Spain’s Socioeconomic Shifts: Early 20th Century
Economic and Social Transformations in Spain: Early 20th Century
Demographic Evolution
The Demographic Transition
The onset of demographic transition in Spain was marked by a decline in mortality rates and a continued high birth rate.
Migratory Movements
Between 1900 and 1931, Spain experienced a large increase in internal migration, which led to a redistribution of the regional population. A large number of people moved into the modern sectors of the economy, and the agricultural labor force decreased from five to four million in this period.
Overseas migration, which began around 1880, reached an unprecedented maximum but decreased significantly with the outbreak of the First World War.
The Intensification of Urbanization
Internal migration led to the intensification of urbanization, which had its greatest growth period between the end of WWI and the crisis of 1929.
Backwardness and Agrarian Peasant Unrest
The Agrarian Crisis
Spanish agriculture at the beginning of the twentieth century faced the consequences of the agrarian crisis that swept through Europe at the end of the nineteenth century. The Spanish agriculture, oriented mainly to the cultivation of cereals, olive trees, and vineyards, mostly on dry land, with cattle and sheep mainly for the production of wool, was more strongly affected by the crisis than other countries in the region.
The Evolution of Agriculture
The agrarian crisis was overcome through the establishment of new tariff barriers and the growth of production, strongly stimulated by increased urban demand.
The Problems of the Spanish Countryside
The situation of the Spanish countryside in the first third of the twentieth century was still marked by huge inequality in the structure of land ownership. The existence of extensive areas of large estates and areas with a strong predominance of smallholdings resulted in significantly lower yields and hindered the implementation of new cultivation techniques and methods.
The Progress of Industry
Technological Change and Energy
Among the causes that led to the growth of the Spanish economy in the first third of the twentieth century was the use of new energy sources, with the spread of electricity and oil. This technological revolution made it possible to overcome a major obstacle to the industrialization of nineteenth-century Spain: the lack of competitive energy sources due to the poor quality of indigenous coal.
Industrial Growth
In the first three decades of the twentieth century, the Spanish industrial product per capita increased by 60%, with an average annual growth rate of 1.6%. Catalonia maintained its central position in the Spanish manufacturing industry.
Traditional Sectors and New Industries
Traditional industries such as food and textiles continued to expand. The chemical industry also grew, through the manufacturing of fertilizers, medicines, paints, explosives, and other products.
The Diversification of Catalan Industry
Between 1874 and 1930 in Catalonia, the industrial base was diversified, and its composition changed through the great expansion of new sectors such as chemical, mechanical, and construction companies in the electricity sector.
Improving Communications
The means of transportation and communication systems underwent a remarkable transformation that benefited industrial growth.
The Intervention of the State
A feature of the Spanish industrial sector was the trend to restrict competition to ensure markets. Many companies tended to establish agreements to fix prices.
The Evolution of the Economy
The Economic Recovery After 1898
The independence of the last colonies presaged an economic disaster, but its effects were lower than expected, despite the loss of colonial markets and the devaluation of the peseta as a result of war debt.
The Situation of the First World War
The increase in foreign demand stimulated the growth of production, which especially benefited the Basque steel, Asturian mining, textile (clothing and blankets), and Catalan metallurgical industries, which achieved great benefits.