La Madre Patria is Living the Golden Years

As I write this blog article I am in the sun baked country of Spain traveling from the city of Burgos and on my way to Santander aboard a chartered bus I am sharing as part of cultural exchange program hosted by the Embassy of Spain. I have just spent two relaxing days in Burgos taking in the sights and sounds as its peoples celebrate the Fiesta of San Pedro, an annual town festival unique to this northern Castilian community.

It is the second occasion I have had to visit Spain - my wife and I traveled to Madrid back in 1990 for our honeymoon. And just like fifteen years ago, the first impression I get is probably the same as many other folks that have come before me: Europe is old. I mean the people seem collectively older than in those of the United States, the magnificent building are certainly older and even the land appears aged and tired. Maybe it's because Burgos is in fact a very old European city and of course, its civilized society has been around much longer than ours has. And yet, in spite of its age it is only recently that Spain is regaining the social, cultural and economic grandeur it once had back when it was funding projects to find new worlds.

In fact, I submit that Spain's recent economic rise in the past 20 years is a model for the rest of Latin American countries. Twenty years ago, Spain's economic and political situation was not unlike much of Latin America. In 1960 Spain's GDP represented only 4% of the European Union's Economic and Monetary system (UEM), but thanks to its rise, today Spain's GDP represents 12.5% of UEM total. In 1970, life expectancy in Spain was 71.9 years, but today life expectancy has remarkably risen to 78.3. Employment in the agricultural sector represented 18.4% in 1985, and today it only represents 5.4% of the total economy.

There are other glowing signs that demonstrate Spain's economic ascendance, its economy grew 3.4% last year, over twice the euro-zone average, and is expected to best the average again this year by a full percentage point. Telefónica, Grupo Ferrovial, real estate developer Metrovacesa, Santander and BBVA Banks are now premiere Spanish companies that are competing at the international level.

In contrast to the resurgence occurring in Spain, Latin American countries continue to struggle with social challenges such as persistent poverty, corruption in all sectors, unequal application of justice, and anti-business political regimes. In 1980, 20% of all Latin Americans lived in extreme poverty. Today, 19% continue to live in extreme poverty. In 2002, 71% of Hondurans lived under the poverty line and 56% of Guatemalans shared the same fate. In 2003, the mortality rate of women giving birth per 100,000 in Canada was 8, but in El Salvador the mortality rate per 100,000 was 173. In 2005, average life expectancy in Canada was 80.4, but in Bolivia the life expectancy was 64.9. That's correct; Bolivians on average will die 15 years ahead of Canadians while living under the same sun!

Chronic unemployment, rampant rise in homicides and other crimes, increased gang recruitment, dismal infant mortality rates, unfettered water contamination, lack of health and educational institutions, corrupt politicians, deficient property right laws, unstable monetary policies are just a few of the challenges that continue to plague much of Latin America, and help is far from sight.

My point is, Spain has proven that these conditions can be reverted. It long ago rejected the closed economic systems imposed by past fascist regimes and seized the talents of its people (In 1939 Franco initiated a program of reconstruction based on the concept of economic self-sufficiency or autarchy. The program, aimed at increasing national economic production, favored the established industrial and financial interests at the expense of the lower classes and the agricultural regions. Acute shortages and starvation wages were widespread in the early 1940s, a period which saw the worst inflation in Spain's history. By the end of the decade, Spain's level of economic development was among the lowest in southern Europe.)

The country has benefited greatly from the political discipline demonstrated under the Felix Gonzales and Jose Maria Aznar Administrations by instituting pro-entrepreneurial policies, investing in its educational institutions, took full advantage of their proximity to their highly developed European neighbors, put its monetary policy in order, set socially responsible public policies in motion, tightened property rights and has become the second most visited nation by tourist in the world (second only to France). Spain is now seeking to join the G-8 as it has now reached social and economic parity with many of the developed countries currently within the ranks of the organization.

Spain is showing that an old dog can teach new tricks.