Masaryk University Faculty of Economics and Administration Field of Study: Public Economics and Administration The European alternatives to the liberal economies after the First World War: the authoritarian and conservative economic models of Spain and Portugal and the centrally planned economy of Czechoslovakia Diploma thesis Supervisors: Autor: Giorgio BARBERIS Matteo SERRA František SVOBODA Francesco INGRAVALLE Brno 2017 MASARYK UNIVERSITY Faculty of Economics and Administration MASTER’S THESIS DESCRIPTION Academic year: 2017/2018 Student: Matteo Serra Field of Study: Public Economics and Administration (eng.) Title of the thesis/dissertation: The European alternatives to the liberal economies after the First World War: the authoritarian and conservative economic models of Spain and Portugal and the centrally planned economy of Czechoslovakia Title of the thesis in English: The European alternatives to the liberal economies after the First World War: the authoritarian and conservative economic models of Spain and Portugal and the centrally planned economy of Czechoslovakia Thesis objective, procedure and The aim of the thesis is to demonstrate the outcomes of methods used: different economic policies which differed from the main liberal economic mo-del applied in the developed world in the second half of the 20th century. Referred economies are Francoist Spain, Salazarist Portugal and communist Czechoslovakia. Among others, the comparison will include following indicators: GDP growth, poverty eduction, employ-ment level, an amount of consumption, the value of investments in all productive sectors, the overall evolution of production, savings and public spending. For a better understanding of strength and weak-nesses of alternative systems and to obtain an insight into their (dis-)function, a study of different economic and productive methods will be employed. THE FRAMEWORK At the beginning of thesis, the political and economic situation in Eu-rope after the First World War will be analysed. This is followed by a discussion of the corporatist and authoritarian economies of Francoist Spain and Salazarist Portugal, focusing on the welfare system of the mentioned countries and the political and economic choices. In the following chapter, the Soviet economic and productive system imposed in the countries of Eastern Europe is discussed with the focus on the planned economy of Czechoslovakia. Finally the paper offers a description and comparison of various economic indicators and po-licies in these three countries to understand similarities, differences. In the end, the results of two different concepts are discussed. Extent of graphics-related work: According to thesis supervisor’s instructions Extent of thesis without 60 – 80 pages supplements: Literature: LEVČÍK, Bedřich and Jiří SKOLKA. East-West technology transfer : study of Czechoslovakia : the place of technology transfer in the economic relations between Czechoslovakia and the OECD countries. Paris: Organisation for economic co-operation and development, 1984. 102 s. ISBN 9264126007. LEVČÍK, Friedrich. Střední a východní Evropa na cestě k tržnímu hospodářství: dosavadní výsledky a kritické poznámky k navržené strategii. Praha: Ústřední ústav národohospodářského výzkumu, 1991. 20 s. TEICHOVÁ, Alice. The Czechoslovak economy, 1918- 1980. London: Routledge, 1988. xxiii, 178. ISBN 0415003768. Thesis supervisor: doc. Ing. František Svoboda, Ph.D. Thesis supervisor’s department: Department of Musicology Thesis assignment date: 2017/02/27 The deadline for the submission of Master’s thesis and uploading it into IS can be found in the academic year calendar. ......................................................... ......................................................... doc. Mgr. Jiří Špalek, Ph.D prof. Ing. Antonín Slaný, CSc. Head of department dean In Brno, date: 2017/10/19 Page 2 of 2 Name of the author: Matteo Serra Title of the thesis: The European alternatives to the liberal economies after the First World War: the authoritarian and conservative economic models of Spain and Portugal and the centrally planned economy of Czechoslovakia Title of the thesis in English: The European alternatives to the liberal economies after the First World War: the authoritarian and conservative economic models of Spain and Portugal and the centrally planned economy of Czechoslovakia Department: Public economy Thesis supervisor: doc. Ing. František Svoboda, Ph.D. Year of the defence: 2017 Annotation The goal of the submitted thesis is to analyse three anti-liberal political and economic model that existed in Europe from the first part of 20th century to the end of it: the Salazarism, the Francoism and the communist model of Czechoslovakia. The first part of the thesis is about the political and economic situation between 1918 and 1945 in the whole Europe, the second chapter is focused on the case of Portugal (analysing Salazar’s government using original and objective notices), the third one is concentrated on Francoist Spain (underlining the positive influence of Franco’s government refusing fallacious and partisans opinion about his policies), the fourth part analyses the completely different politic-economic model of Czechoslovakia (from its creation in 1918 to the ‘60s) and the last one reunified in a single chapter the protagonists of the thesis, to understand the efficiency (or inefficiency) of their anti-liberal economic and political models and to underline what happened when they have begun the road to the liberalism (even joining the European Union). In the conclusion of the thesis the stress is put on the economic efficiency and on the great results obtained by Franco and Salazar, while the analysis show that socialism had reached only acceptable social results. Keywords Portugal, Salazar, Spain, Franco, Czechoslovakia, Masaryk, Ota Šik, autocracy, economy, GDP, wellness, social policies, welfare, minimum wage, Germany, economic reform, economic development. Declaration I certify that I have written my Master’s Thesis by myself under the supervision of professors Barberis, Svoboda and Ingravalle and I have listed all the literary and other specialist sources in accordance with legal regulations, Masaryk University internal regulations, and the internal procedural deeds of Masaryk University and the Faculty of Economics and Administration In Brno, 2017 Author’s signature Acknowledgements I wish to express my sincere gratitude to all people who have made possible the realization of this work: for this reason, I am sincerely grateful to my family, who have allowed me to continue my studies and to reach this result, supporting me psychologically, morally and financially. I am really thankful also to my first supervisor, Professor Giorgio Barberis, very skilled teacher who has decided to collaborate with me even if the topics faced were particularly dispersive and even if our political-philosophical ideals are sometimes completely opposed. In addition, I want to thank a lot my third supervisor, Professor Francesco Ingravalle, not only for his indispensable support and his teachings (that has allowed me to enlarge decisively the boundaries of my historical and political knowledge) but also for having accepted to help me in the writing of my thesis. To end, I want to say thanks also to my second supervisor, Professor František Svoboda, to have approved my work and to have given me the possibility to end my double degree program, and to all my Professors of economics and history who have indirectly contributed to the elaboration and the execution of my best work ever. To my grandfather Matteo, exemplary person and man of great traditional values. Table of Contents Introduction ............................................................................................................................ - 1 - 1 Politic and economic situation in Europe in the first part of the 20th century ............... - 7 - 1.1 The situation before 1929 and after the Great Depression .................................. - 7 - 1.2 War economy and commercial trades ............................................................... - 12 - 1.3 The changing after the Second World War ....................................................... - 15 - 2 Portugal ........................................................................................................................ - 21 - 2.1 The colonial issue and the First Republic ......................................................... - 21 - 2.2 The military dictatorship ................................................................................... - 25 - 2.3 Antonio de Oliveira Salazar and his moral revolution ...................................... - 31 - 2.4 The “Estado Novo” and its economic features .................................................. - 40 - 2.5 Political and economic situation during the 1940s-1960s ................................. - 51 - 2.6 The end of the Salazarism ................................................................................. - 64 - 3 Spain ............................................................................................................................ - 67 - 3.1 The empire and the Second Republic (1931-1936) ........................................... - 67 - 3.2 The Civil War and the Libertarian Revolution .................................................. - 76 - 3.3 The economic consequences of the Civil War .................................................. - 87 - 3.4 The Francoism and Francisco