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Jordi Catalan Francoist Spain Under Nazi Economic Hegemony, 1936–1945

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Jordi Catalan Francoist Spain Under Nazi Economic Hegemony, 1936–1945 Jordi Catalan Francoist Spain under Nazi Economic Hegemony, 1936–1945 1. The Spanish economy, 1914–36: structural change, industrial break- through and political instability During the late decades of the Nineteenth century, the Spanish economy diverged from Western Europe. Maddison’s per capita GDP data suggests that Spain’s aver- age income in relation to Western Europe fell steadily: from 82 per cent in 1913 to 65 per cent in 1870 and 61 per cent in 19131. On the eve of World War One, its level of industrialization was very poor in comparative terms: only 14 per cent of the Spanish male workforce was employed in mining, manufacturing and con- struction, compared with a proportion of at least a third in early industrialized countries such as Britain, France or Germany. Spain also lagged significantly be- hind latecomers such as Italy (24 per cent), Hungary (19 per cent) or Norway (28 per cent). Analysing the first century of modern industrialization from a compara- tive perspective, it seems very difficult to deny the failure of the first industrial revolution in Spain2. The situation began to change in the early twentieth century. By 1930 the share of male labour in the Spanish industry had jumped to 25 per cent, a proportion close to those recorded in Italy (26 per cent), Hungary (26 per cent) and Norway (29 per cent) and notably higher than that in Portugal (19 per cent), the Republic of Ireland (17 per cent) and the Balkan countries (all below 17 per cent). The sharp increase in secondary activity indicates that the Spanish process of development experienced an industrial outburst between World War One and the 1930s3. 1 A. Maddison, Monitoring the World Economy, 1820–1992 (Paris 1995) 194–199, 228. 2 J. Nadal, El fracaso de la revolución industrial en España, 1814–1913 (Barcelona 1975). J. Na- dal, Industria sin industrialización, in: G. Anes, Historia económica de España. Siglos XIX y XX (Barcelona 1999) 185–222. J. Nadal, J. M. Benaul, J. M. Valdaliso, Las industrias de la Primera Revolución Industrial, in: J. Nadal (ed.), Atlas de la industrialización de España 1750–2000 (Bar- celona 2003) 131–175. 3 Carreras and Tafunell are right to consider the 1920s as the silver period of the Spanish contem- porary economic growth. Albert Carreras, Xavier Tafunell, Historia económica de la España contemporánea (Barcelona 2003) 223–261. See also: A. Carreras, La producción industrial españo- la, 1842–1981: construcción de un índice anual, in: Revista de Historia Económica 1 (1984) 127– 157. A. Carreras, La industria: atraso y modernización, in: J. Nadal, A. Carreras, C. Sudrià (eds.), 230 Jordi Catalan Table 1. Rates of male industrial activity in Europe % of working population Circa 1910 1930 1950 1960 Austria 31.6 38.8 46.3 50.4 Belgium 49.5 51.8 51.6 52.5 Denmark 27.3 33.1 39.0 41.9 Finland 12.5 18.5 32.4 37.7 France 33.5 37.5 41.6 43.9 Germany 48.7 49.4 52.7 56.2 Greece 17.0 18.3 22.4 Ireland 19.6 16.7 25.9 26.6 Italy 23.6 25.4 31.0 39.8 Netherlands 37.4 41.8 43.0 48.0 Norway 27.8 29.3 39.7 40.8 Portugal 21.7 18.9 23.0 28.6 Spain 14.4 25.3 25.6 30.1 Sweden 30.2 37.1 46.3 52.7 Switzerland 46.2 48.4 51.0 56.3 United Kingdom 54.4 49.6 53.6 53.2 Source: J. Catalan, Economía e Industria: la ruptura de posguerra en perspectiva comparada, in: Revista de Historia Industrial 4 (1993) 112. The most recent estimation of Spanish GDP confirms substantial growth accel- eration at the beginning of the twentieth century4. Whereas the per capita rate of growth was probably around 0.7 per year between 1892 and 1913, it would have risen up to 1.8 per cent between 1913 and 1929. Moreover, Maddison’s work also indicates some convergence with the rest of Europe after the end of the Great War onwards. His comparative data shows that Spanish per capita GDP increased from 61 per cent of the Western Europe average in 1913 to 67 per cent by 1929. Three main causes account for the strengthening of Spain’s industrialization process in the early twentieth century: the diffusion of the second industrial revo- lution’s techniques; the beneficial effect of neutrality in World War One; and the widening of the domestic market, associated with the good performance of Medi- terranean agrarian products (especially citrus) in the world market. La economía española en el siglo XX. Una perspectiva histórica (Barcelona 1987). A. Carreras, What can we learn from long-term Spanish economic performance?, in: P. Martín-Aceña, J. Simpson (eds.), The Economic Development of Spain since 1870 (Aldershot 1995) 28–47. 4 L. Prados de la Escosura, El progreso económico de España (1850–2000) (Madrid 2003) 145– 165. Francoist Spain under Nazi Economic Hegemony, 1936–1945 231 On the eve of World War One, high voltage and alternating power significantly reduced the costs of energy transportation and favoured the exploitation of the hydroelectric potential of mountains such as the Pyrenees5. The availability of cheap electricity allowed the partial substitution of coal in manufacturing and the railways. The electric furnace was introduced in metallurgy to produce steel, cop- per and aluminium. The electrochemistry was used to manufacture products such as calcium carbide and caustic soda6. The use of electro-plating for tin deposition stimulated canning and food processing industries7. The diffusion of the electric motor boosted the profitability of small scale concerns such as shoemaking, clothes making and arms manufacturing8. The electrification of railways increased the demand for rolling stock. Whereas the consumption of electricity had grown about 12 per cent per year during 1880–1913, it increased at a yearly rate of 15 per cent during 1913–1929. The combustion engine sharply reduced transportation costs of raw materials and manufactured outputs in a country with a lower density railway system than 5 C. Sudrià, Un factor determinante: La energía, in: J. Nadal, A. Carreras, C. Sudrià (eds.), La economía española en el siglo XX. Una perspectiva histórica (Barcelona 1987) 318–327. C. Sudrià, Energy as a Limiting Factor to Growth, in: P. Martín-Aceña, J. Simpson (eds.), The Economic Development of Spain since 1870 (Aldershot 1995) 268–309. C. Betrán, Tamaño de mercado y crecimiento industrial en España durante el primer tercio del siglo XX, in: Revista de Historia Industrial 11 (1997) 119–148. 6 D. Landes, The Unbound Prometheus: Technological and Industrial Development in Western Europe from 1750 to the Present (Cambridge 1969). A. Chandler, Economies of Scale and Scope: The Dynamics of Industrial Capitalism (Cambridge Mass. 1990). C. Freeman, F. Louça, As Time Goes By. From the Industrial Revolutions to the Information Revolution (Oxford 2001). J. Na- dal, C. Sudria, A. Gómez Mendoza, E. San Román, Las industrias de la Segunda Revolución In- dustrial, in: J. Nadal (ed.), Atlas de la industrialización de España 1750–2000 (Barcelona 2003) 177–201. 7 X. Carmona, Recursos, organización y tecnología en el crecimiento de la industria española de conservas de pescado, 1900–1936, in: J. Nadal, J. Catalan (eds.), La cara oculta de la industrializa- ción española (Madrid 1994) 141–144. X. Carmona, J. Nadal, El empeño industrial de Galicia (Vigo 2005) 179–237. 8 E. Lluch, La via valenciana (València 1976). V. Soler, Guerra i expansió industrial al País Valen- cià (1914–1923) (València 1984). J. Maluquer de Motes, Cataluña y el País Vasco en la industria eléctrica española, 1901–1935, in: González Portilla, J. Maluquer de Motes, B. De Riquer (eds.), Industrialización y Nacionalismo. Análisis Comparativo (Barcelona 1985). J. Maluquer de Motes, The Industrial Revolution in Catalonia, in: N. Sánchez Albornoz (ed.), The Economic Moderni- zation of Spain, 1830–1930 (New York 1987). J. Catalan, Capitales modestos y dinamismo indus- trial: orígenes del sistema de fábrica en los valles guipuzcoanos, 1841–1918, in: J. Nadal, A. Carre- ras (eds.), Pautas regionales de la industrialización española (Barcelona 1990) 125–155. J. A. Mi- randa, La industria del calzado en España (1860–1959) (Alicante 1998) 120–139. C. Betrán, Difusión y localización industrial en España durante el primer tercio del siglo XX, in: Revista de Historia Económica 3 (1999) 663–698. J. M. Valdaliso, La industrialización en el primer tercio del siglo XX y sus protagonistas, in: J. L. De La Granja, S. De Pablo (eds.), Historia del País Vasco y Navarra en el siglo XX (Madrid 2002) 171–196. J. Nadal, J. M. Benaul, Dos excepciones: los éxitos de Cataluña y el País Vasco, in: J. Nadal (ed.), Atlas de la industrialización de España 1750–2000 (Barcelona 2003) 203–229. I. Goñi, Evolución de la industria armera vasca (1876–1969): un enfoque a largo plazo, in: P. Pascual, P. Fernández (eds.), Del Metal al Motor (Bilbao 2007) 385–431. 232 Jordi Catalan most of western Europe9. Motorization required roads and created local demand for cement, steel, petrol refining, metallic components, glass and tires10. Although the activity of the domestic car industry was limited, the firms Hispano-Suiza and Elizalde manufactured luxury automobiles11. Both Ford and General Motors es- tablished subsidiaries in Barcelona during the interwar years, with plans for ex- panding their purchases of local components and for promoting exports. The number of registered automobiles (including trucks and motorbikes) grew by 20 per cent per year between 1913 and 1929. At this time, the spread of the combus- tion engine also made the start of aircraft production in Spain possible, with the launch of firms such as Construcciones Aeronáuticas12.
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