Industrial Development in Spain: 1900-Present
Industrial Areas Between 1900 and 1975
a) Established Industrial Regions
**The Cantabrian Strip regions (Basque Country, Cantabria, and Asturias):** These regions exhibited marked specialization and were dominated by large factories under the control of INI.
**Mediterranean regions (Catalonia, Valencia):** These regions experienced wider industrial diversification.
**Madrid:** Madrid consolidated its industrial role due to the central policies of Franco’s regime.
b) Diffusion of Industry into New Areas (1960s)
**Peripheries of large urban-industrial agglomerations:** These areas attracted industries seeking cheaper land.
**National Industrial Axis:** This axis developed along major communication routes between industrialized regions.
**Isolated Industrial Cities:** These cities emerged with the establishment of basic industries or were declared promotional poles.
c) Limited Industrialization in Other Areas
Industrialization remained low in the rest of Spain.
6 Industrial Policy (1855-1975)
Framework and Objectives
Industrial policy developed within a framework characterized by protectionism and state intervention.
- Protectionist policies
- State intervention
The objectives were to promote industry and address unequal distribution.
Industrial Promotion and Decongestion
a) Industrial Promotion in Backward Areas
**Promotion and Development Poles:** These aimed to promote industrial concentration.
**Industrial Development Poles:** Established in cities with some industrial base.
**Promotion Centers:** Results were mediocre.
**Other Actions:** Incentives were provided to industries that established themselves in specific areas, such as industrial estates and preferred industrial location zones.
b) Decongestion of Urban-Industrial Conurbations
Relocation of industries to decongestion polygons was encouraged.
Industrial Crisis and Restoration (1975-1985)
Industrial Crisis
Causes
External Factors:
- High energy costs due to oil price rises in 1973
- Technological innovations of the Third Industrial Revolution
- Demand for higher quality and design
- Globalization and international division of labor
Internal Factors:
- Unfavorable specialization in mature and energy-intensive industries
- Historical context of Franco’s death and transition to democracy
Industrial Restoration
OECD countries implemented industrial restoration policies from 1975.
Restoration involved two aspects: industrial reconversion and reindustrialization, both supported by aid.
Industrial Reconversion
**Goal:** To improve the viability and competitiveness of crisis-stricken industrial sectors.
**Actions:** Adjusting production to meet demand, including closures or capacity reductions.
**Results:** Significant job losses and reduced concentration of large businesses.
Reindustrialization
**Objective:** To strengthen the industrial fabric of areas affected by reconversion and generate employment.
**Key Actions:** Creation of Urgent Reindustrialization Zones (ZURs) in 1983.
**Results:** Increased investment and industrial diversification.
Changes in Industrial Production and Structure
1 Changes in Industrial Production
Promotion of new high-technology sectors, including telematics, ICT, automation, precision instruments, new materials, transport, biotechnology, lasers, and renewable energy.
2 Changes in Industrial Structure
a) Decentralization and Production Flexibility
**Decentralization:** Dividing production processes into phases and locating them in separate establishments.
**Flexibility:** Producing small series of differentiated products at profitable prices.
b) Changes in Company Size
c) Changes in Industrial Employment (Qualification, Outsourcing, and Deregulation)
Manifestations of Industrial Recovery
European integration and advancements in the Third Industrial Revolution have fostered industrial development in Spain.
Current Industrial Production
Mature industrial sectors with low technological intensity still hold significant weight in Spain, while the most dynamic sectors have a presence of foreign capital.
Mature Industrial Sectors
a) Metallurgy and Metal Transformation
- Steel industry
- Metal processing industry
b) Manufacture of White Goods (Household Appliances)
c) Shipbuilding
Facing strong competition from lower-cost countries, the shipbuilding industry is undergoing a challenging restructuring.
d) Textile Industry
Concentrated in Catalonia and the Valencian Community.