Why Did Spain Struggle to Grow After the Restoration of the Monarchy in 1975?

Throughout history, the restoration of monarchies has often catalyzed significant changes and expansions. This article explores the unique case of Spain, where the transition to a monarchy under King Juan Carlos in 1975 did not yield the expected growth and modernization.

Other Examples of Restored Crowns

In contrast to Spain, the restoration of the monarchy in England, Portugal, and France during the seventeenth and twentieth centuries led to ambitious endeavors that significantly expanded these nations' influence and modernized their infrastructure. For example:

England (Restored in 1660): Charles II and William III put significant effort into expanding England's colonial and commercial empires. Portugal (Restored in 1640): Subsequent Portuguese monarchs worked to recapture the nation's former prestige and modernize its institutions. France (Restored in 1789, then later in 1814 and 1815): The Bourbons implemented reforms that improved France over the course of 15 years of their rule, fostering a period of growth and stability.

Yet, when examining Spain's case, the monarchy's restoration in 1975 did not result in the same level of transformation. Spain's subsequent economic achievements remained relatively underwhelming compared to those of its European counterparts.

No Major Innovations and Slow Growth

During the time post-Franco’s death in 1975, Spain did not achieve notable milestones such as:

Embarking on significant space missions Weekend development and innovation in the tech sector Entering into unique bilateral trade agreements with major world powers Securing a place in the G7 Strategically competing in infrastructure projects Expanding opportunities in multilateral universities Developing a robust PR consultancy and marketing industry Bolstering a competitive financial sector and entertainment industry

Spain's economic standing, as reflected in the GDP per hour worked, offers a more nuanced view. According to data from the Organization for Economic Co-operation and Development (OECD), we can see a more detailed picture of Spain's economic trajectory:

Comparative Economic Data from 1970 to 1990

From 1970 to 1990, the GDP per hour worked across various European countries provides insight into the economic impact of the 1973 oil price shock and the subsequent restoration of monarchies:

Year France Italy Spain United Kingdom 1970 25% higher 20% higher 15% lower 20% higher 1980 20% higher 15% higher 12% lower 17% higher 1990 10% higher 10% higher 10% higher 15% higher

While the European oil crisis in 1973 affected all economies, Spain's relative standing improved over the period. By 1990, Spain's GDP per hour worked approached that of the United Kingdom and had almost halved the gap with France and Italy.

Labor Struggles and Post-Franco Stability

The restoration of the monarchy in Spain occurred during a period of labor unrest and salary disputes, which were persistent issues during Franco's dictatorship. Nevertheless, Spain managed to handle these challenges effectively:

Long-term labor strikes and salary increases were managed more efficiently than during the Franco era. These difficulties translated into better economic outcomes for Spain.

The relatively stable economic performance under King Juan Carlos and the post-Franco government indicates that Spain's economic trajectory was not solely dependent on the monarchy but also on effective governance and economic policies.

Conclusion

Spain's experience with the restoration of the monarchy in 1975 is unique in that it did not follow the same trajectory of rapid growth and modernization seen in other European nations. The economic data and labor conditions suggest that while Spain faced significant challenges, it managed to navigate these issues and achieve a more stable economic position by the 1990s.

Understanding the complexities behind Spain's growth—or lack thereof—after 1975 offers valuable insights into the interplay of historical, political, and economic factors in a nation's development journey.