Regional Economic Disparities in Spain: Historical Analysis

Regional Economic Disparities in Spain: A Historical Analysis

1.1. The Conditions of the Physical Environment

The physical environment of the Iberian Peninsula has resulted in great regional diversity in terms of landscape and soils. Before the Industrial Revolution, the technical capacity to overcome natural conditions was low, and the main economic activities were agriculture and livestock farming. The Mediterranean trilogy (wheat, vineyards, and olive groves) and large-scale livestock farming, organized through the Mesta (Association of Castilian Farmers), along with political, religious, and territorial factors, meant that the majority of the population was concentrated in the hinterland of the peninsula.

1.2. Center-Periphery Duality

The import of a liberal political regime in Spain encouraged the development of a bourgeois and capitalist economy. However, regional differences should be noted:

  • Center of the Peninsula: It tended to stagnate. The economic weight of the nobility was huge, and there were few agrarian bourgeoisies and annuitants. They continued to devote themselves to traditional primary activities and maintained a more conservative policy.
  • Peninsular Peripheral Areas: They had a proven track record in developing dynamic textile and steel industries, which favored the growth of an industrial bourgeoisie, diversified economic activities, and financial development. They displayed a more progressive political character.

1.3. The Economic and Demographic Balance

The greater competitiveness of traditional crafts depressed regions that were not modernized, which was reflected in the flight of capital and people to more prosperous areas. There was a lack of modernization of the transport system. Less developed areas experienced population growth. Economically, there were three types of areas:

  • Poles of Industrialization: Madrid, Barcelona, and Bilbao.
  • Areas Next to the 3 Poles: These required labor (Aragon, northeast of Spain, and Valencia).
  • Marginal Areas: Without modernization (Andalusia, Extremadura, Galicia, and Spanish), where people emigrated to America.

From 1930, growth came to a standstill due to world crises and wars. The economic stabilization plan began a period of growth that favored the already industrialized core and caused a new rural exodus. Marginal areas provided labor to the industrialized core.

1.4. Imbalances and Inequalities

The unequal growth in industrialization has led to regional differentiation, which increased over time due to the configuration of the domestic market. This market’s construction was based on a communications network that was unbalanced and uneven, dedicated to promoting dynamic regions while harming others. The differences between rich and poor regions grew until there was a change following the global crisis, demographic change, and political transformations resulting from the transition. Spain’s entry into the EU involved the establishment of a regional policy, which has allowed many to overcome inequalities.

2.1. Towards Territorial Rebalancing

The implementation of autonomy and Spain’s entry into the EU are two key political factors that have led to the application of major plans and policies for regional development. Catalonia has always been a contributor to international compensation funds through taxes. This has enabled the poorest communities to construct basic infrastructure. Catalonia has experienced slower and limited expansion, while other poorer communities have grown to half of their income levels. Territorial and IDH (Human Development Index) policies in Catalonia.

3.1. Territorial Diagnosis Towards Dispersal

The structure of the current Catalan territory is the result of a long process of population concentration. This occurred during agrarian and commercial modernization, but currently, there is an early tendency to decentralize the population, which soon becomes dispersed.

Consequences of Territorial Dispersion

The consequences of urban sprawl have been an increasing functional specialization of each site in relation to the whole. That is, residential, commercial, productive, and leisure uses have tended to separate themselves on the territory. This has led to:

  • Population displacement needs
  • Overloading of transport networks
  • Impoverishment of urban life
  • Loss of landscape diversity

Importantly, it is also producing a social specialization, so that different social groups tend to separate.