Industrial Revolution in Spain and the Basque Country

Industrialization in 19th Century Spain

In Spain, there was a predominance of the subsistence economy. Consequently, there was no capital to invest (due to a lack of entrepreneurs), no markets, and very old transport infrastructure. The traditional bourgeoisie typically used their money to buy land rather than to invest in industrial ventures.

The Basque Country: Economic Shift

Industrialization arrived late in the Basque Country due to the collapse of the traditional iron-based economy (as Northern European iron was better and cheaper), the loss of American colonies (which meant the loss of their privileged iron market), and many wars that ruined the basic economy, such as the Civil War.

Industrial Development in Biscay

In the mid-19th century, Biscay saw the rise of big industries, foreign workers, and foreign capital. The creation of the Bessemer Furnace required a special iron ore (hematite) that was abundant in Biscay. Other contributing factors included the proximity to a port and the presence of a traditional merchant class. They exported mainly to England, which stimulated the development of:

• Mining and shipbuilding
• Communication infrastructure
• Iron and steel foundries
• Railways

This era saw the birth of the Biscayan oligarchy, which contributed to local and foreign investments, further developing the mining, paper, and hydroelectric power industries.

Gipuzkoa: Small-Scale Industrial Growth

At the end of the 19th century, Gipuzkoa developed small industries using local workers and capital. While there were some iron industries, the focus was mainly on paper, textiles, and the arms industry (which saw increased production during WWI). In 1906, the Union Cerrajera was founded.

Araba and Navarre

In Araba and Navarre, the industrialization process did not fully take hold until the 20th century.

Consequences of the Industrial Revolution

Demographic and Social Changes

• Demographic: Rural depopulation, emigration to cities and foreign countries, and a shift from the agricultural to the industrial sector. This led to the growth of the bourgeoisie's influence, the creation of new consumer markets, and the expansion of overseas trade.
• Social: Workers faced terrible living conditions, residing in very small, basic houses and working up to 12 hours a day. Women and children were also forced to work in these harsh environments.

Economic and Political Impact

• Economic: The ability to produce more goods cheaply led to the birth of a consumer society and the disappearance of traditional guilds. It also widened the gap between industrialized and non-industrialized countries and increased the importance of holding colonies.
• Political: A transition from absolutist to parliamentary monarchy occurred. The nobility was replaced by the industrial bourgeoisie, and new ideologies emerged, supported by the newly formed social classes.