Spain's Economic Transformation: The 1959 Stabilization Plan

The 1959 Stabilization Plan and Economic Modernization

The government that was formed in February 1957, largely composed of members of Opus Dei (technocrats), committed firmly to a clear liberalizing policy aimed at economic modernization. This led to the implementation of the Stabilization Plan. This Plan was published in 1959, facing opposition from the Falange and Franco’s own indebted sectors.

Implementation and Objectives

The Stabilization Plan consisted of a package of economic measures whose objective was to create healthy economic development and better integration into the world market. The International Monetary Fund granted a loan valued at U.S. $544 million dollars.

Through the Stabilization Plan, the government intended to liberalize the economy by removing bureaucratic obstacles, reducing wages and the money in circulation, cutting public spending, and opening the Spanish economy to international investment and trade. The ultimate goal was to create the foundation for a strong economic recovery that would allow high growth rates, rapid industrialization, and the integration of the Spanish economy into the international sphere.

Key Economic Measures

To achieve these goals, the following measures were implemented:

• Price stabilization
• Decreased public and private spending
• Reduction of wages
• Limitation of credit elevation and interest rates
• Devaluation of the peseta
• Trade liberalization
• New regularization of foreign investment

Spanish Society in the 1950s: Migration and Austerity

Over the decade, the mobility of the population was triggered, moving from the agricultural sector. These migrants moved to swell the large urban centers, settling in their suburbs and adjacent towns. This caused a serious housing problem.

Housing Crisis and Migration

The construction of public housing and affordable homes began, often using shoddy materials. Shantytowns became an important part of the urban landscape. There was also a significant outward flow of migrants to America and Western Europe.

In the prevailing indoor austerity, more than half of homes lacked bathrooms and running water. Rationing ended, and the appearance of the car was emphasized: the Seiscientos.

Social Norms and Cultural Shifts

The regime fostered strict moral standards, enforcing prohibited education, establishing rigid roles for men and women in family settings, and controlling social influence. With tourism came ideas and customs that clashed sharply with the collective decency and Catholic morality.

Radio provided an instrument of distraction and evasion; serials, contests, and music filled the houses of the period, as well as sport.

Political Opposition During the 1950s

The Communists abandoned the armed struggle. The appearance of new and young leaders approved the policy of reconciliation with national socialists. Internal dissension caused groups like the UGT to lose strength.

Monarchical opposition groups emerged, often centered around Don Juan and internal dissension against Franco. Opposition also appeared from dissident groups within the regime, including a sector of the Falange led by Ridruejo, Christian Democrat groups, and opposition within the church (members of JOC and HOAC).

The boredom of war and its aftermath, coupled with the voices celebrating the victory, were giving way to a speech demobilizing the population, based on the euphemism of peace, order, religious values, and the myth of the good dictator.