Macroeconomy

"We have sectors that create jobs with poverty wages or where there are no people to work."

Economist Modesto Guinjoan publishes a critical portrait of the Catalan economy in a new book.

Barcelona"Perhaps we're not doing entirely well," says economist Modesto Guinjoan (Riudoms, Baix Camp, 1954), regarding the state of the Catalan economy. On paper, the Spanish government, the Generalitat, unions, and employers' associations are happy: Spain is one of the leading countries in economic growth, and job creation in Europe and Catalonia has been growing faster than the national average for two years. The problem, according to Guinjoan, is not specific growth but rather the progress of the economy and, above all, of Catalan society.

Guinjoan has just published Grow or progress. Catalonia in the mirror. (Pórtico), an essay in which he paints a detailed portrait of the country's productive structure and, above all, its most notable weaknesses. And this is where the image reflected in the mirror doesn't please the author, nor does it please many other experts in the country, who have long been warning that economic activity in Catalonia is too concentrated in sectors that allow for economic growth but do not create greater well-being for citizens.

The economist, who throughout his professional life was a professor of economics at Pompeu Fabra University, a senior official in the Government's Department of Industry, and a business advisor, is clear about where the creature is crying: "The weaknesses are practically concentrated in the world of work and behind sectors that create jobs where there are none," he opines.

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Among these sectors, tourism stands out the most, but there are others, such as a heavy dependence on commerce or, in industry, the strong influence of the meat sector. "Mass tourism, like the city of Barcelona, ​​​​not to mention Lloret de Mar, has tremendous costs," says Guinjoan, because "it consumes territory and generates jobs that no one here wants to fill," which forces us to import labor from other parts of the world, people who find in this type of work "I don't need it, but it pays me?" Guinjoan concludes.

This population-based growth—in a country with negative natural growth and which, therefore, must welcome immigration—is one of the most notable aspects of the Catalan model. "We grow 3% each year, but, in practice, per capita we grow 0.5%," he says. In other words, the country is growing economically, but it's not getting richer, and by extension, neither are its citizens.

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"There has been an ever-growing accumulation of opinions from renowned economists, academics, and even some economic institutions that have been putting forward the idea that perhaps we weren't doing entirely well," Guinjoan explains to ARA. In fact, entities as the Chamber of Commerce They've long been pointing out the same thing Guinjoan analyzes in his book: Catalonia's problem lies in productivity.

Productivity is a measure of the economic efficiency of a worker, a company, or a region. The more productive a country is, the more its workers and companies produce in less time. Guinjoan, like other experts, believes that growth in productivity, and not in the economy as a whole, should be the goal in the coming years. "Productivity means high wages; it must be evenly distributed. There can't be miserable productivity because wages are miserable," he concludes.

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Criticism in the administrations

One of the main problems that, in Guinjoan's opinion, explains why the Catalan and Spanish productive fabric is so heavily based on sectors with low wages and productivity is due to economic policies. "The political world has more power than it seems when it comes to supporting the productive system, but historically it has a certain servitude to economic inertia," he reflects. In this sense, the economist points out that "administrations, when they hear talk of job creation, don't know how to say no" and, furthermore, "don't think about quality or whether there are people in the region to fill these jobs."

Another element is the country's "belief of inferiority," especially among governments. "We like to do things to be seen," he recalls, with projects of far-reaching global reach, but which strengthen precisely the least productive sectors, from major sporting events (Olympic Games, America's Cup, Formula 1) to mega-music festivals, which receive large amounts of public aid. "In Denmark, a country with half the population, they already have enough work at home and they dedicate themselves to the things they're strong at, not to projecting themselves to the world," he comments. These major events are "to raise eyebrows and say 'what a great time we had,' but once the entertainment is over, it's over," he adds.

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Aside from the public administrations, "a portion of the business elite has abandoned the most demanding and risky activities in favor of seeking easier money," says Guinjoan. However, he also emphasizes that "this country has many strengths: it has an extraordinary productive fabric, very significant human capital, a business culture, and organizational capacity," the economist recalls. "There are areas of excellence."

Despite the Catalan economy's capacity to prosper, Guinjoan remains "a bit pessimistic." "There is some light, which is pointing to corrections," such as the tourist tax, the regulation of tourist apartments, or increases in the minimum wage, which are a tool to increase productivity in many sectors, as they penalize companies that create less added value, while the most efficient can thrive. "The public administrations are doing that," but at the same time, "these administrations are also feeding a beast, which is the expansion of the airport," he clarifies.

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"They say international investors and researchers will come, but Aena doesn't care whether there's mass tourism or not; they're interested in business, and business depends on volume," the economist notes about the expansion of El Prat. "With current telecommunications, will facilitating the landing of ten Chinese businesspeople make a difference? Their plane will carry ten businesspeople and 495 tourists, and with the airport we have now, we don't know where to put them."