The Spanish Economy in the 19th Century: Agriculture and Industry
The Spanish Economy in the 19th Century
Agricultural Supremacy
During the 19th century, two-thirds of the population worked in the fields, and agriculture generated more than half of the national income. The sector was dominated by products for export and based on the Mediterranean trilogy: wheat, olive oil, and wine.
Production growth throughout the century remained very low due to low yields. Stagnation was further exacerbated by tariff protection, which shielded agriculture from competition but discouraged innovation, leading to under-utilized land and labor. Consequently, agriculture failed to trigger an industrial revolution because the surplus was insufficient, peasant demand for industrial goods was low, and the migration of the agricultural population to industrial sectors was insignificant.
The Impact of Confiscations (Desamortizaciones)
Confiscations involved the sale of half the arable land previously held by "dead hands" (estates that could not be sold). This procedure was intended to stabilize state finances.
- Mendizábal (1837–1844): Targeted ecclesiastical properties to sanitize state finances and fund the fight against Carlists.
- Madoz (1855–1867): Targeted remaining church properties and municipal lands to finance infrastructure, specifically the railway.
Consequences: Large areas of land were sold, absorbing private capital without changing the property structure. The process sacrificed the rights of landless peasants and alienated the clergy, fueling support for Carlism.
The Failed Industrial Revolution
Catalan Textile Industry
Starting in the 18th century, the cotton sector thrived due to early advantages, the entrepreneurship of the Catalan bourgeoisie, technical advances, and protectionist tariffs against English imports in markets like Puerto Rico and Cuba.
The Steel Industry
Development was hindered by poor coal quality and insufficient demand. It evolved in three stages:
- Andalusia (Málaga): Early development.
- Asturias (1860–1880): Focused on Langreo and Mieres.
- Basque Country (Vizcaya): The key success story. The Bilbao axis exported iron and imported high-quality coal from Cardiff.
Mining
Spain possessed large reserves of copper, iron, lead, and mercury, often located near ports. While initially inactive due to low demand and legislative obstacles, the Basic Law on Mining (1868) simplified concessions for foreign companies, leading to an export boom of raw materials.
Overview of Spanish Industry
The economy was characterized by a predominance of foreign capital, with the exception of the Catalan textile and Basque steel sectors. By the end of the 19th century, despite industrial efforts, two-thirds of the workforce remained in agriculture, which still generated half of the national wealth.