Spain Under Late Francoism: Economic Growth and Social Dynamics
The Franco Dictatorship: 1959-1975
The economic development that occurred in Spain during the Franco dictatorship (1959-1975) resulted in significant changes. The most important were: an increase in population, explained by a decrease in the mortality rate; the dominance of cities and tertiary activities; and a rural exodus of over 4 million Spaniards changing residence.
The industrial working class largely came from the countryside and therefore lacked professional qualifications. The middle classes were involved in fundamental social changes, witnessing the apparition of new middle classes. Youth participated in political rebellion, the resurgence of regionalism, and the aggiornamento of priests. In 1963, a vigorous campaign for literacy began, though traditional customs coexisted with modernism.
Economic Liberalization and Technocracy
The Franco regime initiated a major operation of liberalization and adjustment of the Spanish economy. The regime’s policy aimed to undergo significant change without altering its dictatorial bases. Technocracy was tasked with liberalizing the economy and integrating Spain into the Western capitalist market.
Social Opposition to the Regime
Social opposition to the system had three key drivers:
- The university was in ongoing protests.
- The labor movement was aided by the possibility of negotiating collective agreements, following the approval of the Collective Agreements Act in 1968.
- A significant sector of the religious hierarchy approached the opposition, taking note of the resurgence of nationalism and the consolidation of democratic opposition.
The approach that chose radical terrorist violence, such as ETA, emerged in the early 1960s. The democratic opposition organized around many different organizations with a limited number of militants. In 1962, representatives from both the internal opposition and exiles met in Munich.
Franco reacted violently against this meeting, labeling it a “Munich conspiracy.” This inaction was an act intended to ensure the continuity of the regime. The continuity of the regime seemed assured by a series of provisions adopted by Francoist courts to accept Juan Carlos as the successor and head of state.
The Agony of the Regime
However, a series of circumstances provoked the agony of the regime: social opposition was continuous and increasing; terrorist attacks and kidnappings increased, soliciting the death penalty. Trials often lacked guarantees, causing major mobilization in the Basque Country. The assassination of Carrero Blanco was a key blow to the continuity of the regime.
After the death of Carrero Blanco, Carlos Arias Navarro was named Prime Minister. The adoption in December of the right of association did not satisfy anyone, as it still had to respect the principles of the Movimiento.
Economic Policies and Outcomes
This was the time of technocracy and developmentalism, and Spain joined the small group of industrialized countries. The first measures of the new economic team included raising interest rates and reforming the tax system to ensure higher incomes for the state. The Stabilization Plan contributed to the end of autarky and the granting of loans by international agencies.
The immediate result was strong economic growth and the accumulation of capital. Two major lines of action were launched: solving structural deficiencies and creating development poles to reduce regional economic imbalances. The attraction of industrial growth produced a significant transfer of farm workers. The expansion process was based on low wages and the accumulation of capital generated during the 1950s.
The deficit in the balance of payments was covered by three resources:
- Revenues from tourism, as tourists came to Spain attracted by low prices.
- The entry of long-term foreign investment, computed as income in national accounts.
- Remittances sent by many Spaniards working in Europe to support their families.