Economics of fascism policies on the theories of national syndicalism as expounded by the Falange (Spanish for "phalanx"), the Spanish Fascist party founded in 1933 by José Antonio Primo de Rivera, which was one of Franco's chief supporters during his bid for power. During and after the Spanish Civil War, Franco and the Falange created a corporative system based on the Italian model. Economic liberalism was replaced with economic intervention according to the wishes of the corporations, which also set prices and wages. Combined with autarky and in the absence of Marshall Plan aid after the Second World War, Spain's post-war economic growth
Francisco Largo Caballero succeeded him as head of the party and of the UGT. Moderate in his positions at the beginning of his political life, he advocated maintaining a degree of UGT cooperation with the dictatorial government of General Miguel Primo de Rivera, which permitted the union to continue functioning under his military dictatorship (that lasted from 1923 to 1930). This was the start of his political conflict with Indalecio Prieto, who opposed all collaboration with the dictatorial regime. He was Minister of Labor Relations between 1931 and 1933, in the first governments of the Second Spanish Republic, headed by Niceto Alcalá-Zamora, and