19th Century Spanish Economy: Liberal Reforms and Industrialization
19th Century Spanish Economy
Economy XIX: Although liberalism was conservative for the Bourbons, they took steps to dismantle medieval laws of privilege, paving the way for modern capitalist relations as advocated by the bourgeoisie. The nobility and the bourgeoisie governed together for 70 years. In the 19th century, the population grew from 10.5 to 16.6 million, with a coastal distribution. The population began a rural exodus, leaving the countryside for Madrid, the Basque Country, and Barcelona.
Agricultural and Land Reforms
Agri and trans: In 1811, the Señorial regime disappeared, and jurisdictional dominion was abolished, establishing unique territorial dominion.
Disentailments
Moderate liberal governments faced a problem: they needed money to finance the Carlist Wars. Moreover, the bourgeoisie wanted to buy land held by the nobility, who were reluctant to sell. The Mendizabal law of 1835 expropriated part of the church lands, which were then auctioned off with compensation. Later, less land from the nobility was also disentailed. In 1855, the state’s need for resources led to further land disentailment, including new city council lands, ravines, forests, and mountains.
Consequences of Disentailment
Those who had vouchers could buy land in addition to the lost lands. Carlism appealed to the peasantry. Laborers and tenants found that new owners were even more demanding. In general, there was no improvement, and agriculture was not upgraded. The use of fertilizers, machinery, and irrigation was limited and slow. Throughout the 19th century, the amount of farmland devoted to wheat and vines increased. The liberal system suppressed birthright (primogeniture), where the eldest son inherited everything.
Industry in Spain
The Carlist Wars, political tension, and limited development of the agrarian sector delayed industrialization in Spain. Other confiscations absorbed a lot of money. Domestic trade and transport were hampered by poor transport networks. Foreign trade was affected by the loss of colonies. Spain experienced major technological backwardness and had to purchase machinery from abroad. There was no strong urban-industrial bourgeoisie; the wealthy bourgeoisie focused on buying land and titles.
Main Industries
- Industry: Andalusia was an industrial island. The prime industrial focus was due to the availability of coal in Huelva. They used English machinery and technology. Rio Tinto created explosives and brought British technicians, who also introduced soccer to Spain.
- Steel: The north, with iron and coal supplied to British industry, accumulated money in the Basque Country, which was then invested in copying English steel production.
- Textiles: Catalonia had artisans with the capacity to incorporate technology and produce in the English style, becoming an industrial focus. Protectionist policies benefited them, and the purchase of foreign textiles was prohibited.
Transport
Transport received a major boost in the search for a national market. 40,000 km of roads were built. The first railway line, Barcelona-Mataró, was built in 1848, followed by Madrid-Aranjuez three years later. The road network was radial, centered in Madrid, the capital, connecting all ports. The width of the Spanish railway was different from the rest of Europe, to prevent French invasion. The market was small, and the loss of overseas colonies hurt it. Industrialization boosted the railway business and financial institutions. The Bank of Spain was founded later in 1856, along with banks in Santander and Bilbao. The Madrid stock exchange opened in 1831, and the Barcelona stock exchange opened 20 years later.