Spanish Industry 1855-1975: Growth, Challenges, and Transformations
The Spanish Industry (1855-1975)
1. Historical Evolution
1.1 The Slow Onset of Industrialization
Spain’s industrialization lagged behind other Western European countries. Several factors contributed to this delayed development:
- Limited raw materials and energy resources.
- Significant foreign control over mines.
- Inadequate industrial investment due to public debt and individual investment in land acquisition.
- Limited demand for industrial products due to low population growth and widespread poverty.
- Technological backwardness and reliance on imported machinery.
- Unfavorable external conditions, including wars and colonial losses.
- Inappropriate industrial policies, such as protectionism that hindered modernization.
1.2 Growth in the First Third of the 20th Century
Despite earlier challenges, Spain experienced industrial growth during this period. Contributing factors include:
- Growth of the national mining industry, spurred by increased coal prices during World War I.
- Increased industrial investment due to capital repatriation from former colonies.
- Increased demand for industrial products, driven by public works projects during Primo de Rivera’s dictatorship.
- Incorporation of technological advances from the Second Industrial Revolution, such as the use of oil and electricity.
1.3 Stagnation During the War and Post-War Period
Industrial growth was interrupted by the Spanish Civil War and the subsequent adoption of autarkic policies. These policies restricted imports, depriving industries of essential resources and leading to a severe crisis. Autarky was eventually softened in 1953.
1.4 Industrial Development After 1959
The abandonment of autarky in 1959 marked a turning point. Industries could import necessary resources, leading to strong development. Key factors include:
- Increased industrial investment.
- Increased demand for industrial products due to rising living standards.
- Integration of foreign technologies.
- Low energy prices, positively impacting production costs.
- State-led industrial development plans.
2. Industrial Production
Throughout this period, Spain adopted innovations from both the First and Second Industrial Revolutions. These innovations fueled growth in specific sectors:
- Second half of the 19th Century: The First Industrial Revolution boosted the iron and steel sector (Andalusia and Northern Spain) and the cotton textile sector (Catalonia).
- First third of the 20th Century and Franco era: The Second Industrial Revolution diversified output, particularly in basic sectors (steel, petrochemicals, electricity) and consumer goods (textiles, food). State-led initiatives, such as the National Institute of Industry (INI), played a crucial role.
- Mid-20th Century: Equipment goods industries experienced limited growth due to technological delays.
3. Industrial Structure
The Spanish industrial structure during this period was characterized by:
- Diverse production systems: Small factories employed traditional methods, while larger ones adopted Fordist systems.
- Contrasting company sizes: Small businesses struggled with low investment and competitiveness, while larger companies, often linked to the INI or multinational corporations, thrived in key sectors.
- Technological backwardness and external dependence: Protectionist policies hindered innovation and created reliance on foreign technology, capital, and energy resources.
- Industrial workforce: Characterized by low qualification, but with improving working conditions and social benefits from the early 20th century onwards.