Spanish Economy and Society in the Late 19th and Early 20th Centuries

General Characteristics of the Spanish Economy

In the late 19th and early 20th centuries, the Spanish economy faced several challenges, including a poor communications structure, slow demographic growth, a low cultural level of the population, a shortage of financial resources, and limited energy sources. Compared to Western European countries, Spain lagged behind, although improvements were evident. The railway network expanded, capital accumulated, and coal was gradually replaced by oil and electricity as the primary energy source. The industry experienced significant growth between 1910 and 1920. The restoration period concluded the cycle of land confiscation, and technological advancements began. However, the economic system still reflected a “rural society” with two distinct worlds: a few industrial areas and a vast agricultural interior characterized by subsistence lifestyles and backwardness. The three main economic areas were: inland agricultural regions dedicated to crops, peripheral industrial zones producing primarily for the domestic market, and Mediterranean peripheral areas that consumed goods from the interior at high prices.

Demography and Urban Growth

Spain’s population grew slowly, from 16 to 18 million, with a low life expectancy of no more than 35 years. Between 1882 and 1914, approximately one million Spaniards emigrated, mainly from the Canary Islands, Galicia, Cantabria, Asturias, the Basque Country, and Barcelona. At the end of the 19th century, urbanization accelerated dramatically. The existing city structures were small and required expansion (Ensanche), leading to urban planning challenges. Barcelona’s growth transformed it into a “European” urban model by the late 19th century.

Industrial Development

Industrial development in Spain was slow, localized, and lacked planning. Mining was one of the most buoyant sectors, with only 10% of the iron extracted in Spain used for domestic consumption. The exploitation of copper mines, such as Rio Tinto, also increased. The Catalan textile industry surpassed older manufacturing sectors. Overall, textile production in Spain increased fivefold in the late 19th century. The iron and steel industry was slow to develop due to the strong external demand for pig iron, making imports more profitable. However, external dependence decreased as the steel and shipbuilding industries grew, and the national railway system replaced exports to Britain. Despite these advancements, Spain continued to have an unfavorable trade balance with France and Britain.

Regionalism

Regionalism reached its peak in the 20th century. It aspired to a degree of self-government while respecting Spain’s sovereignty. When this limit was crossed, it became nationalism, which did not necessarily imply independence.

Catalanism

Catalanism had four main roots: protectionism, federalism, traditionalism, and the Renaissance. In the late 19th century, Catalan nationalism gained strength in industrialized Barcelona. The creation of the Mancomunitat of Catalonia mobilized the Catalan people, stimulating the campaign for autonomy.

Basque Nationalism

Basque nationalism focused on the Basque language (Euskera) and the defense of historical rights. The Basque Nationalist Party (PNV) was founded in 1895 by Sabino Arana, advocating for the recovery of independence, radical anti-Spanish sentiment, Basque ethnic exaltation, Catholic religious fundamentalism, the recovery of the Basque language and rural traditions, ideological conservatism, and a critique of the Carlist movement’s Spanish character.

Development of the Labor Movement

The labor movement emerged in Spain in the 1890s. Labor associations began forming over 20 years before the establishment of a Spanish branch of the International Workers’ Association (IWA). With the fall of the First Republic, associations within the IWA were declared illegal.

Anarcho-syndicalism

The anarchist current remained prevalent among Spanish workers. The Federation of Workers of the Spanish Region (FTRE) played a significant role, resorting to terrorism at times. In 1910, the National Confederation of Labor (CNT) was founded. Its ideological features included the rejection of authority, the abolition of private property, advocacy for violent revolution, apoliticism, and anti-clericalism.

Socialism

A small group of print workers in Madrid formed the Spanish Socialist Workers’ Party (PSOE). Its main goals were the total emancipation of workers, the transformation of individual property into social property, the seizure of political power by the proletariat, the rejection of terrorism, and opposition to colonial expansion. The ultimate aim was revolution.