Enlightenment Reforms & Second Industrial Revolution Impact
Economic and Financial Reforms (18th Century)
Agriculture Reforms
- New irrigation works were implemented.
- Areas previously fallow or underutilized were cultivated.
- Pósitos (public granaries) were established.
- The privileges of the Mesta (sheep farmers’ guild) were abolished.
Commerce and Industry Reforms
- Internal customs were abolished.
- Domestic industry was protected.
- The creation of royal manufactures was sponsored.
Financial Reforms
To rationalize taxes and ascertain the nation’s true wealth, land registers (catastros) were initially created.
Cultural Advancements (18th Century)
Medical schools, botanical gardens, and economic societies of friends of the country were established.
Societal Characteristics and Changes (18th Century)
Key Societal Features:
- The nobility retained its privileges, but its members increasingly served as civil servants.
- The clergy maintained its economic power and influence over the populace.
- The bourgeoisie experienced increased wealth and political power due to these changes.
Political Challenges of the Era (18th Century)
Internal Politics: The Esquilache Riot
During the reign of Carlos III, the Esquilache Riot erupted, originating in Madrid and spreading across Spain. This uprising was partly fueled by attempts to reform traditional Spanish attire (long coats and wide-brimmed hats), which authorities argued could conceal criminals.
Foreign Policy: Seeds of Independence in Spanish America
In Spanish America, the idea of independence began to emerge, inspired by the example of the United States.
Reforms in Spanish America (18th Century)
Key Measures Implemented:
- Creation of new viceroyalties: New Granada and Río de la Plata.
- Trade liberalization: Carlos III ended the trade monopoly with America, opening it to all Spanish territories.
- Missionary work: Notably, the actions of the Jesuits were significant.
- Cultural stimulation: Through the establishment of universities.
The Rise of Large-Scale Capitalism
Beginning around 1870, economic activity experienced robust development, marking the era known as large-scale capitalism or the Second Industrial Revolution.
Key Factors Driving Industrial Capitalism
Unlike the first phase of industrial capitalism, this period saw the emergence of new factors that significantly contributed to economic growth, including:
New Funding Sources
Previously, industries were primarily financed by reinvested corporate profits. However, the installation and renovation of factories now required substantial capital, which was increasingly provided by bank loans to businesses.
Business Concentrations
Business concentration involved the merger of several companies, primarily to limit competition. This allowed employers to prevent overproduction, establish fixed prices, and explore new markets.
Forms of Business Concentration:
Vertical Concentration:
Companies manufacturing different products merged to control the entire production process.
Horizontal Concentration:
Companies engaged in the same activity associated to avoid competition. These groups often led to monopolies.
Internationalization of Markets
Trade relations between countries expanded significantly, though unevenly, with industrial powers primarily trading manufactured goods. This growth in international trade was further boosted by increased industrial production, the availability of precious metals, and advancements in communications.
Technical Advancements
Significant technical advancements emerged, such as the Bessemer converter. New metals like aluminum and nickel also found widespread use.
New Energy Sources
Electricity and oil began to replace coal as primary energy sources. Electricity saw significant development, notably with Edison’s invention of the light bulb and discoveries regarding hydropower generation. It found numerous applications. Oil gained importance as a fuel for transportation. This led to the establishment of companies dedicated to oil extraction and refining.