Spain’s Industrial Revolution: A Late and Uneven Process
1. Spain’s Late Entry into the Industrial Revolution
1.1. Causes of Delay
Unlike England, where the industrialization process began in 1770, Spain’s industrial revolution started much later, between 1800 and 1830. This delay was due to several factors:
- Expensive Fuel: England relied on coal, while Spain’s coal reserves were expensive and difficult to extract.
- Limited Demand: The demand for steam engines, a key innovation of the Industrial Revolution, was low in Spain.
- Lack of Capital: Spain lacked the necessary capital for industrial development, and railway projects often relied on foreign investors.
Other negative factors included the Peninsular War, the loss of American colonies, institutional crises, a poor road network, limited agricultural integration, and a stagnant economy. Industrial development was mainly confined to coastal regions with easy access to the sea, while the interior lagged behind.
1.2. Early Stages of Industrialization
During the final years of Ferdinand VII’s reign, some businessmen began to embrace capitalist principles. This led to the enactment of the Code of Commerce and the creation of the Madrid Stock Exchange. However, the regency of Espartero was characterized by civil and political instability. In 1844, the moderate party came to power and attempted to incorporate Spain into the industrial revolution by focusing on pacification, political stability, trade development, increased agricultural production, and population growth. This process was slowed down by a lack of coherent economic policy, political manipulation, dependence on foreign investment, and regional disparities.
2. The Industrial Landscape
Spain’s industrialization heavily relied on the steel and chemical industries, which were relatively underdeveloped.
2.1. Mining
The mining sector had limited economic impact. Two important minerals were coal and iron. Their extraction was driven by increased international demand, advancements in mining techniques, and the involvement of foreign companies. However, mining concessions did not expand significantly, and mineral extraction failed to transform the economy.
- Coal and Iron Mining: Coal mining developed in various areas, particularly in Asturias, but the coal was of low quality. The liberalization of the mining industry in 1868 led to increased competition. Iron production benefited from the Bessemer converter, which transformed iron into steel. Mining companies were established in the Basque Country.
2.2. The Steel Industry: Challenges
The steel industry faced several challenges, including a lack of high-quality iron ore and suitable coal, limited demand for steel products, and insufficient investment. The uneven development of the industry can be explained by these factors. Its geographical distribution evolved through three stages:
- Andalusia: Early steel production was concentrated in Malaga, but the lack of charcoal hindered its growth.
- Asturias: The coalfields of Mieres and Langreo offered potential, but the quality of coal and iron ore was poor.
- Biscay: The Basque Country became the dominant steel-producing region, benefiting from a pre-industrial tradition, capital availability, and the establishment of several steel companies.
3. An Unbalanced Industrial Sector
The chemical industry, particularly sulfuric acid production, was concentrated in Barcelona, which accounted for three-quarters of the national production. The food industry thrived, while other sectors lagged behind. Some industries experimented with new processes.
4. The Textile Industry
4.1. The Catalan Takeoff
Catalonia experienced significant industrial growth, driven by population growth, agricultural expansion, colonial trade, and the accumulation of capital from agriculture and maritime activities. However, the region faced challenges such as agricultural depression, import restrictions, and the destruction of factories during conflicts. The Catalan textile industry recovered quickly due to trade within the Iberian Peninsula.
4.2. Expansion of Cotton Production in Catalonia
The cotton industry was a key driver of the industrial revolution in Catalonia. However, it faced limitations such as power shortages, dependence on imported raw materials, and difficulties in modernization. Investments in new technologies made cotton production more competitive. Power shortages and price fluctuations affected the wool industry.
5. Infrastructure and Transport
Spain’s underdeveloped infrastructure hindered its economic development.
5.1. Geographical Challenges
Inland transportation relied on land or river routes, which were inefficient due to the high central plateau surrounded by mountains and the short, shallow rivers. This resulted in fragmented markets.
5.2. Maritime Transport
Maritime transport developed with the expansion of ports and the adoption of steam navigation. This reduced costs and improved efficiency. However, sailing ships continued to operate alongside steam vessels until the end of the century.
5.3. Railways
The railway revolutionized transportation with its speed, cost reductions, and reliability. Railways shortened travel times, reduced costs, and improved the transportation of goods.
- The General Law of Railways: The government prioritized railway development by providing resources and incentives. The law aimed to promote the creation of railway companies. The first lines connected Barcelona-Mataró, Madrid-Aranjuez, and Langreo-Gijón. Some aspects of the law influenced Spain’s economic history and the structure of the railway network. The choice of track gauge also had long-term consequences. The rapid pace of railway construction led to a financial crisis, and the final push for expansion was driven by mining development.
- Railways and Industrialization: Spain missed opportunities to fully leverage railways for industrialization. Manufacturers complained about the limitations of the railway network. The positive effects of railway construction were limited by the involvement of foreign companies, limited capital, and the fragmentation of the market.
6. Trade: Protectionism vs. Free Trade
6.1. Incomplete Internal Market Integration
Geographical barriers and trade restrictions hindered the integration of regional markets, making transportation and trade difficult.
6.2. Growing but Troubled Foreign Trade
Spain’s foreign trade went through two phases. Initially, it focused on exporting goods to its American colonies. Later, trade shifted towards Europe.
6.3. The Debate
Two opposing doctrines emerged regarding trade policy:
- Protectionism: Catalan manufacturers advocated for trade barriers to protect domestic industries.
- Liberalism: The Castilian cereal, mining, and wine-producing sectors criticized protectionism and favored free trade.