Spain’s 19th-Century Economy: Agriculture and Industry
Agriculture
Industrialization in Great Britain was preceded by changes in the structure of ownership. In Spain, most of the land remained in the hands of large landowners, many of whom did not look after their properties and had no incentive to innovate. In addition, the abundance of peasants kept the cost of wages down, which facilitated the continuation of traditional agriculture. Despite the difficulties, agricultural production increased considerably. However, this increase in production was mainly achieved through the clearing of new land.
A Disjointed Market and Protectionism
A second problem was caused by the difficulties of establishing a market in which products could be easily exchanged. Spain did not have a good transport network, which meant that goods could not be transported between different production areas at a reasonable price. Consequently, the Spanish economy was disjointed. Protectionist measures against foreign goods were introduced by the state to force the consumption of domestic goods in Spain.
The Budget Deficit and the Shortage of Capital
A tax reform was introduced in 1845, which forced the privileged members of the Ancien Régime to pay tax. However, the state did not increase taxes to the necessary level and had to take out foreign loans and issue bonds. Much of the Treasury’s capital was used to pay off its high-interest public debt. The shortage of investment capital was one of the great problems for innovation and industrial development. Spain’s low productivity meant it was not competitive in the international market.
Population Growth and Migration
Spain’s population grew moderately from 11.5 million in 1797 to 18.6 million in 1900, compared to other European countries. There was regional variation in population growth. The population grew more in coastal areas than in the interior, with the exception of Madrid. Changes in agriculture and improvements in transport encouraged people to migrate in two directions:
- Rural exodus: People moved from the countryside to industrial areas.
- Emigration: Particularly from the Canary Islands and the Cantabrian coast, to Latin America. This occurred towards the end of the 19th century as people left in search of better job opportunities.
Agricultural Changes
Transformation began with the liberal land reform, which aimed to put an end to manorialism and the large amount of land owned by the nobility and clergy in Spain. From 1800 to 1860, cultivated land increased from 10 to 16 million hectares. There were also regional specialties. As a result, the export of citrus fruits, wine, and oil became significant. Cattle farming decreased, as did the transhumance, due to the end of traditional wool exports. There was an increase in pig farming and the use of horses, donkeys, and mules. However, the agricultural crisis and the arrival of cheap American wheat put a stop to agricultural development and caused an increase in protectionism and immigration.
The Liberal Land Reform
The Liberal Land Reform was a series of reforms that took place in Spain after the progressives’ rise to power in 1836. It aimed to abolish the Ancien Régime in the countryside and introduce capitalist forms of ownership and production. These reforms resulted in the abolition of manorialism, the expropriation of property, and the confiscation of most of the land owned by the church or municipalities.