t economy is far behind the leading West European countries' economies. Although in the past decade it has made incredible strides toward progressing into the next millennium, Spain has its work cut out for them in the near future in order to contend with the other West European economies. Although the inflation rate is low, interest rates are low, and the government has continued to advocate liberalization, privatization, and deregulation of the economy while introducing new tax reforms, Spain has a 20% unemployment rate that ranks highest in the EU. Spains mixed capitalist economy will be posed with difficult challenges in the next few years with monetary and other economic policies, and will need a stable government to become more competitive with an integrated Europe. However, Spain has made a great deal of progress, considering its wavering economic past. World War II was the beginning of the distance between Spain and the rest of the European nations. Due to the 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 societys needs while achieving economic development. Due to the Spanish economys 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 touris...
