Economic & Social Transformation in Spain: 1959-1974
3 Years of Economic Development and the Technocracy (1959-1974)
Development Planning and Economic Growth
Technocrats and the Stabilization Plan of 1959:
The new government of 1957 incorporated two members of Opus Dei into the major economic ministries of finance and trade. An employment process began to fill ministerial positions with technocrats oriented towards technical expertise and economic efficiency. These individuals ushered in a change in the economic policy orientation of the dictatorship. One of their key projects was the Stabilization Plan of March 1959, which aimed to achieve price stability, economic flexibility, and the liberalization of foreign economic relations.
Results: The plan had traumatic consequences, including lower wages, bankruptcies, and rising unemployment. However, it was deemed necessary for the Spanish economy.
Development Plans:
The Spanish economy was still struggling, and a driving force was needed. The solution was the development of plans following the French model of indicative economic planning. From 1964 to 1975, this approach was accentuated, with the last three four-year plans being abandoned in 1973. The Accelerated Development Plan was based on aligning state goals with those of private companies. If companies accepted the plan’s conditions, they were granted financial and tax advantages.
Plan Highlights: Development Centers. Backward areas with economic potential were selected and granted assistance. Between 1964 and 1972, aid was provided to Vigo, Coruña, Oviedo, Zaragoza, Seville, Huelva, Logroño, and other areas.
The Spanish Economic Miracle and its Gaps:
Between 1960 and 1973, the Spanish economy experienced significant growth, bringing Spain closer to Europe economically. Positive developments included:
- Income per capita more than doubled.
- Economic sectors were modernized.
- The secondary sector, particularly the chemical, metal, and automotive industries, experienced significant development, leading to an improved standard of living.
- The tertiary sector thrived due to a surge in tourism.
- Agricultural technology improved.
However, negative aspects also emerged:
- Large regional imbalances (uninhabited areas).
- Underutilization of labor.
- Emigration of part of the population.
- Trade balance deficit due to expensive imports.
This crucial point was offset by three sources of income (making Spain dependent on other countries):
- Foreign capital investment in various Spanish economic sectors.
- Foreign exchange sent by emigrants to relatives in Spain.
- Influx of foreign exchange from tourism.
Conclusion: Despite its drawbacks, Spain experienced spectacular economic development.
Social Changes and the New Mentality
Migration Movements:
Internal Migration:
Internal migration gained significant momentum in the 1960s due to the strong attraction of sectors such as industry and services. More than 3 million people migrated to industrial zones, new development poles, and tourist centers. The spectacular growth of major cities like Bilbao, Madrid, and Valencia led to the emergence of dormitory towns lacking adequate infrastructure and basic services.
Foreign Immigration:
Foreign immigration reached high levels, as there were not enough jobs for everyone in Spain. Europe was experiencing economic expansion and could absorb more labor. Between 1960 and 1973, more than 1.5 million people migrated from Spain to European countries, primarily France, Germany, and Switzerland. This emigration was essential for the social stability of the system, as it prevented high unemployment.
The Modernization of Social Structure:
Significant economic growth led to changes in the occupational structure of the population, reflecting the characteristics of a developing country. The expansion of industry and services in cities attracted a large workforce from agriculture. The population employed in the secondary and tertiary sectors grew, while the agricultural sector shrank in the 1960s and 1970s. Spain transitioned from being a primarily agrarian country to a modern industrialized one, albeit with some delay.
The social structure was also upgraded. The traditional rural and polarized society, with a small minority of high earners, a small middle class, and a majority lower class, evolved into a predominantly urban society with a larger middle class.
Towards the Consumer Society:
The increase in per capita income and wages (although they remained low compared to Europe) had an impact on raising living standards and generated changes in consumption patterns:
- Improved food consumption (milk, vegetables, meat, etc.).
- Increased housing construction, although still insufficient for immigrants. Problems such as slums and buildings without basic amenities emerged, as did dormitory towns lacking infrastructure.
- Improvements in home appliances (telephones, refrigerators, televisions, etc.).
- Most importantly, the emergence of a consumer society was marked by an increase in demand for cars, with the Seat 600 becoming a symbol of this era.
The Influence of Europe on the New Mentality of the Spanish:
There were also profound changes in the mindset of the Spanish people. New fashions, tastes, and customs from Europe were introduced into Spain through two main channels:
- The increasing number of tourists visiting the country (especially coastal areas).
- Migrants returning from Europe, who brought with them a new mentality and a higher standard of living.
Europe, with its economic model, political freedoms, and different ways of life, became an object of admiration. This resulted in the emergence of a new mindset, especially among the youth, that opposed the conservative and authoritarian values of the 1940s and 1950s. This new generation sought greater freedom – moral, cultural, and political – and aspired to democracy.
The Political Deadlock
While Spain modernized economically, political liberalization and democratization did not follow at the same pace. The regime remained entrenched in its authoritarian approach.
The Era of the Opus Dei Technocrats:
The arrival of Opus Dei members in the finance and trade ministries in 1957 marked the beginning of an unstoppable rise of Opus Dei within the centers of political power. By 1969, the number of Opus Dei technocrats in the government had increased significantly, with 11 out of 18 ministries being occupied by them. This period was dubbed the “monochrome government.” The prominence of technocrats shaped the country’s economic orientation, but political issues were relegated to a secondary level. The traditional ideological families of the regime (military, Falangists, etc.) were sidelined.
More Apparent Liberalization than Real Change:
Political immobility persisted in a social context characterized by increasing pressure for liberalization. The regime eventually yielded to this pressure and implemented some limited measures.
The Press and Printing Law of 1966:
Introduced by the Minister of Information and Tourism, Manuel Fraga Iribarne, this law eliminated the prior censorship that had been imposed on written publications. However, it did not guarantee freedom of expression, as publications could still face sanctions after being published. The law established a system of “voluntary consultation,” allowing editors to submit their work for examination. Ultimately, the new law satisfied neither the Francoist sectors (who considered it too risky) nor the opposition, who believed that it merely replaced prior censorship with subsequent sanctions.
The Religious Freedom Act of 1967:
This act recognized the equality of all faiths, although Catholicism remained the official religion of Spain. It granted limited rights to non-Catholics.
Final Institutionalization of the System: The Organic Law of the State:
Enacted in 1967, the Organic Law of the State aimed to institutionalize the Franco regime. It created a false appearance of a rule of law without changing the essence of the authoritarian regime. This was done to pave the way for Spain’s integration into international organizations. The new law established the functions and organization of state institutions and granted the Head of State absolute and unlimited power. His prerogatives included appointing the Head of Government (who appeared as a separate position from the Head of State), sanctioning and promulgating laws, convening the courts, and holding supreme command of the army.
The Appointment of Juan Carlos as Franco’s Successor:
To ensure the continuity of the regime and avoid disputes in the event of Franco’s death, the designation of a successor was deemed necessary. In 1969, Franco appointed Juan Carlos de Borbón, the grandson of Alfonso XIII, as his successor with the title of King. This move aimed to establish a new monarchy that would continue Franco’s regime. Juan Carlos was forced to swear allegiance to the Fundamental Laws.
External Relations
From 1958 onwards, Spain launched an intense diplomatic effort, successfully integrating itself into many international organizations (although some, like NATO, refused entry). The political consolidation of the Franco regime also resulted in specific foreign policy initiatives that gave Spain a limited international role it had not previously enjoyed. The most important foreign policy events include:
- The official visit of President Eisenhower to Spain in December 1959, which boosted the international recognition of Franco and his regime.
- Spain’s application for membership in the newly formed European Economic Community (the precursor to the EU) in 1962. Although Spain was not admitted, it obtained a preferential agreement in 1970 that granted trade privileges.
- The attempt to recover Gibraltar, a symbol of Spanish pride. Relations between Spain and Great Britain deteriorated, and no agreement was reached. In 1967, Great Britain held a referendum in Gibraltar, which provoked a strong reaction from Spain. In 1969, Spain took the drastic step of completely closing the border with Gibraltar.
- The recognition of the independence of Morocco and Equatorial Guinea. In 1956, Spain granted independence to its protectorate in Morocco. In 1963, it granted autonomy to Equatorial Guinea, which became independent in 1968.
- The cession of Ifni and the Sahara issue. Morocco claimed the territories of Ifni and Spanish Sahara from Spain. Ifni was ceded in 1969, but the Sahara remained under Spanish control due to new discoveries in the region.
The Growing Opposition to the Regime
Due to the profound changes experienced by Spanish society and the desire for the freedoms enjoyed in other parts of Europe, opposition to the regime grew from the 1960s onwards. Several fronts emerged:
a) Labor Disputes:
Labor strikes proliferated, with workers demanding wage increases, better working conditions, and the right to strike. Workers’ Commissions were formed.
b) University Unrest:
From 1965 onwards, large-scale protests took place at universities. Professors like Tierno Galván were expelled from their positions in Madrid.
c) Opposition from a Section of the Church:
The spirit of innovation within the Church led to a change in its approach to social and political issues. A part of the Church distanced itself from the regime.
d) Illegal Political Groups and Parties:
Several opposition parties developed clandestinely:
- The Communist Party of Spain initially spearheaded the anti-Franco struggle, advocating for the restoration of democracy.
- The PSOE (Spanish Socialist Workers’ Party) began to re-emerge from 1974 onwards.
- New left-wing parties, fueled by the discontent of more radical youth, emerged. Some of these groups, such as the ETA (Basque Homeland and Liberty), resorted to terrorism.
- New moderate minority parties with a wide range of ideologies (social democrats, Christian democrats, etc.) appeared. Among them was the Democratic Left, which attracted prominent leaders.
e) Nationalist Movements:
Historic nationalist movements experienced a revitalization. The Basque Nationalist Party and Esquerra Republicana de Catalunya (Republican Left of Catalonia) gained strength. New groups also emerged, such as the Democratic Convergence of Catalonia (led by Jordi Pujol from 1974) and the terrorist group ETA.
Despite repression, the opposition to Franco continued to grow. It was becoming increasingly clear that the regime would not survive for much longer.