Spain’s Economic Shift & Opposition (1950s-1970s)
Posted on Mar 24, 2025 in History
Economic Policy: Stabilization
- Government intervention and the pursuit of autarky had stunted growth because it was unsustainable (due to its high cost and poor results).
- From 1951, the new government granted a certain freedom of prices. Although wages were taxed, additional income for “overtime” allowed an improvement for workers.
- Agriculture and exports of oil, wine, and citrus fruit were the main activity for most Spaniards, but from 1950, a period of very strong industrial growth began.
- To this must be added the development of tourism, mainly from European workers due to the extension of paid working holidays.
The Opposition
- Although in May 1947 the exiled opposition managed to launch a strike of 30,000 workers in industries in Vizcaya, the harsh repression resulted in a very quiet period during the early fifties.
- Only small, soft boycotts were carried out by the population (such as the strike of public transport users in Barcelona in 1951 against the price rise).
- But since 1956, the economy caused difficulties due to the loss of purchasing power of workers, because of the discontent.
- While international recognition ensured the stability of the regime, the opposition remained divided, and the Republican government in exile remained inoperative.
- Only the PCE, which had abandoned the rebellion of the maquis, emerged as the main opposition force in the interior.
- Later (in the 1960s), they increased their influence in the world through the union Workers’ Commissions (CCOO).
- They were also introduced in the university environment, causing conflicts with the Falangist union (SEU) that culminated in the resignation of the Minister of Education (Ruiz Jiménez) and Movement (Fernández Cuesta) in 1956.
- By the end of this period, there was a resurgence of nationalism in Catalonia and the Basque Country, and in 1959 a group of young university students who had split from the PNV youth founded ETA (Euskadi ta Askatasuna).
The Sixties: Development
Economic Policy: Development
- Having achieved a certain level of international recognition and suppressed domestic opposition, only the problematic economic developments challenged Franco.
- State intervention and the pursuit of autarky had hampered growth and began to demonstrate some social tensions. Therefore, Franco reduced the Falangist influence and was supported by another family of the regime: the technocrats linked to Opus Dei.
- They drove a Stabilization Plan (1959) whose objectives were to eliminate barriers to economic growth and reduce the public deficit.
- Since 1964, the implementation of development plans began, which would last until 1975.
- The technocrats sought on an ongoing basis:
- Economic growth
- Full employment
- Better distribution of income
- Spanish progressive integration into the global economy.
- Encourage private initiative with tax benefits and credit.
- Create centers of industrial development in smaller provinces.
- The result was a real industrialization of the Spanish economy. In the 60s and 70s, Spain was no longer an underdeveloped country but became an industrialized one.
- In this process, the following played a crucial role:
- The capital from remittances of over 3 million migrants abroad.
- The foreign-exchange earnings through increased tourism and investment from foreign multinationals.
These funds enabled the banks’ credit management for the
import of capital goods and raw materials, which encouraged the growth of exports.
The
main beneficiaries of the economic miracle were
the banking and industrial groups.
