Spain’s 19th Century Economic Transformation: Agriculture, Industry & Railroad
1. Economic Transformation
The economies of some European countries transformed during the nineteenth century. Mechanization and energy use changed production, consolidating private ownership. Spain experienced major economic changes but did not fully industrialize. Domestic demand for industrial products was self-sufficient. There were two stages: a stagnant economy until 1840 and slow growth from 1840 onward.
2. Confiscation Process and Agricultural Change
In the old system, land purchase and sale were very limited, with land being inalienable. A reform of the agricultural structure was called for, placing land in the hands of owners with the freedom to buy, sell, lease, and cultivate for increased productivity and profitability. Three significant measures were adopted:
a. Abolition of the Seigneurial Regime
The law of August 26, 1837, definitively abolished señoríos as feudal institutions. This meant most estate lands became the full property of the former lords.
b. Decoupling of Primogeniture
Decoupling primogeniture was not raised in the Cortes of Cadiz but during the Liberal Triennium (1820 Act), later repealed after the restoration of absolutism. The law was reinstated in 1836, suppressing primogeniture. Inalienable properties became full and free property of the family or lineage head.
c. The Sale
Redeemed land was put up for sale as individual, free properties. In 1835, religious orders were dissolved, and their farms declared state property. The confiscation process was long, developing in two phases:
- The Ecclesiastical Confiscation of Mendizabal (1837)
This coincided with a progressive government stage. It consisted of auctioning land expropriated from the Church. Objectives: Clean up the state’s finances, fund the Civil War, and convert buyers into liberal supporters.
- The General Confiscation of Madoz (1855)
This coincided with a new progressive government. It included remaining church lands and municipal lands. Objectives: To redeem public debt and modernize the economy. Consequences:
- Social: The wealthy benefited most; the clergy became part of the state; the nobility retained their economic base; the gentry became landowners; municipalities retained their properties; farmers were most affected.
- Economic: Increased landlordism (large farms).
3. 19th Century Agricultural Expansion
Grain production increased. Export agriculture developed, especially in quality wines, table wines, oil, citrus, and beef. Acreage devoted to grain, vineyards, olive groves, and Mediterranean crops expanded, reducing fallow and wasteland. Livestock underwent transformation.
The late century brought a deep agricultural crisis: export elimination, land abandonment, rising unemployment, and falling production and consumption. The response was increased protectionism and high tariffs. This crisis extended to Mediterranean crops and livestock.
4. Peculiarities of Spain’s Incorporation into the Industrial Revolution
Several reasons hindered Spain’s full industrialization in the nineteenth century:
a. Spain’s geographical position meant higher transport costs to European countries.
b. Agricultural backwardness and low purchasing power of the majority of the Spanish population.
c. Capital absorbed by the Treasury.
d. Unfavorable allocation of energy and key raw materials for industrial development.
e. Political destabilization.
5. Modernization of Infrastructure: The Impact of the Railroad
Industry concentrated in two regions (Basque Country and Catalonia) and three sectors: textiles, steel, and mining.
- The Textile Industry
Catalan cotton production tripled between 1830 and 1840. Steam power began to be used in the following decade.
- Iron and Steel Industry
Had three stages: 1. Andalusian Hegemony (1830-1861): the first blast furnaces operated in Marbella. 2. Asturian Hegemony (1861-1879): utilized cheaper regional coal. 3. Basque Hegemony (1880-1890): imported English coke and exported high-quality iron. This expanded the shipping industry and later the railroad.
- Mining
Spain enjoyed a privileged position in metals like iron, lead, mercury, and copper. In 1868, the state sold mines to individuals in exchange for an annuity.
The Railroad
The railroad set the pace of 19th-century economic progress, dynamically affecting production and market expansion/unification. Foreign capital and companies were present, with construction and operation licenses. The local bourgeoisie invested in creating local road infrastructure. The first projects emerged in the South between 1829-33. In 1844, railway network construction was regulated.
- First phase: Segment construction: Mataró-Barcelona in 1848, followed by Madrid-Aranjuez in 1851.
- Second phase: National plans. The Railway Act of 1855 enabled railway growth. A radial pattern emerged, with Madrid as its center. In 1844, a decision was made to implement a European-wide standard for technical and military reasons. The railroad’s installation in Spain revolutionized goods transport.
Effects of the Railroad on the Economy
Consolidated a radial network structure centered in Madrid. / Fixed rail width, wider than most European lines, hampered trade with the rest of Europe. / The railroad revolutionized goods transport, with local markets specializing in the domestic market. / The law authorized construction companies to import duty-free materials for railway network construction. This duty-free policy is considered a lost opportunity to encourage Spanish industrial growth, as it did not increase domestic demand for steel or machinery.