Spanish Industrialization: History, Stages, and Modern Policy

The Four Stages of Spanish Industrialization

Spanish industrialization is the result of a process that took place primarily in four distinct stages, leading to the creation of industrial spaces.

Stage 1: Rise of Industrial Centers (Mid-19th Century – 1900)

This period saw the rise of Catalan and Basque industrial sources within a predominantly agricultural context.

Stage 2: Growth and Protectionism (1900–1936)

Growth occurred through increased domestic investment, industrial protectionism, and the promotion of public works. During the Civil War and postwar period, growth was interrupted by the effects of conflict and Franco's autarkic policies.

Stage 3: Consolidation and Liberalization (1959–1975)

This stage marked the consolidation of the industrial system, driven by a series of transformations:

• The Stabilization Plan (1959): This plan initiated the liberalization and opening of the economy to the outside world, leading to great industrial development.
• Spain offered multinational corporations an expanding domestic market, reduced costs, and minimal labor unrest.
• The State encouraged industry through development plans and by reducing congestion in urban-industrial areas.
• Productivity rose, and exports of manufactured goods increased.

Stage 4: Economic Crisis and Restructuring (1975–1985)

Beginning with the economic crisis of 1975, this period initiated intense change in production structures. The crisis meant the reduction of production in traditional sectors (such as food), while others (like the automotive industry) increased their importance. In the eighties, industrial restructuring began, primarily affecting mature industries.

Urgent Industrialization Zones (ZUI)

Zones were established for Urgent Industrialization (ZUI), aimed at promoting investment to revitalize the industrial base and create jobs. The results were mixed:

• Investment grew, but fewer jobs were produced than expected.
• The benefits primarily went to large companies and concentrated in Madrid and Barcelona.

The Spanish Industry Today: Policy and Technology

The Third Industrial Revolution and High-Tech Sectors

The contemporary Spanish industry is marked by the Third Industrial Revolution, based on the application of new technologies, even as mature industries continue to face crises. High-tech sectors include telematics, automation, and other advanced technologies.

A notable trend is the tertiarization of industry, where service activities intervene increasingly in the production process.

Current Industrial Policy and EU Membership

Current industrial policy emphasizes increasing external openness as a result of European Union (EU) membership. This shift involved significant institutional changes:

• Some profitable state-owned companies have been privatized.
• This led to the demise of the INI (National Institute of Industry) and the creation of the SEPI (State Society of Industrial Participations), which brings together industrial and service companies with state participation.

Correcting Structural Problems and Environmental Policy

Policy measures aimed at correcting structural problems in the industry include:

1. Implementation of Community funds for technological upgrading of declining regions and the promotion of high technologies.
2. Support to SMEs (Small and Medium-sized Enterprises) in the form of counseling and financial aid to increase their competitiveness.
3. Increased investment in research and development (R&D).
4. Reduction of technological dependence by increasing Spanish participation in international technology programs.

Finally, environmental policies are crucial, seeking sustainable development across all industrial sectors.