Spanish Industrial Evolution: 1855-1975 Analysis
Historical Development of Spanish Industry (1855-1975)
Early Industrialization (Late 19th Century)
The start of Spanish industrialization occurred late compared to other Western European countries. The causes were:
- Poor endowment in raw materials and some basic energy products.
- Low availability of entrepreneurial capital.
- Technological backwardness.
- Limited demand for industrial products.
- Preference for external markets/trade.
- Inadequate industrial policies.
Industrial Growth (Early 20th Century)
In the first third of the 20th century, significant industrial growth occurred. Causes included:
- Booming coal industry.
- Decline in mineral exports (encouraging domestic focus).
- Progress of the Second Industrial Revolution (hydrocarbons and electricity).
- Increased national investment.
- Promotion of public works and industrial protectionism.
Civil War and Post-War Crisis
During the Civil War and post-war period, industrial growth was interrupted. Causes included the destruction of war industries, which led to a situation of crisis.
Industrial Boom (1960-1975)
Between 1960 and 1975, Spain experienced a development stage known as the Industrial Boom, with huge growth in industry. Its causes were:
- Import liberalization.
- Expansion of the global capitalist economy and Spain’s advantageous situation.
- Low energy prices.
- Industrial development promoted through national development plans.
Key Aspects of Spanish Industry
Industrial Production
- Basic sectors: Integrated steel industry, refineries, petrochemicals, and naval construction saw significant development.
- Consumer goods industries: Textiles and footwear grew parallel to the increase in the population’s living standards.
- Capital goods industries: Machinery had limited development.
Industrial Structure
- Production system: Production was carried out in large factories that integrated various stages of work into a production chain.
- Labor: Labor was abundant but little qualified.
- Size: Characterized by the contrast between small and large enterprises.
- Technological backwardness and dependence: Reliance on external financial, energy, and technological resources.
Industrial Location and Policy
Factors and Trends of Industrial Location
a) Classic Industrial Location Factors:
- Proximity to raw materials and energy sources.
- Presence of a large consumer market.
- Presence of abundant and cheap labor.
- Existence of a good transportation system.
- Availability of capital and support sectors.
- State industrial policies.
b) Trend of Industrial Concentration: During that period, industry was concentrated in large urban agglomerations where companies could benefit from an accumulation of advantages or external economies, facilitating supply, transportation, labor procurement, sales, etc.
Industrial Areas
Since its inception, industry concentrated in peripheral regions and Madrid. Key peninsular industrial areas included:
- Basic quarrying areas near raw material sources.
- Port areas, ensuring access to ports for input or output products.
- Urban areas that emerged in industrial cities, often near railway stations for loading goods.
During the first third of the 20th century, earlier industrial regions established their hegemony:
- Cantabrian Strip regions: Specialized in basic sectors and large factories.
- Mediterranean regions: Characterized by small companies.
The Madrid area’s industry consolidated thanks to Franco’s policies and its position as a communications hub.
Industrial Policy
Key aspects of industrial policy included:
- Establishment of protectionist policies.
- Establishment of public companies.
- Measures introduced to correct territorial imbalances in the distribution of industry and development.
To carry out industrial promotion, various actions were taken, inspired by French industrial planning (‘poles de développement’):
- Development of industrial clusters in cities that already had some industrial basis.
- These promotional poles were carried out in more depressed areas.
- Other actions included: Zones of Industrial Preferential Location and large industrial expansion areas.