Economic Stagnation in 19th Century Spain: Land Seizure and Agriculture
Economic Stagnation in 19th Century Spain
During the reign of Isabel II, a new landlord class emerged, composed of politicians’ friends, chiefs, and influential figures. These individuals often acquired land through auctions, excluding peasants who lacked information, resources, or were subject to bid rigging.
The land seizure wasn’t intended for land distribution or reform. Instead, it primarily benefited the financial and commercial elite, like Mendizabal, who sought to solidify their economic prosperity through real estate acquisition.
The Stagnant Spanish Economy
Examining the Spanish economy during Isabel II’s reign and throughout the 19th century, the most striking aspect is its stagnation. While the economy did experience some growth—the population increased from approximately seven million to nineteen million, food production, clothing, and housing developed to meet the needs of this growing population, the railway network was built, cities expanded, and industries like cotton textiles, steel, and mining saw increased production—Spain lagged behind many other European countries. A growing gap emerged between Spanish and European income.
Agricultural Transformation and Its Limitations
Agricultural transformation saw limited innovation in farming techniques. New landowners preferred maintaining existing operating systems rather than investing in improvements. Consequently, land yield didn’t increase significantly, and production growth was primarily due to cultivating more land after the Civil War. The average yield per unit area even decreased as newly cultivated land was of poorer quality.
Decline of Herds
The confiscation and the liberal revolution also marked the decline of herds. Pasture lands were converted to cultivation, and more profitable woolen species were introduced, making textile products more competitive. This resulted in a significant decrease in the number of sheep and a reduction in natural fertilizer, further impacting land yields.
Cereal Production and Trade Policies
While the cultivation of potatoes and maize increased, especially in the north, wheat and other cereal products remained the primary food source for the majority of the population. Growth was slow, and laborers remained day laborers with low wages. Moderate governments, defending landowners’ interests, implemented protectionist trade policies to secure high prices for their produce, reserving the national market. In years of good harvests, prices remained relatively high due to the absence of foreign competition and a poorly articulated domestic market. Conversely, in years of poor crops, prices soared. This allowed owners to accumulate significant profits without investing in production improvements, as the government guaranteed a reserved market.
Conclusion: A Stagnant Agriculture
Despite agricultural changes during the first half of the 19th century, Spain faced a stagnant agriculture. This limited the labor supply to the industry (due to a lack of mechanization), created an insufficient market for manufactured products, and hindered necessary capital investment. Agriculture became a major drag on the development of other productive sectors.