Spanish Industrial Policy and Economic Evolution: 1855-1975

Industrial Policy (1855-1975)

Protectionism

Protectionism aimed to liberate industry from external competition by imposing import tariffs. However, this policy ultimately disincentivized industrial modernization.

State Intervention

The state drove industrial growth to correct unequal distribution, particularly during the Franco era. Key strategies included:

• Promotion: The creation of Pols de Desenvolupament (Development Poles) selected specific cities in underdeveloped regions to promote industrial concentration. Results were often mediocre, with limited dynamic effects on local employment.
• Decongestion: Relocating industries from major hubs to nearby areas to alleviate congestion.

Causes of the Industrial Crisis

External Factors

• Global economic shifts and energy crises (oil price hikes).
• Increased production costs and low demand.
• The Third Industrial Revolution rendering previous models outdated.
• New requirements for quality, design, and globalized labor division.

Internal Factors

• Shortcomings in Spanish industry, specifically an unfavorable specialization in mature, energy-intensive sectors.
• Historical context: The transition to democracy following Franco's death shifted focus away from economic crisis management.

Measures for the Crisis

Industrial Restructuring

This involved acting on declining sectors to adjust production to market demand. Measures included company closures, capacity reduction, staff regulations, and technological modernization. While it led to job losses, it helped survivors become more competitive.

Reindustrialization

Focused on creating future-oriented industries in affected areas (Asturias, Barcelona, Madrid) to diversify economic activity. Companies received tax and financial incentives, resulting in growth and diversification.

Leading Industrial Sectors

High-intensity economic sectors in Spain have faced late development due to external dependence. Modern industrial strategy now focuses on:

• Technological and Scientific Parks: Located near mid-sized cities with high environmental quality and accessibility.
• Incubators: Designed to act as locomotives for local development by attracting new enterprises.

These hubs are primarily concentrated in Madrid, Catalonia, the Basque Country, Valencia, and Andalusia.