Inter-territorial Compensation Fund Distribution in Spain (2002)
Presentation
This sectoral graph represents the distribution of the Inter-territorial Compensation Fund among Spain’s Autonomous Communities in 2002. It visually compares the percentages allocated to each region. Territorial imbalances necessitate policies that promote regional development and address these disparities. Key instruments for achieving these goals include European Union funds, State and Regional Policy Incentives, and the Inter-territorial Compensation Fund. The latter is crucial for mitigating regional disparities and upholding the principle of inter-territorial solidarity established by the Constitution. The fund’s revenue comes from the general state budget. Until 1990, all communities benefited, but since then, it has primarily supported those with per capita income below the national average.
Analysis
General Analysis
The graph reveals significant disparities in the fund’s distribution. Andalusia receives the highest percentage (45.29%), while Castilla La Mancha receives the lowest. These percentages reflect the economic and demographic imbalances among the communities. Ceuta and Melilla, as autonomous cities, have unique characteristics explaining their small percentages. The distribution is based on various criteria, including per capita income, population, surface area, net migration, unemployment rate, population dispersion, and insularity. Notably, some communities—Madrid, Catalonia, Comunidad Valenciana, Basque Country, La Rioja, Navarra, and Balearic Islands—do not receive allocations as their income and economic development exceed the national average.
Specific Analysis
This analysis examines the socioeconomic characteristics of each community to justify the aid received. For brevity, we’ll focus on the communities with the most extreme values and include a statistic reflecting each community’s GDP relative to the national average.
Andalusia (45.29%) and Galicia (18.63%) receive the highest percentages. Andalusia is the largest (approximately 17% of the national area) and most populous (over 7 million inhabitants, 18% of the Spanish population). It has positive natural growth, a relatively young population, and higher unemployment rates. These factors, coupled with delayed economic development, justify the aid. While decreasing, the primary sector remains significant, and industrial development lags behind other communities. The regional economy is now primarily service-based (tourism) with strong seasonality. The aid targets agriculture, processing industries, diversification of industrial sectors, and infrastructure development to enhance the service sector.
Cantabria (1.14%) and Castilla La Mancha (0.92%) receive the smallest percentages. Cantabria is one of the smallest communities (1% of the state area) and among the least populated (just over half a million inhabitants). Its population is aging, with negative natural growth. It is densely populated, but unevenly distributed, with most inhabitants in coastal areas with greater economic development. The primary sector employs a small percentage of the active population (7.6%), while the secondary sector remains strong (33% of employed population), dominated by traditional industries (metal, chemical, and canning). The service sector is expanding. In recent years, Cantabria experienced positive economic growth (4.1% GDP, compared to the 2001 national average of 3.6%). This growth is attributed to its proximity to more developed communities like the Basque Country, Navarre, and La Rioja.
Conclusion
The significant developmental disparities among Spanish regions necessitate corrective actions. The Inter-territorial Compensation Fund, established in 1990 and linked to other regional development policies, is constitutionally mandated to promote solidarity and unified economic development across the state.