7. Import Substitution Industrialization (1951–1959)

In the 1940s Spain went through a failed autarkic industrialization. As it was politically and economically unsustainable, especially in front of Western Europe’s successful post-war reconstruction, it had to move to a less rigid scheme: import substitution industrialization (ISI). It happened at the same time than in many other countries, notably in Latin America and the Middle East. In Spain it was a flexibilization of autarky. Cold War allowed for a change in the attitude of the main Allied powers regarding Franco’s Spain. The US provided substantial support through military agreements, making ISI possible and sustaining quick growth during a few years. A new “national” capitalism was structured that lasted for long. Nevertheless, the growth model was also unsustainable and it collapsed in 1959. The Stabilization Plan of the same year put an end to it.