South Africa, November 2008 1 EUSKADI-THE BASQUE COUNTRY A country on the move.
-
Upload
winfred-campbell -
Category
Documents
-
view
219 -
download
2
Transcript of South Africa, November 2008 1 EUSKADI-THE BASQUE COUNTRY A country on the move.
1South Africa, November 2008
EUSKADI-THE BASQUE COUNTRY
A country on the move
2South Africa, November 2008
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.
PHYSICAL, SOCIAL & DEMOGRAPHIC STRUCTURE
3South Africa, November 2008
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.
4South Africa, November 2008
HOW STATE POWERS ARE DISTRIBUTED
STATE
Armed Forces
Foreign Affairs
Monetary system
Ports and Airports
Postal system and communications
Foreign trade
Customs & Excise
National rail system
AUTONOMOUS REGION
Tax system
Education and Culture (EITB)
Health (Osakidetza)
Industry & Trade
Transport & Public Works
Police (Ertzaintza)
Housing & the Environment
Agriculture & Tourism
Labour & Insurance
Water
PENDING
Management of the National Insurance Scheme
Vocational Training
5South Africa, November 2008
GDP per capita market prices 1980-2006 MACROECONOMI C FRAMEWORK: I nstitutions and Economic
I ntegration
3000
8000
13000
18000
23000
28000
Basque C
EU 27
Basque C 3132 3545 3980 4371 4890 5448 6132 6969 7952 9046 9993 10700 11383 11754 12600 13635 14573 15653 17108 18537 20030 20968 21870 23246 25090 26835
EU 27 14600 15400 16200 16900 17800 19000 19700 20400 20700 21600 22400
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
1986 Integration into the European Economic Comunity
1980 New Institutional Framework Statute of Autonomy 1992-1993 Deep Recession:
65,000 jobs lost
1980-85 Industrial restructuring
2002. The euro
1994 Second phase of Monetary Union
1998: Set up of ECB and definitive rates of exchange
1996-2006 Creation of 270,000 new jobs (38% increase)
1982-1986 Sharp I ncrease of Public Spending and public policies
Source: Eustat, Eurostat and ow n
1989-91 Strong apreciation of the exchange rate(peseta)
Convergence in GDP per capita at market prices
THE FIRST ECONOMIC TRANSFORMATION, MACROECONOMIC
CONTEXT
6South Africa, November 2008
THE FIRST ECONOMIC TRANSFORMATION, MAIN INDICATORS
1986 2000 2007
1. GDP per capita (current prices) 6,132 20,300 30,967
2. GDP ppp (EU15 =100) 90 119.6 140.6
3. Unemployment 21.0 13.7 3.3
4. Productivity (EU15= 100) 132 133.9
5. R&D expenditure % GDP 0.4 1.43 1.65
6. Internet access % population 25 47.4
Source: EUSTAT and own
7South Africa, November 2008
THE BASQUE COUNTRY TODAY
Human Development
RateLife
expectancyEducation
Rate GDP Rate
Iceland 0.968 0.94 0.98 0.99
Norway 0.968 0.91 0.99 1.00
The Basque County 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
Human Development
8South Africa, November 2008
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
9South Africa, November 2008
The economy in brief
THE BASQUE COUNTRY IN SPAIN (2007)
EUSKADI, A COUNTRY ON THE MOVE
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% - Manufacture of transport material
…………………………...10.62%
9.5%(*)
Source: INE and the Ministry of Industry, Trade and Tourism. (*) 2006
10South Africa, November 2008
DISTRIBUTION OF GDP* (2007)
BASQUE ECONOMIC STRUCTURE
Basque Country
SpainEuropean Union-27
Agriculture & Fishing
0.80 % 2.90 % 1.90 %
Industry 29.40 % 17.50 % 20.20 %
Construction 9.10 % 12.30 % 6.30 %
Services 60.70 % 67.30 % 71.60 %
Gross added value. Current prices. Source: EUSTAT (Annual accounts for 2007) and EUROSTAT
11South Africa, November 2008
INDUSTRY - In Spain, the Basque Country accounts for:
BASQUE ECONOMIC STRUCTURE
90%
80%
75%
50% 50%
40% 40% 40%
30%
17%
90% special steels
80% machine tools
75% stamp-forging
50% capital goods
50% casting
40% steel
40% electrical householdappliances
40% professional electronics
30% automotive industry
17% aerospace industry
12South Africa, November 2008
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.
13South Africa, November 2008
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).
14South Africa, November 2008
Public bodies
CADEM
Health R&D units
Technology parks
Technology centres
Entrepreneurial
R&D units
BICs
Sectorial R&D centres
UniversitiesCooperative research centres
CIC biomarGUNE CIC biomaGUNE
BASQUE TECHNOLOGY AND INNOVATION NETWORKBASQUE TECHNOLOGY AND INNOVATION NETWORK
82 members82 members
15South Africa, November 2008
The largest network of Technology Parks in Spain
Encompassing 310 companies
Innovation support system
Network of Technology Parks
BIZKAIA TP
Total surface area: 205 ha
Buildings: 246,000 m2
16South Africa, November 2008
The University of the Basque Country Science Park is currently being developed
Innovation support system
Network of Technology Parks
ÁLAVA TP
Total surface area: 117 ha
Buildings: 105,000 m2
DONOSTIA TP
Total surface area: 65 ha
Buildings: 69,000 m2
17South Africa, November 2008
EXTERNAL TRADE
AN OPEN ECONOMY
Exports and imports 2006, main partners (million €)
1143
466
1838
10736
13793
993
2008
579
8261
9798
0 2000 4000 6000 8000 10000 12000 14000
LA
OPEP
NAFTA
EU-15
OECD
Imports
Exports
Source : Eustat
18South Africa, November 2008
INTERNATIONALISATION OF BASQUE GROUPS
•61 Basque groups producing overseas: around 230 plants
< 55-1010-20>205Venezuela6India7Morocco8Czech Republic9Poland
11UK12Argentina13Italy15U.S.A.16Germany16France17Portugal22China26Mexico26Brazil
Main countries
Main Countries: Brazil, Mexico and ChinaMain Countries: Brazil, Mexico and China
19South Africa, November 2008
The challenge of the 2nd Transformation
20South Africa, November 2008
PROMOTE R&D AND INNOVATION
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
•
Technological strategy:
Transforming traditional industry (increase added value)
Diversification- Development of scientific and technological capabilities for the creation of new sectors
21South Africa, November 2008
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
22South Africa, November 2008
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.
23South Africa, November 2008
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.
24South Africa, November 2008
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”.
25South Africa, November 2008
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.
26South Africa, November 2008
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.
27South Africa, November 2008
THE BASQUE COUNTRYLocal 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