The Basque Model of Sustainable Development: Making an Economic Case
By Anna Guryanova
The Basque case is an example of how the new local approach to economic development can be a solution for overcoming economic challenges of a European state. Although the entire territory of Spain was heavily hit by 2008 economic crisis, the Basque country managed to secure its economic strength because of its human development approach. Amid negative economic conditions in Europe, Basque government advanced in foreign trade by increasing exports by 18% in the fourth quarter of 2014. Its industrial activity also rose, changing by 3% in January of 2015. Another determinant of its economic success includes better results in dealing with youth unemployment, which has tripled across Spain in seven years. The overall unemployment rate in Spain keeps its high-sky average, which also shows that economic crisis is not left behind yet. In the meanwhile Basque regional unemployment remains the lowest in Spain. Basque credit rating is also higher than the one of the central government of the country. And while Spain is struggling to maintain stable economic growth and overcome negative effects of the recent financial crisis, many argue that it needs the new model for its development.