Tag: Basque economy (page 1 of 2)

February 10, 1925: Collapse of emblematic Basque bank Crédito de la Unión Minera

On February 10, 1925, one of the most well-known Basque banks, Crédito de la Unión Minera (Mining Union Credit)–an early Bilbao banking institution founded in the spring of 1901–suspended all payments as a prelude its collapse as a result of the financial downturn in the 1920s. Curiously, the full liquidation of its assets would drag on a further seventy-five years, culminating at the dawn of the new millennium.

Crédito de la Unión Minera was established in 1901 on the back of both significant growth in Bilbao itself (as a consequence of the strong mining export market) and the inflow of capital from former colonies following the fall of the Spanish empire. As its name indicated, this particular bank was associated closely to the mining sector on Bizkaia. Thereafter, the “Crédito” managed to retain its independence, in the wake of a series of fusions among other Bilbao banking interests, thanks to a successful aggressive commercial policy that saw its share price soar on the Bilbao stock market. This initial success was bolstered during World War I (1914-1918) with Spanish neutrality in the conflict benefiting the important Basque banking sector.

With the end of the war, however, and the economic downturn in the 1920s, those banks that had been especially speculative or adventurous were suddenly in trouble.  Specifically, as a result of over speculation, the Crédito was suffering from a lack of cash flow and on February 10, 1925, it suspended all payments prior to its official collapse.

Interestingly, it was still possible to cash in on the remaining assets of the bank right up until late 2001!

For more on this fascinating story, check out a great article by Eduardo J. Alonso Olea, “El Crédito de la Unión Minera: 1901-2002,” in Historia Contemporánea 24 (2002): 323-53. Available here.

The Basque Country in Statistics

Whatever the level of interest you may have in the Basque Country, whether professional or scholarly or more informal or personal, there are several online resources that offer a wealth of statistical information to facilitate a better understanding of the basic structure of Basque society.

Gaindegia is a nonprofit organization dedicated to providing social and economic information about the whole Basque Country, Euskal Herria. Likewise, Atlasa, a related initiative, seeks to collate and present this same information in map form.

The Basque Statistical Office, Eustat, meanwhile, serves as a key source of information about the Basque Autonomous Community as does its counterpart in Navarre, (Na)stat.

If you’re interested in this kind of information, be sure to check out Basque Economy from Industrialization to Globalization by Mikel Gómez Uranga (free to download here) and Basque Society: Institutions and Contemporary Life by Gabriel Gatti, Ignacio Irazuzta, and Iñaki Martínez de Albeniz (free to download here).

 

Basque Economic Agreement Explained

Check out the following video, part of the Bizkaia Talent initiative and featuring Pedro Luis Uriarte (President of the Bargaining Commission of the Economic agreement from the Basque Government side in 1980), which explains succinctly the very special fiscal system that exists in Hegoalde or the Southern Basque Country.

If you are interested in this topic, check out Basque Economy from Industrialization to Globalization, by Mikel Uranga, free to download here.

See, too, The Basque Fiscal System Contrasted to Nevada and Catalonia: In the Time of Major Crises, edited by Joseba Aguirreazkuenaga and Xabier Irujo.

Center publication presented at recent conference in Bilbao

At a recent conference in Bilbao, held on April 6, regarding the Economic Agreement–the principal fiscal mechanism regulating economic ties between the Basque Country and Madrid–in the media, Joseba Agirreazkuenaga presented the CBS publication The Basque Fiscal System Contrasted to Nevada and Catalonia: In the Time of Major Crises.

Read the event’s program here (in Basque and Spanish). This new publication seeks to analyze Basque fiscal systems in the context of the 2008 financial crisis. It also aimed to develop a comparative vision with the state of Nevada and Catalonia. It treats the politics of finance in multi-level public institutions during the economic crisis; long-term fiscal policies for dealing with economic downturns during the past twenty years; the development of treasuries in federal states, in non-federal states and in complex unions (Europe); taxation and citizenship in a globalized world; long-term trends for dealing with the crisis and strategies for the future in European and North American contexts (the Basque Country, Catalonia, Spain, Ireland, and Nevada). Most of the book’s contributions by distinguished scholars and public officials relate to the Basque Country, providing an analysis of fiscal policies or the evolution of public finances. A contribution on taxation and gambling is also offered. This book serves as a new contribution to studies on fiscal federalism in Europe and America. We hope that these reflections serve as a turning point to promote debate and for the formulation of future research. Fiscal analysis is now an important research line at the William A. Douglass Center for Basque Studies, promoted and in cooperation with the regional government of Bizkaia, with the end of promoting research in a comparative perspective.

Green Basque Country

There was an interesting article in the Noticias de Álava newspaper recently about a woodland and lumber fair held in Amurrio, Araba, last Sunday. It included the piece of data that, in the Basque Autonomous Community (BAC, made up of Araba, Bizkaia, and Gipuzkoa), there are 106 trees per person , with a woodland area covering 396,700 hectares, or 55% of the total terrain. It is estimated, moreover, that the lumber industry accounts for 12 billion euros annually. This all points to the lumber sector being an important part of the Basque economy.

selvairati06

The Irati Forest, Navarre. Photo by Juanma juesas, courtesy of Wikimedia Commons.

In “The Landscape of the Autonomous Community of the Basque Country: The Evolution of Forest Systems” by Lorena Peña and Ibone Amezaga, a chapter in Sustainable Development, Ecological Complexity, and Environmental Values, edited by Ignacio Ayestarán and Miren Onaindia, the authors address in detail the complex issues surrounding land use in woodland areas in the Basque Country.

See the original article in Noticias de Álava (in Spanish) here: http://www.noticiasdealava.com/2016/10/24/araba/euskadi-un-total-de-106-arboles-por-habitante

October 18, 1997: Inauguration of Guggenheim Museum Bilbao

October 18, 1997 marked the inauguration of the Guggenheim Museum Bilbao – today one of the most emblematic sites in the Basque Country.

640px-bilbao_-_guggenheim_aurore

The Guggenheim by night. Photo by PA. Courtesy of Wikimedia Commons.

Hailed as a masterpiece and one of the most important buildings of the 20th century, the Guggenheim Museum Bilbao, designed by architect Frank Gehry,  came to redefine the Basque Country as a whole and the city of Bilbao in particular: it was the “miracle” of Bilbao.

The “miracle” referred of course to Frank Gehry’s Bilbao masterpiece. Hailed as an “instant landmark,” it brought a new sense of relevance to architecture in the transformation of urban landscapes. It was the story of the architect as hero and, as the Greeks believed, of architecture as the first art—arché. Bilbao was doing for the Basques what the Sidney Opera House had done for Australia. Gehry, while complaining of being “geniused to death,” became not only the master architect, but the master artist.

These observations come from the introduction to Learning from the Bilbao Guggenheim, edited by Anna Maria Guasch and Joseba Zulaika. This book is available free to download here.

The Center also publishes other books on the social, cultural, and urban transformation of Bilbao and the Basque Country, for which the Guggenheim served in many respects as a springboard:

That Old Bilbao Moon: The Passion and Resurrection of a City, by Joseba Zulaika.

Transforming Cities: Opportunities and Challenges of Urban Regeneration in the Basque Country, edited by Arantxa Rodríguez and Joseba Juaristi.

Building the Basque City: The Political Economy of Nation-Building, by Nagore Calvo Mendizabal.

 

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.

Años50bilbao

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.

640px-Guggenheim_aerial_v

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.

675px-Bilbao,_grúa_Carola_1

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 pig gets prized AOC status in France

Last week the revered appellation d’origine contrôlée (AOC), or “controlled designation of origin” status in France, was awarded to the Basque black pig breed, from which Kintoa pork (named after a valley in the Aldude area of Lower Navarre) comes. The decision marked a fifteen-year long struggle on the part of pig farmers in Iparralde to gain recognition for the quality of the pork associated with the Kintoa breed, pigs that are still raised on small-scale family farms.

640px-Porc_basque_elevage

Basque pigs in Ureple, Aldude Valley, Lower Navarre. Photo by O. Morand, courtesy of Wikimedia Commons.

In the 1990s the Kintoa breeders’ association that has been lobbying for the designation since 2001 had less than a dozen members, a figure that rose to around 30 at the turn of the century, and now stands at around 80.  A Kintoa pork festival has already been planned for October 2017 in honor of this major recognition, and the award will enable producers to preserve the breed and market their pork more easily at the European level as well as ensuring a level of quality and control for consumers.

Read more on this (in French) in Sud-Ouest here and (in Basque) in Gara here.

For more information on the Basque pig, check out this introductory explanation here at the site of renowned breeder and butcher Pierre Oteiza.

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.”

European innovation

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

640px-World_wave_energy_resource_map

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.

Older posts