e fact that Spain never entered the war, the country never received the benefits from the European recovery plans, holding it in a situation of complete solitude. After the Civil War in Spain, an inward-looking development model, also known as autarky, was adopted due to its isolation with its surrounding neighbors. This economic policy was based on the conviction that the “Spanish economy had the resources to produce enough, without depending on other countries, to satisfy all society’s needs while achieving economic development” (Autarky 1). Due to the Spanish economy’s lack of sufficient raw materials, technology, and size for developing businesses large enough to be competitive and capable of generating an ample amount capital to import necessities for growth, the plan ultimately failed. Eventually, the Stabilization Plan of 1959 was constructed to open the doors to the entry of goods and foreign capital.The Stabilization Plan consisted of the entry of capital into Spain through tourism, remittances sent home by Spanish workers who emigrated to more developed European countries, and foreign investment. Although it was unstable, this new economic plan was much more successful than the Autarky economic policy. Also referred to as a “stop-and-go” policy, it generated a more intensive use of capital than would have been expected by the physical work capital resources of the country. The work force dramatically increased, with the loss of jobs in agriculture (the traditional way in which Spaniards made a living) and the growth of the tertiary sector, which incorporated women into the workplace. Steel, shipbuilding, textiles, and footwear were the main industries, which utilized standard technology and based its competitiveness on its cheap labor and its capital on a cheap money monetary system.Eventually, due to Spain’s lack of adapting to the rest of the world’s technological advan...
