Spain: From Autarky to Development (1957-1975)
Consolidation of the Franco Regime (1957-1975)
Economic Transformations: From Autarky to Development
The end of the Franco regime’s isolation coincided with a political crisis. Incidents at universities between students and members of the SEU (Falange student union) led to a 1957 government reshuffle, bringing in radical Falangists. However, key changes occurred in economic ministries with the arrival of technocrats, university-trained supporters of economic liberalization, close to Opus Dei and influenced by European changes. Mariano Navarro Rubio (Finance Minister) and Alberto Ullastres (Minister of Commerce) joined the government.
By 1950, the failure of autarkic policies was evident. Despite attempts to shift economic policy and receiving U.S. aid since 1951, the budget and trade balance remained in deficit. Strikes and protests occurred in 1955. Franco then entrusted economic leadership to technocrats, who implemented the 1959 Stabilization Plan, designed with IMF and World Bank support. This plan aimed to liberalize the economy, allowing capital imports and curbing inflation by stabilizing prices and wages. The peseta was devalued, and a tentative tax reform was initiated.
Initial results were negative: wages decreased, firm productivity fell, the cost of living increased, and unemployment rose. However, positive effects emerged from 1961, marking the start of economic expansion. This expansion relied on industrial growth and new industries: tourism, foreign investments, and labor export.
Industrial expansion was based on low wages and foreign investment. Technology, capital goods, and energy (especially oil) were imported en masse, making the Spanish economy dependent on external factors.
Industrial growth led to intense rural-urban migration. Many sought work in Europe, reducing agricultural manpower, raising rural wages, and encouraging agricultural mechanization and demand for industrial goods. Rural modernization and depopulation occurred simultaneously.
The balance of payments deficit was largely offset by tourism. Tourist currency, remittances from migrant workers, and Spanish workers’ departures reduced unemployment.
Government-led Development Plans (three four-year periods between 1963 and 1975) encouraged private investment in certain industries through subsidies, cheap credit, and tax breaks. State investment in “poles of development” (new industrial cities like Valladolid, Huelva, and Vigo) aimed to promote new industries and generate employment in deprived areas, but these objectives were not fully met.
Economic growth between 1961 and 1973 was high but dependent on global economic expansion. The 1973 oil crisis abruptly halted Spanish growth.
Social Change
Economic changes significantly impacted Spanish society. The 1940s and 1950s were marked by backwardness, poverty, ruralization, and technical, scientific, and cultural setbacks.
Economic growth in the 1960s caused mass rural-urban migration, changing lifestyles and mentalities. Opening to the outside world, primarily through tourism, also contributed. A “baby boom,” partly fueled by the regime’s pro-natalist policy, dramatically increased the population, requiring more schools and universities. As the Church couldn’t meet educational demands, public education expanded. The welfare system and healthcare also changed, with growth based on worker contributions extending hospital networks and sickness, pension, and unemployment coverage, though both remained insufficient.
Women’s access to work increased. The Franco dictatorship initially curtailed women’s rights and progress made during the Second Republic, emphasizing motherhood and childcare. However, changing middle-class mentalities in the 1960s allowed women access to work and universities.
The middle class grew numerically and became more open and dynamic, accessing consumer goods (contradicting the regime’s Christian values). Appliances, cars, and vacations became available to more people. State television began broadcasting in 1958, reaching two-thirds of households by 1969 and impacting lifestyles and social behavior, despite censorship.
The 1960s social structure revealed a predominant working class (increasingly specialized and accessing property), a rising middle class, and a smaller ruling class (including a new elite linked to banks and senior officials/executives).
By the late 1960s, while the ultra-conservative Catholic ruling class defended Franco’s values, the rest of the country, especially younger generations, evolved different positions. This was evident in declining religious service attendance, new social and sexual relations, and acceptance of outside fashion and cultural movements.
Elements of Change in the Final Stage of Dictatorship: Culture
From 1969, two trends emerged within the regime: aperturistas (seeking political opening and European integration) and inmovilistas (“bunker” sector rejecting reforms). The 1970 Burgos Trial against ETA members, the increasing weakness of the government, university and labor opposition, and the emergence of FRAP marked this period. Carrero Blanco’s appointment as Prime Minister and subsequent assassination in 1973 created a power vacuum and further divisions within the regime.
Arias Navarro’s appointment raised fears of a hardening regime, but he favored some reforms. However, the inmovilistas ultimately prevailed. Opposition parties united, demanding democracy and a provisional government to convene a Constituent Assembly. Even some Church members distanced themselves from the regime. The Sahara conflict further strained the government.
By 1975, Arias Navarro faced opposition, terrorism, and economic depression. Franco’s death on November 20, 1975, led to Juan Carlos assuming leadership and initiating a democratic transition.
Spanish society and mentality underwent profound transformations. The regime’s main support came from the ruling class (aristocracy, landowners, big business, clergy, and army), later joined by Falangists and technocrats. The middle class continued growing, with a more open and dynamic mindset. The urban working class became the largest social group, but its reformist spirit prevented conflict with the middle class. Student protests, initially focused on moral values, became politicized through repression and communist infiltration.
The final stage of the Franco regime saw a rupture between culture and the regime’s values. Post-war, the regime controlled cultural life through censorship and indoctrination. However, a timid unofficial culture emerged in the 1950s, developing into critical artistic and literary movements. The 1966 press law allowed for some criticism, and control over education diminished. A new alternative culture opposed Franco’s values and sought freedom, marking a significant failure for the regime.