19th Century Spain: Economic and Social Transformations

Economic Transformations in 19th Century Spain

A Dual Economy

The Spanish economy in the 19th century was dualistic, combining archaic structures with isolated pockets of development. The slow pace of change was a key characteristic. Agriculture remained the most important economic activity, but issues like unequal land distribution, lack of technological innovation, and low yields necessitated reforms.

Land Confiscation

Land ownership was concentrated in the hands of the nobility and the Church. Primogeniture prevented nobles from selling or dividing their land, effectively freezing it. Municipalities also owned land, originating from royal concessions, which they leased. Land scarcity and high prices led to confiscations.

  • Mendizabal Confiscation (1837): Driven by the critical situation during the civil war, this measure aimed to restructure the Treasury and gain support for the liberal cause. It involved the auctioning of Church lands.
  • Madoz Confiscation (1855-1867): Initiated during the progressive biennium, this confiscation targeted remaining Church lands and municipal properties. The goal was to reduce public debt and modernize the economy.

Confiscations brought large areas under cultivation, but also led to deforestation. Wealthy families retained their assets, while urban middle classes became major land buyers. The confiscations impoverished municipalities and peasants who settled on unsuitable land, ultimately creating an agrarian oligarchy.

Delayed Industrialization

The Spanish industrial revolution, starting around 1840, was delayed and incomplete. Contributing factors included:

  • Lack of an entrepreneurial financial bourgeoisie
  • Dependence on foreign capital and technology
  • Shortage of coal and raw materials
  • Inconsistent economic policies

Catalonia, with its cotton industry, was the only region with significant indigenous industrial development.

Industrial Development

The steel industry’s location shifted throughout the century. Initially centered around Málaga, it later moved to Asturias due to coal deposits, and finally to Bilbao, which imported higher-quality Welsh coal. Mining, particularly of iron, lead, copper, zinc, and mercury, peaked in the last quarter of the century, largely under foreign control. The Mine Act of 1868 was significant for this development.

Trade and Finance

Trade volume increased considerably during the 19th century, with protectionist policies prevailing. Notable exceptions include the Figuerola Tariff. Mon-Santillan’s public finance reforms in 1845 and the adoption of the peseta in 1868 were also important.

The Railway Revolution

The first railway line, Barcelona-Mataró, was built in 1848. The General Law of Railways in 1855 triggered a railway boom, fueled by government support, foreign capital and technology, and domestic investment. By 1868, 4,803 km of track had been laid, integrating the Spanish market and facilitating the movement of goods, people, and ideas.

Social Transformations

From Estates to Classes

The 19th century saw the shift from a society based on estates to one based on classes, with income as the primary differentiator. This transformation began after Ferdinand VII’s death in 1833.

Demographic Changes

Spain experienced significant population growth after 1833, driven by improved food supplies, advances in medicine, and hygiene measures. High birth and mortality rates persisted, with subsistence crises and epidemics remaining a challenge. Population distribution was uneven, with coastal areas more densely populated. Rural exodus began, with people migrating to industrial centers and cities. Emigration to America, particularly from Galicia, Asturias, and the Canary Islands, also increased.

Social Classes

The nobility, though officially disappearing from censuses, retained social influence. Some adapted to the new economic order, while others remained tied to the land. A new courtier class emerged in Madrid. The upper middle class, linked to economic modernization, supported political and cultural liberalism. The army played a significant role, with its officers belonging to the middle and upper classes. The middle class, comprising diverse occupations, generally favored moderate reforms. The lower classes, primarily peasants and industrial workers, faced difficult living and working conditions. Land conflicts and labor unrest were common.

The Labor Movement

The emergence of the industrial working class was a major social change. Workers faced long hours, low wages, unemployment, and child exploitation. Mutual aid societies, initially formed to protect wages, were banned in 1844. The 1855 general strike in Barcelona highlighted workers’ grievances. Disappointment with liberal policies led workers to align with democratic and republican parties. The Restoration further separated the labor movement from these parties. The Law on Associations of 1887 allowed for legal workers’ parties.

  • Socialism: The PSOE, founded in 1879 by Pablo Iglesias, initially advocated Marxist principles but gradually adopted reformist positions. The UGT union, founded in 1888, focused on improving working conditions.
  • Anarchism: Rejecting state organization, anarchism in Spain had two main streams: Bakuninism in Andalusia, advocating self-managed communities, and anarcho-syndicalism in Catalonia, emphasizing unions. The CNT, founded in 1911, became the most important anarchist union.

The early 20th century witnessed the growth and mobilization of the organized labor movement.