Reinvigorating the Spanish Economy
For Spain, it is of the utmost necessary to attempt to extricate the Spanish economy from the depths of the current world wide depression. The problems associated with this are numerous in nature, and ones which led to the fall of the Spanish government of the Primo de Rivera government in Spain - the ideological ancestor of the current conservative leadership in Spain - are still left unchecked in the nation. Unemployment, industrial under-production, agricultural hardship, a fall in living standards, decline in taxation, bankruptcy, all do challenge Spain - although it must be noted, given the relatively isolated nature of the Spanish economy, less than in other countries. By far the more dangerous aspect has been that Spain, heavily indebted, faces effective bankruptcy with the global economic collapse and the recall of foreign capital. Spain must thus confront a wide range of problems. It must resolve its internal problems related to the economic decline - especially the social ones. It must pursue economic modernization, as the Spanish economy lags extensively behind its fellow European competitors. And it must do so while managing to expand exports and reduce imports, to enable Spain to cope with its extensive debts.
In a liberal government, this would be extremely difficult, as can be seen by the crisis which has gripped those free-market governments which exist. But Spain's current government looks to the North, to France, as an example of what can be done - as the French corporatist economy has been able to effectively channel national energy towards economic construction, has held firm against the dangers of the depression, and gone far towards restoring French power and prestige. The Rivera government, interested by this, had adopted some limits aspects of the French model, including its corporatized labor management - which has to some extent kept the social peace in Spain - and combined this with a protectionist economy which followed long Spanish history and efforts - but it never really pursued it fully. It is clear however, that we must embrace a more ambitious and full policy if we are to escape from the maw of the current situation.
What will be necessary is a dramatic acceleration of the expansion of productive capacities and large increases in exports, even if these are theoretically at a financial loss. The government has identifies two critical investment sectors - the first being minerals, especially iron ore and tungsten, and the second the agricultural sector. Agriculturally exports currently consist of oranges, followed by olive oil, almonds, wine, and potatoes. In regards to the mining sector, it is envisioned that state investment will be poured into this to expand mines, increase output, adopt new technology, and provide for additional infrastructure. If the cost of the export of these goods is too low to compete internationally, it is envisioned that export subsidies will be applied to provide for their continued profitability.
[quote]
Program Name: Mining Expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 750.000
Description of the undertaking: see above
[/quote]
Agricultural expansion is to be undertaken through an encouragement of organic structuring of the agricultural industry into collectives and other corporatized groups, to spread new methods, knowledge, farming practices, and encourage production. Government credits and loans are to be made available to expand machinery, irrigation, fertilizers, infrastructure, and various other aspects related to agriculture, with an objective of significantly expanding exports of agricultural goods. In particular current agricultural colleges will be expanded, and new ones established. It is not expected that land reform will be undertaken.
[quote]
Program Name: Agricultural investments
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
At the same time it will be necessary to expand industrial sectors in textiles, steel, shipbuilding, aviation, coal mining, chemicals, car manufacturing, electrical manufacturing, and various other sectors (some of which are not necessarily for economic concerns alone, such as the expansion of the arms industry...). This is particularly driven by the need to reduce imports, as Spanish imports rely extensively upon cars, machinery, electrical components, etc. Curiously fresh eggs are also a major import item... The government will be putting substantial infrastructure into key industrial sectors, with the intent of expanding them, with particular focus on shipbuilding, aviation, electrical supplies, cars, and arms. The Spanish national airline, Iberia, is to be expanded, and subsidized, aiming to achieve domestic and colonial coverage as well as flights to international destinations, reducing costs through expansion. This will go into continued projects to improve infrastructure with port, railroad, and auto-route expansion. Furthermore, hydro-electric expansion and the electrification of the country is to be pressed ahead with at full speed - we must use hydro power rather than imported coal for our industry, and a team of steel industry experts are expected to be dispatched to Italy to examine the Italian electric steel mills to see what can be done about them, to reduce the dependence upon imported coal and coke.
[quote]
Program Name: Industrial and Infrastructure Expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 2.000.000
Description of the undertaking: See above
[/quote]
This unprecedented degree of state involvement in the economy is also to be used to provide for an economic rationalization program, aiming to create larger industries having economy of scale. Reducing the number of companies and rationalizing them will enable a more efficient economy, particularly for the industrial sector. This will be accompanied an expansion of statistics and economic oversight, to lay the framework for providing for the capability to push the economy towards government plan targets.
In addition to the metropolitan infrastructure program, it is envisioned that there will be an expansion of colonial infrastructure and economic activity. Of course, the Spanish colonial empire as it currently exists is quite minimal, with only a few scattered territories in the dusty lands of North Africa and a few malaria-stricken tropical possessions. But there are some things which can be gained from these poor areas. In particular, phosphate production, necessary for fertilizers and thus to ensure improved agricultural productivity, is something which is already extent in both the Spanish Sahara and the now-pacified Spanish Rif. It is expected that this will be greatly expanded. Other areas of expected production increases include zinc, lead and iron ore, both principally from the Rif in Spanish Morocco. It is intended to expand iron ore production to at least 1.000.000 tons per year under the industrial plan, principally for export, with the possibility of future accelerations. Manganese and graphite production is also expected to be pursued. Elsewhere, agricultural projects are to be undertaken,including acceleration of cacao production in Fernando Po, as well as coffee and logging. To support this, an expansion of railroad, road, and port infrastructure is to be undertaken, used to provide for logistics support, import of goods, and export. All of this is to be accompanied with new, vigorous, explorations for oil and other mineral resources throughout the territory.
[quote]
Program Name: Colonial economic and infrastructure expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
Current tariffs on foreign goods, already high, are to be raised even more so, doubtless to probable negative effect on Spanish living standards but necessary to ensure a positive trade balance. The Spanish currency, not on the gold standard, is to be devalued to decrease imports and increase exports. The corporatized economy is to resolve the issues of dealing with the (temporary!) decline in living standards through ensuring that the pain seems to be spread equally throughout the economy, as focus is put on investment of productive capital, and in patriotic and moral education of the workers. To build up internal reserves of currency, foreign currency is to be confiscated within Spain, and strict limits set upon the expenditures of currency overseas, both by tourists and in regards to good imports : everything must go to to the two critical features of industrial expansion to be able to reduce imports themselves, and ensuring a positive trade balance. Capital export is to be reduced ruthlessly.
The recently passed progressive and liberal reforms for free and secular education are to be reformed but kept in their free and universal aspects, to raise literacy aspects. However, they are to include significant religious aspects in the state's education, and the continued presence of the church in regards to education. It is also expected that a number of new universities will be founded as part of this plan. The expansion of primary and secondary schools will take precedence however. An expansion of technical training will also be driven by the bringing in of specialists from abroad who are currently unemployed, and hopeful technical assistance from the French.
[quote]
Program Name: Education Project
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
In a liberal government, this would be extremely difficult, as can be seen by the crisis which has gripped those free-market governments which exist. But Spain's current government looks to the North, to France, as an example of what can be done - as the French corporatist economy has been able to effectively channel national energy towards economic construction, has held firm against the dangers of the depression, and gone far towards restoring French power and prestige. The Rivera government, interested by this, had adopted some limits aspects of the French model, including its corporatized labor management - which has to some extent kept the social peace in Spain - and combined this with a protectionist economy which followed long Spanish history and efforts - but it never really pursued it fully. It is clear however, that we must embrace a more ambitious and full policy if we are to escape from the maw of the current situation.
What will be necessary is a dramatic acceleration of the expansion of productive capacities and large increases in exports, even if these are theoretically at a financial loss. The government has identifies two critical investment sectors - the first being minerals, especially iron ore and tungsten, and the second the agricultural sector. Agriculturally exports currently consist of oranges, followed by olive oil, almonds, wine, and potatoes. In regards to the mining sector, it is envisioned that state investment will be poured into this to expand mines, increase output, adopt new technology, and provide for additional infrastructure. If the cost of the export of these goods is too low to compete internationally, it is envisioned that export subsidies will be applied to provide for their continued profitability.
[quote]
Program Name: Mining Expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 750.000
Description of the undertaking: see above
[/quote]
Agricultural expansion is to be undertaken through an encouragement of organic structuring of the agricultural industry into collectives and other corporatized groups, to spread new methods, knowledge, farming practices, and encourage production. Government credits and loans are to be made available to expand machinery, irrigation, fertilizers, infrastructure, and various other aspects related to agriculture, with an objective of significantly expanding exports of agricultural goods. In particular current agricultural colleges will be expanded, and new ones established. It is not expected that land reform will be undertaken.
[quote]
Program Name: Agricultural investments
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
At the same time it will be necessary to expand industrial sectors in textiles, steel, shipbuilding, aviation, coal mining, chemicals, car manufacturing, electrical manufacturing, and various other sectors (some of which are not necessarily for economic concerns alone, such as the expansion of the arms industry...). This is particularly driven by the need to reduce imports, as Spanish imports rely extensively upon cars, machinery, electrical components, etc. Curiously fresh eggs are also a major import item... The government will be putting substantial infrastructure into key industrial sectors, with the intent of expanding them, with particular focus on shipbuilding, aviation, electrical supplies, cars, and arms. The Spanish national airline, Iberia, is to be expanded, and subsidized, aiming to achieve domestic and colonial coverage as well as flights to international destinations, reducing costs through expansion. This will go into continued projects to improve infrastructure with port, railroad, and auto-route expansion. Furthermore, hydro-electric expansion and the electrification of the country is to be pressed ahead with at full speed - we must use hydro power rather than imported coal for our industry, and a team of steel industry experts are expected to be dispatched to Italy to examine the Italian electric steel mills to see what can be done about them, to reduce the dependence upon imported coal and coke.
[quote]
Program Name: Industrial and Infrastructure Expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 2.000.000
Description of the undertaking: See above
[/quote]
This unprecedented degree of state involvement in the economy is also to be used to provide for an economic rationalization program, aiming to create larger industries having economy of scale. Reducing the number of companies and rationalizing them will enable a more efficient economy, particularly for the industrial sector. This will be accompanied an expansion of statistics and economic oversight, to lay the framework for providing for the capability to push the economy towards government plan targets.
In addition to the metropolitan infrastructure program, it is envisioned that there will be an expansion of colonial infrastructure and economic activity. Of course, the Spanish colonial empire as it currently exists is quite minimal, with only a few scattered territories in the dusty lands of North Africa and a few malaria-stricken tropical possessions. But there are some things which can be gained from these poor areas. In particular, phosphate production, necessary for fertilizers and thus to ensure improved agricultural productivity, is something which is already extent in both the Spanish Sahara and the now-pacified Spanish Rif. It is expected that this will be greatly expanded. Other areas of expected production increases include zinc, lead and iron ore, both principally from the Rif in Spanish Morocco. It is intended to expand iron ore production to at least 1.000.000 tons per year under the industrial plan, principally for export, with the possibility of future accelerations. Manganese and graphite production is also expected to be pursued. Elsewhere, agricultural projects are to be undertaken,including acceleration of cacao production in Fernando Po, as well as coffee and logging. To support this, an expansion of railroad, road, and port infrastructure is to be undertaken, used to provide for logistics support, import of goods, and export. All of this is to be accompanied with new, vigorous, explorations for oil and other mineral resources throughout the territory.
[quote]
Program Name: Colonial economic and infrastructure expansion
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
Current tariffs on foreign goods, already high, are to be raised even more so, doubtless to probable negative effect on Spanish living standards but necessary to ensure a positive trade balance. The Spanish currency, not on the gold standard, is to be devalued to decrease imports and increase exports. The corporatized economy is to resolve the issues of dealing with the (temporary!) decline in living standards through ensuring that the pain seems to be spread equally throughout the economy, as focus is put on investment of productive capital, and in patriotic and moral education of the workers. To build up internal reserves of currency, foreign currency is to be confiscated within Spain, and strict limits set upon the expenditures of currency overseas, both by tourists and in regards to good imports : everything must go to to the two critical features of industrial expansion to be able to reduce imports themselves, and ensuring a positive trade balance. Capital export is to be reduced ruthlessly.
The recently passed progressive and liberal reforms for free and secular education are to be reformed but kept in their free and universal aspects, to raise literacy aspects. However, they are to include significant religious aspects in the state's education, and the continued presence of the church in regards to education. It is also expected that a number of new universities will be founded as part of this plan. The expansion of primary and secondary schools will take precedence however. An expansion of technical training will also be driven by the bringing in of specialists from abroad who are currently unemployed, and hopeful technical assistance from the French.
[quote]
Program Name: Education Project
Estimated time of investment or period: 2 years
Size of investment or budget for project: 500.000
Description of the undertaking: See above
[/quote]
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