Spain's Economic Miracle: 1959-1973 Growth and Social Transformation

Stabilization Plan (1959): Laying the Foundations of the Economic Model

The economic model aimed for a less interventionist state and promoted a free market economy with industrial development. Key laws and measures included:

• Devaluation of the Peseta: This facilitated foreign investment and capital inflow.
• Wage Freeze: Implemented to ensure social peace during a period of dictatorship.
• Privatization: Numerous public companies were sold, transferring control to private entities.

Results: This period, known as Desarrollismo, led to the Spanish Miracle, characterized by GDP growth rates of 6-7% between 1959 and 1973. Exports increased significantly, with per capita sales multiplying by six, reaching 40% of the total. Tourism emerged as a major driver of Desarrollismo. The growth in tourism helped offset the commercial deficit, leading to improved living standards for the population for over a decade. However, this growth was unbalanced, with industrialization concentrated in certain regions. For example, Barcelona experienced significant industrial and service sector growth, while regions like Extremadura saw little industrial or service development. The labor force in the 1960s worked diligently, with many people holding multiple jobs, contributing to rising living standards.

Social Change During Desarrollismo

Between 1959 and 1973, Spain transformed from an autarkic, rural, and impoverished nation to one with a burgeoning market economy. The primary drivers of this social change were:

Internal Migration

A significant internal migration occurred, moving populations from rural areas to urban and industrial centers. Major cities like Madrid, Bilbao, and Valencia experienced substantial growth, attracting people from regions such as Andalusia, Castilla, Extremadura, and Galicia. This era saw large-scale migrations.

External Migration

Many Spaniards emigrated to other European countries, particularly Germany, France, and Switzerland, seeking better employment opportunities and higher salaries. Approximately 200,000 people emigrated permanently.

Demographics

The Spanish population grew from 29.7 million in 1957 to 34 million in 1970, largely due to economic growth. The primary sector's contribution to employment decreased by more than half, while other sectors expanded.

Urbanization

The percentage of the population living in urban centers (over 10,000 inhabitants) increased from 23% in 1950 to 40% in 1970.

Society of Consumption

The era saw the rise of consumerism, with iconic products like the SEAT 600, black and white televisions, refrigerators, and washing machines becoming highly desired possessions.

Mentalité Change

Several factors contributed to a shift in mentality:

• Mass production became prevalent.
• Increased tourism led to greater movement of people into and out of the country.
• Emigration exposed Spaniards to different cultures and economic realities.
• A rise in the general educational level, with a growing number of university graduates, reflected a desire to integrate with Europe.

Despite these significant economic and social changes, there was no corresponding political transformation during this period.