Economic and Industrial Transformation of Spain in 19th and 20th Centuries
Economic Transformation of Spain
Slow Growth and Sectoral Imbalance
The Spanish economy in the 19th and early 20th centuries was characterized by slow growth and a significant sectoral imbalance. This had several consequences:
- Lack of capital for industrial innovation.
- Limited domestic investment in industry, with much capital going towards public debt.
- Difficult terrain hindering transportation and domestic market integration.
- Limited population growth.
- Scarcity and dispersion of energy resources.
- Wars and their destructive impact.
Spain’s economic development mirrored trends in other Western and Southern European countries at the time.
Agrarian Transformations
Spain remained largely agrarian during this period. Until the mid-1830s, the agricultural sector experienced stagnation and was dominated by absentee landlords who relied on tenant farmers.
Changes in Land Ownership
From the mid-1830s, significant changes occurred, including:
- Ecclesiastical and civil confiscations (Mendizabal and Madoz), which impacted farmers and consolidated large estates (latifundia).
- Expansion of cultivated land, particularly for wheat, grapes (wine production), olives, and legumes.
- Increased regional specialization in agriculture.
- Decline of transhumant livestock due to loss of grazing land.
Challenges and Transformations in the Late 19th Century
In the late 19th century, the agricultural sector faced challenges due to its low technical level, poor yields, and improved transportation. However, a slow transformation began:
- Increased specialization.
- Reduced costs.
- 55% increase in agricultural productivity.
- New products for export.
- Wider cultivation of corn.
Industrial Development in Spain
Late and Incomplete Industrialization
Spain’s industrialization lagged behind that of the United Kingdom and other European countries. Until the mid-19th century, manufacturing was primarily local and small-scale.
Industrial Boom and Crisis
The industrial boom began in the 1850s during the moderate period but faced a crisis due to new investment opportunities. A slow recovery followed in the late 19th century, aided by the loss of colonies, which created a need for new markets for industrial goods.
Major Changes in Industry
Three major changes occurred:
- Replacement of steam power by electricity.
- Concentration of heavy industry in the Basque Country.
- Diversification of industrial sectors.
Geographic Concentration
Spanish industry concentrated in specific regions:
- Catalonia: Textile industry.
- Basque Country and Asturias: Metallurgy, shipping, and steel.
Obstacles and Solutions
Until the 1930s, Spanish industry faced challenges from foreign competition and a weak domestic market. To address these, the government implemented protectionist tariffs and actively intervened in the industrial sector.
The Catalan Cotton Textile Industry
The Catalan textile industry, particularly in Barcelona, was a pioneer of industrialization in Spain. Its development was driven by tariff protection and technological innovations, such as spinning machines and power looms (initially steam-powered, later replaced by self-acting mules).
Growth and Limitations
Improved transportation and production efficiency led to Barcelona becoming the center of the Spanish cotton textile industry. This resulted in geographic and financial concentration, as well as the emergence of new industrial organizations (S.A.). However, the industry faced limitations:
- Inability to attract capital goods industries.
- Reliance on family bank financing.
- Superiority of English production in terms of price and market control.
Impact of Colonial Losses
The Catalan textile industry experienced growth with the Law on Trade Relations with the Antilles. However, the loss of Cuba, Puerto Rico, and the Philippines had a significant negative impact.
The Basque Steel Industry
The Basque steel industry began in Malaga with the installation of coal-fired blast furnaces using coke. Its dominance was initially due to proximity to coal deposits. The center of steel production later shifted to Vizcaya, driven by the adoption of the Bessemer process.
Other Industries
Other industrial sectors in Spain, though smaller in scale, included:
- Food industry.
- Chemical industry.
- Paper industry.
- Mining industry.
- Development of new energy sources.