Spain’s Economic and Social Transformation (1959-1975)
Political Landscape
Despite the general lack of political freedom, Continuism remained the main feature of the political situation. Two trends emerged within the government: the Continuists (led by Carrero Blanco) and the Aperturists (led by Fraga). The Technocrats, a governmental sector, implemented the stabilization policy, while the Aperturists promoted the Press Law of 1966, granting publishers greater freedom, albeit with continued state censorship. Tensions between these factions escalated, culminating in the MATESA scandal. During this period, the Principles of the Law on the National Movement (1958) and the Organic Law of the State (1967) were established, with the latter serving as a constitution. In 1969, Franco designated Juan Carlos of Bourbon as his successor.
Foreign Policy
The primary event in foreign policy was the decolonization of Equatorial Guinea.
Economic Growth in the 1960s
In 1957, Technocrats from Opus Dei joined the government to improve the economy. They implemented the Stabilization Plan (1959), which involved devaluing the peseta, freezing public spending, and permitting foreign investment.
As a result, Spain experienced significant economic development and transitioned into an industrial nation. From 1964 onwards, the Franco regime launched the Development Plan, which had three main pillars:
- Tourism: Spain’s warm climate, beaches, and low prices attracted millions of tourists, primarily from Western Europe. This boosted other sectors like catering and construction.
- Remittances from Emigrants: The Stabilization Plan led to unemployment in rural areas, causing significant migration to industrialized regions within Spain and abroad. Emigrants sent a portion of their salaries back to their families in Spain, creating a vital new source of income.
- Foreign Investment: Foreign investment, particularly in industry (20% of the total), proved essential for Spain’s modernization and industrialization.
- Boost to Industry, Agriculture, and Public Works
Negative Consequences of Economic Development
- Economic growth was unevenly distributed. While the Basque Country, Madrid, and Catalonia experienced industrialization, regions like Andalusia and Extremadura remained economically backward. This disparity led to significant internal migration.
- Women were largely excluded from the workforce.
- The economy became heavily reliant on foreign countries.
- Pollution and ecological disasters occurred.
- The focus on industrial growth led to the neglect of other sectors.
The End of the Franco Era
By the end of Franco’s rule, the system was in a general state of crisis.
Transition to a New Era
In 1969, Franco’s declining health became evident, and he officially declared King Juan Carlos I as his successor. In 1973, Carrero Blanco, seen as the figure to continue the dictatorship, assumed governmental functions. However, he was assassinated by an ETA commando on December 20, 1973. In January 1974, Arias Navarro formed a new government. Initially, the government attempted a liberal approach, but a series of events, including attacks in Madrid cafes, a dispute with the Basque bishop Añoveros, the execution of anarchist Puig Antich, and the Carnation Revolution in Portugal, led to a return to repressive policies.