Franco’s Spain: Transformation and Consolidation

Regime Transformation: Consolidating Business and Society

The shift from autarky to developmentalism brought about significant social changes.

Political Maneuvering and Institutionalization

The confrontation between different factions became untenable when the Falange sought to solidify its role in the regime. The Caudillo’s approval of laws aimed at fixating its ideology met with opposition from ecclesiastical and monarchical elements. In February 1957, a cabinet reshuffle, influenced by Opus Dei, marginalized the Falange. Laureano Lopez Rodo presented a bill omitting any reference to the movement. The Law of Motion, approved in 1958, failed to reflect the initial character projects.

Opus Dei’s Ascendancy and Legal Reforms

Opus Dei reinforced its position with Franco’s changes. The State’s Organic Law codified six fundamental laws. Press law, religious freedom, family representation, and general education laws were also passed. These reforms, however, represented a missed opportunity to fully liberalize the regime. Carrero Blanco and Lopez Rodo pressured Franco to appoint Juan Carlos as his successor to ensure political stability.

Technocrats vs. Falangists: The Matesa Scandal

Tensions between technocrats and Falangists erupted over the Matesa scandal, involving a machinery company that had received millions of pesetas based on falsified export figures.

International Relations and Challenges

The regime’s international consolidation was managed by Fernando Bravo Lopez and Gregorio Castiella (later replaced). Their objectives included closer ties with the European Community, maintaining relations with the USA, and recovering Gibraltar, but these efforts yielded limited success. Clashes with Morocco became a major point of tension.

Economic Stabilization and Development

Spain faced significant internal and external economic imbalances. International agencies recommended liberalization and the removal of administrative barriers to prevent the suspension of essential commodity imports, such as oil. When Mariano Navarro Rubio and Alberto Ullastres joined the government, Spain was near bankruptcy. Navarro Rubio introduced the Stabilization Plan for Internal and External Economy. Three development plans focused on industrial investment and agricultural development in deficit areas. Industrial growth was extraordinary, productivity doubled, and exports increased tenfold. Growth rates were among the highest in Europe.

Social and Cultural Transformation

Industrialization triggered a social and cultural transformation. Spain transitioned from a rural country, with urbanization occurring unevenly across regions.

Improved Living Standards and Shifting Values

Income levels improved, and mass consumption became widespread. However, income distribution worsened. The population grew by 30%. Modernization led to a gradual abandonment of traditional Catholic morality. The economic and cultural impact of tourism, along with changes within the Church, fostered new habits in Spanish society.