Bourbon Dynasty: Spain’s Foreign Policy and Colonial Shifts
After the Treaty of Utrecht, Spain’s foreign policy objectives were to regain Gibraltar and Minorca from British control, and to place Bourbon princes in power in Italy. This policy was based on an alliance with France, formalized in several Family Pacts, and a rivalry with England in the Atlantic due to British threats to Spanish possessions in the Indies.
Philip V’s Reign (1700-1756)
Philip V (1700-1756) focused on recovering Italian territories. Initial solo attempts failed, leading to an alliance with France. This alliance resulted in the First Family Pact (1734) and the Second Family Pact (1743). These agreements supported French interests in the War of Polish Succession (1733-1738) and the War of Austrian Succession (1743-1748). As a result, Philip V secured the crown of Naples for his son Charles, the future Charles III of Spain, and the Duchy of Parma for Prince Philip.
Fernando VI’s Neutrality (1746-1759)
Under Fernando VI (1746-1759), Spain adopted a neutral foreign policy, maintaining distance between London and Paris.
Charles III and Renewed Alliance with France (1759-1788)
Charles III (1759-1788) returned to an alliance with France, signing the Third Family Compact (1761) and involving Spain in the Seven Years’ War (1761). The British victory, alongside Portugal, led to the Treaty of Paris (1763), where Spain ceded Florida to England and Sacramento to Portugal. To compensate, France ceded Louisiana to Spain. Later, Spain, with France, supported the American rebels against England. The British defeat resulted in the Treaty of Versailles (1783), allowing Spain to recover Menorca, Florida, and Sacramento.
Charles IV and the Napoleonic Era (1788-1808)
The foreign policy of Charles IV (1788-1808) was heavily influenced by the French Revolution, leading to the Peninsular War against Napoleon in the early 19th century.
Bourbon Reforms in the Colonies
The Bourbon Dynasty did not initially bring significant changes to the colonies. The administration remained largely unchanged, and the trade monopoly persisted (despite increasing British smuggling). Silver shipments to Spain and manufactured goods to the colonies continued, with Cadiz replacing Seville as the primary port. Colonial society was structured around two groups: the white population (Spaniards and Creoles), who controlled administration, land, and wealth, and the indigenous majority and African slaves, organized along racial lines. Significant racial mixing occurred.
Shifting Colonial Policies
From the mid-18th century, the Bourbons initiated changes to make the colonies more profitable. Trading corporations, modeled after English and Dutch examples, were promoted with limited success. Registered ships were introduced, allowing trade outside the traditional fleet system, increasing trade with Cadiz. During the reign of Charles III, significant reforms were implemented.
Administrative and Economic Reforms
The Crown sought to increase administrative control over the Indies, excluding natives from administration. A new viceroyalty was created in the Río de la Plata in 1776, and the position of Mayor was established to strengthen control over American territories. The expulsion of the Jesuits in 1767 had a major impact, with the Crown annexing significant land, especially in Paraguay, previously held by the Society of Jesus. Taxes were increased, and in 1778, free trade was allowed between Spain and the Indies, breaking the Seville-Cadiz monopoly. This new policy, focused on benefiting Spain, sparked protests from the Creoles, who were excluded from administrative positions, and exploited indigenous labor. In 1780-1781, a major revolt was initiated in Peru by natives, which was harshly repressed.