Spain’s Early 20th Century: Agrarian Challenges & Industrial Growth
Agrarian Challenges in Early 20th Century Spain
Land Ownership Inequality and its Consequences
In the first third of the 20th century, the Spanish countryside was marked by significant inequality in land ownership. The existence of large estates (latifundios) alongside tiny smallholdings (minifundios) resulted in low agricultural yields. On one hand, the owners of vast estates in Extremadura and Andalusia demonstrated an aversion to risk and little interest in efficiently cultivating their lands. The vast majority of the rural population lived near subsistence levels. These extreme differences between a minority of wealthy landowners and the great mass of landless peasants fueled significant social conflict.
Rural mobilization was tied to each new wave of unrest, coupled with the demand for land reform that would grant peasants access to land and bring underutilized land into more productive cultivation, addressing the issue of absentee landlords.
In Galicia, the prevalence of small farms, combined with the poor soil quality of the northern sub-plateau, only allowed for an increase in crop productivity sufficient for basic livelihood, preventing the generation of significant profits. This situation forced many small farmers to migrate.
Attempts at Agrarian Reform
Governments were aware of the backwardness of the Spanish countryside, the obstacles it posed to economic growth, the conflicts arising from the unequal distribution of property, and the poverty that affected a large portion of the rural population. The expansion of irrigation was seen as indispensable, leading to the adoption of a public works plan that stimulated the introduction of irrigation in rainfed areas. Hydrographic confederations were also created during the dictatorship of Primo de Rivera, and the Second Republic promoted a Hydraulic Works Plan.
The main problem remained the landless peasantry. A 1907 law allowed for the colonization of thousands of hectares, which were granted to smallholders, and another in 1917 aimed to facilitate land sharing among farmers. However, these measures proved insufficient, and the pressure exerted by large landowners prevented comprehensive land reform.
Industrial Progress in Early 20th Century Spain
The Energy Revolution and Technological Advancements
Among the causes that drove economic changes during the first third of the 20th century, the use of new energy sources, particularly electricity and petroleum, stands out.
The progress of electrification in Europe occurred in two major stages:
- 1880-1914: Electricity use was primarily limited to public lighting in cities and urban transport.
- 1914-1930: Widespread industrial use of electricity took hold.
Furthermore, advancements in petroleum refining and technical progress in engine mechanics resulted in the automotive revolution. Advances in information transmission saw the expansion of the telegraph and telephone, along with the advent of radio broadcasts. The dissemination of these advancements was concentrated in larger cities but was virtually nonexistent in rural areas. Their implementation was slower in Spain compared to other countries.
Industrial Growth and Transformation
In the first three decades of the 20th century, Spain’s industrial product per capita increased by 60%. The industrial structure underwent a significant transformation with the emergence of new industries and the consolidation of existing ones. Consumer goods industries continued to hold a dominant position over capital goods industries.
Traditional Sectors and Emerging Industries
- Traditional Sectors:
- The Catalan textile industry continued its expansion, although it began to lose some of its relative weight.
- Food industries also experienced a decline.
- The chemical industry consolidated its position.
- The steel industry in Biscay grew considerably, leading to the creation of Altos Hornos de Vizcaya.
The proceeds from iron ore exports and steel production stimulated Basque industrial diversification, particularly in sectors requiring significant capital investment, such as marine insurance, chemicals, and electrical industries. In Cantabria, a third major production zone was established with Nueva Montaña S.A., and Altos Hornos del Mediterráneo was founded in Sagunto.
- New Industries:
- The electrical industry emerged. The first major company was the Sevillian Electricity Company, but electricity production became concentrated in Barcelona Traction.
- The metallurgical industry also experienced growth, driven by the expanding automobile and home appliance sectors. Hispano-Suiza was a pioneering motor company. The rise of automobiles stimulated the creation of the petroleum refining and distribution company, Campsa.
- The construction industry also received a boost from the cement industry.