The Stabilization Plan of 1959 () or the National Plan of Economic Stabilization () were a series of economic measures taken by the

Spanish Government The government of Spain () is the central government which leads the executive branch and the General State Administration of the Kingdom of Spain. The Government consists of the Prime Minister and the Ministers; the prime minister has the o ...

in 1959. Its main goal was the

economic liberalization Economic liberalization, or economic liberalisation, is the lessening of government regulations and restrictions in an economy in exchange for greater participation by private entities. In politics, the doctrine is associated with classical liber ...

of the Spanish markets, marking a turning point from the previous policies oriented towards achieving

autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideology or economic approach has been attempted by a range of political ideologies and movement ...

. The implementation of the plan led to

mass migration Mass migration refers to the migration of large groups of people from one geographical area to another. Mass migration is distinguished from individual or small-scale migration; and also from seasonal migration, which may occur on a regular basi ...

movements (internal migrations but also abroad), with the population and the economic activity concentrating in the most dynamic areas, hollowing the rest of the country. The Stabilization Plan of 1959 caused a sharp recession in 1959. Unemployment increased due to the decrease in production caused by higher imports, which lowered the demand for national products. This decrease in production also led to lower consumption and wage freezes. The monetary reserves of the

Bank of Spain The Bank of Spain (, ) is the national central bank for Spain within the Eurosystem. It was the Spanish central bank from 1874 to 1998, issuing the peseta. Since 2014, it has also been Spain's national competent authority within European Banki ...

increased,

inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...

dropped from 12.6% in 1958 to 2.4% in 1960, Spain attracted foreign investment, and the relaxation of

tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...

s led to the import of new technologies. Following the recession of the Stabilization Plan, there was an

economic boom An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with ...

in Spain in the 1960s and early 1970s.

References

1959 in Spain Economic history of Spain Government of Francoist Spain Economic planning {{Spain-hist-stub

See also

References