Fri. Nov 15th, 2019

The IMF dismantles the myth of inequality between autonomies in Spain


In full election campaign, when discussing the economic efficiency of the state of autonomy, the International Monetary Fund (IMF) rewards Spain by placing it, among rich countries, in those that have less inequalities between their regions.

In a study published this Wednesday, the institution warns of the huge disparities in terms of income presented by countries such as Brazil (Just think of the industrialized area of ​​the coast and the Amazon rainforest), Germany (the contrast between the western part and former East Germany), Ireland (the technological district of multinationals with the most rural area) or India (with a very heterogeneous territory).






Inequalities

Spain, better than Denmark, Austria or Italy

On the other hand, the most homogeneous countries in GDP per capita among the regions, in a total list of twenty, would be, according to these sources, the United Kingdom, France, Czech Republic, Sweden, U.S Y Spain. In a worse situation are Italy (where between the North and Sicily the differences are abysmal) or Greece (still recovering from the cure of austerity after the sovereign debt crisis).




Still, we speak in relative terms. The situation is to launch rockets, because the IMF recognizes that inequalities in Spain, although they are smaller compared to other countries around them, have increased with the crisis.

“You can think that people can simply move in search of better jobs in high income areas. However, the highest average income in the most prosperous regions is often offset by the high cost of living. People find it harder to move because housing costs are higher and well-paid jobs are less available for low-skilled workers in the richest regions. For example, during the last decade, our estimates suggest that the net benefits for moving to higher-income regions have declined between 25% and 35% in Spain”, Says the agency that has Kristalina Georgieva in front.






Regions

The IMF defends administrative decentralization

The IMF considers that, in general terms, economic gains have not been distributed well. The differences between geographical areas of the same country persist and have increased in the last fifteen years. "The regions that have been left behind, with high unemployment rates, have a 70% chance of being left behind," the institution warns.

The IMF proposes to act with redistributive fiscal policies, which allow to guarantee a better education, health and unemployment benefits, as well as the creation of new infrastructure to generate jobs.

Kristalina Georgieva is in charge of the IMF

Kristalina Georgieva is in charge of the IMF
(Jose Luis Magana / AP)




However, the institution defends the decentralization administrative as the best way to carry out these policies. "In federal or highly decentralized countries, such as in the United States, local governments have greater autonomy to determine income and property taxes and spending on education and medical care." The autonomous state is part of the problem but also part of the solution.






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