Economic and Social Transformation in Spain During the 1960s
Economic Factors of Development
To try to alleviate the huge imbalance of the trade balance with the exterior, incentives to foreign investment and the freezing of wages were implemented. The consequences were the reorganization of the economy and the laying of the foundations for economic growth in the subsequent decade.
Factors of Economic Development
- The liberalization of the economy allowed the country to benefit from the European economy.
- Internal and external emigration. The labor that emigrated became a cheap and plentiful workforce, considered ideal from a business perspective, despite its low grade. Those who went to Europe became a source of foreign currency as they repatriated most of their salaries.
- Spectacular tourism development.
Tourism and economic growth coincided with the application of a program intended to coordinate economic planning and economic growth in developing plans that fixed investment in certain enclaves, mostly depressed states. Thus arose the so-called development poles of Burgos, Huelva, and Seville.
The Boom of Industry and Tourism
The metallurgical industry was noted for the manufacture of equipment and the sudden growth of the automobile industry, located in an environment of large centers of consumption. The chemical industry was highly diversified. Hydrocarbon refining, pharmaceutical factories, plastic, and textile fibers were installed. The construction sector also grew due to accelerated building in cities and the Spanish coast. While industrial expansion took place, a massive influx of European tourism occurred. The impact of tourism was multiple and contradictory. Although it employed thousands of Spaniards, labor activity was markedly seasonal, concentrated in the summer period.
The End of Traditional Agriculture
Agriculture underwent a transformation that led to the liquidation of the traditional agrarian structure. The agricultural policy of the Franco regime had also been raised to alleviate the smallholding of land and the ability to increase yields through irrigation programs, as was evidenced in the Bangkok Plan of 1950 and the law of large irrigated areas in 1962. Production was diversified and specialized, and also happened to be oriented towards foreign markets.
The Demographic and Social Impact of Development
The economic development of the sixties had an enormous impact on the demographic and social structure. Traditional agricultural and rural Spain led to an urbanized Spain in which the values of the consumer society were quickly adopted.
In the field of population, Spain culminated in the sixties the process of demographic transition, with a significant delay compared with European countries. This process, characterized by a substantial reduction of mortality and maintenance of high birth rates, resulted in a large population growth known as the “baby boom” of the sixties. From 25 million inhabitants in 1940, it grew to 35 million in 1937.
Because of this significant demographic, more years saw a great rural exodus that brought more than six million people to leave between 1960 and 1970, the most depressed areas of the Spanish countryside. Catalonia was the main recipient of immigrants during the sixties. The strong immigration to the Principality and the rural exodus caused a significant redistribution of the Catalan population, due to immigration and only vegetative growth. In addition, immigration brought an increase in the
active population and of childbearing age that resulted in an increase in the birth rate.
The sites of origin of the majority of immigration that came to Catalonia were Andalusia, which contributed almost 50% of immigrants, the two Castiles, Galicia, Extremadura, and Aragón.
The population rapidly developed. Spain became increasingly large cities: in 1970, 70% of the population lived in towns and four out of every 10 Spaniards did so in cities of over 100,000 inhabitants. In cities like Barcelona or Madrid, shantytowns and the lack of sewerage and transport, and basic social services were also realities against which late Franco neighborhood associations rallied.
From the viewpoint of social structure, the characteristic of the Spanish agrarian classes evolved toward a modern society, similar to Western European societies. The profound changes that occurred in the labor market, following a radical transformation of the Spanish middle classes. Nevertheless, access to the consumer society masked the great inequality in the distribution of wealth among Spaniards.
Key Points
- During the Cold War, because of the strategic position of Spain and the anti-Franco dictatorship, it was able to overcome international isolation with support from the US and the Vatican.
- With the incorporation of members of the government known as Opus Dei technocrats, a policy of economic liberalization was instituted.
- In the fifties and sixties, during the Franco regime in Spain, economic growth was boosted through development plans.
- The economic growth and modernization of Spanish society eroded the foundations of the regime while there was growing opposition to it.
Keywords
Marshall Plan: North American plan to help the economic recovery of European countries.
Organic Democracy: Name given by the Franco regime to the political system from 1966, which outlined a very limited suffrage.
Second Vatican Council: Ecclesiastical meeting promoted by Pope John XXIII held in 1962-65.
“Desarrollismo”: Policy pursued by Franco during the sixties that led to rapid growth, albeit with strong imbalances.
Baby Boom of the Sixties: The spectacular growth of the Spanish population produced during the sixties due to decreasing mortality and the maintenance of a high birth rate.
Personalities
Manuel Fraga: (Villalba, Lugo) Very popular minister in the sixties, representative of the “oberturistes” sectors of the regime. Collaborated in the writing of the Spanish Constitution and was the founder of the People’s Alliance and PP.
Carrero Blanco: (Santander) Loyal to Franco and the regime, represented by the intransigents. He was trusted by the dictator. In 1973 he was assassinated by ETA.
Marcelino Camacho: (La Rasa-Osma, Soria) Spanish political union. Booster of CC.OO, spent nine years in Carabanchel prison.