Spain’s Industrialization: 18th-20th Centuries
Spain’s Industrial Journey: 18th-20th Centuries
18th Century: Protectionism and Early Industry
Following the War of Succession, Spain adopted protectionist policies, banning textile imports and subsidizing domestic production. This modernization effort involved both state-led initiatives (e.g., royal factories) and private enterprises. While royal factories struggled with bureaucracy, private ventures like ironworks in the Basque Country and textile manufacturing in Catalonia (which became a major cotton producer) saw growth.
19th Century: Wars, Crises, and Shifting Policies
The early 19th century brought challenges: the loss of colonies, the War of Independence, and internal conflicts. Despite these setbacks, industrial progress continued, with the introduction of coke blast furnaces, steam engines, and the first railroad. The mid-century saw fluctuating industrial policies, swinging between free trade (favoring foreign investment and railroad development) and protectionism. The latter half of the century witnessed the rise of mining, dominated by foreign companies, and the beginnings of agricultural-based industries.
20th Century: Wars, Growth, and Transformation
Protectionism continued into the early 20th century. Depletion of mineral resources led to declining mining exports and disinvestment. However, repatriated capital from lost colonies and investments from the Basque and Catalan bourgeoisie fueled a new wave of industrialization, particularly in metallurgy, electricity, and cement, driven by the expanding railroad network.
The Regenerationism
This period focused on exploiting Spain’s resources using domestic capital. The loss of colonies prompted capital repatriation, leading to the establishment of major Spanish banks and companies.
World War I
Spain’s neutrality during World War I allowed for increased exports and profits. Domestic coal replaced expensive foreign coal, boosting the Asturian and Leonese mining industries. This period presented an opportunity for industrial modernization, which was not fully capitalized upon.
Primo de Rivera’s Dictatorship
This era saw a focus on development through public works, achieving annual growth rates of around 5%. Domestic demand increased, boosting manufacturing of consumer goods and equipment. Financing came from domestic banks and foreign investment, but this led to a significant increase in public debt.
Post-Civil War to 1959
The post-Civil War regime, influenced by its ideology and the international political climate, implemented strict state control over domestic and foreign investment, aiming for an autarkic economy. The Instituto Nacional de Industria (National Institute of Industry) was created in 1941, gradually establishing public businesses, primarily in weaponry, transportation, and natural resources.
1960s-1975: Industrial Boom
The 1960s marked a period of significant industrial development. Following a period of slow growth driven by private initiative, the European industrial boom integrated Spain into the global economy, moving away from autarky. The 1959 Stabilization Plan devalued the peseta, implemented price and wage controls, and allowed foreign capital into businesses. Development plans transformed Spain from a Third World economy to a developed one, albeit with social challenges. Importing industrial equipment fostered new sectors and expanded existing ones.