Economic and Social Problems

• Spanish industrial development lagged behind the most advanced economies. There were some regions where industry was more advanced, such as northern Spain. This can be seen with Catalonia, where there was a thriving textiles industry, leading to foreign trade. But, in general terms, the economy was agrarian, with 46% of the workforce employed on farms.
• • Poverty was widespread, meaning there was little demand for industrial goods, leading to little stimulus for economic development.
  • Wages were very low and the state did little to protect the poor from poverty.
  • Infrastructure and sanitation within cities were low quality.
  • The previous government had borrowed large sums of money, meaning the Republic inherited a significant budget deficit.
• • Spain was badly affected by the Great Depression, which resulted in falling exports and declining industrial production. This meant unemployment rose from 400000 in 1931 to 600000 in 1933. It was worse in rural areas, as 65-70% of Spain's unemployed lived in rural areas.
  • The peseta was devalued as in 1928 it stood at 29.50 against sterling and by 1930, this had reached 42.10.
• Poverty was widespread in the rural south. In the early 1930s, peasants worked a 16hr day and earned, on average, 5 pesetas a day. This wage had to cover debt repayments to their landlords and meant they couldn't afford things like meat, fish and eggs. Agricultural work was also only seasonal, meaning in some areas workers were only employed for 130 days a year. At times of extreme hardship, such as 1930-31 when peasants were hit hard with a drought and the Great Depression, they were known to steal acorns and animal fodder to live on. Some rural churches organised charity for peasants.
• The urban working class were a better off, earning around 15 pesetas a day. This meant large numbers moved to the cities, which can be seen with the population of Spain's major cities doubling in the 1920s. However, the conditions were often harsh as there were no houses or facilities for the new workers, leading to the creation of shanty towns on the outskirts. Spain's new factories were also hastily built and dangerous.
• The Spanish population was also poorly educated. In 1930, only 55% of children aged 5-14 were enrolled in schools and Spain's literacy rate was around 70%, significantly below other European countries. The Spanish government did invest in education as between 1908-30 it built around 500 schools a year. Although, the Republican government did manage to build 7000 schools in its first year.