Francoist Spain: Economic Policies, Social Impact, and Political Opposition

Posted on Jun 1, 2025 in History

The Falange’s Role in the Franco Regime

The Falange played a key role in the Franco regime, controlling society through education, cultural activities, censorship, and propaganda. It created and introduced organizations such as the Frente de Juventudes, the Sección Femenina, the Sindicato Español Universitario, and the Organización Nacional Sindicalista.

Franco’s Post-Civil War Economic Policy and Consequences

In 1939, the government imposed an interventionist and autarkic economic policy. The goal was self-sufficiency using national resources and avoiding dependence on foreign countries. This economic policy followed the model set by other totalitarian regimes but was also driven by Spain’s isolation and the international boycott after the war.

The consequences of autarky were:

  • It delayed Spain’s economic recovery, and society did not regain pre-war income levels until the early 1950s.
  • It caused restrictions in services and shortages of basic goods that affected most of society. The population was forced to live in very precarious conditions. There were years of famine and misery. Malnutrition and disease caused numerous deaths.

International Relations: Spain During the Cold War

The Francoist regime was anti-communist, so the United States and the United Kingdom saw it as a potential ally. Spain’s international isolation decreased. A series of agreements strengthened Spain’s position and reinforced the Francoist regime:

  • A concordat was signed with the Holy See.
  • Spain and the U.S. signed the Madrid Pact, which allowed the U.S. to build military bases in Spain in exchange for economic aid.
  • Spain was admitted into various international organizations such as the UN.

Spanish Economic Growth: 1960-1973

Between 1960 and 1973, Spain experienced significant economic growth due to a combination of factors:

  • The growth of industry and its technological modernization.
  • Mechanization of agriculture increased production and reduced labor costs.
  • Large foreign investment, attracted by low wages and taxes.
  • Foreign currency sent by Spanish emigrants and brought in by European tourism.
  • Tourism boosted the service sector and the development of coastal areas.

Social Changes from Economic Development

Economic growth had decisive consequences for the country’s modernization:

  • Economic expansion stimulated population growth, due to a drop in mortality—especially infant mortality—and a high birth rate, resulting from better living conditions.
  • People began leaving the countryside (rural exodus), especially from Andalusia, Galicia, and Extremadura, due to lack of opportunities and low living standards:
    • To industrial areas such as Madrid, Catalonia, and the Basque Country. The arrival of immigrants caused the growth of marginal neighborhoods lacking infrastructure, healthcare, and education.
    • To European countries where there was a high demand for labor. Remittances from emigrants helped improve their families’ living conditions in Spain.
  • The middle class also grew, becoming involved in sectors like healthcare, administration, and banking.
  • With the arrival of household appliances, consumer habits changed. People began owning washing machines, refrigerators, cars, and televisions. Spain had finally become a consumer society.
  • The influence of tourism, along with increased urbanization and international mobility, also contributed to social changes.

Opposition to the Dictatorship: 1960s-1970s

The economic and social changes of the 1960s increased opposition to the regime, which grew in size and spread into new sections of society.

  • The PCE was the most active underground party. It participated in the creation of Comisiones Obreras, a trade union that combined general human rights demands with workers’ demands. From 1962, strikes became increasingly frequent in Asturias, Madrid, Catalonia, and the Basque Country.
  • Neighborhood movements called for improvements in local services (transport, street lighting, water supply, etc.).
  • In 1974, the PSOE began its internal reorganization at the Congress of Suresnes (France) and elected Felipe González as its leader.
  • The PNV in the Basque Country and new organizations in Catalonia joined together to demand basic rights and the reestablishment of autonomy.
  • University students participated in protests against the regime, especially in Madrid and Barcelona, creating a large social movement.
  • Voices critical of the regime from Catholic Church groups organized the Christian Youth Workers, who participated in protest actions.
  • Violent opposition was carried out by ETA, and later by the groups GRAPO and FRAP.

Final Years of the Dictatorship: Crisis and Transition

In the early 1970s, the regime was going through a deep crisis:

Economic Crisis

  • In 1973, the oil crisis caused a rise in oil prices and inflation, leading to business closures and increased unemployment.
  • The global crisis reduced foreign tourism and less money was sent home by Spanish emigrants. Many emigrants lost their jobs abroad and returned to Spain, which further increased unemployment.
  • The economic crisis led to social unrest. Clandestine trade unions organized strikes, and the opposition became more active.

Political Crisis

  • In 1973, Franco, in very poor health, appointed Admiral Luis Carrero Blanco as head of government to ensure the continuity of his regime after his death, but Carrero Blanco was assassinated by ETA.
  • Confrontation took place between the inmovilistas, who wanted to keep the regime intact, and the conservatives, who accepted some reforms without changing the fundamental principles.
  • Morocco took advantage of the regime’s weakness and annexed Spanish Sahara in the so-called Green March.