In recent years, the Spanish economy has undergone significant changes that have affected various regions in different ways. While some rural areas and smaller metropolitan centers have experienced job losses and slow income growth, larger cities have seen more dynamic behavior. Additionally, demographic changes have varied significantly across provinces, with some areas having an average population age of nearly ten years older than others. These changes have contributed to increased disparities in well-being indicators at the municipal level.
According to the VI Report on Inequality in Spain by Alternativas Foundation, municipalities in Madrid, Barcelona, the Basque Country, Galicia, and isolated cases like Zaragoza or Logroño have shown higher well-being indicators. In contrast, locations with below-average values are primarily found in the south of the peninsula and the Canary Islands. Inequality in large cities is much higher than in rural areas, with Madrid, the Mediterranean coast, and the islands standing out for their high values.
These disparities are driven by a variety of factors related to economic processes and their effects on territorial economic differences. The concentration of companies and workers in certain areas can lead to a cumulative process of agglomeration and the emptying of other regions. In large cities, this concentration creates a large market that attracts both companies and workers. However, factors beyond economic factors also contribute to these disparities.
In recent decades, income differences have grown significantly in large cities, with pockets of poverty becoming more prevalent in these areas. People with higher levels of human capital tend to congregate in urban areas where returns are higher. Rural areas face poverty traps due to low endowments of capital. The divide between urban and rural areas does not fully capture the diversity of economic inequalities across different regions.
To address these growing disparities effectively, policies that focus on both territories and individuals are necessary. Traditional redistributive policies can help reduce inter-territorial inequality while promoting social development is crucial for addressing complex economic and social challenges.
Identifying and addressing low levels of well-being requires global public interventions that tackle multifaceted issues effectively. A combination of policies focused on territories and people is essential for improving well-being across all regions of Spain.
