Francoist Spain: Institutionalization, Consolidation, and Economic Development (1937-1975)

Posted on Nov 29, 2024 in Law & Jurisprudence

1. Regime Institutions and Consolidation

1.1 Institutionalization

In April 1937, Franco unified Carlists and Falangists, creating the Spanish Phalanx. Led by Franco, its rules were inspired by 27 Phalanx points, with an ideology close to European fascism. The official state doctrine included:

  • New symbols: the blue shirt, Carlist red beret, and Fascist salute.
  • The idea of a unified Spain.
  • Rejection of the 1931 Constitution.
  • Rejection of Liberalism and Communism.

a) 1938-1942

Franco enacted laws and socio-economic policies resembling European fascism, known as the Fundamental Laws of the Movement. In 1938, following the Fascist model, a single, Falange-controlled trade union, the Vertical Syndicate, was established, making strikes illegal.

“Constitutive Act of the Parliament 1942”

Courts were created, lacking parliamentary initiative. Franco controlled legislation, holding supreme legislative power. Many lawyers were appointed by Franco as union attorneys (mayors of major cities, union presidents, etc.). This marked a significant attempt to institutionalize the regime by creating the traditional Spanish Cortes.

b) From 1943

Franco’s regime deviated from the Fascist model, creating what he termed “organic democracy.” Democratic forms were established, but lacked genuine power. Key laws included:

  • Spanish Jurisdiction (1945): A theoretical statement of rights and duties (equality before the law, habeas corpus, freedom of expression, and association), which remained largely unenforced.
  • 1945 National Referendum Law: Granted the head of state the power to convene referendums.
  • Law of Succession to the Head of State (1946): Franco declared himself head of state for life, with the right to appoint a successor, intending a monarchical form of government after his death.

1.2 Regime Consolidation (1957-1969)

c) Final Institutionalization

  • Law of Fundamental Principles of the National Movement (1958)
  • Organic Law of the State (1967): Intended as a new Spanish constitution, granted by the head of state.

The law prevented the separation of the head of state and head of government positions; Franco held both. The law extended the Cortes’ legislative function but did not control the executive. It was approved by national referendum (85.5% of votes).

a) Technocracy and Opus Dei’s Influence

From the late 1950s, Spain experienced significant economic development and social transformation. While technocrats gained prominence, the old Falange pushed for greater openness, creating conflict. In 1958, the Law of Fundamental Principles of the Movement was passed, followed by the Organic Law of the State. In 1969, Franco appointed Prince Juan Carlos as his successor.

b) Political Strategies of Opening

Alongside the technocrats, other groups emerged: hardliners and aperturistas (led by Fraga and Solis). They served as ministers, pushing for legislative changes to prepare for the succession and implement their ideas. The 1969 Matesa scandal (a corruption case involving finance and industry) exposed conflicts between technocrats and the Opus Dei.

c) Foreign Policy

From 1957, the EEC was established. Technocrats favored Spain’s entry (achieved in 1986). The pursuit of Gibraltar’s return remained a key element of Spanish foreign policy.

2. Economic Growth and Social Change (1959-1975)

2.1 The Stabilization Plan and Economic Growth

a) The 1959 Stabilization Plan

Spain’s economic growth depended on foreign trade, requiring energy and equipment imports. By 1957, the economy neared bankruptcy. The 1959 Stabilization Plan, considered the most significant economic measure under Franco, aimed to stabilize prices, increase economic flexibility, and liberalize foreign economic relations. Key aspects included:

  • Stabilizing the peseta against other currencies.
  • Reducing government spending and freezing civil servant wages.
  • Wage moderation to combat inflation.
  • Import liberalization and export promotion.
  • Stimulating foreign investment (excluding war industries, utilities, and information-related activities).

Despite initial hardship, the plan led to a period of unprecedented economic growth in Spain.

b) Development Plans

To manage economic growth, the Development Plan Commissioner was created to accelerate development and attract foreign companies. A key element was the creation of development poles.

c) Economic Development: The Spanish Miracle

Characterized by:

  • A doubling of per capita income between 1960 and 1970.
  • Modernization across economic sectors, driven by technological advancements (particularly in the secondary sector).

Negative aspects included:

  1. Significant regional imbalances, with industrialized areas prospering while others suffered depopulation and lacked financial support.
  2. The rapid economic growth model’s unsustainable nature.
  3. Spain’s continued economic vulnerability, requiring imports of expensive machinery and petroleum.