The Franco Regime: Francisco Franco ruled Spain as a dictator for more than 35 years. As caudillo (leader), he was chief of state, commander of the armed forces, and head of the only legal political party, the Falange. He kept Spain out of World War II through artful diplomacy, began its postwar industrial development, and gave up most of its remaining African territories. In 1969 he named Prince Juan Carlos, grandson of Alfonso XIII, as his eventual successor.