Spain's Industrial Evolution: From Delay to Modernization

The Industrialization Process in Spain: Until the Mid-20th Century

The industrialization process in Spain began with a significant delay compared to other European countries. This delay became a drag on industrial activity in Spain throughout the 20th century. By the mid-19th century, industrial areas were limited to the Catalan textile industry and the Basque iron and steel industry. The importance of foreign capital for the exploitation of mineral resources and the development of transport infrastructure was notable.

The First World War forced European countries to seek supplies in Spain. This allowed Spanish products to reach European markets as their own production was paralyzed. However, profits were not reinvested, and business structures remained largely unchanged. When foreign markets closed, the country lapsed back into its industrial lethargy, which was worsened by the 1929 crisis. The Civil War caused widespread destruction of factories and infrastructure. Only the INI (National Institute of Industry), created in 1941, promoted some key areas for national defense and the economy.

1959-1975: Economic Growth and Development Plans

As of the mid-20th century, with the Stabilization Plan (1959), the Spanish economic system opened to external economic growth. This growth was primarily due to:

• The inflow of foreign capital.
• Income from tourism and emigrants.
• The abundant availability of cheap labor.

In the 1960s and 1970s, governments promoted development plans that favored economic growth and industrialization in Spain. Three major plans were launched:

1. First Industrial Development Plan (1964-1967)

   This plan established industrial development zones in A Coruña, Seville, Valencia, Vigo, and Zaragoza. It also created poles of industrial promotion in Burgos and Huelva, along with special plans for the Canary Islands and Gibraltar. Annual industrial production approached 6.5%.

2. Second Development Plan (1968-1971)

   This plan created five new poles of development. Annual production grew at a rate of 5.5%.

3. Third Development Plan (1972-1975)

   Its focus was on industrial, agricultural, and tourist areas. Annual growth gradually reached 7%. The production of goods diversified, with the manufacturing of consumer durables, equipment, and supplies replacing basic goods.

1975-1985: Crisis and Industrial Restructuring

The energy crisis of 1975 quickly evolved into a broader economic and industrial crisis. This crisis severely affected the more mature sectors of our country, with inflation exceeding 20%. The crisis was addressed starting in 1983 through a series of industrial reconversion plans, which led to the creation of Urgent Reindustrialization Zones (ZUR).