Its All About Spain
Exclusive Interview with H.E. Ambassador Juan Carlos Gafo
1) What are the main resources that Spain depends on economically?
Spain is a developed and sophisticated economy, and as such is extremely diversified. Therefore it is difficult to identify a single economic resource on which Spain mostly depends. If anything, I would point out to human capital as the bulwark of the Spanish economy, something not very different to other European countries.
More specifically, the major economic branch in Spain is the so called, "service (s) sector" (63% of GDP) which includes banking, insurance, tourist services and many other non-industrial branches. But this does not mean that the Spanish industry is not diversified and efficient: Spain has branches of many multinational companies but is also home to many other companies which lately have become multinationals themselves. Finally, due to its privileged climate, Spain is a major supplier of agricultural products mostly to the European markets. Agriculture, even if it amounts to a tiny part of GDP (2.5%), follows modern economic patterns in Spain and is attracting a large number of foreign workers. Last but not least, construction has been the most dynamic share of the economy until 2008. The recent international financial and real estate crisis has relegated construction to a second row in the economic scene.
2) What is the contribution of Spain to the World Economy?
Spain is the 8th economy in the world by the size of its GDP, ahead of countries like Brazil, Russia or India, just to mention some of the largest. Spain is home to many companies who have successfully invested across the world: Telefónica, Banco de Santander, BBVA. Zara, Mango, Iberdrola, ACS, Ferrovial, Abengoa, Repsol, Iberia, Porcelanosa, Roca, Sol Meliá are some of the Spanish names which may sound familiar in most countries.
But if anything should be emphasized as a contribution of Spain to modern economic history is its consistent and sound growth path which started in the second part of the past century but, following orthodox liberal policies, accelerated in the last 30 years, bringing the country from a traditional economy with large pockets of poverty, to its current prominent status, enjoying a per capita income similar to the wealthiest countries of the world (ca 31.000$ GDP/ per capita).
3) Does the Spanish Economy depend heavily on tourism?
Tourism is a very important source of economic activity in Spain (around 10% of GDP). The long experience of Spain in this field has proven that tourism is a very positive economic activity, mainly for the following reasons:
-demand for tourist services fluctuates over time less than for most industrial items;
-tourism has a very favourable impact on regional development, to the extent that it normally focuses on less developed areas;
-it contaminates less than most industries;
-it is mostly in the hands of SME´s (Small and Medium Enterprises) and therefore has positive effect on the equality of income distribution
-tourism strongly contributes to the equilibrium of the balance of payments.
For all those reasons, tourism has shown itself to be very positive for Spain.
4) How do you rate Spain on a World development Scale?
This is a difficult question that can hardly be answered on an objective basis. In my opinion, Spain is at a very high level (8-9) when you think of its per capita income, but it is also close to the top when taking into account its relatively fair distribution of income, due to the far reaching welfare policies it has applied in the last years. However, one should not fall into complacency. There are some Achilles heels. Specifically the very high level of unemployment prevailing after the impact of the recent world financial crisis is something we cannot live with.
5) Has the tourism industry been affected in today’s environment?
The total number of tourists has slightly decreased in 2009: from 53.9 million in 2008 to 52.2 in 2009. Let us remember that the total population of Spain is 46 million. But as I said before, the tourist industry is more recession-proof than it was thought. In fact, the high quality of the Spanish infrastructures and its deep-rooted know-how are a strong protecting shield against substantial falls in tourism. We are looking forward with optimism to the future of this important economic activity in Spain.
6) Spain had one of the known biggest and most important civilizations historically; does Spain plan on getting back to rising again?
The time of empires is over. Today Spain simply wants to consolidate its economic and social model, to continue to maintain good relations with all actors of the international community, especially with its European and Mediterranean neighbours and Latin American brothers and to become a reference for a universal vision and a political model for peace, multilateralism and human rights.
7) The Spanish folklore is one of the richest folklores in the World, but nowadays it is receiving less attention- don’t you have plans to push it more strongly in the world?
I do not think that Spanish folkore is in recession. Quite the contrary. Flamenco, the Spanish music, the dance, and other art forms that make up the Spanish cultural identity, are increasingly accepted and disseminated. Continuing to support these traditional demonstrations of folklore and arts, we also want to promote a new image of our culture - most modern and innovative.
8) Bull-fights in Spain are very popular, but have received criticisms from Animal Care Societies, what are your personal views on this?
There is, indeed, a debate, that is not new and has reached some organizations like the Parliament of Catalonia. In my humble opinion, bullfighting is part of our culture and our tradition, even of language itself. The kinds of bulls for fighting exist only for the “fiesta” and there is a whole industry around the bull and its fight. But I respect, of course, arguments, certainly valid, wielding those who believe that other considerations must take precedence, such as animal care societies views.
9) What are the most beautiful places in Spain to visit and enjoy?
Spain has the privilege of being able to offer visitors all kinds of attractions: Historic towns (Toledo, Santiago de Compostela, Segovia, Granada, Cordoba, Sevilla, Cáceres.); Museums and cultural offerings (in Madrid, Barcelona, Bilbao); thousands of miles of coastline,;sea and beaches (Canary Islands, Balearic Islands, Costa del Sol and the Mediterranean in general, Cantabrian Coast); religious tourism; landscapes of all kinds, nightlife and more. All of that is complimented by a lovely climate, excellent food and drinks. To sum all up, I'm sure that every tourist can find in Spain everything that he or she looks for in its purest form. I encourage all those who haven’t been there to go ahead and discover it.
Exclusive Interview with H.E. Ambassador Juan Carlos Gafo
1) What are the main resources that Spain depends on economically?
Spain is a developed and sophisticated economy, and as such is extremely diversified. Therefore it is difficult to identify a single economic resource on which Spain mostly depends. If anything, I would point out to human capital as the bulwark of the Spanish economy, something not very different to other European countries.
More specifically, the major economic branch in Spain is the so called, "service (s) sector" (63% of GDP) which includes banking, insurance, tourist services and many other non-industrial branches. But this does not mean that the Spanish industry is not diversified and efficient: Spain has branches of many multinational companies but is also home to many other companies which lately have become multinationals themselves. Finally, due to its privileged climate, Spain is a major supplier of agricultural products mostly to the European markets. Agriculture, even if it amounts to a tiny part of GDP (2.5%), follows modern economic patterns in Spain and is attracting a large number of foreign workers. Last but not least, construction has been the most dynamic share of the economy until 2008. The recent international financial and real estate crisis has relegated construction to a second row in the economic scene.
2) What is the contribution of Spain to the World Economy?
Spain is the 8th economy in the world by the size of its GDP, ahead of countries like Brazil, Russia or India, just to mention some of the largest. Spain is home to many companies who have successfully invested across the world: Telefónica, Banco de Santander, BBVA. Zara, Mango, Iberdrola, ACS, Ferrovial, Abengoa, Repsol, Iberia, Porcelanosa, Roca, Sol Meliá are some of the Spanish names which may sound familiar in most countries.
But if anything should be emphasized as a contribution of Spain to modern economic history is its consistent and sound growth path which started in the second part of the past century but, following orthodox liberal policies, accelerated in the last 30 years, bringing the country from a traditional economy with large pockets of poverty, to its current prominent status, enjoying a per capita income similar to the wealthiest countries of the world (ca 31.000$ GDP/ per capita).
3) Does the Spanish Economy depend heavily on tourism?
Tourism is a very important source of economic activity in Spain (around 10% of GDP). The long experience of Spain in this field has proven that tourism is a very positive economic activity, mainly for the following reasons:
-demand for tourist services fluctuates over time less than for most industrial items;
-tourism has a very favourable impact on regional development, to the extent that it normally focuses on less developed areas;
-it contaminates less than most industries;
-it is mostly in the hands of SME´s (Small and Medium Enterprises) and therefore has positive effect on the equality of income distribution
-tourism strongly contributes to the equilibrium of the balance of payments.
For all those reasons, tourism has shown itself to be very positive for Spain.
4) How do you rate Spain on a World development Scale?
This is a difficult question that can hardly be answered on an objective basis. In my opinion, Spain is at a very high level (8-9) when you think of its per capita income, but it is also close to the top when taking into account its relatively fair distribution of income, due to the far reaching welfare policies it has applied in the last years. However, one should not fall into complacency. There are some Achilles heels. Specifically the very high level of unemployment prevailing after the impact of the recent world financial crisis is something we cannot live with.
5) Has the tourism industry been affected in today’s environment?
The total number of tourists has slightly decreased in 2009: from 53.9 million in 2008 to 52.2 in 2009. Let us remember that the total population of Spain is 46 million. But as I said before, the tourist industry is more recession-proof than it was thought. In fact, the high quality of the Spanish infrastructures and its deep-rooted know-how are a strong protecting shield against substantial falls in tourism. We are looking forward with optimism to the future of this important economic activity in Spain.
6) Spain had one of the known biggest and most important civilizations historically; does Spain plan on getting back to rising again?
The time of empires is over. Today Spain simply wants to consolidate its economic and social model, to continue to maintain good relations with all actors of the international community, especially with its European and Mediterranean neighbours and Latin American brothers and to become a reference for a universal vision and a political model for peace, multilateralism and human rights.
7) The Spanish folklore is one of the richest folklores in the World, but nowadays it is receiving less attention- don’t you have plans to push it more strongly in the world?
I do not think that Spanish folkore is in recession. Quite the contrary. Flamenco, the Spanish music, the dance, and other art forms that make up the Spanish cultural identity, are increasingly accepted and disseminated. Continuing to support these traditional demonstrations of folklore and arts, we also want to promote a new image of our culture - most modern and innovative.
8) Bull-fights in Spain are very popular, but have received criticisms from Animal Care Societies, what are your personal views on this?
There is, indeed, a debate, that is not new and has reached some organizations like the Parliament of Catalonia. In my humble opinion, bullfighting is part of our culture and our tradition, even of language itself. The kinds of bulls for fighting exist only for the “fiesta” and there is a whole industry around the bull and its fight. But I respect, of course, arguments, certainly valid, wielding those who believe that other considerations must take precedence, such as animal care societies views.
9) What are the most beautiful places in Spain to visit and enjoy?
Spain has the privilege of being able to offer visitors all kinds of attractions: Historic towns (Toledo, Santiago de Compostela, Segovia, Granada, Cordoba, Sevilla, Cáceres.); Museums and cultural offerings (in Madrid, Barcelona, Bilbao); thousands of miles of coastline,;sea and beaches (Canary Islands, Balearic Islands, Costa del Sol and the Mediterranean in general, Cantabrian Coast); religious tourism; landscapes of all kinds, nightlife and more. All of that is complimented by a lovely climate, excellent food and drinks. To sum all up, I'm sure that every tourist can find in Spain everything that he or she looks for in its purest form. I encourage all those who haven’t been there to go ahead and discover it.