Spain from 1959 to 1975: Development and Stagnation
Economic Development, Social Change, and Political Stagnation (1959-1973)
Background: The period began with protests by workers and university students due to famine and inflation, which prompted political and economic changes. The new government, formed by members of the OPUS, was classified as technocratic and moved away from traditional politicians and the Falange. These technocrats received financial support from the USA, which aimed to establish a liberal capitalist, anti-inflationary economy, open foreign economic relations, and facilitate foreign capital investment.
Stabilization Plan: Officially known as the Stabilization Plan, it aimed to limit public spending through a credit crunch, a wage freeze, and the elimination of subsidies. It also involved devaluing the peseta and reducing imports. This plan led to both positive and negative consequences.
Positive Consequences:
- Price stability
- Balanced budget
- Opening of foreign relations and foreign capital investment
- Economic development and specific development plans under Lopez Rodo, the minister in charge of economic health
- Boost to industry, aiming to reduce regional imbalance, through tax relief and infrastructure development
- Growth in construction and tourism, although accompanied by speculation and urban chaos
- State investments in highways, housing, and dams, along with support for private companies through tax credits and grants
Negative Consequences:
- Slow economic growth
- Persistent unemployment and migration
- Trade deficit offset by tourism and remittances from German immigrants
- Mechanization of agriculture leading to migration to cities
- Control and concentration of economic power in the hands of the financial bourgeoisie
Social Modernization:
- Growth of the secondary and tertiary sectors
- Expansion of the middle class, including technicians, office workers, and company employees who did not challenge the dictatorship
- Increase in the number of public officials
- Europeanization through tourism and a rising standard of living
- Improvements in education, including the 1970 General Education Law (EGC) and Villar Palasio’s mandate for compulsory education until the age of 14 (BUP)
- Secularization, with the church losing influence in society
Political Immobility:
- Limited political progress, with the establishment of the Social Security base and medical care
- 1966 Printing Press Act, abolishing prior censorship and promoting openness under Fraga
- 1967 Organic Law, preventing the separation of the Head of State and the Prime Minister, positions held solely by Franco until then
- Juan Carlos de Borbón, Franco’s designated successor, swore allegiance to the movement in 1969
Problems and Opposition:
- Division and conflict within the regime between supporters of openness (Fraga) and immobility (Bunker)
- Scandals involving Franco granting favors to friends’ companies, including the Matesa and Palomares scams (the latter involving claims that American missiles had fallen on the coast of Almeria)
- Internal opposition seeking democratization, divided between the revolutionary left and the Murrich platform
- Revolutionary left comprised of workers (represented by the unrecognized but influential CC.OO union led by Marcelino Camacho) and the PCE (led by Carrillo, advocating for Eurocommunism)
- Murrich platform, formed by the democratic opposition excluding communists, called for democratization and opposed Spain’s admission to the European Community under Franco’s dictatorship
- Emergence of violent opposition groups like ETA, leading to the Burgos trial where ETA members were sentenced to death (later commuted to life imprisonment due to internal and international pressure)
- Growing political distance between the Spanish church and the regime, influenced by progressive guidelines adopted by Rome after Vatican II
- States of emergency declared in response to labor and student demands, involving the suspension of rights, closure of universities, trials, and imprisonment of regime opponents
Other Notable Events:
- Granting of independence to Equatorial Guinea
- Appointment of Juan Carlos de Borbón as Franco’s successor
Decline and Death of Franco
-> Franco resigned in 1973 while exercising the functions of State and Government, elected to this position Admiral Carrero Blanco. There is an economic crisis known as hot autumn in which inflation occurs as a result oil prices rose, boosted strikes were launched by the labor movement, calling for a review of wages, freedom of association and political amnesty. The Government’s response was to speed up preparations to try several leaders of workers’ commissions in the process called 1001. Before, Carrero Blanco was killed, the victim of an attack by the terrorist organization ETA. To succeed in the presidency of the dictator government appointed Arias Navarro in January 1974, this made a proposal opening, a trade union reform and the choice of Alcalá. It takes repressive measures each Carnation Revolution, which occurred in Portugal and ended the dictatorship it was subjected, conducted trials of anarchists and Añavero bishop ousted defending the rights and Basque.