Franco’s Dictatorship: Consolidation and Change (1939-1959)

1. Economic Evolution

Between 1939 and 1959, the initial phase of Franco’s dictatorship unfolded, characterized by a political and ideological backlash against modernization efforts. Franco consolidated his power and exerted tight control over various sectors. The improved economic situation garnered significant social support. The new government was composed of individuals linked to Opus Dei. Initially, the country faced a challenging economic landscape. In 1959, the Stabilization Plan, also known as the Law of Economic Management, was enacted with the aim of liberalizing the economy. This new economic policy sought to address issues such as low production and quality, inflation, and unemployment.

The Stabilization Plan led to increased unemployment due to workforce reductions and business closures. However, integration into the OEEC mitigated this problem by facilitating the emigration of approximately 3 million Spaniards to countries like Germany, France, Switzerland, and the Netherlands. The shift in economic policy, facilitated by loans from international agencies, investments from foreign companies, increased exports and tourism revenue, and remittances from emigrants, resulted in substantial GDP growth in the 1960s.

The government launched Development Plans, encouraging private investment through subsidies, affordable credit, and tax exemptions. They established “poles of development,” preparing sites for industries in newly built industrial cities. Spain underwent modernization, transitioning from an agricultural society to an industrial one, experiencing significant demographic and gender imbalances. The economic growth experienced in the 1960s was hampered by the crisis of the 1970s.

2. Social Changes

Landowners regained their dominance, reminiscent of the caciquismo era. The oligarchy and economic transformations in subsequent decades led to major social shifts. The population grew by 30% between 1940 and 1970. The mortality rate decreased from 11 per thousand in 1946 to 8 per thousand in the 1960s. The birth rate remained high until the late 1970s.

In the 1950s, a significant rural exodus began, with over a million farmers living in extreme poverty migrating to cities. The Stabilization Plan intensified this exodus in the 1960s, leading to around 3 million farmers abandoning rural areas. Emigration became increasingly important. Initially directed towards the Americas, it shifted towards Western Europe in the 1960s until the 1974 crisis halted it almost entirely. Foreign emigration reduced labor demand and facilitated the influx of foreign currency.

Within Spain, the Basque Country and the northern half of the country received farmers, Madrid and Extremadura attracted migrants from both Castiles, and Barcelona drew farmers from Aragon, Levante, and the South. Suburbs with poor-quality housing emerged, contributing to urbanization and population concentration. The old oligarchy’s influence diminished, replaced by a powerful financial bourgeoisie, including major Spanish banks. An industrial and commercial bourgeoisie developed, gaining power through closer ties with Europe. Another significant change was the growth of the middle class, comprised of professionals related to technological and economic advancements, such as employees, executives, technicians, and university graduates.

The working class grew significantly, from 25% to 35% of the population. This class, which developed in the 1950s and 1960s, actively challenged the regime through organizations like Workers’ Commissions. Service sector employees also joined the labor struggle. Their living standards improved, with laborers benefiting from rising wages and farmers from increased land holdings.

Women remained legally subordinate to men. Education, segregated by gender and controlled by the Catholic Church, reinforced the traditional roles of wife and mother, encouraging large families. Women often lost employment opportunities and received lower wages.

The new Minister of Information, Fraga Iribarne, approved the Press Law in 1966 and pushed through the Organic Law of the State in 1967. In 1969, Franco named Juan Carlos as his successor. Families were divided into two camps: those who desired a controlled transition from Franco’s rule to a more European-acceptable political system, and hardliners who defended Franco’s regime without accepting changes.

This confrontation became evident during the “Matesa affair.” Technocrats from Opus Dei emerged as victors, securing a single-party government appointed by Franco through Carrero Blanco. The opening process was abruptly halted by the 1973 energy crisis and the assassination of Carrero Blanco.