Spanish Socioeconomic Evolution (1902-1931)
Economic Evolution (1902-1931)
Industrial Development
In 1900, Spain remained largely agrarian. This situation persisted throughout the first decades of the 20th century. The only sector experiencing substantial change was industry. Production increased in mining and iron industries, primarily in the Basque Country, alongside the development of new sectors like electricity and chemicals.
Several factors limited industrial development: excessive geographical concentration in Catalonia and the Basque Country, technological dependence on foreign countries, and a weak national market.
Hacienda and Banking Sector
Early 20th-century governments focused on improving public finances. Debt interest reduction, expense control, and tax increases led to a favorable period from 1900-1909, marked by positive budgets.
The 1899 Law transformed the Bank of Spain, granting it control over money emission. This enabled inflation control and peseta stabilization, crucial for external trade.
Several important banks emerged during this period: Bilbao, Vizcaya, Mercantil de Santander, Hispanoamericano (with capital returning from Cuba), and Español de Crédito.
Economic Consequences of World War I
World War I brought an economic boom to Spain. Neutrality allowed increased production and export of raw materials, coal, and manufactured goods. The elimination of foreign competition from belligerent countries resulted in huge demand, fueling the boom.
However, the war’s end triggered a crisis. The internal market couldn’t replace lost exports, forcing many businesses to close. Workers, already affected by wartime inflation, faced further hardship.
Not all sectors were equally affected. Iron and chemical industries modernized; railways and mines transitioned to national ownership as foreign capital retreated; the textile industry struggled due to lack of modernization.
From Crisis to the Roaring Twenties
European difficulties prolonged the crisis until 1924. Primo de Rivera’s coup d’état occurred amidst economic hardship. However, the latter half of the decade mirrored the euphoria seen in other countries.
Economic recovery allowed the dictatorship to invest in infrastructure. Transformative changes included the creation of Hydrographical Valleys for irrigation, railway nationalization, and monopolies like CAMPSA (petrol) and Compañía Telefónica.
The downside was increased public debt, which negatively impacted the economy after the 1929 crisis and into the Second Republic.
Society (1902-1931)
Population
Population grew slowly but steadily due to a declining mortality rate, linked to improved health conditions. High infant mortality, however, highlighted the country’s backwardness. Catastrophes like the 1918-1919 flu pandemic further impacted demographics.
Rural-to-urban migration led to increased urbanization, with half the population becoming urban. External emigration was also significant, especially before World War I.
Social Evolution (1900-1930)
Spanish society was marked by vast economic disparities. While groups linked to industry and finance gained prominence and the middle class expanded, the working class also grew significantly.
Economic hardship within the middle class fueled political opposition, leading to alliances with republican or nationalist groups.
The working class organized around two unions: CNT and UGT. Landless workers in the south faced particularly difficult circumstances, leading to radical political stances.
Workers’ Movement
The Socialist PSOE and UGT were prominent in Asturias, the Basque Country, Madrid, and parts of rural Andalusia, while the anarchist CNT dominated Catalonia, Aragón, the Mediterranean coast, and Andalusia.
Like other European socialist parties, the PSOE faced a crisis after the 1917 Russian Revolution. The majority opted against joining the Communist International, while a small group split to form the PCE (Communist Party of Spain) in 1921, which remained a minority until 1930.
Anarchists experienced tensions between pacifists and extremist revolutionaries. The latter formed the FAI (Iberian Anarchist Federation) in 1927, which became influential during the Second Republic.
Minority Catholic unions developed in northern areas dominated by small farms (minifundio), uniting in 1917 as the Confederación Nacional Católico-Agraria.