HIstory of Spain 1960
Spain in the 1960's undoubtedly experienced an economic boom, however, the question examined requires investigation into how far this rapid progression was due to 'circumstances outside of the country itself' or whether Franco and his policies effected the boom. However, whilst studying Spanish economy of the 1950's and 1960's it has become increasing difficult to separate the effects of external circumstances and internal circumstances as it seems that the success was counter-reliant. According to Raymond Carr (1980), there were three sources which stimulated the Spanish economy. Those being loans from foreign countries, the admittance of tourists and Spaniards were permitted to work abroad which resulted in money being sent back to families in Spain which was then was reintroduced into the economy. Stanley Payne (1968) also argues that it is reasonable to realize that 'only the rise of the tourist trade and large-scale assistance of the United States permitted the unbalanced economy [of Spain] to move as far as it had'. (p 57)However, despite the increase in imports and credit from abroad which undoubtedly helped improve Spain's situation and provided a base for the period of expansion, it is important to recog
Import controls were abolished and tariff, taxation and exchange rate systems were all reformed. ------------------------------------------------------------------------**Bibliography**· Arango. A Stabilization and Liberalization Plan was finally adopted by Franco and his government under the persuation of the new ministers; this plan was also backed by the World Bank, the IMF and OECD. 1 billion; boosting local economy as well as providing the government with the funds to accumulate gold reserves and move away from the bankruptcy which had previously been a major threat to the government. Increased the price of utilities and taxes on tobacco and petrol as well as the interest rates for borrowers. These changes also enabled the country to seek multinational investment and opened the country to the tourism which Franco protected Spain from for decades. The new plan aimed to reduce inflation and liberate foreign trade and investment. This new attempted technocracy of the government and this economic planning as seen in the 1960's was a great improvement over the bureaucratic pseudo autarky of earlier years, however, it is important to note that the success would never have been realized without the introduction of external funds. Franco was a dictator who was economically illiterate (Arango 1995); but despite his reluctance to change policy he also understood the need to develop the economy further. The change in policy that the Spanish government !chose to put into effect proved to be the most decisive policy change under the dictatorship, with the disbandonment of autarky which paved the way for the developments encouraging industrialisation through foreign capital, enabling the stabilization of the Spanish economy. The Stabilization Plan meant that Franco was able to open the Spanish economy to the world.
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Acceptance Essays
