Spanish Industrialization: A Historical Analysis

Posted on Mar 20, 2025 in Geography

Industrialization in Spain

Stages of Industrialization (1850-Present)

1. Beginning of Industrialization (1850-1900)

Causes of Slow Growth:

  • Low Population & Purchasing Power: Limited domestic demand hindered industrial expansion.
  • Delayed Industrial Process: Lack of raw materials, energy sources, technological and scientific backwardness, lack of capital, political unrest, the War of Independence, the Carlist Wars, regime changes, and the loss of colonies all contributed to delays.
  • Minifundismo: Small-scale business operations limited growth.
  • Inadequate Industrial Policy: The six-year revolutionary framework law on mining (1868) granted mining concessions in perpetuity and promoted free trade, leading to foreign control and hindering external competitiveness despite restoration and protectionism.
  • Weak National Initiative: Limited domestic investment and entrepreneurship.
  • Foreign Capital Dependence: Reliance on foreign investment.
  • Production and Industrial Location:
    • Catalonia: Textile and paper manufacturing.
    • Asturias and Basque Country: Advantages of raw materials and energy sources, leading to steel metallurgy.
    • Malaga (Andalucia): Blast furnaces, but soon declined.
    • Madrid: Basic consumer industries.
  • Agrarian Economy: Spain remained primarily an agricultural country.

2. Industrial Growth

Causes:

  • Neutrality in World War I: Supplying goods to warring countries led to a boom in coal mining, increased consumption, and increased domestic investment. Distribution of capital (loss of Cuba) and benefits from exports during World War I and infrastructure investments. The dictatorship of Primo de Rivera launched the industrial sector, roads, bridges, iron.
  • Industrial Location: Catalonia, Basque Country, Asturias, Valencia, and Madrid.

3. Regression

Causes: Civil War, international isolation, and blockade of the Franco regime leading to a decade of autarky.

4. Autarky (1940s)

Economic Plans:

  • Plan Badajoz: Vega del Guadiana agrarian transformation and promotion of industrialization in the area.
  • Plan Jaen: Industrialization of the Jaen area.

Causes of the End of Autarky:

  • Isolation order.
  • Joining IMF, UN, and Eurostat.
  • US economic aid.

Start of a stabilization plan with objectives to achieve internal and external economic balance and improved balance of payments.

5. Industrial Development

Causes:

  • External: Expansion of world capitalism, low cost, and release of energy imports.
  • Internal: State encourages import-led national development plans.

First Development Plan:

  • Objective: To raise the average level of income and equitable geographical distribution.
  • Industrial Development Focus: Coruña, Vigo, Seville, Valladolid, and Zaragoza.
  • Spotlights Industrial Promotion: Burgos and Huelva aim to boost infrastructure.
  • Actions: Aimed at raising agricultural production, technical innovation, structural change, and tourism potential.

Second Development Plan: To organize coastal areas, boosting the Ebro and Guadalquivir valleys and enhance north junction-plateau.

Third Development Plan:

  • Objective: Policy development at national, provincial road plan, plan rural electrification.

6. Industrial Development & Location

  • Cantabrian Regions: Asturias, Cantabria, and Basque Country – heavy industry, large industry.
  • Mediterranean: + diversification, small businesses, light industry.
  • Madrid: Diversification.
  • New Industrial Spaces: Ebro-Mediterranean axis, Galician coast, western Andalusia.

7. Crisis

Causes:

  • External: Rising oil prices, depletion of the technological cycle, and the NPI conference.
  • Internal:
    • Poor Spanish Industrial Structure:
      • Little specialization in mature sectors.
      • Insufficient modernization technology.
      • Outdoor Unit: energy, capital, and trade.
      • Low investment.
      • High indebtedness.
    • Policies: Death of Franco à transition