Franco’s Final Years and Economic Transformation (1959-1975)
Political Evolution and Regime Continuity
Organic Law of the State (1967)
In 1967, the Organic Law of the State was passed. It was the last fundamental law of the Franco regime and was intended to ensure the continuity of the system. Spain was structured as an “organic democracy,” but the law was not new, nor did it adequately address the changes in society. The only significant innovation was the direct election of some of the “family representatives” in the Cortes.
Limited Reforms and Succession Planning
There were attempts at opening, though not significant, that nonetheless contributed to later changes. These included:
- The Press Law (1966)
- The Freedom of Religion Act (1967)
- The General Law on Education (1970)
The continuity of the regime seemed assured by a series of provisions, including the appointment of Carrero Blanco as Vice President, who would then serve as Head of Government. It appeared that his leadership would ensure the system’s continuation.
Decline of the Franco Regime
Growing Opposition and Key Events
However, a series of circumstances from 1969 onwards would lead to the agony of the regime:
- Social opposition was continuous and increasing.
- In 1971, the joint assembly of bishops and priests adopted a resolution to apologize for not having helped the reconciliation process.
- Terrorist attacks and kidnappings increased.
- Carrero Blanco’s assassination on December 20, 1973, eliminated the key figure for the regime’s continuity and provoked sharp reactions from the government.
Transition and Final Days
With Carrero Blanco gone, Carlos Arias Navarro was appointed Prime Minister. He seemed to open new expectations but ultimately brought no significant change. The performance of the democratic opposition intensified. Social unrest increased, and other terrorist groups, such as the FRAP, emerged. The regime found itself increasingly isolated. The 1975 shootings further isolated the dictatorship. Franco’s death opened the way for regime change.
Economic Transformation of Francoist Spain
End of Autarky and Stabilization Measures
After 1960, economic autarky began to be dismantled. The economy experienced a profound process of transformation, with initial measures taken by a new economic team formed in 1957. These measures aimed to tackle rising prices and an alarming deficit. In 1958, Spain entered the IMF, and the U.S. pledged to fund them.
Development Plans and Industrial Growth
Three development plans were passed, focusing their interest on the industrial sector. Each plan set three-year objectives for growth in key sectors. Two major lines of action were undertaken:
- Fix structural deficiencies: Addressing fundamental weaknesses in the economy.
- Create development poles: Reducing regional economic imbalances by promoting new industries in areas of low industrialization.
The growth of industry led to a significant transfer of labor, as farm workers migrated to the cities. This resulted in agricultural modernization and depopulation of the interior, which were parallel phenomena. The process of industrial expansion was based on low wages and capital accumulation generated during the 1950s.
Funding Economic Expansion
The deficit on the balance of payments was covered by three main sources:
- Income from tourism
- Long-term foreign investment inflows
- Contributions from migrants who sent much of their earnings from Europe to their families
Spanish economic growth, from the entry into force of the first development plan until the impact of the oil crisis in 1973, represented a profound transformation of production structures, opening the economy to global capitalism, and the gradual removal of the material and spiritual aftermath of the Civil War.