Using new data on Spain and Portugal 1950-1980, this paper shows that non-democratic governments were less generous in providing social protection and also financed their meager social policy in a less redistributive way. This contradicts recent studies that hold that dictatorships have no significant effect on social policy. The analysis also reveals that, rather than provoking a "race to the bottom" or an increase in social spending, globalization favored the adoption of tax-funded systems instead of systems based on compulsory social security contributions.