Economic Modernisation

Abstract

Spain’s transition to democracy took place against the backdrop of a deeply unfavourable economic climate. Inflation was running at high rates throughout the developed world in the mid-1970s, the petroleum price shocks imposed by OPEC in 1973 and 1979 dealt hammer blows to an economy highly dependent on imported oil, and Spain’s export markets were hard hit by two world recessions. Moreover, after years of repressive dictatorship, the labour movement was naturally eager to make up for lost time by exercising its newfound political rights. Investors, meanwhile, held back from committing funds to a country faced with a highly uncertain economic and political outlook (Allard and Bolorinos, 1992: 14).