availability in the home territory of industries necessary for war and of the primary resources indispensable for life’ (Boletín Oficial del Estado, 1939).

The law forced many Spanish enterprises, both public and private, to purchase domestically produced inputs at prices much higher than those prevailing in world markets. Another major goal of the early Franco administration was to create a state holding company, modelled after the Italian Istituto per la Ricostruzione Industriale, and able to develop large-scale industrial enterprises which the private sector was unable to finance and to manage. The Instituto Nacional de Industria (INI), the National Institute of Industry, was established by a law of 25 September 1941, in order to ‘propel and finance, in the service of the nation, the creation and reappearance of our industries, specially those which will have as principal end the solution of the problems imposed by the needs of defence of the nation or which will direct themselves to the development of our economic autarky, able to offer to Spanish saving a safe and attractive investment’.

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Growth and Crisis in the Spanish Economy: 1940-1993 by Sima Lieberman

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