The Second Industrial Revolution brought significant advancements, including the widespread use of electricity, new chemical industries, and the development of artificial cement.
Spain: Economic and Monetary Unification
This period saw the creation of the peseta in 1868, establishing an economic and monetary union.
Inland customs disappeared, facilitating trade.
Extensive railway construction modernized transport infrastructure.
The feudal system was abolished, transforming land ownership and labor.
A revision of the juridico-mercantile framework occurred, including the Act on Public Limited Companies (SA) of 1856.
Despite these changes, Spain maintained commercial isolation and focused on internal cereal production.
The steam engine was adopted for various transport applications.
Valencia: Finance, Agriculture, and Modernization
Valencia's economy was driven by finance and agriculture, serving as a gateway to modernism.
The region faced a financial crisis in 1866 due to management problems.
Key agricultural exports included raisins, wine, and oranges.
Valencia rapidly incorporated transport innovations and new agricultural techniques.
The region showed a greater propensity to export compared to other parts of Spain.
Conflict: Free Trade vs. Protectionism
A significant economic conflict arose between proponents of free trade and protectionists.
World Wars, Depression, & Spanish Industrial Growth
Context and Milestones: Global Conflicts and Economic Downturn
This era encompassed two major World Wars and the Great Depression of 1929.
Spain: Industrial Expansion Amidst Isolation
Spain experienced an extension and diversification of industry alongside technical innovations.
However, the country largely maintained its economic isolation.
Valencia: The Golden Age of Oranges and Export Strength
The 1920s marked the golden age of the orange for Valencia.
New irrigation systems were implemented.
The manufacturing base strengthened, driven by exports to countries at war and import substitution strategies.
Bretton Woods, EEC, & Spain's Economic Boom
Context: Post-War Global Economic Order
Key developments included the creation of the Bretton Woods monetary system.
The European Economic Community (EEC) was established.
The Marshall Plan played a crucial role in European recovery.
Spain and Valencia: From Scarcity to Consumption
The implementation of a Stabilization Plan led to an economic boom.
Society transitioned from a world of scarcity to one of consumption.
This period saw improving domestic demand, an influx of foreign capital, growth in tourism, remittances from emigrants, and the rise of outsourcing.
Global Oil Crisis & Spanish Democratic Transition
Global Level: Oil Crisis and New Economic Powers
The world faced a severe oil crisis with rising prices.
Challenges emerged for the monetary system, and Newly Industrialized Countries (NICS) gained prominence.
The era marked increasing globalization.
Spain: Democratic Transition and Institutional Changes
Spain navigated a complex democratic transition, characterized by initial government weakness.
The 1977 Moncloa Pacts aimed to stabilize the economy and politics.
Institutional changes included increased freedom of association, which led to higher unit labor costs (sometimes perceived as a 'tax' on employment).
This period also saw a significant increase in unemployment and the creation of the state of the autonomies.
Valencia: Regional Autonomy Established
Valencia participated in the creation of the state of the autonomies, gaining regional self-governance.
Recovery & European Integration
Spain's Entry into the European Community and Economic Recovery
In 1986, Spain formally entered the European Community.
The period was marked by a decline in oil prices, contributing to economic recovery.
Economic Crisis & Peseta Devaluation
OECD Region: Oil Prices and Interest Rate Volatility
The OECD region experienced fluctuations in oil prices and high interest rates.
Spain: Inflation, Unemployment, and Peseta Devaluation
Spain faced increasing inflation, rising unemployment, and high interest rates.
The peseta underwent devaluation.
Comunidad Valenciana (CV): Housing and Export Challenges
The Comunidad Valenciana dealt with housing stock issues and export problems.
The weak Spanish economy significantly impacted Valencia's economic performance.
Sustained Growth & Construction Boom
Devaluations, Openness, and Export Growth
This sub-period saw successive devaluations of the peseta.
