Spain's Second Industrialization and Social Conflict (1900-1929)

Agrarian Conditions and Social Tensions

Agricultural laborers often lived in squalid conditions, only able to rent land temporarily for seasonal jobs. They became the main focus of rebellion against landowners.

The Rabassaire Conflict in Catalonia

In Catalonia, specific issues arose concerning properties like Mirjana, the Module system, and leases. A key element was the Contracte de Rabassa Morta (Rabassa Dead Contract), which lasted until two-thirds of the vines (rabassa) had died, typically after about 40 years. This system fueled significant social tensions in the countryside.

Unhappy and without possibilities for change, laborers organized strikes and riots, particularly between 1917 and 1920, encouraged by the Soviet Revolution. However, these efforts were largely unsuccessful because landowners maintained the support of the government and the Civil Guard. The Catalan conflict, known as the Rabassaire conflict, was further exacerbated by the phylloxera crisis affecting vineyards.

The Evolution of Spanish Industry (Early 20th Century)

The early twentieth century marked Spain's Second Industrialization, characterized by several key changes:

• Substitution of steam power with oil and electricity.
• Increased industrial concentration, particularly in the Basque Country.
• Augmented productivity in mining, especially coal and iron from Asturias and the Basque Country.

Despite the Crisis of '98 and political instability, significant economic progress was observed. However, two persistent problems were the competitiveness of foreign products and the lack of a unified domestic market.

Economic Cycles (1900–1929)

The period can be divided into distinct phases:

• Expansion Periods: 1900–1907, 1913–1918, 1923–1929.
• Crisis Periods: 1908–1912, 1919–1922.

Impact of World War I on the Spanish Economy

World War I caused global price inflation and a shortage of essential products. While Spain maintained production, the high demand from belligerent countries led to massive profits for employers. This situation was detrimental to workers; although salaries saw small increases, they could not cover the significantly higher cost of living.

Once the war ended, demand dropped, leading to a period of crisis that coincided with other international economic downturns. Social conflict intensified during this time, emphasized by the influence of the Soviet Revolution.

The Shift to Hydroelectric Power

Around 1911, Spanish industry began to rely less on imported coal and started utilizing hydroelectric energy. This crucial change meant that factories no longer needed to be located exclusively near rivers or ports where coal was received.

Notable industries emerging during this era include:

• Canadian Industries: (Hydroelectric power, named for the origin of capital).
• Corporación Cross: (Chemicals).
• Hispano-Suiza: (Automotive).

Ferrous metallurgy also saw consolidation, with companies like La Maquinista Terrestre y Marítima and Sociedad Española de Construcción Naval (established 1904) becoming leading metallurgical factories in Spain. The gains generated by WWI provided a stimulus for the renewal of technical equipment and machinery.

Post-War Crisis and Protectionism in Catalonia

Following the war, Catalan industry entered a crisis phase. This stage required reorientation, driven by dependence on the internal market and the return of protectionism and tariffs designed to limit foreign competition. This strategy aimed to stabilize the industrial sector and foster a situation of expansion, characterized by rising wages and competitive prices.