19th Century Spanish Land Reform and Extremadura Economy

The Mendizábal and Madoz Confiscations

The economist Estrada Flórez harshly criticized the secularization process, arguing that it only benefited and encouraged individualism. His proposal suggested that the land should pass to the state as the owner and that the state, in turn, should lease it to landless peasants over a long period.

The Secularization of Madoz

The Madoz Confiscation started in 1855 to complete the work of Mendizábal, and some of its consequences reached into the early twentieth century. To the confiscation of church property, one must add municipal property, as well as the assets of various public institutions such as hospitals, councils, charities, and universities. This process was again linked to the national debt problem without achieving true agrarian reform.

Social and Economic Implications

The sale of municipal assets meant depriving councils of resources and peasants of land and the collective use of property. Key outcomes included:

• Revenue: The state obtained 1,100 million from church property and 2,000 million from civilian goods. However, parts of these quantities were government bonds, so the actual value was significantly inferior.
• Debt and Privatization: With this income, the government was able to reduce public debt, and assets that were previously in "dead hands" (manos muertas) were privatized.
• Social Impact: There was no true agricultural reform, but rather a redistribution of land that caused social frustration and unrest. Property became concentrated in the hands of the nobility and gentry, forming an oligarchy integrated into the Moderate Party.
• Agricultural Changes: Acreage was increased while pasture land decreased. The church and town halls were very impoverished by the confiscation.
• Migration and Politics: Certain people were impoverished and began to migrate. The process helped win the Carlist War and expanded the social groups that supported liberalism.

Industry and Trade in Extremadura

The Industrial Landscape

Industry in Extremadura had not passed the craft field and barely covered the minimum requirements for materials and tools for agricultural or domestic service, which were the only demands in the region. There were few natural options for industrial development and very few capitalists whose investments could have stimulated the industry. It could not leave its basic craft level, with only a few factories and workshops meeting the unique needs of the region, such as Hervás textiles and Cáceres tanneries.

Mining and Trade Challenges

Mining was in a complete state of disrepair, or rather, ignorance regarding its potential. From 1840, it met a relaunch, with significant achievements in phosphorite mining since 1858. Trade was crippled by several factors:

• Poor communications and infrastructure.
• Limited trade with Portugal.
• The geographical situation of the region, surrounded by grain-rich provinces.
• Government protectionism policies that had been introduced to the cereal sector.