Spain was once the World’s most powerful country. By the 20th century it was a poor and backward country where corruption was rife. It had lost nearly all of its overseas possessions (e.g. Cuba, the Philippines) and great extremes of wealth and poverty caused severe social tensions. Industry was confined mainly to Barcelona and the Basque country. Spaniards were divided on the type of government that they wanted. Monarchists were conservative and Catholics and did not want to reform Spain. Those who wanted a republic were anti-clerical and hoped to reform Spanish society. There were a number of areas where it was felt reform were needed: