Spain’s Economic Journey: From Medieval Times to European Integration

Posted on Nov 16, 2024 in Geography

Terms Overview (16th-20th Centuries)

Iberian Peninsula, Key Features: Complex landscape and steep, rugged relief created difficulties in connecting with the interior and led to high construction costs. Institutional constraints on agricultural expansion, market integration problems, and challenges in trade liberalization and promotion of colonial manufacturing also posed significant hurdles.

The Legacy of the Medieval Past and Modern Era (10th-18th Centuries)

In Europe, around 800 AD, the average age was low. The year 1200 marked the Middle Ages, and by 1500, the modern era, including the Renaissance, had begun.

The Medieval Spanish Economy:

Features: Consolidation of the ancien régime; agricultural predominance; low market development (local and segmented); poorly defined property rights; hierarchical social structure with political power concentrated in the ecclesiastical aristocracy and military nobility supporting the monarch; impact of the Reconquista, involving the occupation and exploration of territories won from Muslim kingdoms and the establishment of the feudal system.

Christian Expansion and the Rise of Feudalism (11th-13th Centuries): The emerging Christian kingdoms experienced a gradual transition from archaic structures to the feudal system. A subsistence economy prevailed, largely self-sufficient. In contrast, Al-Andalus thrived with strong irrigated agriculture, diverse and highly developed crafts, and extensive trade with Europe, Africa, and the Middle East. Urban centers like Cordoba, Seville, Toledo, Almería, and Granada flourished.

Reconquista, Repopulation, and Spatial Reorganization:

• Stages of the Reconquista:
  1. (1030-1085) End of the Caliphate of Córdoba, emergence of Taifa kingdoms, and initial Reconquista.
  2. (1086-1100) Almoravid weakness and Christian reorganization.
  3. (1100-1150) Continued Christian progress and Almohad strengthening.
  4. (1212-1266) Al-Andalus reduced to the Kingdom of Granada, with the rest of the mainland under Christian rule.
• Repopulation and Spatial Reorganization:
  1. (10th-11th Centuries) Douro to Tagus: Low population and border defense needs led to vast land grants and privileges for fortified villages, small agricultural properties, and large communal spaces.
  2. (12th Century) Tagus to Sierra Morena and Alemtejo: Vast, unpopulated areas near major Muslim cities led to concessions to military orders, scattered settlements, and extensive pasturelands for transhumance.
  3. (12th Century) Ebro Valley: Initial phase similar to Castilian lands, followed by privileges but with a significant Moorish population maintaining intensive agriculture. Andalusian-style habitat and presence of monastic orders.
  4. (13th Century) Andalusia, Levante, and Southern Plateau: New conditions and land allocation after the Mudejar uprising of 1264. Increased economic power of the Church and nobility, and Crown land allocation to lay dominions, clergy, or military.

Urban Development: The rebirth of cities was linked to the Repoblación, with privileges and territories granted to municipalities. Northern cities expanded along the Camino de Santiago, following a European model, while southern cities adapted Andalusian traditions to Christian forms.

Economic Expansion: The Reconquista and repopulation were sustained by economic growth in the 11th, 12th, and 13th centuries. Indicators of change included intensive plowing and deforestation for new cultivation, extensive growth, widespread cereal cultivation integrating Christian and Muslim traditions, livestock expansion in Castile, transhumance through Mesta routes, craft development (especially woolen textiles in Castile, Portugal, and Aragon), adaptation of Andalusian crafts, and a trade boom following Andalusian traditions. New taxation systems also emerged.

Late Medieval Crisis (14th-15th Centuries):

Feudal System Conversion: Interpretations include the Malthusian view of adverse natural factors impacting a weak economy, diminishing returns from extensive growth, and the crisis of integration, where growing markets and trade increased the need to reduce transaction costs, leading to stronger states, taxation, and production specialization. A common interpretation sees this period as a feudal system conversion, where the nobility retained power but their income sources and forms of domination changed.

Crisis Manifestations and the Black Death: A negative cycle of food crises (due to difficult weather conditions), famines, plagues, increased mortality, and wars led to demographic and socio-political crises. Catalonia, Valencia, and Mallorca suffered population losses during the Black Death, with Navarre not recovering until the 19th century. Social unrest included vertical clashes (peasants against lords) and horizontal violence (against Muslims and Jews). Institutional changes saw the nobility maintain power and gain new wealth through royal concessions like jurisdictional lordships and centralized feudal rents.

Peninsular Contrasts in the Late Medieval Crisis: Castile and Portugal recovered quickly, while the Crown of Aragon, Navarre, and Granada experienced delayed and differentiated crises. By 1450, the Iberian Peninsula comprised five kingdoms: Castile, Aragon, Navarre, Portugal, and Granada. The Trastámara dynasty’s introduction in Castile (1369), Aragon (1412), and Navarre (1425) laid the groundwork for the dynastic union of the Catholic Monarchs. However, this union did not homogenize the peninsular territories. Portugal and Castile led the expansion in the 15th century.

The Century of Castilian Hegemony (1450-1590)

Sources of Castilian Expansion (1450-1504):

• Agricultural Growth and Dynamism: Post-recession demographic trends led to abundant land. Increased yields fueled growth, aided by flexible land tenure and market development.
• Recomposition of International Trade Networks: The Renaissance brought new forms of exchange, gaining prominence in the Iberian Peninsula.
• Endogenous Growth: New lease systems in the south facilitated access to land. Livestock farming expanded significantly, and inland cities grew to support this growth.
• Search for Gold and Wealth: The need for precious metals, reflecting increased trade, drove the late 15th-century discoveries.
• Institutional Power Balance: Consolidation of primogeniture and powerful noble houses challenged royal expansion. The Catholic Monarchs adapted to this situation rather than changing it.

Economic Growth at its Peak (1504-1575):

• Agricultural Limitations: Rainfed agriculture remained predominant, with growth in Mediterranean agriculture (irrigation and raw materials) in eastern Andalusia and Levante.
• Markets and the Birth of an Export Economy: Castilian fairs became export-oriented. Raw material exports contrasted with increasing manufactured imports.
• Juros, Asientos, and Colonial Wealth: Royal loans (asientos) addressed deficits, with lenders leasing royal income or purchasing raw materials. Colonial market growth, bringing gold and silver, fueled economic expansion. The price revolution saw demand outpace supply.
• Growth Without Development?: Population and farm incomes grew in most areas. Indicators like business expansion, rising land rents, increased luxury consumption, growing trade guilds, and rising ecclesiastical income did not point to structural changes. Growth remained unconsolidated, lacking development.

Institutions and Crisis (1575-1590):

• War and Monarchy: The Habsburg Legacy: The Iberian kingdoms were integrated into the Habsburg patrimonial system. The Crown’s financial needs clashed with the realms’ desires. Restrictive policies in Naples, Aragon, Sicily, and the Netherlands limited fund transfers. Castile, the Empire’s economic backbone, was the most suitable territory for extraction. The lease system, prone to fraud, faced problems. Changes aimed to secure income, not improve the system. Pressure from juros and debt consolidation led to solutions like selling crown lands and disposing of royal assets.
• Taxation and Royal Treasury Revenue: Towards Bankruptcy: Urban and agricultural crises, and a century-long recession, were attributed to aristocratic society and the tax burden, diminishing returns, unproductive investments, and the decline of an increasingly competitive international economy.

The Roots of Spanish Economic Backwardness: Crisis and Decline (1590-1714)

The 17th Century in Europe: From General Crisis to Widespread Change: Crisis, recession, and institutional and productive rigidities characterized this period.

The Evils of Spain: Economic crisis and political decay; agricultural and industrial difficulties; epidemics; and a growing tax burden. The plague outbreak (1596-1602) and expulsion of the Moriscos (1609) further exacerbated the situation.* Reform approaches sought solutions through arbitration. *The Morisco population was concentrated in the Kingdoms of Aragon and Valencia, occupying much of the land and concentrated in poor urban suburbs.

Policy and Financial Reform: Reform policies, driven by the Duke of Lerma and the Count-Duke of Olivares, aimed to limit court grants, curb conspicuous consumption, and review royal incomes. These measures failed. A new war cycle worsened the crisis, alongside problems in American relations and conflicts with expanding Holland and England. Hegemony declined, with revolts in Catalonia and Portugal (1640), and Naples and Sicily (1647). The monarchy’s finances relied on: settlement services; increased taxation in Castile; and silver from the Indies. Currency manipulation was also employed.

The Burden of Social Structures: Problems with the aristocracy and urban patriciate included the strengthening of ecclesiastical institutions and reliance on rents and royalties.

Crisis, Recession, and Readjustment: Agricultural production and rural population declined.

Urban and Commercial Decline: Castilian towns lost population, and industry and manufacturing faced crises.

Recovery and New Foundations for Growth:

• Between Stagnation and Recovery: Recovery began mid-century.
• The Role of Economic Policies: Charles II’s reign saw reduced war activity (lower costs) and maintained tax burdens, along with monetary reform (currency devaluation).
• Recovery from the Countryside: New crops (maize), diversification, and specialization contributed to recovery.
• Center, Periphery, and Limits of Recovery: The Atlantic coast and Mediterranean area recovered, while the Castilian interior lagged.

Expansion, Reformism, and Obstacles to Growth (1715-1789)

Political Changes and Transformations in the European Economy: Political changes included the death of Charles II, the War of Succession (1705-1714), and the reign of Philip V. Institutional and economic implications included the abolition of the Aragonese Cortes, new contributions from defeated kingdoms, elimination of customs between Castile and Aragon, and strengthened royal power and centrality. Spain experienced lower growth compared to northwestern Europe.

Population Growth and Demographic Regimes: The 17th-century crisis was overcome, with more growth in the periphery than the interior. Population shifted towards the coast. Higher birth rates, persistently high mortality, and a life expectancy of 25 years characterized this period. Spain’s demographic regimes varied: early marriage, high fertility, and high mortality in the interior and Andalusia; delayed marriage, low fertility, and low mortality in wet Spain; and medium-term marriage, medium-term birth rates, and average mortality growth in the Mediterranean. Population regulation mechanisms included high mortality in the interior and Andalusia, late marriage, celibacy, and emigration in wet Spain, and unclear self-regulation processes in the Mediterranean.

Land Reclamation, Crop Replacement, and Enhancement: Production increased alongside population growth, despite environmental constraints. Legislation regarding the Mesta impacted interior agriculture, livestock, and peripheral agriculture.

Enlightened Agrarian Reformism: The ideal of agricultural land settlement (New Settlements of Sierra Morena, 1767) aimed to create a model agricultural society and improve road safety between Madrid and Andalusia. Populating uninhabited areas failed due to high costs. Bottlenecks in agriculture persisted, but new momentum emerged, later embraced by liberalism.

Modest Manufacturing Expansion: Industrial policy aimed to replace imports and control strategic sectors through Royal Factories. Spatial distribution varied: Catalonia and Valencia saw further development; Castile, Andalusia, Navarre, Aragon, Murcia, and the Balearic Islands experienced moderate development; and the Basque Country, Leon, Galicia, Extremadura, Asturias, and the Canary Islands remained underdeveloped. Activities included textiles in Catalonia, iron and steel in the Basque Country, and shipbuilding in El Ferrol, Cadiz, and Cartagena.

Traffic Growth and Changes in Trade Organization: Domestic trade grew, supported by transport infrastructure (roads and shipping channels), suppression of inland customs, fairs, markets, and powerful guilds. Madrid became a central market. Foreign trade faced limitations in Atlantic trade, but free trade decrees (1765-1778) and expanding trade with American colonies increased national exports, although their contribution to GDP remained small.

Military Expenditures, Fiscal Reforms, Debt, and the National Bank of San Carlos: Resurgent naval power increased military spending. Tax approval attempts faced challenges. The Campillo and Ensenada reforms aimed for direct income administration, ending leases, and limiting tax privileges for nobility and clergy. These reforms were abandoned. The National Bank of San Carlos (1782), an issuing bank, addressed the deficit.

Crisis of the Old Regime, Institutional Change, and Early Industrialization Problems (1790-1845)

The Collapse of Colonial Trade:

• Level and Structure of Colonial Trade: Exports and overall trade with America declined, with the loss of captive markets.
• External Trade Balance: A negative foreign trade balance emerged.
• Impact of Colonial Loss on National Income: National income declined, particularly impacting dynamic regions and economic sectors. Investment sank, and profits fell.
• Production Structure and Resource Allocation: Foreign trade structure changed significantly, impacting imports and exports. Conversion efforts were initiated.

Treasury Bankruptcy: Revenues fell, expenses rose, and the tax system remained largely unchanged. Mild reforms were implemented, with financing through debt issuance, shifting from foreign to domestic savings. The French Revolution and its aftermath, the Vales Reales, and the creation of the Banco de San Carlos (1782) proved insufficient. Godoy’s first confiscation in 1798 and the impact of the War of Independence further strained the treasury.

Basic Principles of the Liberal System: The Liberal Revolution introduced an institutional system recognizing liberty, equality, and property rights.

Liberal System Implementation in Spain (1808-1833):

• (1808-1814): Napoleonic invasion dismantled the old administrative and political order. Popular uprisings led to new institutions and the Cadiz Cortes Constitution (1812).
• (1814-1820): Ferdinand VII’s return restored absolutism.
• (1820-1823): The liberal Trienio saw Ferdinand VII recognize the 1812 Constitution.
• (1823-1833): The counter-absolutist”Hundred Thousand Sons of St. Loui” ushered in the Ominous Decade, restoring absolutism.
• (1833-1839): Ferdinand VII’s death led to Maria Cristina’s regency, the Carlist War, Espartero’s victory, and a tacit agreement between the nobility and liberals.

Liberal Land Reform:

• Property Disentailment: State expropriation and public auction of Church and municipal lands, followed by privatization. Godoy’s confiscation (1798), Mendizabal’s disentailment (1836), Espartero’s disentailment (1841), and Madoz’s disentailment (1855) aimed to improve resource use, increase tax revenue, and consolidate the liberal regime. Consequences included limited changes in land ownership, increased social polarization in rural areas, widespread agricultural production increases, land reclamation and deforestation, little increase in agricultural capital demand, and a moderate increase in agricultural supply.
• Abolition of the Seigneurial Regime: With 50% of the population under feudalism, this legal and institutional change introduced capitalist ownership in agriculture. Feudal lords lost jurisdictions and manorial rights, while the peasantry lost feudal rights without compensation.
• Decoupling: Abolition of Primogeniture: Primogeniture perpetuated noble house inheritances. The 1841 law decoupled noble house assets, but ownership remained unchanged.
• Abolition of the Tithe: Formally abolished in 1837, its disappearance stemmed from peasant opposition after the War of Independence and deflation. It was replaced in 1841 by a new tax for worship and clergy, with the State supporting the Catholic Church.

Liberalization of Economic Activity: Elimination of the Mesta and its privileges; legal closure of farms; despatrimonialization of water (returning water to public domain); subsoil disentailment; implementation of lease freedom, freedom of occupation, industrial activity, and trade; and full development of free supply and demand nationwide.

State Reform and Tax Reform: Administrative reform included universal access to public services and the creation of the current provincial division (Javier de Burgos Reform of 1833). Tax reform efforts culminated in the Mon-Santillan Tax Reform of 1845, which lasted until 1977. The liberal system’s conditions included a state fiscal monopoly, universality, equity, legality, sufficiency, and systematicity.

The Extension of Industrialization (1840-1890)

Trade Liberalization and Internationalization: Chronic state deficits led to public debt issues and foreign financing. Trade policy from 1840 to 1890 evolved from ultra-protectionism (Tariff Act of 1820) to free trade (Tariff of 1849), with further liberalization in 1869. This cycle of openness continued until 1975, adjusting to international economic cycles.

Railroad Construction: Traditional transport shortcomings and underdeveloped inland waterways led to railway modernization. Private initiative and state regulation characterized railway policy, with 99-year awards, varying gauges, and a radial network. Weak development stemmed from moderate protectionism and lack of capital. The arrival of progressives in 1854 led to the Railways Act of 1855, increasing subsidies and initiating the railway decade (1856-1865). French capital played a significant role in northern, MZA, and Andalusian lines. An 1865 stock market crisis, centered on railways, was caused by unmet profit expectations and debt accumulation. Historiographical debate focuses on opportunity costs (railway investment diverting resources from industry) and social savings (bottlenecks preventing transport improvements).

Development and Crisis of Modern Banking: The modern financial system mediated savings and investment, provided payment methods, and financed industry and services. 19th-century Spanish banks included savings banks, traditional merchant-bankers, and joint-stock banking companies. Growth, consolidation, and crisis phases were influenced by legislation (1848, 1856, and 1874), the Companies Act of 1856, and the 1866 crisis (railway fiasco). The Bank of Spain gained a monopoly on issuing currency in 1874.

Limits of Agricultural Expansion: Agriculture grew during the 19th century, while livestock declined from its 1800 peak. Agricultural growth indicators included dietary changes and increased plowed area (paralleling population growth). Land use focused on cereals, vineyards, olive groves, and other crops. Low productivity reflected extensive growth. Backwardness and archaism stemmed from the predominance of traditional agriculture over modern Mediterranean crops, due to natural constraints, lack of innovation, commercial policy (cereal protectionism hindering export agriculture), and land ownership, possession, and use structures.

Mining and Energy Deficit: Non-energy mining had a large resource base but suffered from inadequate legislation and poor economic development (lack of capital and technology, small market). The situation changed in 1868 with the”Spanish Mining El Dorad” and the Mining Act of 1868, which confiscated subsoil resources. Historiographical views range from optimistic to pessimistic. Energy mining faced shortages and low quality, with developing coalfields relying on protectionist measures.

Problems of Industrialization: The cotton textile industry in Catalonia benefited from previous manufacturing traditions, capital accumulation, skilled labor, entrepreneurship, transport networks, and trade networks. Tariff protection addressed problems like the search for energy sources (steam engines to hydraulic turbines) and market limitations. The steel industry in Vizcaya benefited from localized income and capital accumulation, but faced coal deficits, despite advantages from the Vizcaya River. Demand shortages stemmed from market failures in agriculture (technological backwardness), textiles (duty-free machinery imports), and railways (mass demand without import duties).

Managing the National Route (1890-1914)

The 1891 Protective Tariff: This nationalist economic policy aimed to promote national production, influenced by a change in development strategy, marginalization from the international gold standard, and the loss of the last overseas colonies (capital repatriation). This period marked the beginning of economic divergence and political homogeneity during the Restoration.

Transport Revolution and the Great Agrarian Depression: The Great Depression (1870s), marked by agricultural and industrial overproduction, stemmed from increased cultivated land, industrial growth, and the transport revolution. Consequences in Spain included farm closures, declining land rents, and decreased demand. The wine industry experienced brief growth due to French phylloxera (1881-1891).

Agricultural and Industrial Protectionism: Protectionist trends in late 19th-century Europe led to the 1891 Tariff, supported by Castilian cereal producers, Basque steelmakers, and Catalan cotton manufacturers. The Restoration government’s trade policies resulted in backward and inefficient agriculture, except for Mediterranean products. The peseta’s depreciation, the 1906 tariff, and its impact on industry (mining and steel) led to rising prices and lack of competitiveness, but also the development of new industrial activities.

Loss of Colonial Markets and Public Finance: War financing involved issuing public debt and currency. War debt liquidation required new debt issues and tax increases.

Intersecular Rise and the Second Industrial Revolution: Capital repatriated from the Antilles was reinvested in new companies, leading to the formation of large corporations.

Slow Divergence: Debates about Spain’s divergence from Europe include Jordi Nadal’s analysis and Hoffmann’s typology (value added of consumer goods industries versus investment goods industries). Explanations for the delay include agricultural backwardness and financial problems. The debate on agriculture versus industry highlights arguments for a dynamic agricultural sector adapting to demand (GEHR), versus industry’s inability to penetrate international markets (Prados de la Escosura). Sudrià and Nadal defend Catalan textile dynamism, while O’Rourke and Williamson emphasize low skills and educational problems in Spain.

The Interwar Period (1914-1936)

War’s Impact on a Neutral Economy: World War I altered international trade, increasing demand for manufactured goods from neutral countries and reducing supply from warring nations. Demand shifted away from essential consumer goods and low-cost products. Spain experienced virtually unlimited demand. Agriculture saw growth in traditional output, while Mediterranean agriculture contracted. Mining and energy saw declines in lead and iron ore, but national coal mining boomed. Manufacturing experienced cautious textile growth and the emergence of chemicals, metals, and machinery. Services experienced unexpected growth. The war’s impact on the Spanish economy was short-lived, followed by political and social unrest.

Social Dispute over War Profits: Increased corporate profits contrasted with declining worker purchasing power, leading to social conflict. The 1917 General Strike stemmed from falling real wages, echoes of the Russian Revolution, and economic disparities. War profits were channeled into the Bank of Spain, businesses, and foreign currency hoarding.

Crisis, Readjustment, and Public Policy: The post-war crisis involved declining exports, increasing imports, and political instability (business failures, bank bankruptcies, deflation, unemployment, and industrial recession). The tariff debate resurfaced. Primo de Rivera’s military dictatorship (1923) addressed the crisis. The dictatorship’s economic policy, interpreted as pre-Keynesian fascism, involved two periods: the Military Directorate (until 1925) and the Civil Directorate (until 1930). Foreign sector policies aimed to isolate the national economy, protecting domestic industry and creating monopolies. Public works programs focused on railways, roads, water infrastructure, and ports. Railways received public contributions, while roads saw national firm involvement and mechanized transport development. Hydraulic infrastructure saw the creation of Hydraulic Confederations.

Growth and Structural Changes During the Dictatorship: Steady economic growth characterized this period. Agriculture remained the least dynamic sector, except for export agriculture. Basic industries, consumer goods production, and electricity experienced significant growth. Industrial expansion was driven by post-war expansion, residential construction, electrification, comparative advantages from protectionism, and the dictatorship’s investment program.

Investment and Policy Cycles: The international crisis, end of the investment cycle, and the dictatorship’s fall marked a turning point. The dictatorship’s expansive investment policy required increased taxes, money creation, and public debt issuance, conflicting with its goals of a balanced budget and peseta stability. The creation of”Special Case” led to a budget crisis and peseta depreciation.

The 1930s Depression in Spain: Coinciding with the Second Republic (1931), the global crisis impacted Spain through collapsing exports and private investment. Public investment in public works partially offset this. GDP growth contradicted the recession narrative. The international comparison of the 1930s crisis highlights Spain’s socio-political situation, with conflicts between workers and employers, laborers and landowners, nationalists and centralists, and traditionalists and secularists. Government responses included maintaining an overvalued peseta and radical industrial actions, exacerbating the crisis. Budgetary policy offered some relief.

Class Struggle and Social Reform

Recession Outside the International Economy (1936-1959)

The Spanish Economy During the Civil War: The Civil War’s causes were primarily political (fascism versus republicanism, secularism versus tradition) and social (class struggle), rather than economic. Two states with distinct economies emerged. Economic warfare involved mobilizing resources for essential goods and military equipment. Franco’s side benefited from effective military organization, control of agricultural regions, business support, and foreign aid from Germany and Italy. The Republican side had more economic resources (large cities, industry, agricultural exports, and the Bank of Spain), but suffered from internal divisions, war and revolution, and lack of Western democratic support. Debates focus on resource management, the role of Western democracies, internal conflicts within the Republic, and the war’s impact on casualties and economic losses.

The Age of Autarky: New institutional and social arrangements emerged, including reduced urban and agricultural wages, re-agrarianization, and increased corporate profits. The early Franco regime saw a GDP drop and slow recovery. Markets faced shortages of essential goods, leading to black markets and rationing (1939-1952). Fuel quotas and gasifiers were introduced. Private investment was regulated, and a public sector emerged. Autarkic policies reduced external trade, nationalized foreign investments, and led to international isolation. Falling agricultural exports, bilateralism, and a rigid peseta exchange rate characterized this period.

The Hinge Decade: Cold War, US aid, and qualified intervention combined to relax autarky. Import substitution industrialization replaced autarky, but led to inflation and trade deficits. A national capitalism emerged, with a strong entrepreneurial state and powerful banks. Income increased, and profound structural changes occurred.

The 1959 Stabilization Plan: The pre-stabilization period (1957-1958) saw a balance of payments collapse and a change of government. Restrictive monetary policy, fiscal reform, and peseta depreciation were implemented. The 1959 Stabilization Plan aimed to eliminate the external deficit, stabilize the economy through tight monetary policy, credit limits, inflation control, fiscal pressure, import financing control, and a new peseta exchange rate.

The Golden Age: Reintegration into the International Economy (1960-1973)

Liberalization and Economic Integration: Trade liberalization ended autarky, with new tariffs implemented. Foreign investment returned due to inadequate domestic capital, balance of payments needs, and technological innovation. Economic growth relied on external relations, creating a virtuous circle between imports and exports. Funding sources included emigration, tourism, and foreign capital.

Accelerated Industrialization: Industry drove structural change, increasing its share of employment and GDP. Demand grew and shifted structurally. Factors driving industrial change included:

Agricultural Modernization: Agricultural modernization contributed to industrial and economic growth through market supply and demand factors. Rural-urban migration, the decline of traditional agriculture, and mechanization transformed the agricultural sector.

New-Style Interventionism: Limits on liberalization (protectionist demands) and intervention through development plans characterized this period.

Economic Crisis and Political Transition (1973-1985)

. The double shock energy and its impact on the Spanish economy: (The oil crisis and its impact on the Spanish economy) economic indicators (inflation, unemployment, falling investment, deficit spending), Consequences (economic divergence (1976-1985 ) after a long period of convergence (1960-1975), The Latin mirror: the impact of the crisis in Southern Europe: Spain, Greece and Portugal), Mortgages (The economic legacy of Franco, the interference of the Spanish political transition ).

. Adjustment policies and social pacts: The Moncloa Pacts (1977): Adjustment Policies (control inflation), Policy reform (modernization of the tax system).

. The emergence of the welfare state: (The construction of the welfare state in Spain) The history of the welfare state [Consolidation of the Industrial Revolution, From State to State Guardian Providence (Welfare State), Keynesian expansionist policies, global economic growth after World War II]; The background in Spain [In the Court of Cadiz in the Second Republic; Establishment of the Institute of Social Reforms (1903) [The decline of the Franco regime: the corporate state and social work-based Franco Catholic paternalism; moderate advances during development: social security]], What is the Welfare State? State intervention explicitly aimed at improving the welfare of the population and includes mainly four types of interventions: social transfers (pensions), public services (health, education, family care …), Policy interventions (regulation to protect workers, consumers and residents), public interventions (improvement of working conditions) How to measure? Percentage of population working in services related to the welfare state. Percentage of GDP spent on social spending.

. Industrial crisis, banking crisis and mass unemployment

. Industrial restructuring, bank reorganization and structural policies: industrial recession and restructuring (Causes: energy crisis, soaring labor and rising financial costs), Unemployment (A. Matching with the industrial crisis, B. Disruption of external migration , C. Culmination of agricultural modernization), relations (Del Franco interventionism democratic labor relations; Labor Relations Act (1976), Legalization of Trade Unions (1977), Workers Statute (1980) … Framework Agreements Sociales)

. The articles of incorporation during the transition in Spain: [Name] Moncloa Pacts [Signatories] Government of Spain and political parties [Date] 10-1977 [Contents] Wages, inflation and political reform, [Name] Interconfederal Basic Agreement (ABI) [Signatories] UGT and CEOE [Date] 07-1979 [Contents] relations; [Name] Interconfederal Framework Agreement (IFA) [Signatories] UGT and CEOE [Date] 01-1980 [Contents] wages, hours, collective agreements and relationships labor, [Name] National Employment Agreement (ENA) [Signed by] government, CEOE, CCOO and UGT [Date] 06-1981 [Contents] wages, union rights, employment and pensions [Name] national agreement (AI) [Signatories ] CCOO, UGT and CEOE, CEPYME [Date] 02-1983 [Contents] wages, union rights, employment and pensions [Name] Economic and Social Agreement (AES) [Signed by] government, CEOE, UGT CEPYME and [Date] 10 -1984 [Contents] Wages, employment, unemployment and pensions.

– Integration in Europe (1986-2000)
. Negotiating accession to the EEC and the stages of integration: (1969-1970) Preferential Agreement signed with the European Economic Community [1970]; (1977-1978) Application for admission of Spain into the European Economic Community [1977 ]; (1983-1984) Stuttgart Summit [1983], clearing the way for negotiations for the Spanish integration in Europe (1985) Signature of the Treaty of Accession of Spain and Portugal to the European Communities and economic recovery; (1989 ) the peseta is integrated into the European Monetary System when it is completing the upward phase of the economic cycle (1992-1993) Signature of the Maastricht Treaty [1992] and monetary turmoil that forced to devalue the peseta; (1998-1999) Spain exceeds the convergence criteria [1998]. Begin implementation of the euro as single European currency [1999].

. The cycle of integration

. The real effects of integration: Opening to the outside and change in the geography of the Spanish foreign trade, foreign investment inflows.

. The nominal purpose of integration: Public Deficit, Inflation

. The Spanish economy in the transition to the single currency (The convergence criteria for Europe) Inflation up to 1.5%> to three countries with the lowest inflation, public deficit up to 3% of GDP and public debt: up to 60% of GDP, Interest rates: up to 2%> that three countries with the lowest inflation; Rate: stability

. The scope of institutional reform policies: Re-regulation: political competition; Liberalization: financial system, labor market, capital flows, privatization of public enterprises: the desarmortización the twentieth century.