Spain Under Franco: Regime Consolidation and Economic Growth
1. The Institutions and the Consolidation of the Regime
The dictator, who concentrated all power, assumed from the beginning the role of system component. Gradually, various organizational laws were approved, forming what came to be called the Fundamental Laws of Motion:
- Labor Law, 1938: Prohibition of free trade unions. Following the Fascist model, the Vertical Union Organization was set up as the single trade union controlled by the Falange.
- Constitutive Act of the Cortes, 1942: Cortes elected by indirect suffrage based on various corporations: the family, the municipality, and the union. In practice, elections were rigged, and elected representatives were those chosen by the regime.
- Jurisdiction of the Spanish, 1945: Theoretical bill of rights and duties imbued with a Catholic traditionalist mentality. It did not involve any real recognition of political or social rights.
- National Referendum Act, 1945: Law that allowed the head of state to call referendums, in a framework lacking freedoms, to endorse laws.
- Law of Succession to the Head of State, 1946: Spain was declared a “kingdom,” and Franco reserved the power to propose his successor. This law disappointed monarchists who hoped Franco would favor a return of the Bourbons.
This political system was called organic democracy.
Despite the deep economic and social changes of the 1960s, political immobility and a lack of significant change characterized the period. However, labor disputes and opposition to the regime began to emerge.
The regime’s response to any dissent continued to be purely repressive.
Examples of Repression
- 1963: Julián Grimau, an underground Communist Party member, was executed for alleged crimes committed during the Civil War, sparking widespread international protests.
- 1962: After Spain applied for accession to the EEC, a group of exiled liberal right representatives met in Munich and requested that Spain not be admitted until a democratic regime based on political freedoms was established. The Francoist press orchestrated a scandal against what was called the Munich conspiracy.
The regime implemented small and inadequate legislative changes that did not alter its dictatorial essence:
- 1966 Press Law: Although it eased censorship pressure, it did not represent significant progress.
- Organic Law of the State, 1966: The last of the Fundamental Laws of the Kingdom, it brought no change of interest.
- Forced by his advanced age, Franco finally designated a successor. In 1969, Juan Carlos de Borbón, grandson of Alfonso XIII, was appointed successor “as a King.”
Economic Growth
The economic development of the 1960s was marked by a series of economic plans.
The Stabilization Plan (1957)
Designed by technocrats of Opus Dei, this plan followed the directions of the World Bank and the International Monetary Fund (IMF). It aimed to liberalize the economy, ending the autocratic and interventionist period. Public spending and state intervention were reduced, while the economy opened to the outside, devaluing the peseta and liberalizing foreign investment.
The capital for this growth came from four sources:
- Credits and foreign investments
- Remittances from Spanish emigrants in Germany, France, and Switzerland (about one million people)
- Foreign exchange left by European tourists
- Increased imports and exports
The consequences were swift. Initially, there was a recession, lower wages, increased unemployment, and emigration. However, by the early 1960s, the economy rebounded. The period from 1961 to 1973 was marked by rapid industrial growth and the expansion of the service industry. The economic opening attracted foreign investment due to low wages. Spain achieved a surplus in its balance of payments, with the traditional trade deficit offset by revenue from tourism, foreign investment, and remittances.
Development Plans (1964-1972)
These plans set medium-term objectives for Spanish industry, reviewed every four years. One main objective was to foster industrial development in areas lacking significant industrial presence, called “poles of development” (11 were created between 1962 and 1975).
The economy continued to grow, but planning had shortcomings:
- Uneven development across sectors (growth in consumer goods, chemicals, steel, and food)
- Regional imbalances (Catalonia, Madrid, and the Basque Country prospered, while Castile, Andalusia, and Extremadura lagged)
- Control of the economy by private banking and concentration of economic power
- Increasing dependence on external economic conditions, exemplified by the 1973 oil crisis
Demographic and Social Changes
The 1960s witnessed rapid social change.
- Massive rural migration to cities and Western Europe. Over a million Spaniards moved to other European countries, while agriculture modernized, and some inland areas depopulated. Migration reduced unemployment and brought remittances but exacerbated regional wealth disparities.
- Strong population growth due to reduced mortality and high birth rates.
- The consumer society: Economic development led to the rise of consumerism. Appliances and cars became widespread, exemplifying the new society.
The consumer society, with increased information and mobility, brought a new mindset, especially among younger people, clashing with the regime’s traditionalism:
- Declining importance of the Church
- New social relations and gender roles (women entering the workforce)
- New fashions and customs introduced through tourism
- Agriculture’s share of GDP declined from 23% to 9%
- Growth of the working class and service sector, with greater specialization and social mobility
- Emergence of urban middle classes (professionals, officials, and employees)
- The upper class (6% in 1975) retained power and influence: the oligarchy lost power, the industrial bourgeoisie and financial aristocracy gained prominence, and the senior military maintained their power.