The Spanish Economy
!TIRE OECD has just published its report on I the Spanish economy with a view to Spain's possible entry into the Common Market. The conclusions it reaches were to be expected; it stresses the difficulties, often of a political nature, in the way of solutions for the most serious problems. An antiquated agrarian struc- ture, an industrial system consisting only of huge trusts and really small enterprises, an eco- nomy pampered by long years of protectionism, backward communications and exports consist- ing mainly of foodstuffs, which suffer from the general fall in world prices, seriously compromise an optimistic future for Spain's European as- pirations.
The problem is first and foremost political : agrarian reform and a liberalisation of the eco- nomy could not be put into practice' Without profound changes in the regime. It would be necessary to permit free unions, allow employers to dismiss redundant workers, and eliminate in- flationary institutions such as the INI (National Institute of Industry) which themselves lie at the base of the regime's political hierarchy and Vi.hich are indispensable to General Franco. But this is not all. The problems of the Spanish economy exist for all who wish to rule the country. The liberal opposition to General Franco has just committed itself in Munich to a European policy, since this would force the Caudillo to liberalise his regime and to prepare the way for a change. But those who inherit the power will also inherit the difficulties.
The OECD report foresees the possibility of attracting a considerable mass of foreign capi- tal, but this would mean Spain's subordination to foreign industrial enterprises far stronger than its own. On the other hand, the abundance of cheap labour, which the report considers a point in favour of Spain's entry into the Common Market, stands in practical terms for a massive exodus of Spanish workers towards the Ruhr and Alsace. But an all too 'economic' point of view should not make anyone forget the social problems which are bound to arise as a result, and which might easily endanger the whole European strategy.
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