Restoration Era: Economic Shifts in Spain
Economic Growth During the Restoration
During the period of the Restoration, new economic activities were developed. Agriculture remained the dominant sector of the economy. The main problem was the ownership structure, mainly in the south, which was in the hands of the aristocracy and the bourgeoisie landowners. Moving northward, the size of properties reduced to smallholdings. The small landlord and the tenant were forced into emigration. The production of cereals fell due to competition from cheap foreign corn. Oil exports helped raise olive production.
With regard to industrial development, the expansion of the textile industry continued in Catalonia, mainly of cotton wool, although the loss of the colonies was a major blow to its production. Moreover, the steel industry of Asturias decreased due to competition from Vizcaya, had to resign its productive leadership and focus on coal production. The center of mining and steel was in Vizcaya, the iron extraction of Somorrostro grew, and exports to England increased. Vizcaya became the foremost producer of the mineral state. The pace was growing, with exploitation and exhaustion of mines, and protectionist measures caused the decline in rhythm in the early twentieth century.
The steel industry was the engine of industrialization, as Vizcaya had hematites, Asturias had coal, technology (for Bessemer steel production), foreign capital, and domestic and foreign markets. The three major steel mills of the state with the most advanced technology were formed in Spain. The creation of Altos Hornos de Vizcaya boosted diversification in Bilbao and Guipúzcoa. The exports of ore and iron ingot and import of coal fueled the strong growth of the shipping industry that benefited the indigenous steel industry. The shipyards were adapted to new times, creating modern ships propelled by steam iron. The economic boom benefited the formation of a financial structure, with capital from mining and steel creating a large number of corporations.
Removal of Privileges and Economic Concerts
In the Basque Country, the Carlist war was finally resolved by force of arms. The liberal army of King Alfonso XII got the flight of Charles VII and the end of the war. As a result, the Jurisdictions were abolished. General Meetings and the County Councils were abolished and, instead, Provincial Councils were established. The decree of February 28 established the Economic Concerts, which granted a particular fiscal regime to the Basque provinces, unlike the rest of the state. Each province negotiated and fixed the amount that it had to bring to state coffers, and the management for collection of taxes was in the hands of the deputies. The economic development in each province had a negative impact on the disadvantaged classes, and from this moment, the industrial oligarchy of Vizcaya abandoned fueristas claims.
Basque Nationalism
Nationalist ideology was based on the exaltation of sentiment that unites people in a given geographical area who have a language, culture, and their own right. Nationalism is associated with liberalism and the Enlightenment ideas that defended the right that each person has their autonomy and freedom. The traits identified and linked to a town were the language, culture, customs, laws, common geographical space, the past itself, and the same race, ethnicity, or religion. Basque nationalism emerged with an ideology.