Industrialization in Spain: 19th Century Development
The Origins and Development of Industrialization in Spain
Industrial Change
1) Delay in Spanish Industry
In the last third of the nineteenth century, Spain remained an agrarian country. The causes were:
- a) Lack of purchasing power of the population, especially the peasantry (the most abundant group).
- b) Excessive protectionism demanded by Basque and Catalan industrialists.
- c) Little technological renewal to improve competitiveness because it would increase product prices.
- d) Lack of investment.
- e) Poor communications and overland trade networks.
- f) With the resolution of some problems, there was economic expansion from 1820 to 1858, which faced difficulties in the next decade.
- g) In the last quarter of the century, there was a slow and steady recovery until 1898.
2) Catalan Textile Industry
Several conditions were needed for the prosperity of this industry:
- a) Existence of capital (investment).
- b) Sufficient manpower.
- c) Technological innovation.
- d) Raw materials.
- e) Cheaper energy sources. Imported coal and cotton helped build a large textile industry through:
- f) Protectionism (liberal) and economic advancement.
- g) Enough manpower due to population growth or entrepreneurship.
- h) Great initiative, an example is the Bonaplata brothers.
- i) Using coal operations to achieve the necessary vapor pressure.
- j) Using rivers to power turbines, which led to the creation of industrial colonies near rivers that could isolate them.
- k) Great trade protectionism, perfectly preventing the entry of British textiles in Spain and the colonies, led to the existence of the industry, but hampered expansion, and high prices prevented it from competing with others.
- l) The structure of the labor force was quite similar to the rest of Spain and Europe.
3) The Steel Industry in the Basque Country
There were several causes:
- a) Exploiting protectionist measures and the removal of trade privileges that allowed free trade.
- b) Exploitation of iron ore (traditional mining).
- c) Construction of large shipyards to build ships for trade with Britain.
- d) Construction of furnaces for the manufacture of iron and needed coal (cheap) that was brought on the return trip.
- e) Between 1880 and 1900, companies appeared to transform metallurgical steel, leading to an expansion with respect to iron, as it is cheaper to manufacture.
- f) Tariff costs and protectionism to ensure these products were consumed within Spanish territory.
- g) From these industries, subsidiary industries were created, such as chemicals, industrial machinery, and transportation.
4) Other Industrial Sources
- a) Industrialization affected the food, chemical, mechanical, and mining sectors, but did not achieve great expansion.
- b) In the food industry, flour factories, production of wines and spirits, and olive oil production stand out.
- c) True development in the chemical industry (dyes and bleaches).
- d) Potent paper industry, technical renovation, and reorganization of its products.
- e) In mining, besides coal mines, mercury, copper, and lead were also exploited. The Mining Act allowed foreigners to invest in the mines, and most of the minerals were exported.
Creation of a Single Market
1) Communications
- a) In the eighteenth century, transporting goods was slow and difficult. Carlos III ordered the construction of six highways. The only way that allowed transport.
- b) In the second half of the nineteenth century, the postal and telegraph service was established for daily communication.
- c) Land routes were needed for the massive transportation of goods.
- d) From the progressive biennium (1854-1861), rail legislation was boosted, allowing the entry of foreign capital, leading to a peninsular transportation revolution.
2) New Commercial Legislation
In the early nineteenth century, there were many rules, to which a variety of systems of weights, measures, and monetary accounts had to be added. For the market, the creation of trade legislation and the abolition of internal customs were essential. There was:
- a) A regulatory system for joint-stock companies (SA).
- b) The creation of the Criminal Code and Civil Code, providing general rules on trade matters and free-market economic crimes.
- c) Period (1841-1875): Certain products were protected, but others were allowed free passage, indicating strong protectionism.
- d) Period (1875-1898): Protectionism for the Catalan textile industry, the Basque industry, Asturian coal, and Castilian wheat.
3) Unification of the Monetary System
- a) In the first half of the nineteenth century, there was great monetary chaos (the existence of various types) in addition to foreign currency.
- b) Moderation through homogenization with a country’s monetary gold currency equivalent to other foreign currencies for better marketing.
- c) A unified decimal system was established (doubloon, the basic unit).
- d) Effectively real.
- e) Finally, the implementation of the peseta, and the state assumed the monopoly of its creation.