The economic changes in Spain over the past few decades have brought about varying impacts on different regions. While rural areas and small to medium metropolitan centers have experienced job losses and slow income growth, large metropolitan areas have seen more dynamic behavior. Additionally, demographic changes have varied significantly across provinces, with some places experiencing an average population age of almost ten years higher than others. These transformations have resulted in increased disparities in inequality and well-being indicators at the municipal level.
The Alternativas Foundation’s VI Report on inequality in Spain has highlighted the differences in well-being indicators across different provinces. Municipalities in Madrid, Barcelona, the Basque Country, Galicia, and isolated cases like Zaragoza or Logroño have shown higher well-being indicators than locations with below-average values, which are primarily found in the south of the peninsula and the Canary Islands. Inequality is much higher in large cities such as Madrid, along the Mediterranean coast, and on islands.
These disparities are driven by various factors related to economic processes and their effects on territorial economic differences. The concentration of companies and workers in certain areas creates a cumulative process of agglomeration that leads to an emptying of other regions. In large cities, this concentration attracts both companies and workers due to its sizeable market potential.
However, recent decades have seen a significant increase in income differences in large cities, with growing pockets of poverty in these areas. People with higher human capital tend to congregate in urban areas where returns are higher, while rural areas face poverty traps due to low endowments of capital. Therefore, a combination of policies focusing on territories and individuals is necessary to address the growing accumulation of disadvantage in certain areas.
Traditional redistributive policies can help mitigate inter-territorial inequality but do not fully address complex economic and social challenges. Thus, policies promoting social development are essential for addressing these issues effectively. Identifying and addressing areas with low levels of well-being requires global public interventions that take into account various multifaceted factors.
In conclusion, while economic changes have affected different regions differently over the past few decades
