Industrial Evolution of Spain: From Delay to Modernity

The Late Industrial Revolution in Spain

Spain's industrial revolution occurred later than in other Western European countries. The primary causes for this delay included a poor endowment of raw materials and basic energy products, such as cotton and coal, low levels of entrepreneurship, and a lack of capital. Additionally, technological backwardness, limited demand due to low population growth, rural poverty, an unfavorable external situation, and inadequate industrial policies hindered progress.

Industrial Beginnings in the 19th Century

During the nineteenth century, the first iron, steel, and textile industries were created. However, these were characterized by backward technology and a heavy dependence on foreign capital.

Growth in the Early 20th Century

The first third of the twentieth century saw significant industrial growth. The causes included:

• The decline of mineral exports and the rise of coal mining.
• Increased domestic investment from the repatriation of capital from colonies lost in 1898.
• Profits from exports to Europe during World War I.
• The momentum provided by the dictatorship of Primo de Rivera.

Industrial Regression and Autarky (1939–1959)

The causes of industrial regression between 1939 and 1959 were the destruction of war and post-war autarkic policies that aimed for self-sufficiency. The State established the INI (National Institute of Industry), which encouraged the exploitation of domestic resources and imposed restrictions on foreign investment and imports. This period solidified an industrial structure characterized by large state-controlled companies.

The Industrial Boom (1960–1975)

From 1960 to 1975, Spain experienced massive industrial development. This was driven by the expansion of the global capitalist economy, which led multinational companies to invest in new areas, including Spain. Other factors included the influx of capital, low energy costs, the liberalization of imports, and state-led development plans. Industries were primarily located in large cities.

Crisis and Industrial Reconversion

An industrial crisis has affected all industrialized countries since 1975. External causes included rising energy prices, the exhaustion of previous technological cycles, and the globalization of the economy. Internal causes were rooted in structural weaknesses within Spanish industry and specific historical circumstances.

Subsequently, industrial reconversion was introduced as a "shock treatment." This process acted intensively over a short period to ensure the medium-term sustainability of industries in crisis through necessary reforms to adapt to the new technological cycle. This process significantly affected mature sectors.