Economic and Social Transformation in Mid-19th Century Spain
Economic and Social Change in Mid-19th Century Spain
Agriculture
In mid-19th century Spain, agriculture can be divided into two sectors: traditional cereal farming and a more modern, export-oriented sector focused on citrus and wine production. From 1800 to 1870, there was an expansion of cultivated land and an increase in agricultural output. However, productivity remained stagnant or even declined. In 1875, competition from American and Russian wheat exports intensified, leading to a decrease in land confiscations.
The wine industry experienced significant growth towards the end of the century, particularly due to the phylloxera epidemic that devastated French vineyards. This led to favorable commercial treaties between Spain and France, allowing Spain to dominate the wine market temporarily. However, France eventually recovered by cultivating phylloxera-resistant American rootstock. Phylloxera eventually spread to Spain, causing a crisis in the Spanish wine industry in the first decade of the 20th century.
Industry
Industrial growth in Spain was slow during this period. The leading sectors of the Industrial Revolution, as in England, were cotton and iron. However, unlike England, where proto-industrial nuclei thrived, in Spain, these early industrial centers disappeared. Industry became concentrated in the Basque Country, Asturias, and Catalonia.
A major obstacle to industrial development was the lack of a reliable energy source. The first stage of the Spanish steel industry was centered in Andalusia, with factories like El Angel and La Concepcion in Cadiz, Seville, and Marbella. However, this industry eventually declined due to the lack of energy resources.
The second stage of industrial development saw a more rational location of industry in Asturias and the Basque Country. These regions had mineral resources but lacked energy. The solution was to export iron ore to Britain and import coke (the necessary energy source) on the return trip. Notable factories from this period include Santa Ana de Bolueta and the blast furnaces of Biscay, established in 1902.
The textile industry was concentrated in Catalonia, which had become the industrial hub of Spain. Barcelona, in particular, was home to numerous banks, insurance companies, and a major port. Both the textile and steel industries relied heavily on tariff protection, which allowed them to develop without significant foreign competition.
Mining
Spanish mining was extensive, with exports of iron, zinc, mercury, and copper, primarily to countries like England, Germany, and Belgium. Approximately 90% of Spanish iron was exported.
Free Trade vs. Protectionism
The debate between free traders and protectionists centered around the cotton, mining, and steel industries. Protectionism aimed to shield domestic companies from foreign competition through tariffs, while free trade advocated for the removal of such barriers. The main groups affected by these policies were consumers.
Banking and Finance
During the Bienio Progresista (Two Progressive Years), the Issuing Banks Act was passed to regulate currency issuance, given the recurring banking crises. This act granted the Bank of Spain a monopoly over currency issuance. The Lending Companies Law was also enacted to organize investment corporations.
Railway Development
Railway construction in Spain began in 1855 with the General Law of Railways. However, the development of the railway network was heavily influenced by foreign groups, mainly French, with limited participation from Spanish capital. Notable investors included the Pereire brothers and the Rothschild banking family.
There was a conflict of interest between foreign investors, who wanted to connect mining areas to ports, and the Spanish government, which aimed to connect the capital with the provinces through a radial network. Ultimately, the radial network was implemented, although Almeria and Galicia were initially left out. To prevent potential French invasions, Spain adopted a different railway gauge than its neighbor, leading to significant geographic isolation.
Social Change
Spanish society in the mid-19th century can be broadly divided into three groups:
- Upper Classes: The ruling class, consisting of the nobility, landowners, industrialists, and high-ranking political officials.
- Middle Classes: A relatively small segment of the population, including teachers, lawyers, veterinarians, and those employed in the service sector.
- Lower Classes: The majority of the population, who experienced a significant process of impoverishment during this period.