Spanish Industrial History: From Autarky to the EU

Industrialization in the Early 19th Century

Following the loss of Cuba, industrialization in Spain began partially. This delayed development was due to several factors:

• The dominant class consisted primarily of aristocratic landowners.
• The mastery of craft guilds limited industrial progress.
• Spain faced a low population, an economy focused on agriculture, limited resources, and high rates of illiteracy.
• An unstable political situation hindered growth.

Despite these challenges, small industrial initiatives emerged in Andalusia, Asturias, and the Basque Country.

Industrial Growth from 1900 to the Civil War

After the loss of Cuba, there was a repatriation of capital and foreign investments. Coupled with protectionist laws, industrial development focused on:

• Iron and mechanical industries.
• The textile industry.
• Exploitation of mining through foreign capital.
• The agro-food industry.

During this period, the population grew by one-third, providing more labor and a larger consumer base. During World War I, the textile and steel sectors supplied products to warring nations. However, the end of the war marked a period of recession.

The Post-War Era and the Stabilization Plan

After the Spanish Civil War and during World War II, Spain remained internationally isolated. This led to:

• An autarky policy: No commercial exchanges or open markets.
• Significant problems with the importation of raw materials.
• Technological delays and low purchasing power among the population.

The state intervened in the economy through the creation of the INI (National Institute of Industry).

The Stabilization Plan

The abandonment of autarky led to economic liberalization through the Stabilization Plan. With support from the United States, Spain experienced significant economic and social growth:

• The removal of duty equipment and the purchase of new goods led to a rise in productivity.
• Development of industrial goods and consumption expanded thanks to global economic expansion and foreign capital.
• The installation of multinationals occurred due to a plentiful and cheap labor force, low conflict, a growing market, and government incentives.

The Post-Industrial Transition (1975–1985)

This period was marked by a global crisis of the industrial model:

• An energy crisis triggered by military conflicts in the Middle East and rising oil prices dictated by OPEC.
• The crisis of the Fordist-Taylorist model (the assembly line of the Second Industrial Revolution).
• Competition from newly industrialized countries with lower production costs.

Spain faced the crisis with technological backwardness, low competitiveness, high energy consumption, and economic dependence on the exterior. To tackle this, the government created the IPMEA decree and the Industrial Reconversion Law.

Measures included:

• Sector reconversion: Eliminating industrial production with little demand.
• Promoting carbon energy.
• Early retirement and the establishment of ZUR (Zones of Urgent Reindustrialization).

The objective was to foster a competitive industrial sector that was technologically advanced and better equipped.

Modern Spain and EU Integration (1985–Present)

Spain's entry into the EEC (European Union) brought significant changes:

• The abandonment of protectionism in favor of economic liberalism.
• The privatization of public companies and the eventual removal of the INI.
• Access to economic aid and community budgets.