Spain’s Economic Miracle and Social Evolution (1950-1973)
Spain’s Economic and Social Transformation (1950-1973)
Spanish economic policy between the 1950s and 1960s was severely restricted by the state of ruin after the Civil War, depriving Spain of access to foreign resources and facing an international embargo imposed on the nation.
Autarky and Early Economic Challenges (1950s)
During this stage, an economic policy based on autarky was implemented, driven by necessity and the regime’s political decisions. Its goal was rapid industrialization, but the results were disastrous: industrial production increased only marginally, agricultural production was insufficient, leading to food rationing and the emergence of a black market. Income per capita did not recover.
The 1959 Stabilization Plan
In 1957, the new government appointed two members of Opus Dei, described as technocrats, to key economic ministries. They guided their work towards technical and economic efficiency. Their most ambitious project was the 1959 Stabilization Plan, which sought three objectives: price stability, economic flexibility, and the liberalization of foreign economic relations. The immediate results were disastrous (increased unemployment, bankruptcies), but this was the price to pay to stabilize the Spanish economy.
Economic Planning and Rapid Growth (1960-1973)
An indicative economic planning system was established for the period 1964-1975, based on the French model. Its aim was to initiate rapid development based on cooperation between companies (publicly constrained, privately benefiting) and the State. Development poles were established to promote economic balance across the country.
The Spanish economy between 1960 and 1973 experienced rapid and unprecedented growth:
- Per capita income more than doubled in 10 years.
- Modernization was undertaken across all economic sectors:
- The most mature segments were the secondary, chemical industry, metal, and automobiles.
- A dramatic growth occurred in the tourism subsector.
- Agricultural yields and productivity improved with new machines, techniques, and fertilizers.
However, there were also negative aspects:
- Major regional disparities originated.
- The model of rapid growth failed to absorb the country’s entire labor force, leading many to emigrate to escape unemployment and poverty.
- Spain’s balance of payments remained highly deficient.
This deficit was offset by three sources:
- Foreign capital investment in various sectors of the Spanish economy.
- Remittances from Spanish emigrants to their families.
- Foreign exchange earnings from tourism.
Social Changes and Modernization
Regarding social change, internal migration in the 1960s reached a high magnitude due to the enormous attraction of the growth sectors, leading to the creation of ‘dormitory towns’. However, as the economy did not generate enough jobs for the entire workforce, over 1.5 million Spaniards emigrated to Europe. This emigration was vital not only for the country’s economy but also for the regime’s stability.
The growth of the service industry attracted labor from rural areas, with the secondary and tertiary sectors surpassing the primary sector in importance. The social structure modernized, evolving into a society with a numerical predominance of urban middle classes.
The emergence of a consumer society brought about several changes: the quality of food improved considerably, housing construction increased, and there was increased household ownership of televisions, refrigerators, and telephones. Following this economic direction, political issues were often relegated to the background.
Limited Political Openings
The growing social pressure led to some small opening measures:
- The Press and Printing Act of 1966, championed by Manuel Fraga, eliminated prior censorship but did not guarantee full freedom of expression.
- The Religious Freedom Act of 1967 recognized the equality of all faiths.