19th Century Spanish Economy: Reforms, Industry, Railways
Spain’s 19th Century Economic Transformation
Economic transformations throughout the nineteenth century in Spain included several processes of secularization. The Spanish economy, primarily agricultural, faced stagnation due to natural factors (poor soil, high summer temperatures, low rainfall, and winter frosts) and sociopolitical issues (poor peasants lacked investment capital, and landowners prioritized quick profits).
Agricultural Reforms and Land Ownership
Following the end of absolutism, Liberals introduced significant reforms. These included the elimination of traditional forms of ownership such as dominio (dominion) and primogeniture, alongside the confiscations of Church and municipal properties. These measures aimed to cultivate fallow land and establish a class of peasant proprietors who would work and invest in their land.
Impact of Land Reforms
These reforms led to an increase in cultivated area, the development of private property, and a commercial economy where land was increasingly viewed as a commodity. This transformation unfolded in two main phases:
- Abolition of Señoríos: While ending feudal rights, this phase often saw former lords become large landowners due to their financial capacity to purchase land. The situation of peasants, though now employees, did not significantly improve.
- Desamortizaciones (Confiscations): This brought vast amounts of land onto the market. Notable examples include Mendizábal’s ecclesiastical confiscations (1836) and Madoz’s municipal commons confiscations (1855).
Although the primary goal of establishing a broad class of peasant proprietors was not fully achieved, these reforms yielded significant benefits: they supported the war against Carlism, improved public finances, encouraged railway construction, and fostered interest in innovation, reflecting a new capitalist ethos.
Industrialization in Spain: A Slow Start
Industrially, Spain lagged significantly behind the rest of Europe, with development beginning slowly and in scattered pockets during the nineteenth century. Key industrial centers included textiles in Catalonia and steel production in Bilbao, Oviedo, Gijón, and Málaga.
Reasons for Industrial Lag
Several factors contributed to Spain’s industrial delay:
- Late industrialization of agriculture.
- Loss of colonies and the independence of Cuba.
- The Carlist Wars.
- Shortage of good quality raw materials (coal and steel).
- Poor communication networks.
- Technological backwardness.
- Lack of domestic capital and reliance on foreign financial and energy resources.
- Weakness of the domestic market due to low rural consumption.
- Lack of entrepreneurial mindset.
- High illiteracy rates.
The Spanish Railway Network Emerges
Railway development began in Spain in the mid-nineteenth century. The first lines were Barcelona-Mataró (1848) and Madrid-Aranjuez (1851). In 1855, construction of the national network commenced.
Railway Development and Consequences
The railway network had several significant consequences:
- It cheapened and accelerated the transport of people and goods.
- It stimulated the construction industry, employing thousands of workers.
- It attracted large investments.
- It benefited the steel, mining, and commercial sectors (including product delivery).
The 1855 Railway Law
The General Railway Law of 1855 established key characteristics for the network:
- A radial structure centered in Madrid, which hindered connections between industrialized areas.
- A wider gauge than most European railways, intended for more powerful locomotives but also contributing to Spain’s ‘European insulation’ due to fears of an invading army using the network.
- Authorization to use foreign products for construction, which unfortunately did not foster the development of a strong domestic industry.
- The installation of the first trams in Madrid and Barcelona.