Spain’s Economic and Social Transformation (1950s-1960s)
The 1950s: From Isolation to International Integration
Economic Opening and Foreign Investment (1952-1953)
The pact with the United States marked the end of Spain’s isolation and the beginning of economic liberalization. This led to increased foreign investment from the US, France, and Germany, and the establishment of US military bases in Spain. In 1959, Spain joined the International Monetary Fund and the OEEC, further boosting foreign trade.
Trade and Economic Challenges
Increased imports of machinery, raw materials, and fuels, coupled with exports of agricultural and mining products, resulted in a trade deficit and inflation. The late 1950s saw the introduction of new agricultural machinery.
Political Landscape
Despite being a relatively peaceful period under Franco’s rule, the 1950s witnessed key events like the Barcelona tram strike in 1951 and the Galinsoga Affair, highlighting public discontent and the regime’s control over media. The political crisis of 1956-1957, marked by university riots and anti-Franco sentiment, led to a government reshuffle and the rise of Catholic ministers’ influence.
The 1960s: Economic Miracle and Social Change
Economic Development and the Stabilization Plan of 1959
The 1960s witnessed Spain’s industrial revolution, propelling it to become the 10th world power. The 1959 Stabilization Plan played a crucial role in this growth by eliminating autarky and promoting competitiveness. Fiscal and monetary measures were implemented, including limiting money circulation and public spending, raising interest rates, and liberalizing trade. Foreign capital was welcomed, and the state’s role in the economy was reduced.
Economic Growth and Sectoral Development
Per capita income rose significantly, and Spain’s GDP experienced substantial growth. This economic boom coincided with the golden age of capitalist countries. The industrial sector flourished, with growth in metallurgy, chemicals, food processing, and textiles. Catalonia and the Basque Country continued to be economic powerhouses. The services sector, including tourism, also expanded rapidly.
External Factors and Migrations
Several factors contributed to Spain’s economic success: growing foreign trade, tourism, cheap labor, affordable energy, foreign capital, emigration, and the acquisition of new machinery and technology. Between 1955 and 1975, around 7 million people migrated, primarily from agricultural areas to industrialized zones in northern Spain and other European countries.
Social Changes and Reforms
Economic prosperity led to social changes, including the emergence of a middle class and a more open mentality. Franco implemented reforms to adapt to these changes, such as the 1966 Press Law (which abolished prior censorship), the creation of TVE in 1956, and the 1965 Education Reform, which modernized the education system and ended the Church’s educational monopoly. The Organic Law of the State was also introduced, modernizing previous laws and officially proclaiming Juan Carlos de Borbón as Prince of Spain.
Repression and Opposition
Despite these reforms, repression persisted. The Court of Public Order (TOP) was established to suppress opposition. While the reforms were significant, they did not eliminate the regime’s authoritarian nature.