Juan Jose Ibarretxe Markuartu,

2014

The Basque Case:

“all together…

or not at all”

The Basque Country… at the heart of Europe

Bizkaia

Gipuzkoa

Araba

Álava

Lapurdi

Zuberoa

Baja

Navarra

Nafarroa

Navarra

The Basque Country: an age-old people…

“This extraordinary people have preserved their

ancient language, genius, laws, government and

manners, longer than any other nation of Europe”

John Adams (1786)

President of the United States of America

GDP per capita by country and year

(EU 27=100)

Basque Country Luxembourg Ireland Spain Sweden Holland United Kingdom France Germany Italy Portugal United States Japan

108

217 122

95 123 128 117 115 122 120

78

160 123

134

264 132 104 124 134 114 107 116 104

78

151 105

26

47 10

9 1 6

-3 -8 -6

-16 =

-9

-18

129

263 129

96 126 128 106 109 123 101

76

152 105

-5

-1 -3 -8 2

-6 -8 2 7

-3 -2

1 =

Country 1998 2008 Variation 2012 Variation

Fuente: Eurostat (25/02/2014) , Eustat y elaboración propia

…at the forefront of Europe

The Basque Case:

A comprehensive Model for Sustainable Human

Development

Research program: Basque People & Sustainable Human

Development

“The Basque

Case”: a comprehensive

model for SHD

A grateful Remenbrance…

Diogo Vasconcelos, March 2011

“The Basque Case offers a model for 21st Century development, a

merger of Keynesian and Schumpeterian

approaches; enhanced social change and entrepreneurship”

The Basque Case… chosen for study

at Harvard Business School

“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

The dilemma is very clear, radical in fact; to continue

constructing from a position of power, handing over more and more areas to the market, or to find a clear response in order to

guarantee the rights of individuals and peoples

Is another world possible?...

Ethical Disaster: Economic, Social &

Cultural Crisis

“… by the end of the 21st century the 5.000

languages that exist today will be reduced to only 500, one of which

will be the Basque language”

Merrit Ruhlen

R & D & i & K

…a positive vision

1. Sustainable Human Development: three agendas

Economic & Social & Environmental

2. Identity and Economics: R & D & i & K

3. Commitment to the Real Economy: Social, Scientific and Technical Innovation

4. Peace and Economics:

Resilience in the face of an Ongoing Conflict

5. Economic growth hand in hand with social balance: Competitiveness based on Solidarity

6. Public-Private Shared Leadership & Governance:

Vision of a Country... a bottom up vision

Six issues

A success story:

30 years of radical transformation

8Os: TOUGH economic, social and political crisis.

high unemployment (25%) collapse of basic industries

obsolete infrastructures 80’s: triumph of the neo-liberal focus in the world context: “the best industrial policies are the ones that don’t exist”

A RADICAL TRANSFORMATION

1980: beginning of Basque self-government

IN THIRTY YEARS THE

BASQUE COUNTRY HAS

REINVENTED ITSELF…

• During this period the GDP has grown above EU and

Spain’s average

• 75% of production is exported (50% are

medium/high technology products)

• Unemployment has diminished drastically (from

25% in the 8Os to 6,4 % in 2008, to 14% in 2013)

• First economy in the Spanish State and one of

the top three in EU in terms of income per capita

Tech

Desert

DURING THE 8Os, THE BASQUE ECONOMY UNDERWENT A

PROCESS OF INTEGRAL RESTRUCTURING FOLLOWING

RECESSION

Basque economic structure

Basque Country

Spain European 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 %

Fuente: elaboración propia

1. Luxemburgo

2. Bélgica

3. Euskadi

4. Irlanda

5. Italia

6. Austria

7. Francia

8. Finlandia

9. Holanda

10. Suecia

…

13. España

1. Luxemburgo

2. Irlanda

3. Bélgica

4. Euskadi

5. Austria

6. Francia

7. Holanda

8. Reino Unido

9. Suecia

10. Italia

…

13. España

1. Luxemburgo

2. Irlanda

3. Euskadi

4. Bélgica

5. Francia

6. Austria

7. Suecia

8. Holanda

9. Finlandia

10. Dinamarca

…

12. España

2000 2005 2010

Productividad Ranking 10 Europa

176,8

137,3

133,0

129,3

127,5

123,5

119,4

115,5

115,0

114,9

104,2

170,5

135,8

130,3

127,8

118,3

116,3

114,4

113,6

111,9

111,9

101,3

169,8

136,9

130,9

127,5

115,8

115,2

114,5

113,3

111,4

110,6

108,9

Fuente: Eurostat, Eustat y elaboración propia, 2012

Export growth has been well above that of European countries and only surpassed by emerging countries like India and China

EVOLUTION OF BASQUE EXPORTS COMPARED WITH OTHER

COUNTRIES AND THE WORLD ECONOMY

1993-2006

1993= 100

0

200

400

600

800

1000

1200

1993 2003 2006

World

United States

Brazil

Europe

Germany

France

United

Kingdom

Italy

China

Japan

India

Basque

Country

Source: OMC, Eustat and own elaboration

CHINA

Basque Country

India

Exports: Share

Poverty Risk

Index

Human Development Index 2007

1

2

3

4

5

6

7

8

9

10

11

12

13

Iceland

Norway

Basque Country

Australia

Canada

Ireland

Sweden

Switzerland

Japan

Netherlands

France

Finland

United States

0.968

0.968

0.964

0.962

0.961

0.959

0.956

0.949

0.953

0.953

0.952

0.952

0.951

14

15

16

17

18

19

20

21

22

23

24

25

Spain

Denmark

Austria

United Kingdom

Belgium

Luxembourg

New Zealand

Italy

Hong Kong

Germany

Israel

Greece

0.949

0.949

0.948

0.946

0.946

0.944

0.943

0.941

0.937

0.935

0.932

0.926

Human Development Index = Life Expectancy Index + Education Index + GDP Index Source: Eustat. HDR and UNDP – United Nations Development Programme. Human Development Report 2007

Fuente: Eurostat, Eustat y elaboración propia 14 de febrero de 2014

Fuente: Eurostat , Eustat y elaboración propia 2 de octubre de 2012

% of people with

High School or University Education

Source: EUSTAT and INE, 2012

Today, The Basque economy is in a Leading position

GPD per capita Productivity per person employed University And Higher Education

Unemployment rate

+ 34% 1st + 29% 1st + 44% 1st - 41% 1st

Perfomance Gap vs. Spain

Position among Autonomous Communities

2001 2005 2008 2012

1 Luxemburgo 2 Países Bajos 3 Irlanda 4 Dinamarca 5 Austria 6 Bélgica 7 Suecia 8 Reino Unido 9 Euskadi 10 Italia … 14 España

234 134 133 128 126 124 123 121 120 119

98

Europe top 10 ranking

1 Luxemburgo 2 Irlanda 3 Países Bajos 4 Euskadi 5 Austria 6 Dinamarca 7 Reino Unido 8 Suecia 9 Bélgica 10 Alemania … 14 España

254 144 131 129 125 124 124 122 120 116

102

1 Luxemburgo 2 Países Bajos 3 Euskadi 4 Irlanda 5 Austria 6 Dinamarca 7 Suecia 8 Finlandia 9 Alemania 10 Bélgica … 14 España

264 134 134 132 125 125 124 119 116 116

104

1 Luxemburgo 2 Austria 3 Irlanda 4 Euskadi 5 Países Bajos 6 Suecia 7 Dinamarca 8 Alemania 9 Bélgica 10 Finlandia … 14 España

263 130 129 129 128 126 126 123 120 115

96

Fuente: Eustat (14/04/2014) y elaboración propia

GPD per capita PIB per cápita (PPC) por país y año (EU 28=100)

<50

50 - 75

75 - 90

90 - 100

100 - 125

125

PIB per cápita en % de la media comunitaria

Diferencias de desarrollo en la UE-27

Fuente: ec.europa.eu/regional policy 2012 y elaboración propia

Regional Innovation Scoreboard

(RIS) 2014

Leading us to conclude: Identity, innovation and

sustainable development...

The defence of Basque identity, culture and language is not solely related to a

legitimate political fact such as the claim for an identity in the current globalized world; it is also related

directly to the achievement of Sustainable human development

“small is beautiful… and powerful”

Small is Cute, Sexy, and Successful…

Harvard School Review: 2011 Edition

The Role of Culture in Development…

“Culture is a vital aspect of human development. To live lives they value, people must be free to choose their identity,

and thus to define who they are”

Helen Clark UNDP Administrator, 2013

How have we got here?

¿What is the strategy behind these results?

Three phases

Three axes

Five reasons for success

Characteristics

“Our own strategy” for Sustainable Human

Development

The Process of Socio-Economic Development

Old Model

• Focus on macroeconomic and legal reform

- e.g. monetary and fiscal policy, privatization, market opening

• Relatively few policy areas

• Policies are quick to implement

• Government-driven process

• Relatively few parts of government involved

• Dominant focus on policy at the national level

New Model

• Focus on microeconomic upgrading

- e.g. business environment, company capabilities

• Myriad of policy areas

• Policy impact requires sustained effort over time

• Collaborative process involving multiple players

• Many parts of government must be involved

• Multiple geographic levels are relevant and important

• Decisions are centrally controlled and administratively easy to implement

• Decisions involve multiple actors and the breadth of action steps makes

implementation complex

The three phases

1st phase:

1980s “Learn to compete”

2nd phase:

1990s “Learn to compete and cooperate”

3rd phase:

2000-2010 “Learn to innovate in cooperation”

The three axes

Development: “Innovation”

Human: “Equality”

Sustainability: “The environment”

The five reasons behind the success of

the Basque model

Concept of National Identity

Public - private shared leadership

Commitment to the real economy

Economic growth hand in hand with social balance

Self - government

First

Second

Third

Fourth

Fifth

“Vision for the

Basque Country”

A country…at peace, proud of its roots and its traditions,

tolerant and respectful to diversity, highly productive, which competes using its

people, who use their creativity and take

responsibility for their work within the framework of shared projects,

in an open and international setting, socially cohesive, supportive to the world

and respectful to the environment

New Strategy for Competitiveness

based on Solidarity 2015

TERRITORIO

(Compacidad, Diversidad, Integración)

GOBERNANZA (Visión Común, Políticas,

Estrategias)

CA

PIT

AL C

REA

TIV

O

Y F

INA

NC

IER

O

SUSBSISTEMA

FÍSICO Y

CONSTRUIDO

• Urbanismo

•Movilidad

•Eficiencia Energética

•Medio Ambiente

SUBSITEMA

ECONÓMICO • Industria Creativa

• Talento

• Innovación

• Glokal

SUBSISTEMA

SOCIAL •Gobernanza

• Cohesión Social

• Cultura e Identidad

• Innovación Social

VALORES - COHESIÓN

INFRAESTRUCTURAS, MEDIO NATURAL

BUILDING CREATIVE AND INTELLIGENT SPACES…

37

Public bodies

CADEM

Health

R&D units

Technology parks

Technology centres

Entrepreneurial

R&D units

BICs

Sectorial R&D centres

Universities Cooperative research centres

CIC biomarGUNE CIC biomaGUNE

BASQUE TECHNOLOGY AND INNOVATION NETWORK…

AGGREGATION 82 members

Comunidad de Polos de Conocimiento

Viveros de empresa Parque Científico

Spin-off EBT

Strategic aggregation: Programa Campus de Excelencia Internacional

Center

Focused on the international projection of the

Basque People and their efforts towards

Sustainable Human Development

The Basque

Case

ALC

Look at the world to see the Basque Country...

From the

Basque Country…

… see the world

Creativity is seeing the same as the others…

and thinking something different

R & D & i & K

…a positive vision

All together…

or not at all Juan Jose

Ibarretxe Markuartu 2014