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Catalonia a land
of reference
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l A modern country l Situation l Communications | An enterprising country l
|A well-prepared country l Culture and Sport l A touristic country |
Agriculture l Industry l Water and energy l Services l Transport l Tourism l Banking
Exports, internationalization l Trade fairs and conventions
Catalonia is one of the countries in Europe with the longest
history of industrialisation. It was, in fact, the only area on the Iberian
peninsula or on the western Mediterranean to bring about their industrial revolution
in the nineteeth century, during the period known as such in northern Europe.
A considerable industry has has been built up in Catalonia
based on transformation, at first in textiles, but which has since evolved into
other sectors such as motors (Both Seat and Nissan have thier main factories
there), food, fine chemistry, electronics etc, and an important industry based
on petrol by-products, as a consequence of the proximity of a refinery in Tarragona.
To this industrial base a wide diversified tertiaty sector
has been added and developed. One of the main characteristics of the localization
in Catalonia is the existing quantity and quality of services for enterprises,
served through organisms such as Chambers of Commerce, Cidem.
Tourism, with more than 15 million visitors a year, is another
important economic activity. Catalonia is the largest tourist centre on the
Mediterranean, based on summer coastal tourism, with an ever-growing variety
of attractions, but also with inland tourism, based on artistic, cultural and
gastronomic interests. On the other hand , there is plenty for the lover of
nature and adventure sports, with excellent conditions in the wild areas of
the Catalonian Pyrenees and the uninhabited mountain ranges in the south.
Catalonian agriculture is a comparatively minor sector in relation to industry and services, but with a series of sub-sectors competing all over the world, such as cava (Catalonian champagne), wine, porcine livestock, fresh fruit and meat by-products. The Catalonian agroindustrial complex is possibly one of the sectors with the highest future potential, despite enjoying one of the longest traditions.
General
Early in the 19th
century Catalonia was firmly on the path of industrialisation. First came the
steam engine in 1830 followed by inauguration of Spain's first railway line
between Matarķ and Barcelona in 1848.
Introduction of the steam engine gave a great boost to the
cotton textile industry, which was concentrated in Barcelona, on the Mediterranean
coast and along the Llobregat, Ter and Anoia rivers. In Catalonia the surge
in the industrial revolution came about as a result of wealth accumulated in
the Cuban trade when Catalan exports rose astronomically. Catalonia, however,
did not have the necessary raw materials and had to import them. As happened
in many countries which industrialised after the United Kingdom, the industrial
middle class struggled to win protectionist policies in order to avoid a flood
of British and French manufactured products and allow the consolidation of a
solid domestic market in Spain.
The process of industrialisation, however, had its ups and downs. Especially negative was the economic depression which followed the Spanish Civil War (1936-39). Once more, however, Catalonia was able to take advantage of the protectionist domestic market. As in other highly industrialised regions, in recent decades there has been rapid growth of the tertiary sector. Today, some 59.3% of Catalonia's working population is employed in this sector.
Barcelona remains the main industrial and services area although the nature of the urban and transportation network is changing to accommodate the new needs of industry. The hub of the conurbation is moving away from the old centre of the city close to the port to a new centre along the motorways connecting with the rest of Spain and Europe. Tarragona, a short distance south of Barcelona by motorway, has developed a flourishing chemical and petrochemical industry.
Those employed in agriculture represent 3.5% of the total working population.
Coinciding with Spain's entry in the European Community, the
Catalan economy began a period of expansion which gradually overcame most of
the negative effects of the 1973-1985 economic crisis. Before integration, the
Gross Domestic Product (GDP) showed an annual growth rate that was sustained
primarily by foreign demand. Domestic consumption and capital investment were
at a low ebb and the unemployment rate reached as high as 22%.
From 1986 on the
economic situation has undergone a spectacular change. Annual growth in the
GDP rose to around 5% stimulated by lively domestic demand. The expansionist
trend in investment in capital goods played an important role in this process.
Rates of demand, both private and public, have remained high. This growth in
economic activity-especially in construction and industrial production-led to
a big improvement in the job market with substantial reduction in unemployment.
Today, the big challenge for all countries in the European Union is to take
full advantage of the European Single Market. Following the reunification of
Germany this market comprises some 370 million consumers.
Catalonia's ideal geographical location, the traditional tendency
to open up new markets and the sound technological development of its industry
put it in a strong position to compete in this vast Single Market.
Catalonia has a high level of education assured by 7 public universities and one private university which through their various faculties and colleges cover the whole range of training needs both at the higher and intermediate level. To these studies may be added vocational training which has grown considerably in recent years.
The diversity of climate, soil and terrain to be found in Catalonia allows a wide range of agricultural production. Basic crops are wheat, rice, cereals for fodder, vegetables, olives and fruit. Nuts are among the main agricultural exports. Some 65,000 Ha are devoted to grapes for the prosperous wine industry.
Catalonia is the leading industrial region in Spain supplying
some 24.5% of the country's industrial production in 1991. With 24.7% of Spain's
industrial employment and contributing 25% of gross value added by Spanish industry,
Catalonia's production structure puts it among the top five most industrialised
regions of Europe.
Key industries are
metal manufacturing (tools, machinery, vehicles), construction and public works,
chemical and allied industries and textiles.
According to 1991 figures, the added value of the chemical industry amounts to 45.9% of the Spanish total. In metal manufactures the figure is 39.8% while textile products, clothing and leather make up 38.9%. Paper, graphic arts and publishing accounts for 29.7% while wood and furniture total 16.3%. Food, drink and tobacco account for 20.3%, energy 20.8% and transportation equipment 14%. These sectors of Catalan industry are closely interconnected with their European counterparts as can be seen from the volume of imports and exports in these products.
Over the past 25 years the industrial profile of Catalonia
has progressively changed as textiles, historically the leading sector, lost
relative importance.
Another important employer is the printing and publishing business, centred on Barcelona. Catalonia accounts for 29.6% of paper, graphic arts and publishing companies in Spain. This is traditionally an export-oriented industry which bases its international success on flexibility and high quality production.
Support industries
Forming part of the industrial fabric of Catalonia are a great number of small
and medium-sized companies, ancillary to large industry to which they supply
components and provide services. Their size allows them to rapidly adopt new
technology and mass production in widely varying runs and with quality that
is unbeaten anywhere else in the European Union.
An extensive programme
of industrial readjustment, in line with the economic policies of the Generalitat,
has in recent years put emphasis on the increasing introduction of advanced
technology and quality control.
The government of Catalonia has established a number of mechanisms to promote
industrial activity and technological innovation including the Testing and Research
Laboratory, Institute for Agroindustrial Research and Technology, IDIADA, Catalan
Centre for Super-Computing and CIDEM.
The Generalitat was responsible for setting up CIDEM (Centre for Information and Business Development) whose aim is to help improve the competitiveness of companies established in Catalonia.CIDEM provides information on the latest technological developments in all industrial sectors .
Today, Catalonia
has a modern, diversified energy supply system. Basic components include two
major petroleum refineries; an extensive oil pipeline network; natural gas,
first introduced in 1969 for industrial use and the production of electricity
and later extended to domestic use; and generation of electricity using nuclear
energy since 1972, with three nuclear power stations in operation. Present production
of primary energy breaks down in the following way: nuclear energy, 71,1% oil-fired
12,5%; hydroelectric, 13%; coal-fired, 2,2%.
The National Energy
Plan provides for growth of production capacity in line with energy demand.
In recent years Catalonia's gas plan has greatly increased the industrial and
domestic gas distribution network. This is helping to bring about a better balance
in the primary energy structure.
The water supply
system exceeds foreseeable needs and a policy of rational and systematic use
of resources is being carried out. Water now being brought from the north of
Catalonia assures adequate supply to areas which were formerly short of water.
Although spot pricing of the various forms of factors involved, price levels in Catalonia are very close to those in neighbouring countries. Oil by-products cost slightly less than in other countries while gas and electricity prices are generally slightly higher. Energy prices for large installations depend on the size of the contract.
The contribution
of the various sectors of the economy to the region's Gross Domestic Product
shows a strong move toward a tertiary economy. In 1994, the volume of the tertiary
sector was 57% of the GDP.
This confirms how
Catalonia has been following a broad process of modemisation changing from a
mature industrial society (based on industrial sectors using conventional technology
and on consumer durables) to a so-called post-industrial society where the tertiary
sector becomes the prime mover of economic activity.
Within the tertiary
sector, the most important sub sector is the wholesale and retail trade. Next
in line are transportation and communications and services connected with tourism.
Specialised retail trade
Catalonia, especially the capital Barcelona, has become an important centre
for the retail trade with a wide influence both inside and outside of Spain
.
n recent years the distribution sector has been local businesses are being replaced by new methods of distribution such as supermarket outlets, shopping centres, department stores, discount stores, franchising outlets, etc. To a large extent, this is taking place parallel to the consolidation of traditional specialised retailing.
Industry services
A wide range of services catering to business and industry, ranging from advertising
and publicity to market information and data-processing services, has grown
up in Barcelona. Valuable information services are provided by the various departments
of the Catalan Government while other information can be obtained from professional
organisations, banks and consultants.
A good transport
and communications infrastructure has played a key role in the economic development
of Catalonia. This has been of major importance in consolidating its leading
position.
In recent years,
a decisive factor in plant location and development of the urban system has
been the modern network of motorways which have sharply cut the distance in
economic terms from markets in Europe and the rest of Spain.
This network allows
rapid access to port and airport facilities and to the diverse industrial support
structure. Under the Highways Plan, major improvements are being made to roads
connecting with the northern and central areas of Catalonia.
Road transport is highly developed throughout Catalonia. Passenger transport accounts for 41,553,783 journeys/year while vehicles cover a total of 43,905,480 km/year. Goods transport by road originating in Catalonia totals 127 thousand tonnes.
Some 86.2% of the total volume of goods shipped in Catalonia
travels by road, 7.5% goes by air, 5.1% by rail while only 1.3% moves through
the ports. Of a total of 16.4 million visitors who entered Catalonia during
the year, 84.6% came by road.
Rail communications
are provided by Renfe (Spanish National Railways) and FGC (Catalan Railways).
With a combined total of 1,600 km of track they carry more than 6 million tonnes
of goods a year. The rail network links the main ports and industrial areas.
All rail traffic from Eastern Spain to Europe travels through this network.
Catalonia has two major well-equipped sea-ports: Barcelona
and Tarragona. Service is maintained with the main ports of Europe, the United
States, the Middle East, the Far East, South America and Africa.
Regular shipping lines connect with 100 countries. Barcelona has one of the Mediterranean's biggest container terminals and the port is equipped with dock facilities for loading and unloading liquefied natural gas, refrigerated cargo, grain, cement and other bulk handling.
Air traffic operates out of three airports: Barcelona-El Prat, Reus and Girona-Costa Brava, mainly devoted to tourism. Other airfields provide facilities for private aircraft. Direct international air services to Europe, North America, the Middle East and Africa operate out of Barcelona. Barcelona is connected with Madrid by air-shuttle services with very frequent flights on which no reservations are necessary.
Some 23.9% of all inter-city telephone calls in Spain originate in Catalonia which has 18.9% of the country's telephones. Catalonia accounts for 20.3% of all mail originating in Spain and 19.1% of mail delivered.
One of Europe's leading
tourist areas, Catalonia attracts more than 16 million visitors a year. It has
become a very attractive place to visit for the people of other European countries,
especially from France and Germany, which are its main source of tourist business.
It offers a benign Mediterranean climate and a broad range of cultural and sports
attractions as well as gastronomic delights. Its geographical location makes
it easy to reach by any mode of transport although most visitors come by road.
Among the most outstanding tourist areas are the Costa Brava and the Costa Daurada
which together attract the vast majority of visitors and provide the largest
concentration of tourist facilities.
Other areas of special interest include the city of Barcelona, which enjoys international recognition as a result of the Olympic Games, while the interior offers spectacular mountain areas where the visitor may engage in skiing and adventure sports or rural holidays. Key attractions are the mountain of Montserrat, Ripoll, the monasteries of Poblet and Santes Creus, the provincial capitals of Tarragona, Girona and Lleida, each with centuries of history to discover.
The hotel capacity
of Catalonia is very large. Total hotel accommodation exceeds 229,000 beds.
Well-equipped camp sites provide accommodation for a total of 252,651 people.
A large number of apartments and holiday homes have capacity for many more.
In relation to Spain as a whole, Catalonia accounts for 14.7% of all hotel stays
and 47.4% of all stays at camp sites.
Visitors may enjoy a broad range of additional services, including 30 golf courses,
more than 25,000 small-craft moorings and 12 down-hill ski resorts.
Barcelona beckons
A cosmopolitan city with a lively cultural life, Barcelona offers a great many
artistic, musical, sports and other events. The city's theatres, art galleries,
museums and cinemas draw large numbers of people. The city has many attractive
shopping areas ranging from exclusive shops to large department stores. All
year round, but especially in summer, people love to wander on the broad boulevards,
the Rambles, and down the bustling shopping streets.
When the season begins, music lovers enjoy listening to performances by international artists at the Palau de la Musica or at the Gran Teatre del Liceu, Barcelona's splendid opera house, at present out of use after a serious fire.
The pleasures
of dining out
Even in the srnallest towns, the visitor can savour the delights of Catalan
cuisine, which vary from the rich rneat dishes of the mountains to the tasty
recipes of the fishing villages Here restaurants foster the tradition of fish
direct from the sea temptingly prepared in a great variety of ways according
to local custom.
Spain's financial
system is built around the Banco de Espaņa government credit institutions the
private banks savings banks credit cooperatives financial interrnediaries the
stock exchanges and other financial markets.
Extensive reforrns of the financial system which began in 1971
have continued until the present day with the introduction of futures markets
continuous markets and the electronic linking of Spain s folJr stock exchanges
The early reforms were aimed at introducing more liberal policies in or.der
to achieve improved use of resources increased efficiency in financial dealings
and a larger volume of medium and long-term financing. one result was the consolidation
of the interbank market in short-term funds and improved financial relations
with other countries. Today with the development of new institutions and new
products Spain has come of age in world financial markets. Catalonia represents
one- Fifth oF Spain s total financial market. It holds sorne 20.5% of all bank
deposits and has 18.9% of total bank branches. A special characteristic of Catalonia
is the importance of savings banks which hold 66.9% of all private bank deposits.
Financial activity in Catalonia is carried out rnainly by banks and savings banks operating members of the Barcelona Stock Exchange and financial intermediaries. The private banks constinlte the biggest segment in Spain's financial system.
Savings banks
Savings banks are the second most important group in Spain's financial systerm
As well as taking deposits they carry out most of the same activities as banks
with which they compete vigorously. Unlike banks, they do not have shareholders
and profits not applied to reserves must be devoted to community projects of
a cultural or social nature.
The share of market share held by the saving banks rnentioned earlier puts them in the first rank in Europe, With the creation of Caixa d'Estalvis i Pensions de Barcelona, the result of -the merger of two of Catalonia's biggest savings banks, the new concern became the leading banking institution in Spain.
Government credit institutions
The Agricultural Credit Bank, the Industrial Credit Bank, the Local Credit Bank
and the operations, usually over the long term, are substantial. The Catalan
Finance Institute acts as the main instrument of public credit policy of the
Generalitat by directing and coordinating the activities of public credit institutions
which fall within its competency. The Catalan Institute of Agricultural Credit
implemellts the rural credit policy of the Generalitat.
Foreign banks
Foreign banksl first given approval by the Spanish government in 1978, are well
represented in Catalonia. Their presence has facilitated the integration of
the Catalan economy in world financial markets, payment of import-export operations,
investments From abroad and the transfer of funds.
Alongside this development came liberalisation of the financial
market, expansion of the rnoney market and the appearance of new financial instrllments
(Treasury bonds, deposit certificates, commercial paper, bills negotiable on
the Stock Exchallge, syndicated variable-rate loans, etc.). These new instrurnents
strengthelled market mechanisms along European lines, providing a modern flexible
and diversified financial system.
Barcelona Stock Exchange
Spain has four stock exchanges, uperating in Madrid, Barcelona, Valencia and
Bilbao. In 1995, the Barcelona Stock Exchange represented approximately 8 3%
of total volume traded on the stock marhet in Spain The exchange carries orl
a traditional rnarket in debentures, government bonds and shares.
Trading and settlement have been modernised with introduction of computerised
trading (Continuolls Market) which makes possible cross-dealings on a continuous
basis between members of the Barcelona stock exchange and other Spanish exchanges
Secondary markets also operate in Barcelona, Madrid and Bilbao. Trading is carried
on in shares of small and medium-sized companies much like the Unlisted Securities
Market in the United Kingdom and the Second Marche in France.
In recent years, reform of the legal framework of the stock exchanges has given
Spanish stock markets an up to-the-minute organization similar to those in the
main world stock markets An irnportant development was creation of the National
Stock Market Commission, whose purpose is to supervise the smooth working of
the market, to ensure full disclosure, and the issuers of shares and securities.
Following recent reforms, those stock exchange companies which have become approved
Securities Houses are also allowed to act as brokers. This permits them to act
for third parties as well as on their own account. other autllorised firms are
allowed to operate only as brokers which means that ihey can act solely for
third parties, that is for their customers.
Barcelona futures market
Spain's first financial futures market (MEFFSA) was launched in Barcelona in
199O. At first it traded a futures contract based on a notional 3-year Spanish
Government bond with quarterly due-dates. It is now Irading other contracts
based on a 3-month deposit in the money market and on a 5-year Spanish Government
bond. MEFFSA plans to launch other contracts offering a complete range of futures
in the Barcelona market.
Money market
In spite of the diversity of instruments with regard to interest rates and term,
public issues while the remainillg 2 7% is shared by the banks, savings banks
and non financial companies. A substantial part of securities issued are placed
with banks and savings banks.
Loan market
Interest rates on loan operations, whatever the terms and type of credit, are
set by the market. Deposit interest rates are also set by the market. Banks
are obliged to publish their prime interest rates as well as a list of all commissions
charged.
Last century, as
Barcelona was enjoying a euphoric boom in the textile industry and a thriving
trade with Cuba, the Philippines and South America, Catalonia played host to
the 1888 World Exhibition. Not only did the Exhibition build new ties with Europe
but it brought major changes in the urban scene. These changes included an elegant
new public garden and a splendid monument to Columbus. in 1929, the stunning
Barcelona international Exhibition confirmed the city's leading role in the
Mediterranean and ope ned the world's eyes to the burgeoning economic region
of Catalonia.
The framework created
around the 1929 Exhibition formed the nucleus for the Barcelona Trade Fair complex,
which today is bursting at the seams, while new exhibition space is being developed
away from the city centre. The complex is the site of important trade fairs
including the regular International Trade Fair which has been operating for
more than 50 years.
Every some 33 trade fairs of national scope are held in Catalonia. Many of these shows play an important role in retail marketing across Spain, especially for introducing new product lines. Other shows display latest technological innovations in practically every field of industry, manufacture, electronics and communications, which are important for the development of domestic manufacture. Each year these trade fairs attract more than 20.000 exhibitors including some 8.000 from outside the country and some 3.000.000 visitors.
The Barcelona Trade
Fair, with an area of 250.000 square metres, is made up of 12 pavilions with
120.000 square metres of floor space and a large, well-equipped Convention Centre.
A number of important regional trade fairs are held in other centres, of particular
interest to the food business. in all, more than 110 trade fairs at the national,
regional and local level are held each year.
With the rapid growth of the Catalan economy, the Barcelona Fair has been forced to acquire outside the traditional centre-city location at the foot of Montjuîc mountain. This follows an extensive programme of renovation and expansion of existing facilities.
l Catalonia: a land of reference l