Spanish Industrial History: 1850 to 1950

The Beginnings of Industrialization (1850-1900)

Between 1830 and 1880, industrial output quadrupled, especially within the textile industry, steel, and several agro-food companies. There was a mechanized division of labor, although the production process was frequently interrupted by the Carlist wars, military coups, and political conflicts. By 1900, only 16% of the population was active in this sector.

• A protectionist policy was established with import tariffs to modernize technically.
• Most industries were located in Catalonia, dominating textile, paper, wine, and flour production.
• The government was forced into the repatriation of capital from old colonies.
• Wool was substituted by the cotton industry, alongside the introduction of the steam engine.

The First Third of the 20th Century (1900-1939)

This era was marked by three political systems: the Restoration, the Primo de Rivera dictatorship, and the Second Republic. Industrial growth was driven by neutrality during World War I and the repatriation of capital from colonies lost in 1898.

• Industrial protectionism and debt increased due to public works during the Primo de Rivera dictatorship.
• Nationalization of monopolies occurred, such as Telephone (1924) and Oil (1927).
• The 1929 crisis caused a fall in primary sector exports, which acted as a brake on industrialization.

Industry Under Fascism and Autarky (1939-1950)

The period between 1939 and 1950 was defined by industrial decline and autarky. While transport was destroyed, the energy infrastructure and industry remained relatively intact. However, the GDP fell by almost 25%, reaching the lowest consumption levels, and the value of the peseta decreased by 50%.

• In 1941, inflation reached 234%; during this year, Spain was allied with Italy and the German government.
• Reconstruction plans were slow. In 1941, the INI (Instituto Nacional de Industria) was created.
• The INI launched factories for aluminum, nitrates, shipyards, and oil refining.
• International isolation lasted until 1950.
• Nationalization included CAMPSA, Iberia, and various mining farms.
• Extensive construction of swamps (reservoirs) and public works was undertaken for reconstruction.