19th & 20th Century Economic & Social Change in Spain
Economic and Social Change in Spain
Economic Shifts in the 19th and 20th Centuries
During the 19th century, European economies underwent significant transformations. Industry replaced agriculture as the primary economic activity. Mechanization and energy use revolutionized production methods, while private property became further consolidated. Spain experienced these changes but did not fully industrialize, remaining predominantly agrarian in the late 19th century.
The early 20th century saw global economic power shift from Great Britain to the United States. Spain’s economy, though still largely agrarian, showed growth potential, hinting at a slow but steady transformation. However, the Civil War and the early Franco regime interrupted this progress. This period resulted in a dual Spain: some areas modernized and industrialized, while others remained reliant on traditional agriculture.
The Process of Secularization and Agrarian Change
Under the Old Regime, land ownership was heavily restricted, hindering economic development. The liberal revolution aimed to liberalize the land market, requiring three key measures: abolishing the feudal system, ending primogeniture (the exclusive inheritance rights of the firstborn), and confiscating church and municipal lands. These measures were fully implemented after 1837.
Abolition of the Feudal System
The 1837 law abolishing the feudal system transferred ownership of manorial lands to the former lords, increasing their property holdings.
End of Primogeniture
Restored in 1836, the law ending primogeniture transformed inalienable properties into freely held assets.
The Disentailments (Desamortización)
The disentailments aimed to sell previously amortized (non-transferable) lands, dissolving religious orders not dedicated to education or patient care. This process unfolded in two phases:
The Ecclesiastical Confiscation of Mendizábal (1836)
This involved auctioning church lands with the following objectives:
- Reduce public debt.
- Fund the Carlist War.
- Gain support for the liberal cause.
While intended to benefit peasants, the process was halted in 1845.
The General Confiscation of Madoz (1855)
This phase included remaining church lands and municipal lands. With a more stable political situation, the objectives were:
- Reduce public debt.
- Modernize the economy by investing in infrastructure (railways, canals, and public works).