Transcript Countries - Euskadi.eus

EUSKADI-THE BASQUE COUNTRY
A country on the move
South Africa, November 2008
1
PHYSICAL, SOCIAL & DEMOGRAPHIC STRUCTURE
Vital Statistics
Figures
Area
7,234.8 Km2
Population
2,129,338 inhab.
Population density
294.32 inhab./km2
Number of municipalities
250
Official languages
Spanish and Basque
Capital
Vitoria-Gasteiz
Airports
3
Main ports
2
Technology Parks
4
Doctors (per 1000 inhabitants)
4.9
Number of beds (per 1000
inhabitants)
3.8
Source: EUSTAT.
South Africa, November 2008
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STATUTE OF AUTONOMY - LAW 3/1979
 The Basque Country has its own Treasury.
 It governs, levies and collects all taxes in the
Basque Country.
 And pays the Spanish State for the services it
provides in our country.
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HOW STATE POWERS ARE DISTRIBUTED
STATE
AUTONOMOUS REGION
Armed Forces
Tax system
Foreign Affairs
Education and Culture (EITB)
Monetary system
Health
Ports and Airports
Industry & Trade
Postal system and communications
Transport & Public Works
Foreign trade
Police
Customs & Excise
Housing & the Environment
National rail system
Agriculture & Tourism
(Osakidetza)
(Ertzaintza)
Labour & Insurance
PENDING
Water
Management of the
National Insurance
Scheme
Vocational Training
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THE FIRST ECONOMIC TRANSFORMATION, MACROECONOMIC
CONTEXT
GDP per capita market prices 1980-2006
MACROECONOMIC FRAMEWORK: Institutions and Economic
Integration
2002. The
euro
Source: Eustat, Eurostat and ow n
1998: Set up of
ECB and
definitive rates
of exchange
1989-91 Strong
apreciation of the
exchange rate
(peseta)
28000
1994 Second phase
of Monetary Union
23000
1986 Integration
into the European
Economic Comunity
1996-2006 Creation
of 270,000 new
jobs (38%
increase)
18000
13000
Basque C
EU 27
1980 New
Institutional
Framework
Statute of
Autonomy
Convergence in GDP per capita
at market prices
1992-1993 Deep Recession:
65,000 jobs lost
1982-1986 Sharp Increase of Public
Spending and public policies
8000
1980-85 Industrial restructuring
3000
Basque C
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
3132
3545
3980
4371
4890
5448
6132
6969
7952
9046
9993
10700 11383 11754 12600 13635 14573 15653 17108
EU 27
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1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
18537 20030 20968 21870 23246 25090 26835
14600 15400 16200 16900 17800 19000 19700 20400 20700 21600 22400
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THE FIRST ECONOMIC TRANSFORMATION, MAIN INDICATORS
1. GDP per capita (current prices)
2. GDP ppp (EU15 =100)
3. Unemployment
1986
2000
2007
6,132
20,300
30,967
90
119.6
140.6
21.0
13.7
3.3
132
133.9
1.43
1.65
25
47.4
4. Productivity (EU15= 100)
5. R&D expenditure % GDP
6. Internet access % population
0.4
Source: EUSTAT and own
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THE BASQUE COUNTRY TODAY
Human Development
Human
Development
Rate
Life
expectancy
Education
Rate
GDP Rate
Iceland
0.968
0.94
0.98
0.99
Norway
0.968
0.91
0.99
1.00
0.964
0.93
0.99
0.97
Australia
0.962
0.93
0,99
0.96
Ireland
0.959
0.89
0.99
0.99
Sweden
0.956
0.93
0.98
0.97
The Basque County
South Africa, November 2008
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THE FIRST ECONOMIC TRANSFORMATION
“The Basque Country is one of the few regions
in Europe that has made significant progress in
upgrading its traditional industrial base”
Michael E. Porter
South Africa, November 2008
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EUSKADI, A COUNTRY ON THE MOVE
The economy in brief
THE BASQUE COUNTRY IN SPAIN (2007)
POPULATION
4.74 %
GDP
6.20 %
EXPORTS
10.40 %
IMPORTS
6.70%
PERCENT OF TURNOVER IN THE INDUSTRIAL
SECTOR
(Activities according to group. % of Spanish total)
- Metallurgy and manufacture of metal products………….. 21.37%
- Machinery and mechanical equipment …………………….. 20.10%
- Rubber industry …………………………………………………. 17.50%
9.5%(*)
- Manufacture of transport material …………………………...10.62%
Source: INE and the Ministry of Industry, Trade and Tourism. (*) 2006
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BASQUE ECONOMIC STRUCTURE
DISTRIBUTION OF GDP* (2007)
Agriculture &
Fishing
Industry
Construction
Services
Basque
Country
Spain
European
Union-27
0.80 %
2.90 %
1.90 %
29.40 %
17.50 %
20.20 %
9.10 %
12.30 %
6.30 %
60.70 %
67.30 %
71.60 %
Gross added value. Current prices.
Source: EUSTAT (Annual accounts for 2007) and EUROSTAT
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BASQUE ECONOMIC STRUCTURE
INDUSTRY - In Spain, the Basque Country accounts for:
90% special steels
80% machine tools
75% stamp-forging
90%
80%
75%
50% capital goods
50% casting
40% steel
40% electrical household
appliances
40% professional electronics
50%
50%
40%
40%
40%
30%
30% automotive industry
17%
17% aerospace industry
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BASQUE ECONOMIC STRUCTURE- INDUSTRY
AUTOMOTIVE INDUSTRY
 Essentially components manufacturers, with the exception of Mercedes
Benz and Irizar, S. Coop.
 284 companies, 44,000 jobs, 16% of the Basque GDP and 28% of the
industry’s total state turnover.
 Intense internationalisation:
 The industry exports 66% of its turnover, mainly to EU countries
 Increasing number of production plants aboard
 New technological infrastructures:
 Automotive Intelligence Centre –currently under construction–
 Technology Centre for Competition –opened late 2007-
 Foreign investors: DaimlerChrysler, Michelin, GKN, Rheinmetal, Beru,
Bridgestone.
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BASQUE ECONOMIC STRUCTURE- INDUSTRY
ENERGY
 “Energy cluster”: made up by energy providers, energy engineering services
and capital goods manufacturers.
 Several world leaders in the energy industry have their head offices in the
Basque Country, including Iberdrola, the world’s 4th largest electricity
provider, and Gamesa, which controls 15% of the world’s wind-power
generator market.
 Strong international presence, mainly in Latin America, the USA and China
(both energy providers and equipment manufacturers).
 References: Gamesa 13,000 MW installed in 20 countries; joint venture
agreement between Sener and Masdar in the UAE to develop solar
concentration plants.
 Unique energy projects: the Bahias de Bizkaia Project (cogeneration and
regasification plant) and the Petronor refinery coke plant (€810 million
investment).
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BASQUE TECHNOLOGY AND INNOVATION NETWORK
82 members
Technology parks
Technology centres
Health
R&D units
Public bodies
CADEM
BICs
Cooperative research centres
Universities
CIC biomarGUNE
CIC biomaGUNE
Entrepreneurial
R&D units
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Sectorial R&D centres
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Network of Technology Parks
Innovation support system
 The largest network of Technology Parks in Spain
 Encompassing 310 companies
BIZKAIA TP
Total surface area: 205 ha
Buildings: 246,000 m2
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Network of Technology Parks
Innovation support system
DONOSTIA TP
Total surface area: 65 ha
Buildings: 69,000 m2
The University of the Basque Country Science Park is currently
being developed
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AN OPEN ECONOMY
EXTERNAL TRADE
Exports and imports 2006, main partners (million €)
9798
OECD
13793
8261
EU-15
10736
579
NAFTA
1838
2008
OPEP
466
Imports
Exports
993
1143
LA
0
2000
4000
6000
8000
10000
12000
14000
Source : Eustat
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INTERNATIONALISATION OF BASQUE GROUPS
•61 Basque groups producing overseas: around 230 plants
Main Countries: Brazil, Mexico and China
Main countries
Brazil
Mexico
China
Portugal
France
Germany
U.S.A.
Italy
Argentina
UK
Poland
Czech Republic
Morocco
India
Venezuela
26
26
22
17
16
16
15
13
12
11
9
8
7
6
5
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10-20
5-10
<5
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The challenge of the 2nd Transformation
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PROMOTE R&D AND INNOVATION
Technological strategy:
Transforming traditional industry (increase added value)
Diversification- Development of scientific and technological
capabilities for the creation of new sectors
•
Innovation strategy:
Open innovation- create value, not necessarily things; not
only technological innovation but also organisational and
marketing innovation
•Results orientation: the aim is to transform knowledge into
market value
•Driven by demand: following the needs of companies
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SIZE AND GROUPS FOR COMPETING IN THE
GLOBAL ECONOMY
Entrepreneurship
• Cultural change and training for nurturing entrepreneurship
 Better support: BICs:, finance, seed capital
 Develop a model to foster entrepreneurship
 Programme for entrepreneurial technological activities with Global Presence
Fostering growth and Size
 Strengthen financing mechanisms
 New Capital Development Fund (€400 million)
 Encourage the creation of new groups and develop existing
ones
Internationalisation
• Raise companies’ awareness and accompany them in
international expansion
 Broaden our foreign network of agencies
 Create Basque Business Platforms in priority countries
 Train people and promote cooperation
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Five thoughts:
1. We are a small country with one of the highest
Human Development Indexes in the world.
2. 2 Self-government, the ability to decide for
ourselves, is one of the fundamental keys to
wellbeing in the Basque Country.
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3. We stand ready to ride the wave of the global
economic crisis.
Our philosophy is not to wait, but rather to act and
invest.
In order to move forward, we have to meet the
crisis “head on”.
4. The Basque Country is an ideal economic platform
for foreign firms wishing to access the Spanish and
European markets.
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5. We are firmly committed to innovation as a lever
for ensuring our future and our continued
competitiveness on the global market.
As a country, we have set ourselves a strategic
objective: “to lead innovation in Europe”.
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Two final conclusions:
First conclusion:
Basque companies are seeking to internationalise their
activities and branch out into new markets.
We are a reliable and trustworthy partner.
Competing and cooperating forms part of the DNA of
Basque companies.
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Second conclusion:
As Lehendakari – President of the Basque Country – I
can assure you that South Africa constitutes a strategic
partner for Basque enterprise.
We are faced with an extraordinary opportunity to
collaborate in joint business projects throughout the
African continent.
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THE BASQUE COUNTRY
Local identity with a global impact
“It is not possible to remain stationary.
We can only choose between two
possibilities: moving backwards or
moving forwards”.
Erich Fromm
South Africa, November 2008
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