Indicative planning in Spain (1964-1975)

Abstract

Inspired by the successfulness of the French plans, Spain introduced the practice of indicative planning with the objective to raise the living standards of population and encourage personal development and favour freedom and dignity of the person. Planning was viewed by Spanish economists as an important and indispensable instrument to help Spain to follow eco-nomic liberalization, and allow greater integration on European and international scale. Since 1964, the Plans allowed the positive economic and social transformations, and contributed to the increased rationality of the economic policy. At the same time the plans were not capable of restraining the inflationary tensions, neither correcting serious regional imbalances, leading to the disordered urban growth and worsening the environment. Another disadvantage was the rigidity of labour market, including low wages and concealed unemployment, as well as de-pendency of Spanish economy on the foreign financing, including remittance of emigrants, tourism and foreign capital.