Regional Imbalances in Spain: Demographics, Economics, and Policy
Regional Imbalances
Significant imbalances currently exist between and within Spanish communities. While some imbalances relate to natural conditions and land area, the most important ones are human-driven, such as demographic, economic, and social disparities.
Demographic Imbalances
Striking demographic imbalances exist between the Autonomous Communities (ACs), encompassing population size, distribution, density, natural growth, and age structure.
Differences in Vegetative Growth
Important imbalances are observed between inland communities (except Madrid) and peripheral regions. Differences in growth also exist between northern and southern communities. Generally, the northwest quadrant (Galicia, Cantabria, Asturias, etc.) and Aragon have negative natural growth, with birth rates below the national average and higher mortality due to an aging population. ACs with positive natural growth are primarily in the southern peninsula, particularly Murcia, Andalusia, the archipelagos, and areas surrounding major cities, largely due to a younger population and immigration.
Differences in Migratory Flows
Increased migration is observed towards the Mediterranean coast and the peripheries of large metropolitan areas.
Differences in Age Structure
Wide differences exist among communities regarding aging rates. Northern Spain has a higher percentage of the population over 65 due to past emigration and very low birth rates. The highest percentage of younger people is found in the Canary Islands, Andalusia, and Murcia, driven by tourism, the tertiary sector, and construction.
Imbalances in Distribution and Population Density
Population densities of the ACs show significant imbalances, reflecting the disparity between inland areas (except Madrid), peripheral regions, and the islands. The lowest densities are in Castilla y León, Castilla-La Mancha, Aragón, Extremadura, Navarra, and La Rioja, while others have densities slightly above the national average.
Economic Imbalances
Economic imbalances between Spanish regions are not recent, originating with industrialization in the 19th century. The planning model generally resulted in an industrially underdeveloped and demographically declining hinterland (except Madrid) and a developed peripheral zone (except Murcia and inland areas of Andalusia and Galicia).
Differences in GDP
One key indicator of inequality is the contribution to GDP. Almost 60% of production comes from Catalonia, Madrid, Andalusia, and Valencia, which have the highest population densities. Significant contrasts also exist within each community.
Differences in Per Capita Income
Regional development is measured by per capita income, which relates each community’s GDP to its population. The most developed ACs are those with significant secondary and tertiary sectors, while the least developed are those where the primary sector leads.
Other Inequalities
- Regional disparities in road infrastructure have declined in recent years, particularly due to EU subsidies. However, imbalances remain as investments have focused on the Mediterranean, the Ebro Valley, and the islands.
- ACs with significant investments in health and education have further increased their development.
- Employment shows a clear predominance of the tertiary sector, a stabilized secondary sector, and a reduced primary sector.
- Regional employment differences highlight the inequalities described above. While EU entry and increased economic activity generally reduced unemployment, imbalances persist. Regions like Madrid, Catalonia, Valencia, and areas of the Ebro Valley have lower unemployment, while others experience higher rates and a high proportion of young people seeking their first job.
Correction Policy for Regional Imbalances
Spain’s territorial imbalances have been a major problem for years, requiring various corrective policies: Spanish regional policies, EU regional policies, and planning-related actions.
Regional Policy in Spain
Before 1978, regional policies to combat imbalances were limited, with Development Plans launched in the 1960s.
Regional Policy Between 1978-1988
With the 1978 Constitution and the new autonomous administrative division, regional policies fell under regional, provincial, and municipal administrations. During 1978-1988, these policies addressed industrial restructuring after the 1970s economic crisis. Two main policies were implemented: Areas of Urgent Reindustrialization (ZUR) and regional incentives. ZUR focused on public investment, mainly benefiting areas most affected by the industrial crisis: Asturias, Cadiz, Madrid, Ferrol, Vigo, Vizcaya, and Barcelona. Madrid and Barcelona received over 60% of total investments.
Regional Policy Since 1988
Since 1988, regional incentive policies have been complemented by the Inter-territorial Compensation Fund (FCI), a public investment redistribution instrument within the General State Budget to address regional economic imbalances and promote development in less developed areas.
Regional Policy of the EU
Spain’s EU membership integrates it into European regional policy, aimed at addressing territorial imbalances. The pillars of this policy are the Structural Funds, the Cohesion Fund, and Community Initiatives. Spain has received substantial aid, as most Spanish regions are below the European average.