Regional inequality

1. Regional Inequalities in EU and
Spain

2. Review: Institutions of Development
 Development banks
 International agencies
 Government aid agencies
 Non-governmental organizations (NGOs)

3.  Millennium Summit (2000): countries committed to
achieving Millennium Development Goals by 2015
 Monterrey Conference (2002): developed countries
promised to increase ODA to 0.5% of GDP

4. Inequality in the EU
 Entry of new members in 2004
 EU policy 2007-2013 focuses on:
 Supporting disadvantaged regions
economically
 Promoting competitiveness
 Encouraging economic growth

6. Less Developed: GDP < 75% avg EU GDP
 Bulgaria, Croatia, Czech Republic, Estonia, France,
Greece, Hungary, Italy, Latvia, Lithuania, Poland,
Portugal, Romania, Slovakia, Slovenia, Spain
(Extremadura), United Kingdom

7. Transitional: GDP = 70-90% EU avg GDP
 Austria, Belgium, Denmark, France, Germany,
Greece, Italy, Malta, Portugal, Spain (Andalucia,
Canarias, Castilla-La Mancha, Melilla, Murcia),
United Kingdom

8. More Developed: GDP> 90% EU avg GDP
 Austria, Belgium, Cyprus, Czech Republic (Prague),
Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Luxembourg, Netherlands,
Poland, Portugal, Romania, Slovakia, Slovenia, Spain
(Aragon, Asturias, Balearic Islands, Basque Country,
Castilla y León, Catalonia, Ceuta, Galicia, La Rioja,
Madrid, Valencian Community), Sweden, United
Kingdon

9. Funds in the EU
 European Regional Development Fund (ERDF)
 Dedicated to reducing imbalances in the EU
 Focuses on the following:
 Innovation and research;
 The digital agenda;
 Support for small and medium-sized enterprises (SMEs);
 The low-carbon economy.
 European Social Fund (ESF)
 Developing human resources and employment
 Cohesion Fund
 Investment in trans-European networks & environment

10. Inequality in Spain
 Economic, demographic, and standard of living
differences regionally
 More developed, dynamic areas: Madrid,
Mediterranean Coast, Basque Country, Balearic
Islands, Canary Islands
 Less developed areas: Galicia, Andalusia, Murcia
 Declining areas: Cantabrian Coast

12. Compensation Funds
 Spanish Constitution says State must seek balance
between regions
 ERDF grants from the EU
 Inter-territorial Compensation Funds
 Compensation Fund and Complementary Fund
 Goal: to finance investment costs in comparatively less
developed territories, and to promote the creation of income
and wealth.

13. Questions
 What were the objectives of the Millennium Summit
and the Monterrey Summit?
 What are the 3 ways we describe countries’
development in the EU?: Less developed, _______,
and ____ ________
 How does development tend to vary geographically
within Spain from north to south?
 How does the Spanish government try to achieve a
balance between regions?