Economic Transformation and Social Change in Francoist Spain

Economic Changes Introduced by Technocrats

The Evolution of Social Structure

Economic growth did not solve the country's imbalances. First, growth was based on the mass exodus of workers from the countryside to cities and overseas—estimated at more than one million people migrating to developed European countries to perform work that natives rejected. This emigration masked huge unemployment figures in the Spanish economy.

Second, economic growth accentuated imbalances in the distribution of wealth, both personal and regional. The maintenance of low wages, the lack of collective bargaining, and a regressive tax system ensured that the standard of living for Spanish workers remained well below that of the rest of Europe.

To make matters worse, public spending was characterized by inefficiency and poor planning. The bulk of revenues were earmarked to cover the losses of companies in the INI, while investment in public services was neglected.

Social Shifts in the Late 1960s

Despite these issues, the second half of the sixties brought significant changes to Spain, driven by several factors:

• Urbanization: The concentration of the population in large cities altered lifestyles and attitudes.
• Demographics and Tourism: Population growth, driven by the regime's pro-natalist policy, combined with continuous inflows of tourists and the establishment of multinationals, linked Spaniards to new ways of life.
• Consumer Access: The extension of facilities such as telephones, refrigerators, washing machines, and especially the SEAT 600 allowed the middle classes access to private vehicles.
• Education and Labor: Women gained increased access to higher education and the labor market.
• Educational Reform: The General Education Act of 1970, driven by Villar Palasí, marked the first time in Francoist history that the budget for education exceeded that of the Armed Forces.

Consequently, the traditional Christian conception of life was gradually replaced by a more tolerant culture, new habits in social and sexual relations, and a culture of welfare and leisure.

State Efforts to Address Social Needs

The State made two primary efforts to solve the most pressing problems of the population:

• Law of Bases of the Social Security (1963): This involved the State assuming responsibility for social and health benefits, allowing for the expansion of hospital networks and coverage for sickness, pensions, and unemployment, albeit still insufficient.
• Housing Policy: The creation of large districts of affordable housing in big cities was implemented to accommodate the migrant population.