Spain’s Socioeconomic Transformation in the Early 20th Century
The Restoration Era (Late 19th – Early 20th Century)
Economic Development and Dynamism
During the early Restoration, Spain experienced general economic development, contrasting with the European crisis. Political stability fostered expansion and dynamism.
- Agriculture: Traditional crops and structures persisted with limited modernization. Vineyards thrived due to the phylloxera plague in France, leading to massive wine exports.
- Mining: Output increased, though primarily under foreign control.
- Industry: Steel and Catalan cotton textiles flourished, boosted by foreign investment.
- Transportation: Railroads expanded significantly, becoming profitable by 1880. Maritime shipping also experienced strong growth.
- Trade: Foreign trade volume increased due to open-door policies and exports of wine, minerals, and textiles, peaking in 1881.
Economic Crisis During the Restoration
Despite initial growth, the Spanish economy faced challenges:
- Agriculture: Low yields, archaic techniques, and unequal land ownership persisted. The political system failed to offer solutions.
- Industry: While dynamic, the textile industry suffered from colonial losses but recovered with World War I. Bilbao’s steel industry thrived, and mining remained significant, though under foreign control. Agricultural processing developed but was hampered by agricultural weaknesses.
Social Stratification
Spanish society was dominated by large landowners (aristocracy and gentry) aligned with the conservative political system, and the industrial and financial oligarchy supporting the liberal side. A small middle class of professionals and officials emerged. Small landowners, with limited production, also aligned with the conservative structure.
The working class included the industrial proletariat, enduring harsh conditions and lacking social rights, and the rural proletariat, facing even worse conditions due to exploitative landowners. Within the rural proletariat were:
- Smallholders: Working small plots, relying on family labor.
- Live-in Workers: Residing on farms with fixed salaries.
- Day Laborers: Employed for specific tasks.
Early 20th Century: Social and Political Shifts
Social stratification remained largely unchanged, with the urban bourgeoisie and agrarian oligarchy dominating. The industrial proletariat grew due to factory demand and rural exodus. Social laws were enacted, regulating women and child labor, establishing an eight-hour workday, and recognizing the right to strike, but worker dissatisfaction persisted.
Impact of World War I
Following the 1898 Disaster and the loss of colonies, Spain withdrew from international relations, focusing on Morocco. When World War I erupted, Spain declared neutrality, though public opinion was divided among Allied supporters, Germanophiles, and isolationists.
Economic and Social Consequences of the War
Wartime demand led to an economic boom, increasing exports and production. However, this did not benefit the general population, as soaring prices outpaced wages, leading to unrest and strikes. Speculators profited, creating a new wealthy class. The war also intensified social divisions and had a moral impact.
The Crisis of 1917
Three forces shaped the 1917 crisis:
- Military Juntas of Defense: Demanding army reforms, leading to government resignations and concessions.
- Parliamentary Assembly: Formed by reformist bourgeoisie, demanding the opening of the Constituent Cortes, but dissolved by the government.
- General Strike: A nationwide strike organized by labor movements, suppressed by the government.
The crisis marked the end of the two-party system and ushered in a period of political instability. Attempts to address Catalan regionalism, the Moroccan question, and labor issues failed. The monarchy’s final attempt to stabilize the situation was the 1923 coup by General Primo de Rivera, leading to a military dictatorship. This ultimately paved the way for the establishment of the Republic in 1931.