Background Papers

In the last half century Spain has undergone a dramatic and by most counts successful political and economic transformation from relative underdevelopment and authoritarianism to wealth and democracy. In the immediate aftermath of World War II, which resulted in the re-establishment of democracy in Western Europe, Spain remained a culturally and diplomatically isolated country, governed by authoritarian institutions. Moreover, whereas democratic Europe experienced a period of rapid economic growth and growing trade integration, Spain was burdened by the destruction yielded by its civil war fought in the 1930s, the pursuit of autarkic policies and a long history of relative poverty. Following the decision to liberalize its economy in the late 1950s, Spain quickly transformed into a modern manufacturing and service-based economy, experiencing unprecedented levels of prosperity, massive urbanization and a growing middle class. With the death of its dictator in 1975, Spain embarked in a peaceful transition to democracy, the construction of a broad welfare state and its integration in the European Union. This successful transition to economic and political modernity is particularly relevant, both theoretically and from the viewpoint of policymakers, because Spain stands as one of the few countries that managed to move peacefully from underdevelopment and authoritarianism t