Category: Basque political economy

September 3, 1902: Euskalduna company launches first ship

On September 3, 1902, the Euskalduna company launched its first ship, the “Portu,” a barge for use by the important Altos Hornos de Vizcaya foundry. Euskalduna, a marine engineering company whose full name was Euskalduna de Construcción y Reparación de Buques de Bilbao, would go on to become one of the most renowned features of the Basque industrial landscape with its headquarters in the heart of Bilbao. It opened for business in 1900 and finally closed in 1988 after a four-year period of severe confrontations  between workers and police over the decision to close the shipyard.

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Aerial view of Bilbao in the 1950s during a new era of expansion for Euskalduna, shown here top left in the picture beside the bridge. Photo courtesy of Wikimedia Commons.

During that time, the company enjoyed mixed fortunes: a boom in the World War I era and beyond that tailed off by the 1930s; growth again in the 1950s and 1960s, with Euskalduna contributing 50% of the capital to a new statewide conglomerate, Astilleros Españoles, which by the late 1960s would be one of the largest shipbuilding companies in Europe; and, ultimately, decline again in the 1970s following the 1973 oil crisis and increasing competition from East Asia. When the decision was taken to close the shipyard in 1984, the workers there engaged in direct confrontation in an effort to maintain their jobs. These confrontations, as well as many negotiations including labor unions, management, and the public administration, went on for four years and this intense period came to define much of Bilbao’s social history in the 1980s.

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Central Bilbao today, with the Euskalduna Conference Centre, the reddish building, to the far right of the picture and the Bilbao maritime Museum behind that. Picture by Ben Bore (Rhys), courtesy of Wikimedia Commons.

Following the closure of the shipyard, the emblematic site that had been so important in the industrial history and legacy of Bilbao was converted into a leisure area: today it houses both the Euskalduna Conference Centre and the Bilbao Maritime Museum. The site itself, then, continues to form a central part of the Bilbao economy, although now in a postindustrial and leisure-oriented framework.

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The “Carola” crane, installed in 1957 in the Euskalduna shipyard, it was and still is an important part of the cityscape. Today, though,  it forms part of the Bilbao Maritime Museum. Photo by Txo, courtesy of Wikimedia Commons.

In That Old Bilbao Moon: The Passion and Resurrection of a City, Joseba Zulika shares a very personal view of Bilbao and its historical transformations. And for more on Bilbao and the urban changes associated with the city through time, check out Transforming Cities: Opportunities and Challenges of Urban Regeneration in the Basque Country, edited by Arantxa Rodríguez and Joseba Juaristi.

 

 

Basque Country mentioned in Washington Post report on European innovation

Rick Noack of the Washington Post recently reported on European innovation levels in his article “Where Europe is most and least innovative, in 6 maps.”  Citing the recent European Union Innovation Scoreboard,  Noack notes that, “the Basque country — an autonomous region in Spain — is the country’s only area that is more innovative than the E.U. average.”

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Check out the full report here.

See, too, Javier Echeverria’s fascinating study of innovation at the European level: Innovation and Values: A European Perspective.

Likewise, the Center has published two books specifically on innovation–in all its guises–in the Basque Country: Implications of Current Research on Social Innovation in the Basque Country, edited by Ander Gurrutxaga Abad and Antonio Rivera, free to download here; and Innovation: Economic, Social, and Cultural Aspects, edited by Mikel Gómez Uranga and Juan Carlos Miguel de Bustos, free to download here.

 

Cutting-edge Basque technology to harness wave energy premiered

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World Wave Energy Resource Map. By Ingvald Straume. Courtesy of Wikimedia Commons.

In a recent post we mentioned the fifth anniversary of the groundbreaking Mutriku Wave Energy Plant in Gipuzkoa and it would seem that the Basque Country is indeed at the forefront when it comes to harnessing the sustainable energy of the ocean.

Just today, the Basque company Navacel announced that it will produce a wave energy sensor device, sponsored by the Basque Country Energy Agency and designed by Oceantec Energy, which will be tested this Fall in the marine testing platform Bimep, located in Armintza-Lemoiz (Bizkaia).

The sensor will be made up of three steel plates in the shape of a buoy, with internal mechanical and electrical equipment capable of generating energy out of wave movement. The device will be 42 meters in length, 5 meters in diameter, and weigh some 80 tons. Two turbines located in the upper part of the device will generate the energy.

See a report on this new device (in Spanish) in the Basque daily Deia here.

Mutriku Wave Energy Plant celebrates fifth anniversary

Yesterday, July 18, the Mutriku Wave Energy Plant in Gipuzkoa, the world’s first breakwater wave power plant with a multiple turbine arrangement, run by the Basque Country Energy Agency, celebrated its fifth anniversary. The relatively scarce development of oceanic wave energy makes the Mutriku site a pioneer project at the global level.

The Mutriku Wave Energy Plant has just produced its first gigawatt of electricity from the breakwaters of the Mutriku harbor, enough to supply a hundred homes. But the plant is also also an experimental site, used to test out turbines and auxiliary equipment.

As regards the technical specifications, the plant itself is a hollow, trapezoidal structure with a submerged front opening and an opening at the top. The front opening is 3.20m high and four meters wide. Each of the 16 air chambers in the hollow structure houses a turbine weighing 1,200kg. The turbines are 2.83m high and four meters wide, and work with air. They do not, however, contain a gearbox, hydraulics, or pitching blades.The 16 turbines are connected to an 18.5kW turbo generator. A butterfly valve at the bottom of the generator enables isolation of the generator from the turbines whenever required. Any salts or impurities blocking the blades are removed by injecting fresh water. The plant is also installed with control and power conditioning equipment. The voltage of the current is stepped up using a transformer near the plant. Generated power is transferred through a transmission line.

For further and more detailed information on the project, see “Mutriku Wave Power Plant: From The Thinking Out to The Reality.”

If you’re interested in this topic, check out the Center publication Sustainable Development, Ecological Complexity, and Environmental Values, edited by Ignacio Ayestarán and Miren Onaindia. This is a fascinating study of how global issues such as sustainability are addressed at the local scale, in this case in the Basque Country.

Boise and Bilbao: Two Boomtowns

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A recent report by the Idaho Statesman looks at the links between two boomtowns, Boise and Bilbao. The visit of a Basque delegation, led by Basque President Iñigo Urkullu, to Idaho last year enhanced the historic connection between the two regions. There have been economic ties between the city of Boise and the Basque Country since the nineteenth century, when the burgeoning sheep industry in Idaho increased the need for talented sheepherders from the Basque Country. A century later, these connections were still evident through cultural events such as the Basque Soccer Friendly and Jaialdi in 2016, celebrating the Basque heritage and culture. These events only served to take the exisitng economic and cultural exchange to new heights.
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This year, a business delegation from the Basque province of Bizkaia visited Boise to renew the economic and cultural partnership between Boise and Bilbao. According to Asier Alea Castaños, General Manager of Trade Promotion for the Bizkaian Government, at present over a million people reside in Greater Bilbao with a GDP per capita reaching 122 percent of the European Union (EU) average. Bizkaia’s economic competitive advantage is backed by higher education institutions that rank higher than the rest of Europe in terms of research and development. And this Bizkaian economic and technological edge, coupled with the existing links between the two cities, provides the Boise business community with huge opportunities.
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Boise has itself experienced technological booms in recent years with high-tech projects such as Trailgead poised to attract investment from the Basque Country. With a cost of doing business only one-third of that in California or Washington, Boise can be an attractive investment option for Basque investors.

Boise has extensive business clusters in software, environmental technology, advanced energy, hi-tech manufacturing, hardware assembly, national call centers, and agricultural technology. And Boise’s comprehensive business cluster complements that of some of the main industries in and around Bilbao such as the aeronautic, automotive, electronic, information technology, energy, and maritime sectors. It would appear, then, that there are multiple opportunities for new links to be developed between these two Basque boomtowns.

Read the full article here.

The Center has published several books on the Basque economy. For a general introduction, see Basque Economy from Industrialization to Globalization by Mikel Uranga, free to download here.

Tow other works address innovation policies in the Basque Country:

Implications of Current Research on Social Innovation in the Basque Country, edited by Ander Gurrutxaga Abad and Antonio Rivera, free to download here.

And Innovation: Economic, Social, and Cultural Aspects, edited by Mikel Gómez Uranga and Juan Carlos Miguel de Bustos, available free to download here.

For some general historical background on the particular tax and finance system that so defines the particularity of the Basque Country, see Basque Fiscal Systems: History, Current Status, and Future Perspectives, edited by Joseba Agirreazkuenaga and Eduardo Alonso Olea.

Another key feature of the Basque economy in recent years has been its urban transformation. This process is examined in Transforming Cities: Opportunities and Challenges of Urban Regeneration in the Basque Country, edited by Arantxa Rodríguez and Joseba Juaristi.

And for a wonderful monograph of one of the most controversial economic issues in the Basque Country today, namely the plans for a new high-speed rail network to create a single interconnected “Basque city,” check out Building the Basque City: The Political Economy of Nation-Building, by Nagore Calvo Mendizabal.

 

New CBS visitor from the Bizkaiko Foru Aldundia-Diputación Foral de Bizkaia

This month we welcome our second visitor from the Bizkaiko Foru Aldundia-Diputación Foral de Bizkaia (the Provincial Council of Bizkaia), Nieves Pereda Chavárri.  In order to find out more , check out my interview below with Nieves:

Where are you from in the Basque Country, Nieves?

I come from Bilbao, in Basque Country. I have been working for the Tax Department of Bizkaia (one of the seven Basque provinces) for more than 30 years. Currently I am in charge of the tax collection area and I mainly manage bankruptcy procedures, installment payments, as well as tax levy and lien procedures.

Our department tries to help pay taxes for those who want to and tries to act very fast against those who don’t want to pay them… I am totally in favor of our financial system called “Basque Economic Agreement,” that is, a fiscal pact between the Basque Autonomous Community and Spanish state in order to collect our own taxes and to finance our public expenses (mainly education, health, police, roads, and social welfare as well as local services as well) and to pay the proportional part of  the expenses related to goods and services provided by central Spanish government (via a cupo or quota). In 2014, UNR (the CBS) and the Tax Department of Bizkaia signed an agreement to collaborate in the promotion of Basque Economic Agreement. Two tax workers would visit UNR for 80 days to research on U.S fiscal federalism and the Basque Economic Agreement. The first person, Gemma Martinez Barbara, came last year and this year it has been my opportunity. Our Tax Department thinks it is important to let others know about our specific tax system. It can be described like a desirable integration between different tax jurisdictions.

And how long will you be here?  

I’ll be here till April 21st.  On April 11th we´ll have an event to speak about our papers.

What things would you like to accomplish/see while here in Reno/U.S?

For me the most important thing is to know how the CBS works, what they do, and to meet people there. I feel really interested in learning more about the importance and the influence of Basque people in the background of Nevada. I would like to visit some beautiful places around Reno and to know a little bit more about life in the university. I already had some opportunities; for example, last Friday in a meeting with the Provost and teachers at the university.

Tell us about your yourself-family, what Basque town you grew up in or where you live now in the Basque Country, what you like to do in free time, etc.?  

I was born in Bilbao and live there. My family comes from Bizkaia and Nafarroa. The thing I enjoy doing the most is spending time with friends and family–we usually have two or three special meals a week. I also love to invite friends home. In summer time I like traveling, sailing, and spending extra time with friends in the countryside. In general I am interested in reading, listening to music, and walking for a while everyday.

We welcome Nieves to the CBS family and are grateful to have her here!

 

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The Basque Economy: Present Reality and Future Prospects

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The Euro symbol. By Svilen.milev, at Wikimedia Commons

Two interesting articles on the Basque economy have recently been published by BasqueTribune:

In “How is the Basque Economy Doing?” economist Joseba Barandiaran offers a general overview of the present situation, describing a predominantly service-based economy but with an important manufacturing sector. While noting the healthy state of this “relatively rich economy,” Barandiaran also points out certain major challenges that need to be addressed: improving the technological dimension of Basque manufacturing, increasing RDI investment, and, perhaps most difficult of all, addressing the continuing demographic decline in the Basque Country. Read the full article here.

In “The Basque Country: We Lived in the Future (We Just Were Not Aware of It)” economist Asier Alea criticizes the assumption that advanced economies are merely service-based, arguing for a critical reflection on the place of manufacturing in contemporary societies. In his view, the recent crisis has demonstrated that those economies that maintained a robust manufacturing sector were better able to cope with the ensuing problems. We are, he argues, now on the verge of a new industrial revolution that will also herald new social and cultural changes involving a global vision rooted in strong local identities; changes that, he contends, the Basque Country is well placed to capitalize on, having embraced this vision already. Read the full article here.

If you’re interested in these topics, check out some of the Center publications on the Basque economy and related issues such as globalization and innovation.

Basque Economy: From Industrialization to Globalization, by Mikel Uranga, available free to download here. A general survey of the historical evolution of the modern Basque economy from its roots in heavy industry to the more diverse contemporary situation.

Implications of Current Research on Social innovation in the Basque Country, edited by Ander Gurrutxaga Abad and Antonio Rivera. An examination of social innovation in the Basque Country, focusing on knowledge transfer, learning, and innovation.

Innovation: Economic, Social, and Cultural Aspects, edited by Mikel Gómez Uranga and Juan Carlos Miguel de Bustos.  A study of the different ways in which innovation is understood in the Basque Country.

Basque Cooperativism, edited by Baleren Bakaikoa and Eneka Albizu. A comprehensive exploration of why the cooperative movement has flourished in the Basque Country and its response to the challenge of globalization.

Behavior and Organizational Change, edited by Sabino Ayestarán and Jon Barrutia Goenaga. Leadership, management, and cooperation in the workplace are all examined here from the perspective of the Basque Country.

See also a couple of more recent publications that examine the general issues raised in the abovementioned books in more detail:

Innovation and Values: A European Perspective, by Javier Echeverria. Charts the historical development of innovation policies and offers a new line of research that takes into account the history and philosophy of science and technology, but which underscores the profound specificities of the concept of innovation.

Building the Basque City. The Political Economy of Nation-Building, by Nagore Calvo Mendizabal. A critical examination of different perspectives on nation and state formation in Spain and the Basque Country within a European context, taking economic issues such as the controversial High Speed Train project and European integration as its focus.