Spain’s Economic and Social Evolution (1833-1875)
Economic and Social Transformation (1833-1875)
The Spanish Economy and Society
The evolution of the Spanish economy was characterized by its position, distinct from the industrialization processes seen in other European countries. This was largely due to the backwardness of Spanish agriculture, stemming from poor land quality and challenging weather conditions. Furthermore, liberal land reforms, including confiscations (desamortizaciones) and expropriations, consolidated private property. While these measures helped alleviate the Spanish Treasury’s debt and increased agricultural production, overall productivity did not significantly improve, and technical backwardness persisted.
Despite these challenges, some progress was made in several sectors, including:
- The financial world, particularly the emergence of the stock market.
- The textile industry, which began to flourish in Catalonia.
- Most notably, the railroad. Although its development in Spain was somewhat later than in other European countries, the railway provided a significant boost to the nation’s economy.
The establishment of liberalism during the reign of Isabella II marked the demise of the old estate system and the principle of equality of citizens before the law. This period saw the emergence of a class society, primarily based on wealth. Thanks to the disentailment policies, the bourgeoisie thrived by purchasing confiscated lands. The aristocracy, while not losing its importance, transformed into large landowners. The middle classes shared some aspects of the powerful groups’ lifestyle, but their wealth was considerably lower. The popular classes, including artisans and urban groups, remained largely disadvantaged. Farmers either held small amounts of land (smallholders), became tenants, or were landless laborers. Employers paid the proletariat based on work performance, and Spain remained largely agrarian.
The Rise of the Labor Movement
The labor movement emerged concurrently with industrialization. Initially, it manifested as spontaneous expressions of rebellion, often taking the form of Luddite actions (destruction of machines). In 1840, the first union appeared in Barcelona. These early unions aimed to improve workers’ conditions and wages. The union movement developed significantly during this decade.
The labor movement further developed during the Revolutionary Sexenio (1868-1874), as Spanish workers came into contact with European ideas. This period saw the influence of figures like Karl Marx and Mikhail Bakunin, and the spread of the International Workingmen’s Association (AIT), founded in London, which encompassed both socialist and anarchist currents. The revolutionary climate was ripe for finding supporters to join the IWA. Subsequently, the AIT in Spain divided into socialist and anarchist factions. Shortly after, Sagasta’s government dissolved the organization, forcing its members underground. Cantonalism also had a significant social change dimension. After this revolutionary period, a significant portion of the working masses, largely apolitical before, gravitated towards anarchism.
Disentailment: State Confiscation of Assets
Disentailment, through the confiscation by the State, converted the assets of the Church and municipal councils into national assets. The primary intention was to increase tax revenue, improve state finances, and eradicate public debt.
The disentailment driven by Mendizábal in 1836 focused on Church property. Religious communities were dissolved, and their properties were confiscated and brought to public auction. The disentailment of Madoz in 1855 affected the remaining religious communities, secular clergy, state properties, and municipalities. The proceeds from Madoz’s disentailment were higher than those from Mendizábal’s, which favored the development of agriculture, increased arable land, and led to many peasants becoming landless laborers.
Early Industrialization in Spain
The early development of 18th-century manufacturing stalled during the reign of Ferdinand VII, primarily due to the destruction from the War of Independence, a lack of capital and entrepreneurship, and persistent political instability.
The real takeoff of modern industrialization during the Moderate Decade (1844-1854) was moderate, influenced by the presence of foreign capital and technology, as well as population growth. The construction of the Spanish railway network encouraged the arrival of foreign capital and manufactures, but also led to increased imports of foreign goods, which could hinder domestic production.
The most developed sectors were steel and textiles. Barcelona’s textile industry was widely developed, but its low competitiveness under liberal trade policies often led to calls for protectionism. The steel industry was located on the Cantabrian coast and developed quite late compared to other European nations.