Spain’s Industrialization: History, Development, and Challenges
Spain’s Industrialization
Spain industrialized late due to a dominant nobility, numerous guilds, and a predominantly agricultural economy.
Early Stages (1830s)
Large entrepreneurs emerged in the north and northeast:
- Vizcaya and Asturias: Iron ore trade and exploitation led to the development of the steel industry.
- Barcelona, Terrassa, Béjar: Textile industry development.
Growth Factors (1939)
- Population growth created a supply of cheap labor.
- The textile and steel industries found a large market within Spain.
Post-World War II
- Economic crises (limited capital and employment).
- Political and economic isolation, leading to increased domestic consumption.
INI (Instituto Nacional de Industria): National Industry Institute established to promote industrial development.
1959: Stabilization Plan
- Shift from autarky to economic liberalization.
- Openness to foreign markets.
- Economic growth in consumer goods (footwear, leather, cork, furniture) and basic industries (tires, machinery, mining).
- Global economic expansion led multinational companies to invest in Spain, attracted by cheap labor due to rural-to-urban migration.
Factors Attracting Industry
- Social: Availability of affordable and productive labor.
- Spatial: Proximity to raw materials and good transportation networks.
Territorial Distribution
- Nutrition Sector: Middle class investment in capital firms.
- Basque Country: Proximity to England.
- Asturias: Significant mineral deposits.
- New York: Presence of an urban market.
1975: Crisis and Unemployment
Causes:
- Employers sought cheaper labor, but the available workforce offered little benefit.
- Rising oil prices.
- Increased international competition.
Solutions
- Reconversion of less productive sectors.
- Reduction of oil dependence through alternative energy sources.
- Adoption of new technologies.
- Creation of IMPI (Instituto de la Pequeña y Mediana Empresa Industrial).
Current Industrial Development Model
- Technological and scientific advancements driving new industries.
- Automation of production processes.
- Improved demand forecasting.
- Enhanced communication to manage geographically dispersed production.
Technology Parks
Industrial estates in pleasant environments, concentrating technology-focused businesses.
Changes in Labor
- Cheaper Labor Countries: Fewer labor rights, countries are in progress.
- High Technology, Low Manual Labor: Recruiting skilled technicians.
Labor and Production Changes
Multinational Companies: Production divided across multiple specialized establishments.
Spain’s Integration into the EEC
- Treatment of public enterprises in Spain.
- European funds dedicated to technological development.
Current EU Guidelines
- Increased investment in R&D and ICT.
- Internal relocation to new EU member states.
Key Industrial Locations
- Mediterranean Axis.
- Ebro Valley Axis.
- Madrid Industrial Area.
Areas with Territorial Imbalances
- Andalusia.
- Cantabrian and Galician regions.
- Peninsular center.
- Balearic Islands.
Sector Locations
- Mature Sectors in Recession: Metallurgy, food, and textiles.
- Sectors with Application: Automotive, chemicals.
- Localized and Insufficient Sectors: Information technologies and biotechnology.
Challenges for Spanish Industry
- Increasing productivity.
- Improving technological intensity.
- Maintaining market share within the EU.
Consequences of Globalization
Trend towards outsourcing.
Slowdown in the construction sector due to the global economic crisis.
Catalan industry remains the leading sector among Spanish autonomous communities in terms of turnover and employment, despite a decline in production and industrial employment, with changes in the industrial model including relocation of production, automation, and computerization.