Spain’s Economic Miracle and Transition to Democracy

Posted on Mar 17, 2025 in History

The Desarrollismo (1959-1973)

Context: The Spanish Economic Miracle of the 1960s

The “Spanish Miracle” occurred because of several factors:

  • Abundance of workforce.
  • Cheap and docile workforce.
  • A growing market.
  • Protectionism.
  • Foreign capital investment.
  • Plentiful and cheap oil.
  • An expansive international economic context.

Stabilization Plan (Desarrollismo)

A set of measures to liberalize the Spanish economy, opening it to the exterior (more imports and exports) and its modernization.

Effects of Desarrollismo

Economic Effects

  • Agricultural Modernization:
    • Mechanization.
    • Increased use of chemical fertilizers.
    • Higher productivity.
  • Development of the Industrial Revolution:
    • Catalonia:
      • First industrial center in Spain.
      • Industrial concentration.
      • Dominance of small and medium enterprises.
      • Few public companies.
      • Metal, textile, and chemical industries.
    • Rest of Spain:
      • Appearance of new industrial centers (Vigo, Valladolid, Zaragoza, Valencia, Asturias, and the Basque Country).
  • Growth of Services:
    • Tourism.
    • Short commercial branch (offset by currency from tourists, immigrants, and foreign investments).

Social Effects

  • Clearly natalist policy.
  • Increased life expectancy.
  • Intense rural exodus.
  • Spectacular internal migrations.
  • “Canyoning” (poorly equipped neighborhoods with precarious housing and basic social service deficits).
  • Consumer society.
  • General Education Law.
  • Changing role of women.
  • Renewal of the Church.

Political Evolution (1959-1973)

Status of Reformism and Tensions Between Factions of the Regime

  • Permissiveness and Political Repression:
    • Act on Collective Agreements.
    • TOP (Tribunal de Orden Público – Public Order Court).
    • Press Law.
    • Religious Freedom Act, the Social Security of Organic State.
  • The Succession Question: (1969: Franco designated Prince Juan Carlos of Spain as his successor).
  • Political and Social Tensions:
    • Clashes between technocrats and Falangists.
    • Matesa Case.
    • State of Exception (1969-1970).
  • Foreign Policy:
    • 1962: Spain requests membership of the EEC.
    • 1970: Agreement with the EEC.

Opposition to Franco (1959-1973)

  • Workers’ Movement:
    • From 1960.
    • Increased unrest.
    • Clandestine unions (CCOO, UGT, USO).
  • University Students:
    • Waste generation (student strikes).
    • Foundation of the SDE (Sindicato Democrático de Estudiantes – Democratic Student Union).
  • Neighbors:
    • Neighborhood associations.
    • Offered services in the neighborhoods.
  • Political Opposition:
    • Catalonia:
      • 1960: Events at the Palau de la Música.
      • 1971: Assembly of Catalonia.
      • 1974: Foundation of the CDC (Convergència Democràtica de Catalunya).
    • Rest of Spain: Other opposition groups.
  • Church: (Vatican II: Distancing from Franco).
  • Terrorism:
    • 1959: Foundation of ETA.
    • 1968: Armed struggle.
    • 1970: Trial of Burgos.

The End of the Franco Era (1973-1975)

Death of Carrero Blanco (1973): New president Carlos Arias Navarro. Government with the “Spirit of February 12”: Reformist government program, conflict between sectors of the regime and pro-openness immobilists.

Decomposition of the Regime (1974-1975)

  • Failure of the reform promoted by Arias Navarro.
  • Increase in Political Opposition: (Democratic Platform, Democratic Convergence Meeting).
  • Confrontation with the Church.
  • Labor unrest as a result of the economic crisis of 1973.
  • Opposition from a sector of the army (Democratic Military Union).
  • Carnation Revolution in Portugal.
  • Anti-Terror Law (1975): Execution of two members of ETA and three members of FRAP, leading to the isolation of the regime.
  • Aggravation of Franco’s illness.
  • Green March in Morocco for the occupation of the Sahara.

The Political Transition and Democracy

Transition: The process of Spain’s return, since Franco’s death (November 20, 1975), from a dictatorship to a democracy by peaceful means. The method used was consensus: A political strategy applied during the transition, involving the waiver of certain points of their programs, in order to achieve a political system agreed upon by all.

Outline of the Transition

The Dismantling of Francoism

  • Proclamation of Juan Carlos I: (Mistrust from the opposition).
  • President Arias Navarro’s Government: (Formation of a new, heterogeneous government).
  • March 26, 1976: Democratic Coordination (unitary opposition body).
  • July 1, 1976: President Adolfo Suarez’s Government (a surprise, nobody expected it: rapid democratization of Spain).
  • November 18, 1976: Adoption of the Political Reform Act.
  • January 24, 1977: Five labor lawyers killed in Madrid.
  • April 9, 1977: Suarez legalized the Communist Party of Spain, leading to a government crisis.
  • June 15, 1977: First democratic elections: Suarez proclaimed Prime Minister.