The Franco Regime: Economic and Social Transformations (1959-1975)
The Franco Regime: Political, Economic and Social Development from 1959 to 1975. The Opposition to the Regime.
The Stabilization Plan of 1959
The year 1959 in Spain marks the introduction of the Stabilization Plan in the economy, which partially abandons the prevailing economic autarky that had been in place since the end of the Civil War in 1939. However, the economic ideas of Franco and Carrero Blanco remain anchored in that model. Technocrat ministers, many of whom belong to Opus Dei, manage to impose their criteria and implement an economic plan designed by the IMF and World Bank. This plan focuses on the liberalization of the economy by removing bureaucratic obstacles, reducing wages and money supply, cutting government spending, and opening up to international trade and investment, thereby creating the foundations for economic recovery that would allow for rapid industrialization. The results are immediate; during the 1960s, the economy experiences significant growth.
Social Consequences of Economic Growth
The first important social consequence is the growth of industry and the massive migration of rural labor to cities, which leads to increases in wages in the countryside and its mechanization. Unemployment declines due to emigration to Europe.
Dependence on Foreign Capital
The Spanish economy comes to depend entirely on changes in foreign capital and technology, with rapidly growing imports. The deficit on the balance of payments is covered by income from tourism, foreign investment inflows, and contributions from immigrants. Since 1963, development plans have been created to steer private investment towards certain sectors and deprived areas. Spanish growth is rapid and constant, and the economy fully integrates into the world economy until 1973-74, when the rise in oil prices triggers a major crisis in global capitalism.
Changes in Society
This abandonment of autarky produces significant changes in society, based on emigration to France, Germany, Switzerland, and Belgium, which conceals the real unemployment figures and corrects imbalances with the massive influx of foreign exchange. This growth accentuates imbalances in the distribution of personal wealth and regional levels. The standard of living increases over the 50s but remains well below the European average.
Demographic Changes and Education
During the 60s, there is also a baby boom, fueled in part by Franco’s birth policy, which includes certain gratuities in education and birth prizes. This necessitates the construction of massive schools and institutes to enhance cultural education. The university begins to overcrowd, and the Church plays a significant role in meeting this demand.
Social Security and Urban Development
In 1963, Social Security is created by combining all existing small insurance networks.
Urban Transformation
The cities are undergoing a transformation; large pockets of slums without public services give way to the construction of large districts of cheap housing for workers. However, due to a huge lack of planning, numerous speculative businesses emerge in housing neighborhoods, creating unstructured and inhumane living conditions.
Changing Mentalities
The mentality of the Spanish population is also changing, with the entry of women into the workforce (2 million in 1970) marking a break from traditional agrarian life. This shift is also influenced by tourism and new media like television. The first broadcasts occur in 1958, and despite being harshly censored, they profoundly affect the lifestyle and mentality of the Spanish people. The introduction of modern conveniences such as telephones, refrigerators, and washing machines symbolizes this change. The SEAT 600 becomes a true symbol of the early entrants to the middle class, allowing families to spend summers on the beaches.
Political Dissent and Protests
This context encourages parallel thinking about political changes that never materialize. Various sectors protest, including the Church, which is concerned about the conditions of workers, as well as Catalan and Basque nationalists (ETA was founded in 1959). Labor disputes become a broader front; the 60s are marked by illegal strikes and actions, especially by the CCOO, which bears the brunt of the protests and labor grievances.
Opening and Censorship
In the 60s, there is a very small opening (Law Press Fraga Iribarne) that loosens censorship practices. University and labor protests grow constantly, and in 1968, the first attack by ETA occurs.
The End of an Era
By the end of the decade, the real debate centers on the continuation of Franco’s dictatorship due to his age. Within the same system, two trends emerge: the “openness” and the “bunker” around Blas Pinar and the Falange. Within the Church, an industry led by Cardinal Enrique y Taranco demands more freedoms and apologizes for its role in the Civil War.
Deteriorating Situation in the 70s
In the 70s, the situation deteriorates further with the emergence of a new terrorist group, the Popular Front. In 1973, Franco separates the Head of State from the Prime Minister, appointing Mr. Carrero Blanco, who dies in December 1973 in an ETA attack, largely cutting the continuity of Franco’s regime. Carlos Arias Navarro remains as Prime Minister, under whose presidency anarchist Salvador Puig Antich is executed in 1974. In 1975, as Franco becomes seriously ill, the regime’s past executions resurface: 12 death sentences are carried out, leading to immediate international protests. All these events coincide with the decolonization of Spanish Sahara to Morocco and Mauritania, violating a UN mandate to monitor their independence. On November 20, 1975, the dictator dies, marking the end of the Franco dictatorship.