1959: the Stabilization Plan and the end of autarky

This chapter analyses the contribution of the 1959 Plan de Estabilización (Stabilization Plan) to the economic changes that occurred in Spain during the 1960s. Economic growth improved in the 1950s after a decade of stagnation, but it was autarkic growth and the country accumulated serious imbalances. By reducing interventionism, initiating a process of liberalization and creating an appropriate economic framework, after two decades of autarky, the Plan contributed to promoting economic growth and helped change attitudes and mentalities. Moreover, the Plan had a long-term impact by allowing Spain to take advantage of a favourable international context during the 1960s. However, the dictatorship and its political interests restricted the scope of the reforms and negatively shaped the long-term evolution of Spanish economic development.