Industrialization and Economic Change in Early 20th Century Spain
Industrialization in Catalonia
Early Industrial Development
Catalonia’s industrialization was unique within Spain. Until the early 20th century, Catalonia served as Spain’s primary industrial center.
Vapors and Colonies: Two Models of Industrial Organization
Two competing models of industrial production emerged:
- Vapors: Textile factories powered by coal. Located in coastal industrial areas, often near railway stations for coal transport. Primarily consisted of the manufacturing building, including coal storage and steam production facilities.
- Colonies: Developed around 1860 due to rising coal prices. Situated near rivers for hydropower, away from urban centers. Included churches, schools, houses, and recreation centers, as workers and their families lived on-site. Unlike the Vapors, Colonies fostered paternalistic owner-worker relationships with fewer social conflicts. However, they faced challenges such as complex construction needs, production reduction due to fluctuating water flow, and higher transport costs due to distance from ports. Advantages included free water resources and cheaper labor.
One factor contributing to Spain’s delayed industrialization was its protectionist policies and inadequate transportation systems.
Free Trade and Protectionism
Spanish tariff policy shifted from gradual free trade until 1870 to complete protectionism. This change resulted from pressure from industrial and agricultural sectors. Protectionism hindered international trade, technological advancements, and production specialization. Despite political and economic instability, Spain made efforts to liberalize foreign trade until 1874, following European trends. Blaming Spain’s delayed industrialization solely on tariff policy is an oversimplification, as other factors like institutional instability, agricultural backwardness, lack of tax reform, and limited natural resources also played a role.
Factors Hindering Spain’s Full Industrialization in the 19th Century
Several factors contributed to Spain’s incomplete industrialization:
- Geographical Location: Spain’s location in southwestern Europe resulted in higher transport costs for raw materials and exports compared to central European industrialized nations.
- Limited Purchasing Power: Low incomes among small farmers primarily covered food purchases, leaving little demand for manufactured goods. This limited industrial growth.
- Capital Constraints: High public debt absorbed capital that could have been invested in productive activities.
- Resource Allocation: Spain faced challenges with poor-quality coal, unsuitable iron ore deposits, and water scarcity.
- Political Instability: Persistent political instability hampered economic development.
Anarchism and Socialism (1874-1900)
With the Restoration in 1874, trade unions faced repression and were forced underground. In 1881, with the rise of liberal workers’ associations, they were legalized again.
Anarchist Currents
In 1881, the Bakuninist Spanish Regional Federation of Workers (FRTE) adapted to the new law. Internal disagreements and repression of the peasant movement led some anarchists to opt for direct action through organized autonomous groups. Between 1893 and 1897, violence escalated, including political attacks, bombings, murders, and arson. The Montjuïc trials of 1897 resulted in convictions and executions of anarchists. This violence divided the anarchist movement between supporters of direct action and mass action. Veteran anarchists, intellectuals, and worker groups opposed to terrorism advocated for social revolution through association-based organizations, leading to the emergence of Workers’ Solidarity and the CNT in the early 20th century.
Socialist Workers
The Socialist Workers’ Party (PSOE), founded in Madrid in 1879, introduced a program of immediate reforms (right of association, prohibition of child labor, universal suffrage). It joined the Second International. In 1888, the PSOE held its first congress in Barcelona and founded the General Union of Workers (UGT). The UGT, independent of political organizations, advocated for collective bargaining and strikes. The PSOE grew, but faced difficulties in anarcho-syndicalist areas like Catalonia and Andalusia, explaining its limited presence there initially.
Reformism and the Social Question
In the 1880s, harsh living and working conditions, along with union pressure, prompted the government to regulate economic and labor relations. The first labor laws were passed in 1878. In 1883, the Social Reform Commission was established to investigate working conditions and promote social reform. However, most regulatory acts were not approved until the early 20th century.
Demographic Revolution
During the first third of the 20th century, Spain began its demographic transition, which had already started in Catalonia in the latter half of the 19th century.
The Demographic Transition
Spain’s demographic transition involved declining mortality rates due to improved sanitation, infrastructure, and nutrition. Infant mortality decreased, and life expectancy increased to 50 years. The population grew considerably. In the 1910s, birth rates gradually declined due to urbanization and family planning. In Catalonia, mortality rates dropped significantly, birth rates declined slightly, and life expectancy reached almost 54 years. Migration further increased Catalonia’s population.
Migratory Movements
Between 1900 and 1931, internal migration increased in Spain, with people moving to modern economic sectors. Madrid and Barcelona attracted migrants from rural areas like Murcia and Castile. Catalonia experienced intense immigration, with 1 in 5 residents being born outside the region by 1930. Overseas emigration also peaked due to a growing economy, increased employment opportunities, and improved navigation.
Intensification of Urbanization
Internal migration led to rapid urban growth. Large cities, like Madrid and Barcelona, exceeded one million inhabitants by 1930. Mining and industrial centers also attracted significant populations. Barcelona’s urban landscape transformed with the integration of surrounding towns, new housing for immigrants, the restructuring of Via Laietana, the development of urban transport networks, and the modernization of Montjuïc.
Agrarian Backwardness and Peasant Unrest
In the early 20th century, the Spanish countryside was marked by the contrast between dynamic Mediterranean agriculture and stagnant cereal agriculture.
The Agrarian Crisis
Spain, with its focus on cereals, olives, vines, and wool-oriented sheep farming, was heavily impacted by the cereal crisis. Competition from countries with more competitive agriculture (USA, Canada) led to lower prices, reduced revenues, and declining profits. This triggered protests from the Agrarian League (cereal landowners advocating for protective tariffs). Falling wages led to peasant unrest. The phylloxera outbreak in 1910 devastated vineyards, leading to replanting with American strains. This crisis sparked conflicts between landowners and tenant farmers that lasted until the Second Republic.
Agricultural Revolution
The agrarian crisis was overcome through increased production driven by:
- Crop intensification: Increased use of fertilizers, seed selection, reduced fallow periods.
- Introduction of new crops to improve livestock production.
- Crop specialization for export.
Spanish agricultural production grew by 55% between 1900 and 1931. Cereals remained the main crop, representing over 50% of total agricultural output. Export-oriented crops included vines, olives, citrus fruits, fruits, and vegetables. Meat and milk production increased considerably. However, yields and prices remained low compared to other countries, limiting disposable income for manufactured goods and slowing industrial growth. Catalan agriculture experienced similar growth, with increased productivity and a decline in agricultural population. The Catalan agricultural product’s share of the Spanish total increased from 8.6% to 9.7% between 1900 and 1930. Livestock production saw the largest increase, while wine production declined.
Problems of the Spanish Countryside
Unequal land ownership, with large estates and smallholdings with low yields, hindered the adoption of new techniques and crops. In regions like Andalusia, many lived near subsistence levels, leading to social conflict and demands for agrarian reform. In Galicia, poor land quality limited productivity, forcing peasants to emigrate. The government attempted to improve production and irrigation through hydrographic confederations and the National Hydraulic Plan. A law in the early 20th century allowed for the colonization of land for smallholders, but these efforts were insufficient, and pressure for agrarian reform continued until 1932.
Industrial Progress
In the first third of the 20th century, the Spanish economy shifted: industry grew considerably, while the importance of agriculture declined.
Technological Change and Energy
Oil and electricity fueled economic growth, overcoming Spain’s lack of competitive energy sources. Electrification progressed in two stages: between 1880 and 1914, its use was limited to public lighting; between 1914 and 1930, it became widespread in industry. In Catalonia, electrification reduced reliance on coal through hydroelectric power. The rise of oil led to a transport revolution with the automobile. Information transmission improved with the expansion of the telegraph, telephone, and radio between 1860 and 1920.
Industrial Growth
Spanish industrial output increased by 60%. Catalonia remained a central industrial hub. New industries emerged, and existing ones consolidated.
The Traditional Sector and New Industries
Food, textile, and chemical industries continued to expand. The steel industry grew significantly. Basque iron and steel spurred industrial diversification. The electrical industry experienced rapid growth, along with the metallurgical, automobile, and appliance sectors. The automobile industry was stimulated by oil companies like Campsa. Cement production drove the construction sector.
Diversification of Catalan Industry
The textile industry’s dominance declined by 20% between 1890 and 1930. Basic industries (mining, energy) and light industries (clothing, leather, paper) grew. The chemical, metal processing, and mechanical construction sectors gained importance. The electricity sector expanded, largely due to multinational investments. Increased income boosted demand for Catalan products, intensifying trade with the rest of Spain. Industry remained concentrated in Barcelona. Despite economic growth, Catalan financial capacity decreased, and the Catalan bank experienced a crisis.
Spread of Industry
Catalonia and the Basque Country remained the primary industrial centers. Madrid became the third largest industrial region. Galicia specialized in canning, Cantabria in steel and metal derivatives, and Valencia and Alicante in furniture and toys. However, income distribution remained unequal.
Improving Communications
The means of transport and communication systems have benefited from industrial growth. He improved roads and highways, railways lelectrificació and building new networks, the creation of urban transport, telephony and broadcasting Callinicus. These processes require large infrastructures.
The telegraph network was increased significantly and improve their quality.
Lintervencionisme Lester
The first third century Century was restricted competition between companies. Lintervencionisme awarded grants to stimulate private investment and adopted protectionism.
This protection was very evident in coal, forcing us to buy despanyol. To restrict competition sacordaven pricing and market-sharing quotas through very clearly in the steel industry.
This protectionism were negatively leconomia because productivity was low and there was little competition. Were also positively promote the industry nationally and larticulació the market.
Levolució of leconomia
Spanish economic growth at the beginning of century Century was to increase relations with lexterior and greater linkage to international trade. As Spain became more permeable to the joints of international leconomia.
Economic recovery after 98
The effects of the disaster were children of the 98 expected.
The disappearance of colonial markets was detrimental to the Spanish exports and imports more expensive daquestes colonies. But it was quickly overcome, as there was low inflation, reduced public debt and the repatriation of many cities, which stimulated the creation of banks and companies. Medium and long-term crisis was favorable.