Franco Regime Consolidation and Spanish Transformation (1950s-1970s)
Consolidation of the Franco Regime: Economic and Social Transformations
From Autarky to Development
The 1950s began with growing international acceptance of the Franco regime. The Cold War made Spain a key ally for the U.S., culminating in the 1953 U.S.-Spain agreements. Spain granted military bases in exchange for economic and military aid, leading to increased international recognition, including admission to the UN in 1955, and membership in the World Bank, IMF, and OEEC.
While maintaining its political principles, the regime had to adapt its economic policies to new domestic and international circumstances.
Economic Changes
The End of Autarky and the Beginning of Economic Liberalization
Despite financial support, Spain faced bankruptcy and social unrest in major industrial centers. Joining international organizations necessitated abandoning autarky.
In 1957, a new government included Opus Dei members, known as “technocrats” (Ullastres, Navarro Rubio), who advocated economic modernization and liberalization to prevent economic collapse.
Stabilization Plan (1959)
International agencies offered credit in exchange for government intervention to reduce the deficit and barriers to foreign goods.
The plan aimed to lower prices, increase savings, and open the economy. Measures included peseta devaluation, higher interest rates, trade promotion, wage moderation, and encouraging foreign investment. Initial results were negative, with bankruptcies and rising unemployment. Positive effects began to appear in 1961.
Development Plans (1964-1975)
Following the French model of indicative planning, the state set objectives and incentivized businesses through tax breaks. Three four-year plans focused on industrial sector efficiency.
Development zones were created to promote industries in less industrialized areas.
The “Spanish Economic Miracle” (1960-1973)
The Spanish economy experienced spectacular growth, benefiting from favorable international conditions in the 1960s. The secondary sector, particularly chemicals, metallurgy, and automobiles, thrived, relying heavily on foreign technology. Per capita income rose between 1960 and 1973.
However, the “miracle” had shortcomings: regional disparities, wasted manpower, and prioritization of capital investment over job creation. Many migrated abroad to escape unemployment and poverty.
By the 1970s, Spain was industrialized but unequal. Industrial and tourist areas coexisted with backward agricultural regions. Despite a higher standard of living, a lack of public services left many workers vulnerable. Cultural lag hindered economic growth.
Social Changes
A large increase in the birth rate occurred, and Spain transitioned from a rural to an increasingly urban society, evolving into a consumer society.
Economic growth in the 1960s coincided with external and significant internal migration. Declining agricultural wages led to increased rural exodus, despite some mechanization and incentives for farmers.
Urban concentration and rural depopulation exacerbated regional disparities. Madrid was an exception, but the interior emptied. Consequences included slums and inadequate services in immigrant neighborhoods.
The tourism boom fueled real estate speculation and environmental damage, transforming the landscape.
The new social structure was marked by the growth of the urban middle class. Increased living standards drove the emergence of a consumer society.
Political Evolution: Immobility
Some measures hinted at political openness.
The Fundamental Law of the National Movement (1958) defined Spain as a traditional, Catholic, social, and representative monarchy, with Franco embodying national sovereignty.
The Press Law (1966, Fraga Law) replaced censorship with self-censorship, backed by threats and sanctions.
The Organic Law of the State (1967), adopted by referendum, separated the head of state from the head of government, although Franco held both roles until 1973.
In 1969, Franco designated Juan Carlos de Borbón as his successor, with the title of Prince of Spain, ensuring continuity through a monarchy based on Franco’s legality.