Industrialization in Spain: Textile, Steel, and Railways
Before discussing the transformation of feudal property through confiscations, let’s examine the beginnings of industrialization in Spain. This process occurred primarily in the second half of the 19th century, significantly later than in other European countries.
1. The Textile Industry
Catalonia leveraged its pre- and post-War of Independence experience, along with the loss of the American market, to modernize. Several factors contributed to this process:
- A protected domestic market due to high taxes.
- Availability of resources from agriculture and spirit exports.
- A peasantry with some capacity for home-based work and consumption due to land lease arrangements, providing growers with a reasonable income.
In the 1830s, the Catalan bourgeoisie shifted from wool to cotton, introducing steam-powered machinery and the factory model. This increased production, improved quality, and lowered prices. During the reign of Isabella II, cotton textile production was almost completely mechanized. Installed power and raw cotton imports increased ninefold.
Government support through protectionist measures, prohibiting foreign cotton manufactures, was crucial. From that point onward, the Catalan textile industry dominated the national market. Besides Catalonia, areas in Levante, Madrid, Malaga, and Béjar maintained important woolen textile pockets.
2. The Steel Industry
Following cotton, the nascent industry turned to iron and steel, replacing old blast furnaces and forges. From 1830 to 1850, Andalusian steel, particularly in Malaga and Marbella under the Heredia family, held sway. In the 1860s, Asturias, with Mieres and La Felguera, became prominent. However, charcoal smelting couldn’t compete with mineral coal smelting on price. Finally, by 1870, the Ybarra family in Vizcaya promoted technological renovation using the Bessemer process, reaching 30% of domestic production. By 1880, the Basque Country (Bizkaia) dominated steel production.
3. Railways
The expansion of the railway was a reliable indicator of a country’s industrialization level. This new mode of freight transport played a key role in economic growth. In Spain, railway expansion was delayed until mid-century due to:
- Unfavorable mountainous terrain.
- Economic stagnation.
- Technical backwardness.
- Lack of private capital.
- A state with no income.
- Political instability and civil strife.
The progressive Railways Act of 1855 eliminated tariffs on railway equipment imports and granted land expropriation privileges to private companies, facilitating rapid network construction with French capital inflows. However, this late start put Spain at a disadvantage compared to other European economies, impacting the formation of a national market, productivity, and overall market economy development.