Franco’s Dictatorship: Economic and Social Transformation (1959-1975)
Franco’s Dictatorship (1959-1975): Economic and Social Changes
In 1959, a new economic team, including members of Opus Dei, aimed to ensure the development of capitalism. The Stabilization Plan officially ended economic self-sufficiency. The objectives were to contain high inflation, reduce state intervention in the economy, liberalize economic relations, and facilitate foreign capital investment.
Between 1964 and 1975, development plans were implemented to stimulate production. The rapid economic development up to 1973 was due to:
- Favorable international economic situation
- Foreign capital investment and multinational corporations
- Revenues from tourism
- Remittances from Spanish workers who emigrated to Western Europe
- Reduced labor costs due to low wages
- State interventions in public works
Economic development also caused major problems, including economic growth concentrated in sectors 2 and 3, significant internal and external migration from rural areas, territorial imbalances, and ecological disasters related to coastal tourism and river pollution.
After 1973, a global crisis significantly affected Spain.
Social Changes
Significant social changes occurred, notably migration, leading to population growth and rejuvenation. The number of industrial workers increased, but wages remained low. The industrializing society shifted from rural to urban.
Economic growth led to changes in social behavior, with a significant increase in the proletariat and middle classes. Other important social changes included the gradual incorporation of women into the workplace and increased cultural consumption. The decline of religious values and changing views of young people contributed to Spain becoming a more secular, open, and tolerant society.
The state contributed to improving living conditions through social policies, such as the Social Security Act, which aimed to incorporate the active population into social security.
By the early 1970s, Spanish society resembled other European societies and desired democracy.
Political Changes
Social and economic changes were accompanied by political changes. Early national movement law prevented universal suffrage and political and trade union pluralism.
A press law was published in 1966.
In the 1960s, student and trade union protests were met with states of emergency. Opponents were tried, imprisoned, and sometimes executed. In 1961, all political and trade union opposition, except the PCE (Communist Party of Spain), were suppressed. However, the PCE remained the main organizer. ETA (Euskadi Ta Askatasuna) was founded in 1959 and used violence, with its first fatal victim in 1968.
In 1971, Prince Juan Carlos de Borbón was named as Franco’s successor as head of state. The Church began to distance itself. In 1973, Franco relieved Carrero Blanco of his duties and appointed him Prime Minister to continue the regime. Carrero Blanco was assassinated by ETA on December 20, 1973, and Franco appointed Arias Navarro as Prime Minister.
In July 1974, Franco became seriously ill and temporarily ceded his role as head of state to Juan Carlos de Borbón, but recovered two months later.
The regime lacked policy initiatives, and the Church no longer supported the state.
1975 was a year of political disintegration, with a new state of emergency declared in the north.
On October 30, Juan Carlos definitively became head of state due to the dictator’s deteriorating health. Franco died on November 20, 1975, paving the way for the return of democracy.