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A successful story … Regional Policy Making : Reflections on the Basque Country Experiences and Future Challenges Jon AZUA EUNIP 2008, Donostia.

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Page 1: Ja Eunip Policy Makingdefeng1109 Trans

A successful story …

Regional Policy Making : Reflections on the Basque Country Experiences and Future Challenges

Jon AZUAEUNIP 2008, Donostia.

Page 2: Ja Eunip Policy Makingdefeng1109 Trans

1. A successful story: 30 years of radical transformation.

2. What has brought us up to here? 3. Building the future: Sources of

wealth and well-being for the Basque Country … and for the world. The Road Map for policy makers

Page 3: Ja Eunip Policy Makingdefeng1109 Trans

1. A successful story: 30 years of radical transformation.

Page 4: Ja Eunip Policy Makingdefeng1109 Trans

80’s: 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 one that don’t exist”

30 YEARS FOR A RADICAL 30 YEARS FOR A RADICAL TRANSFORMATIONTRANSFORMATION

1980: beginning of Basque self-government

IN THIRTY YEARS EUSKADI HAS BECOME A NEW COUNTRY. FROM A DECADENT AND OBSOLETE ECONOMY, IT'S TURNED INTO A POTENT, VENTURESOME AND COMPETITIVE CENTER OF BUSINESS

• GDP has grown during the last decade above that of Spain and the EU

• 75% of production is exported (50% in medium/high technology products)

• Unemployment has diminished drastically (from 25% to 4,7 %)

• First in Spain in terms of income per capita

• Above the European average in terms of income per capita (136 /100)

Tech Desert

DURING THE 80's, THE BASQUE ECONOMY UNDERWENT A PROCESS OF INTEGRAL RESTRUCTURING FOLLOWING RECESSION

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TODAY:

a. 7th country in the “Europe 15” and 17th in the World in terms of GDP per capita

b. 2nd in the World in terms of life expectancy

(80 years) after Japan.

b. Among the first 10 countries in EDUCATION

Among the first 10 countries in WELFARE

. With a clearly superior economic behavior to that of Spain… and EUROPE; thanks to 30 years of radical transformation

HUMAN DEVELOPMENT INDEX (UN):

Page 6: Ja Eunip Policy Makingdefeng1109 Trans

2. How have we got here?

Page 7: Ja Eunip Policy Makingdefeng1109 Trans

DOMINANT IDEAS IN THE PAST

Economy of scale Centralised and unique

industrial and regional policies The best industrial policy: the

one that does not exist Complete

separation/confrontation State-Enterprise

Exclusive Picking winners “Viva el MERCADO”

(prominence to the market) Tripartite competition: USA-

Japan-Europe Free rein to International

Multilateral Organisations Economy first … then

WHAT WE BELIEVED IN … AND DID

Interdependence, small is beautiful, posible and essential

De-concentration of regionalised microeconomic policies

“Comprehensive” strategy for competitiveness in solidarity, as from the innovative reinvention of the manufacturing industry

Public-private and public-public partnerships

All industry matters Transformed public leadership,

with committed participation of entrepreneurs

Multiple competition / New players Guiding principle: each country is

unique. Its own and differentiated strategy

Page 8: Ja Eunip Policy Makingdefeng1109 Trans

Towards a EUROPE still to be built A socio-economic model in permanent evolution An integrated, fair and competitive social welfare network INDUSTRIAL strength, source of innovation,

technological development, entrepreneurship and management

Reorganisation of public administration, federal and participatory democracy

Public enterprise Aligned vision and public policies Permanent learning ( in/ from especially abroad) Interdependence: Internationalisation and localisation

SELF-GOVERNMENT

Power-Commitment-Responsibility

CHOICEFree

decisions. The right and

risk of making

mistakes

Page 9: Ja Eunip Policy Makingdefeng1109 Trans

Leading a long process…Leading a long process…

reorganize an A.P

Industrial re-conversion

Sectoral policies

WELFARE NETWORK

VisionCompetitiveadvantage

Auto

noy

Stat

ute

Stra

tegy

of i

nter

natio

naliz

ation

an

d M

oder

niza

tion

EEC

ente

ring

Strategy City Bilbao

Euskadi-EuropeCompetitiveness

program

“n” underlying strategies

10 strategic vectors

Industrial Strategy

Competitiveness and SOCIALInnovation

Strategy, Innovation and

Technology

Wellbeingnetwork

EU InteriorMarket

New Statute of Co-sovereignty

80 918880 93 94 2008

GDP/capita 31 .000 euros

8.000

14.000

22.000

21.000

20.000

19.000

18.000

17.000

16.000

15.000

13.000

12.000

11.000

10.000

9.000

2001

INNOVATE

2008

Page 10: Ja Eunip Policy Makingdefeng1109 Trans

1. A relatively well-defined vision towards the creation of a welfare space, with its own

voice, within a Europe under construction.

2. Public-public and public-private commitment-association, as from leadership

and public involvement in a context of “shared” planning.

3. Support for the MAIN DRIVER: INDUSTRY, valuing its wealth-generating capacity in

the long run.

4.Unity of microeconomic and social strategies and solutions towards what is

currently defined as “competitiveness in solidarity”.

5. Belief in the Glokal need/reality.

6. Self-government: our ability to decide.

Euskadi: Keys to the Success

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3. Building the future: Sources of wealth and well-being for the Basque Country … and for the world. The Road Map for policy makers

Page 12: Ja Eunip Policy Makingdefeng1109 Trans

INDUSTRIAL POLICY

Anti- manufacturing risk

Simplification of Knowledge economy ,creativity economy

Failure of Macroeconomics as the only guiding principle for success,mediation and differentiation.

The free-market mirage

Limitations of sectoral approachPublic-private confrontation

Industrial relations confrontation

The easy road of centralised negotiation

ESTANCO administrations

The danger of the Elite’s UNIQUE WAY OF THINKING

CRITICAL BARRIERS TO OVERCOME…

COMPETITIVENESS

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Our strategic resources?BUILDING FROM AN ECONOMIC VECTOR

Demography, Aging,

Migration

HEALTH Sciences

leasure, turism, entertainment

Educatiuon/ culture-

Training for life

Offerings from the city, the

territory

Creative and intelligent

Renewable energies

Environment

Revalorisation and

efficiency

Sustainability path

• Infrastructures• Logistics• Water, Energy, Utilities• Employment/Services• Business Models, etc• Architecture, Design, etc• Art-Territory

Re-clusterisation of economic activity, its Knowlegde and

strengthen our GLOKAL strategy

Specialised and innovative manufacturing

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NEW PLANS

Continuous leadership

•“n” NEW CLUSTERS• Re-invent organizations• Incorporate “outsiders” to administration, enterprises and facilitating organisations

Permanent

MAGIC PROCESSES

Innovative platform

Susteinability

Social innovation

Industries

Public-public andPublic-private

alliance

SOCIAL Network/platform Self-government

Institutionalise country

Learning from

new playersHONESTY• No shortcuts•Strategic society

… and the next key steps?

Sesión 13-2007 Jon Azua. Caso País Vasco14

Beware!Discriminatory

relinquishment of economic concert(investment and

investment policy)

Institutional leadership

New ideasThink Tank

Intelligent territory

Page 15: Ja Eunip Policy Makingdefeng1109 Trans

POLICY MAKING UNIQUE VALUE PROPOSITION COMPLETE AND NON-SECTORAL STRATEGIES COMPETITIVENESS - TERRITORY- REGIONAL

DEVELOPMENT DEMAND THE SAME WELFARE SPACE

OUR STRATEGIC RESOURCES ARE OUR OWN CHALLENGES AND DIFFICULTIES

NEITHER PAST FRAMEWORKS, NOR PLAYERS, NOR INSTRUMENTS ,USED IN THE PAST,ARE VALID FOR THE DISTINCTIVE FUTURE OF TOMORROW

COOPETITIVE LEADERSHIP GLOKAL STRATEGIES