Spain’s Transformation (1833-1874): Economy and Society
ITEM 10. SOCIETY AND ECONOMY (1833-1874)
1. Agrarian Transformations
European industrialization saw limited agricultural development in Spain due to poor land quality, weather, and the liberal land reform. This resulted in low yields, agricultural poverty, and hindered industrialization.
1.1. The Liberal Agrarian Reform in Spain
The liberal land reform replaced the old regime with a capitalist society in the first half of the 19th century. Estates, jurisdictional rights, the tithe, and Mesta privileges were abolished, consolidating private land ownership.
The confiscation was crucial, seizing Church and local council lands for public auction. This strengthened private ownership and eliminated shared ownership. The Church received compensation, and the state supported the clergy.
Confiscation aimed to address deficit finance, indicating broader issues beyond fiscal concerns.
1.2. Stages of Confiscation
- First stage: Began in 1798 under Charles IV due to war costs.
- Second stage: Ecclesiastical confiscation in 1836 led by Mendizábal (finance minister) to fund the war.
- Third stage: General confiscation in 1855 during the Progressive period, selling state assets to raise revenue, build a middle class supportive of the liberal regime, and stimulate economic development.
1.3. Implications of Confiscation
40% of land changed ownership, with secular landed aristocracy and clergy buying Church properties. Many farmers faced hardship, leading to widespread peasant proletarianization. By 1860, half of Spanish employees were day laborers.
No new class of rural landowners or entrepreneurs emerged, but cultivated land area increased (cereals, potatoes, wheat). Fertilizer use improved productivity.
1.4. Advances in Commercial Agriculture
Agricultural growth was based on expanding cultivated areas (wheat, olives, legumes). Grasslands were replaced with specialized feed, corn, vines, potatoes, and cereals.
Market-oriented agriculture grew in the Mediterranean (domestic and export). Vine crops, citrus, rice, sugarcane, olive oil, and nuts became widespread.
Spain’s wine exports to Europe tripled due to vine scarcity in France, leading to monoculture zones (La Rioja, Jerez de la Frontera). Citrus and olive oil exports also increased.
Traditional cereal cultivation remained dominant, with significant exports. However, Spanish grain prices became uncompetitive against French, German, and British produce after European conflicts ended.
2. The Beginnings of Industrialization
Spain’s secondary sector lagged behind industrialized nations. The economy remained largely agrarian and uncompetitive internationally.
A) The Catalan Cotton Industry
Modern industry began with the Catalan cotton sector, producing for the market from its inception. Modernization was slower elsewhere in Spain.
Catalonia had significant Indian (cotton fabric) manufacturing by the 18th century. New English spinning machines were introduced in 1780.
The modern cotton industry consolidated after 1802, despite initial setbacks from market disintegration during the Revolutionary War.
Production speed increased post-conflict, primarily serving the domestic market. Increased raw material imports further boosted the textile industry.
B) Mineral Resources and Energy Sources
Spanish mineral resources (copper, pyrite in Huelva; iron in Malaga, Santander; lead in Cartagena; zinc in Asturias) were not exported before the Mining Act of 1868, which facilitated foreign capital due to increased demand.
Industries and railways developed near mines. Coal, concentrated in Asturias and León, was a crucial but insufficient and expensive energy source.
C) The Beginnings of the Steel Industry
Asturias and Malaga attempted to develop the steel sector, but coking coal costs limited production. Asturias became Spain’s steel center for 15 years, with rapid production growth.
From 1876, Welsh coke became cheaper in the Nervión River area, leading to the consolidation of Biscay’s steel industry.
The first steam engine was installed in 1833, mechanizing spinning faster than weaving. Labor shortages due to the War of Independence accelerated spinning mechanization.
Textile sector growth was interrupted during the Civil War (1861-1865) due to raw material shortages, but weaving mechanization resumed in 1874.
D) Transport and Communications
A rail network was created to connect the peninsula’s internal market, though with significant shortcomings. The state initiated this through the Royal Decree on Establishment of Railways, with early lines like Mataró and Barcelona-Madrid-Aranjuez.
The General Railways Act (1855) facilitated train construction, investment promotion, and grants, resulting in 4,500 kilometers of track in 10 years. However, domestic industry did not benefit from train manufacturing.
3. The New Society
New groups like entrepreneurs and workers emerged, increasing mobility and equality. Class society replaced the old order, with the nobility and clergy losing privileges.
A) The Nobility
The nobility lost political and economic power, retaining reserved seats in the Senate. They entered corporate boards and influenced social habits.
B) The Clergy
The clergy lost privileges and estates through confiscation. The tithe disappeared after 1840, and clergy support depended on the state budget, leading to a decline in religious numbers. Some bishops opposed religious freedom and tolerance.
C) The Business Bourgeoisie
The bourgeoisie benefited from banking and management in Madrid, and industry, commerce, and transport in Barcelona and Bilbao.
D) The Middle Classes
This group included lawyers, doctors, journalists (due to press expansion), architects, engineers, university professors, and officials.
E) The Lower Classes
In an agrarian society, this included peasants, artisans, and laborers (often with multiple family members working due to low wages), as well as servants and dependents.
4. The Start of the Labor Movement
The modern proletariat emerged in the Catalan textile industry and mining/steel centers. Mecanoclasta movements (machine destruction) occurred between 1820 and 1840 (Alcoy in 1821, Bonaplata factory in Barcelona).
After 1840, the labor movement evolved, focusing on freedom of association and strikes.
During the Two Progressive Years (1854-56), mutual aid societies revived, aiming for freedom of association, wage increases, and joint arbitration commissions. The first general strike occurred in Barcelona in 1855.
During the democratic presidential term (1868-1874), workers used direct action (strikes, unions) and political action (elections) to improve their lives and promote political change.
Anarchists and socialists within the International Workers Association, promoted by Giuseppe Fanelli, led to the formation of the Spanish Regional Federation (FRE) in 1870, which was moderate and anarchist-aligned.
Anarchism rejected parliamentarism and centralization, gaining popularity among Mediterranean industrial workers and Andalusian laborers.
In Andalusia, Kropotkin’s theories (land division) were followed. A Marxist socialist-inspired cell formed among some Madrid workers.