Spanish Economy and Geography
Habitat
Concentrado
Most of the Spanish territory is characterized by compact population centers. These can be linear, with houses along a main road, or crowded, with irregular town layouts due to spontaneous growth around a central point like a hilltop castle. The size of these centers varies, generally increasing towards the south.
Disperso
In dispersed habitats, houses are isolated rather than clustered in towns or villages. Farmhouses are often separated by fields, meadows, or forests. This type is typical in the Cantabrian Mountains, Pyrenees foothills, and parts of the Basque Country and Navarra.
Land Ownership
Latifundio
Latifundios are large estates characterized by inefficient resource use. “Large” is relative to the region; hundreds of hectares in Europe, but potentially tens of thousands in Latin America. They often involve low income, underutilization, low capitalization and technology, labor exploitation, and low worker living standards.
Minifundio
Minifundios are small plots, typically owned and worked by the farmer. Production is generally for consumption. Common in northern Spain and Valencia, they contrast with the southern latifundios. In irrigated areas like Valencia, they can be profitable, while elsewhere they often represent a subsistence economy.
Agriculture
Monocultivo
Monoculture is a system focused on a single crop. Commercial agriculture often uses this. Examples in Spain include olives in the Cordillera Subbética and grapes in La Mancha.
Crop Rotation
Crop rotation helps prevent land degradation. Fallow periods are now often replaced with forage crops, and spring cereals alternate with sugar beet and other industrial crops. This increases livestock feed and supports related agricultural industries.
Afforestation
Afforestation, or reforestation, introduces forest to previously unforested land. It involves techniques to establish woody plants and create a stable ecosystem requiring minimal human intervention, though occasional silvicultural treatments (like pest control) may be necessary.
Fishing
Altura (Offshore)
Altura fishing uses boats and advanced techniques for larger catches. Vessels require specialized equipment and spend days at sea, following fish migrations. This includes deep-sea and far-sea fishing (e.g., six-month campaigns to Newfoundland or Iceland). Catches are sold at designated ports. Spanish altura fishing targets areas like Newfoundland, Canada, and the African coast.
Bajura (Inshore)
Bajura fishing occurs closer to shore, using smaller boats and traditional methods. It can be done overnight with lights. The fleet includes boats from 20 to 100 tons, and smaller artisanal boats under 20 tons. Tourism’s coastal expansion has impacted some traditional bajura fishing areas in Spain.
Economy and Trade
Common Agricultural Policy (CAP)
Established in 1961 (Spain joined in 1986), the CAP aims to ensure farmer livelihoods, stabilize markets, and guarantee consumer prices within Europe.
Customs Tariffs
These are taxes on internationally traded products. Important since the 16th and 17th centuries, they are central to protectionist policies, while free traders seek their removal.
Trade Balance
The trade balance reflects imports and exports of goods. Part of the current account balance, Spain’s is in deficit due to higher imports. Trade is primarily with the EU, with imports from Asia, the USA, Africa, and Latin America, and exports to Asia, Latin America, the USA, and Africa.
Submerged Economy
This encompasses economic activities outside legal channels, avoiding taxes and social security contributions. It’s prevalent in sectors like domestic work and craft production.
Energy
Non-Renewable Energy
Non-renewable energy exists in limited quantities and cannot be replaced. This includes fossil fuels and uranium.
Renewable Energy
Renewable energy constantly replenishes and is inexhaustible. This includes solar, geothermal, wind, tidal, biomass, and hydropower. Spain is well-suited for some, like solar, with several plants operating.
Exports and Imports
Exports are goods or services sent to another country, region, or area, typically for sale or exchange. Imports are the purchase of products from abroad. Spain’s trade balance is in deficit due to higher imports, but the services balance contributes positively to the overall balance of payments.
Industry
Consumer Goods Industry
These industries produce goods for direct consumer use, like cars, televisions, or pencils.
Capital Goods Industry
These industries use materials from heavy industry to manufacture machinery, equipment, and tools for other industries. Examples include construction, mechanical processing, transport equipment, agricultural machinery, and industrial plant construction.
Economic Terms
Monopoly
A monopoly exists when there’s only one producer of a product or service with no close substitutes, giving the producer significant market power.
Multinational
A multinational company operates in multiple countries.
GDP (PIB)
GDP (Gross Domestic Product) is the total value of goods and services produced within a country’s borders. Catalonia and Madrid are the largest contributors to Spain’s GDP.
GNP (PNB)
GNP (Gross National Product) is the total value of goods and services produced by residents of a country, regardless of location.
Industrial Reconversion
This policy addresses industrial crises by restructuring struggling businesses and reorganizing affected regions. Spain’s metallurgical industry underwent significant reconversion in the 1980s.