The document reflects on the Basque Country's transformation over 30 years, detailing its shift from economic decline to a competitive economy with significant GPD growth and reduced unemployment. It underscores the importance of innovative public-private partnerships and unique regional policies that have contributed to social welfare and economic development. The roadmap for policymakers emphasizes continuous evolution, strategic resources, and a focus on industrial strength to foster future prosperity.

1. A successful story … Regional Policy Making : Reflections on the Basque Country Experiences and Future Challenges Jon AZUA EUNIP 2008, Donostia .

2. 1. A successful story: 30 years of radical transformation. 2. What has brought us up to here? 3. Building the future : Sources of wealth and well-being for the Basque Country … and for the world. The Road Map for policy makers

3. 1. A successful story: 30 years of radical transformation.

4. 80’s: TOUGH economic, social and political crisis. high unemployment (25%) collapse of basic industries obsolete infrastructures 80’s: triumph of the neo-liberal focus in the world context: “the best industrial policies are the one that don’t exist” 30 YEARS FOR A RADICAL TRANSFORMATION 1980: beginning of Basque self-government IN THIRTY YEARS EUSKADI HAS BECOME A NEW COUNTRY. FROM A DECADENT AND OBSOLETE ECONOMY, IT'S TURNED INTO A POTENT, VENTURESOME AND COMPETITIVE CENTER OF BUSINESS GDP has grown during the last decade above that of Spain and the EU 75% of production is exported (50% in medium/high technology products) Unemployment has diminished drastically (from 25% to 4,7 %) First in Spain in terms of income per capita Above the European average in terms of income per capita (136 /100) DURING THE 80's, THE BASQUE ECONOMY UNDERWENT A PROCESS OF INTEGRAL RESTRUCTURING FOLLOWING RECESSION Tech Desert

5. TODAY: 7 th country in the “Europe 15” and 17 th in the World in terms of GDP per capita 2 nd in the World in terms of life expectancy (80 years) after Japan. Among the first 10 countries in EDUCATION Among the first 10 countries in WELFARE . With a clearly superior economic behavior to that of Spain… and EUROPE; thanks to 30 years of radical transformation HUMAN DEVELOPMENT INDEX (UN):

6. 2. How have we got here?

7. DOMINANT IDEAS IN THE PAST Economy of scale Centralised and unique industrial and regional policies The best industrial policy: the one that does not exist Complete separation/confrontation State-Enterprise Exclusive Picking winners “ Viva el MERCADO” (prominence to the market) Tripartite competition: USA-Japan-Europe Free rein to International Multilateral Organisations Economy first … then WHAT WE BELIEVED IN … AND DID Interdependence, small is beautiful, posible and essential De-concentration of regionalised microeconomic policies “ Comprehensive” strategy for competitiveness in solidarity , as from the innovative reinvention of the manufacturing industry Public-private and public-public partnerships All industry matters Transformed public leadership, with committed participation of entrepreneurs Multiple competition / New players Guiding principle: each country is unique. Its own and differentiated strategy

8. Towards a EUROPE still to be built A socio-economic model in permanent evolution An integrated, fair and competitive social welfare network INDUSTRIAL strength, source of innovation, technological development, entrepreneurship and management Reorganisation of public administration, federal and participatory democracy Public enterprise Aligned vision and public policies Permanent learning ( in/ from especially abroad) Interdependence: Internationalisation and localisation SELF-GOVERNMENT Power-Commitment-Responsibility CHOICE Free decisions. The right and risk of making mistakes

9. Leading a long process… reorganize an A.P Industrial re-conversion Sectoral policies WELFARE NETWORK Vision Competitive advantage Autonoy Statute Strategy of internationalization and Modernization EEC entering Strategy City Bilbao Euskadi-Europe Competitiveness program “ n” underlying strategies 10 strategic vectors Industrial Strategy Competitiveness and SOCIAL Innovation Strategy, Innovation and Technology Wellbeing network EU Interior Market New Statute of Co-sovereignty 80 91 88 80 93 94 2008 GDP/capita 31 .000 euros 8.000 14.000 22.000 21.000 20.000 19.000 18.000 17.000 16.000 15.000 13.000 12.000 11.000 10.000 9.000 2001 INNOVATE 2008

10. 1. A relatively well-defined vision towards the creation of a welfare space, with its own voice, within a Europe under construction. 2. Public-public and public-private commitment-association, as from leadership and public involvement in a context of “shared” planning . 3. Support for the MAIN DRIVER: INDUSTRY, valuing its wealth-generating capacity in the long run. 4.Unity of microeconomic and social strategies and solutions towards what is currently defined as “competitiveness in solidarity”. 5. Belief in the Glokal need/reality . 6. Self-government: our ability to decide . Euskadi: Keys to the Success

11. 3. Building the future: Sources of wealth and well-being for the Basque Country … and for the world. The Road Map for policy makers

12. INDUSTRIAL POLICY Anti- manufacturing risk Simplification of Knowledge economy , creativity economy Failure of Macroeconomics as the only guiding principle for success, mediation and differentiation. The free-market mirage Limitations of sectoral approach Public-private confrontation Industrial relations confrontation The easy road of centralised negotiation ESTANCO administrations The danger of the Elite’s UNIQUE WAY OF THINKING CRITICAL BARRIERS TO OVERCOME… COMPETITIVENESS

13. Our strategic resources? BUILDING FROM AN ECONOMIC VECTOR Demography, Aging, Migration HEALTH Sciences leasure, turism, entertainment Educatiuon/ culture- Training for life Offerings from the city, the territory Creative and intelligent Renewable energies Environment Revalorisation and efficiency Sustainability path Infrastructures Logistics Water, Energy, Utilities Employment/Services Business Models, etc Architecture, Design, etc Art-Territory Re-clusterisation of economic activity, its K nowlegde and strengthen our GLOKAL strategy Specialised and innovative manufacturing

14. NEW PLANS Continuous leadership “ n” NEW CLUSTERS Re-invent organizations Incorporate “outsiders” to administration, enterprises and facilitating organisations Permanent MAGIC PROCESSES Susteinability Social innovation Industries HONESTY No shortcuts Strategic society … and the next key steps? Beware! Discriminatory relinquishment of economic concert (investment and investment policy) Institutional leadership New ideas Think Tank Intelligent territory Innovative platform Public-public and Public-private alliance SOCIAL Network/platform Self-government Institutionalise country Learning from new players Sesión 13-2007 Jon Azua. Caso País Vasco

15. POLICY MAKING UNIQUE VALUE PROPOSITION COMPLETE AND NON-SECTORAL STRATEGIES COMPETITIVENESS - TERRITORY- REGIONAL DEVELOPMENT DEMAND THE SAME WELFARE SPACE OUR STRATEGIC RESOURCES ARE OUR OWN CHALLENGES AND DIFFICULTIES NEITHER PAST FRAMEWORKS, NOR PLAYERS, NOR INSTRUMENTS ,USED IN THE PAST,ARE VALID FOR THE DISTINCTIVE FUTURE OF TOMORROW COOPETITIVE LEADERSHIP GLOKAL STRATEGIES