The Industrial Revolution and Its Impact
Agricultural Revolution
The changes that occurred in agriculture were of great importance in the development of industry. One consequence was the reduced need for agricultural labor, forcing many peasants to migrate to towns for industrial employment or overseas seeking new opportunities. Additionally, increased productivity led to more abundant food and higher earnings for both landlords and laborers. These earnings were then invested in the growing industry. These changes subsequently spread to several countries in Europe.
Demographic Revolution
The population patterns of the Ancien Régime persisted until the latter half of the 18th century when the birth rate remained stable, but the death rate declined. Several factors contributed to this: new technology and land consolidation increased food production, resulting in a healthier population less susceptible to plagues and diseases. Significant medical advancements, such as vaccination, also played a role. Improved communication facilitated easier and cheaper food transportation during poor harvests. This period also saw fewer wars. Consequently, the population rapidly increased during the 18th and 19th centuries. This led to significant emigration overseas to America, Australia, and elsewhere. These new countries became suppliers of cheap raw materials and new markets for industrial goods.
Technical Innovation
Until the late 18th century, people relied on tools powered by their own bodies. Afterward, these tools transformed into machines with the incorporation of engines. The most significant invention was James Watt’s steam engine in 1776. Until then, water had been the sole power source, limiting the location of industries. The steam engine was quickly adopted in mining, industry, and transportation.
Revolution in Transport
The use of the steam engine in trains and ships was crucial. It reduced the distance between producers and consumers, enabling faster and cheaper transportation of goods. Moreover, the transport revolution aided industrialization by necessitating new infrastructure networks (steel for railways, new ports, and new power sources like coal).
Accumulation of Capital and Investment
The industrialization process required substantial funding, known as capital accumulation. As industrialization progressed, companies generated more profits, which were reinvested. Money from the agricultural revolution was also invested. This occurred in England due to the Triangular Trade, where the English transported enslaved Africans to America, brought colonial produce back to Europe from America, and sold it at high prices.
Colonialism
European countries colonized Asia, Africa, and nearly all American countries. Colonies provided two fundamental factors for industrialization: they supplied cheaper raw materials in large quantities needed by industries, and their populations served as consumers, forming the market for the products manufactured in the colonizing countries. These were large and closed markets, meaning only the colonizing nation could trade there.
Political Change
New inventions and production systems would have been impossible under a guild-controlled system. The significant economic changes brought about by industrialization could not have occurred in an estate-based society ruled by an absolutist political system. This is why industrialization first took place in Great Britain and the Netherlands, where bourgeois beliefs prevailed. The prevailing belief was that work and earning money were the proper paths to follow.
Industrialization in the Basque Country
| Bizkaia | Gipuzkoa | |
|---|---|---|
| When | The second half of the 19th century | The 19th century |
| Where | On the left bank of the Nervión estuary and in Bilbao | Deba, Urola, and Oria valleys and in the Hernani-Pasaia-Irun district |
| Type of Companies | Single: iron and steel | Small and medium-sized companies |
| Size of Companies | Big | Small and medium |
| Workforce | Local rural population, immigrant workers | Local rural population |
| Ownership | Foreign investors, local businessmen | Local businessmen, cooperatives |
1. When were Araba and Nafarroa industrialized? Why?
1960s. Bizkaia and Gipuzkoa were highly industrialized.
2. What did the authorities do to promote industrialization?
Nafarroa: Foral Government
Araba: City Council of Vitoria-Gasteiz
Both:
- Made land, electricity, water, and roads available.
- Offered tax benefits. Companies had to pay lower taxes.
3. Which are the main industrial areas?
In Araba: Vitoria-Gasteiz and the Ayala valley
In Nafarroa: Pamplona and around the province