Spanish Industrial Development in the 19th Century
19th Century Spanish Industrial Development
Steel Industry: The steel industry faced significant challenges due to the lack of high-quality coal and weak demand for steel products. Its development can be divided into two stages:
- Andalusian Stage: This stage coincided with the Carlist Wars, hindering iron exploitation in the north. The reliance on charcoal, which was more expensive and less energy-efficient, led to its failure.
- Asturian Stage: This stage was characterized by coal production in the Asturias region, although the coal was of poor quality.
However, the sector experienced a boost at the end of the century due to the establishment of the Bilbao-Cardiff (Wales) trade hub. This facilitated the exchange of high-quality iron and coal, proving quite profitable. Subsequently, the use of blast furnaces for iron production increased.
Mining Sector: The mining sector was largely controlled by foreign entities. Spain possessed abundant mineral resources (iron, lead, zinc, etc.) located in coastal areas, which reduced costs and facilitated exports. By the end of the century, it became one of the most dynamic sectors of the national economy. However, as previously mentioned, the Spanish subsoil remained largely in foreign hands due to the confiscation of subsoil laws published during the Sexenio Democrático.
Railway Construction: Like other countries, Spain initiated railway construction to improve trade and transportation. While this new mode of transport offered numerous benefits to countries that adopted it, the situation in Spain was somewhat different. Key issues that diminished the significance of railway construction in Spain included:
- The construction of a radial rail network, dictated by the government’s centralized state vision, which failed to consider key economic hubs and boost the economy.
- The implementation of a wider gauge than that of foreign railways, resulting in higher prices for products due to the need to change tracks at the border.
The construction process started slowly but gained momentum with the passage of the Railways Act, only to be slowed down again by the crisis of 1866. The railway did not bring significant benefits to Spanish industry but rather to foreign companies, as the law granted them considerable privileges, including the ability to import their own materials. Nevertheless, the railway represented a transportation revolution and aided in the articulation of a national market.
Financial and Tax Reform: Major changes to improve the country’s economy included the Mon-Santillán financial and tax reform.
Economic Protectionism vs. Free Trade: A notable conflict arose between economic protectionism, advocated by the Catalan cotton industry, Castilian grain producers, and the Basque and Asturian coal and steel sectors (who argued that protection was essential for the development of domestic industry against British textile competition), and free trade, championed by traders, agricultural product exporters (wine, oil, etc.), and miners (who felt harmed by tariffs on British manufactured goods).