Spain’s Transformation: From Isolation to Economic Power (1952-1971)

The year 1952 marked a turning point for Spain. It ended its isolation by joining UNESCO and signing 53 agreements with the Vatican and the United States under President Eisenhower. Despite Spain’s departure from democratic efforts, the Cold War context made the U.S. see Spain as a valuable ally due to its strategic geography. The U.S. broke Spain’s isolation, leading to agreements that allowed the placement of U.S. military bases in Spain and the restoration of diplomatic relations.

Agreements and Shifting Alliances

These agreements shifted Spain away from democratic ideals, prioritizing the war effort. Spain re-established relations with other capitalist countries, while relationships with communist nations remained absent until Franco’s death. Between 1952 and 1956, Spain experienced recognition and integration into the Western world and capitalism.

Economic Stabilization and Neoliberal Policies

Franco initiated changes in his government, appointing technocrats based on their experience rather than military background. The Economic Stabilization Plan removed autonomy and established conditions for developing a market-based capitalist economy. Franco’s economists followed a neoliberal plan that included:

  • Privatization of enterprises
  • Attracting foreign capital for industries
  • Promoting industrialization

The results were remarkable. Between 1959 and 1971, Spain experienced an average growth of 7% per year. This period, known as desarrollismo, propelled Spain to become the 9th world power in terms of GDP. Factors supporting this growth included tourism and remittances from migrants.

Social Changes and Migration

This economic transformation led to significant social changes. The secondary and tertiary sectors grew, while the primary sector declined, resulting in a strong internal migration from rural to urban areas. This shift also led to changes in lifestyles, increased education, and a greater emphasis on consumerism. The ownership of goods became a marker of quality of life.

Political Inactivity and Repression

Politically, the dictatorship remained unchanged. By the 1970s, the regime had become obsolete, and its revolutionary ideals were a distant memory. While maintaining authority, the regime faced increasing problems. Protests were met with repression, with policing in the workplace and limited space for student protests at universities. The Franco regime implemented new mechanisms of social control, including secret police and courts to judge social protests. As social protests grew, the regime responded with inflexibility and political repression.