Spain has bequeathed the world with its art, culture and religion. But there is another gift "Made in Spain" that history books never talk about - corruption
Ok, I'll be the first one to admit: Spain did not invent corruption. Corruption, at least its essence, has been around since the beginning of time. The actual term originates in the middle ages and is defined by Merriam Webster as "the impairment of integrity, virtue or moral principle; inducement to wrong by improper or unlawful means (as bribery)."
Let's face it, as Lord Acton once wrote to Bishop Mandell Creighton in 1887: "Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men." This quote primarily stemmed from the fact that monarchs and emperors were all absolute rulers. Thus, Caligula Caesar, Pope Alexander VI, Henry VIII and Napoleon to name a few were all corrupt.
But whereas these people were morally vacuous individuals, Spain embraced corruption, developed it into a cottage industry, expanded it on an industrial scale and then exported it.
Need proof? Just take a look at the world around you. Every country Spain has ever colonized, with the exception of Costa Rica and Puerto Rico, is underdeveloped and due primarily to corruption. Mexico, El Salvador, Nicaragua, Panama, Colombia, Venezuela, Peru, Chile, Paraguay, Argentina, the Philippines are all corrupt countries. Anything, including murder and justice, can be had for a price.
And then there's Cuba. Cuba was the jewel in the Spanish crown that India was to the British crown. And we all know how that ended up.
Wednesday, April 18, 2012
Friday, April 13, 2012
On the outside looking in
The following is a personal account of an outsider's view of the European experience in general and the Spanish experience in particular. This post was originally drafted on October 3, 2009 although never published. It has been edited and revised since that time.
I've always wanted to do a critique on Spain as much as I've always detested the thought of writing one. Anyone who knows me, knows I don't put any stock into opinions because I firmly believe that opinions are like nose hairs - everybody has them but no one wants to see them displayed in public. Here in Spain, opinions are a fundamental part of the social fabric; you not only have the right to an opinion, you are encouraged to express it and take part in coffee shop debates. In Spain everyone is an expert on everything. However, these debates are usually one sided in that everybody expresses a position but no one cares what you think. The unwritten maxim is: When I want your opinion, I'll give it to you.
Why Spain? Because Spain offers a perspective of itself unlike that of any other country in Europe. It is a microcosm of the eurozone itself. Spain is composed of 17 autonomous provinces each with its own dialect, customs, traditions and culinary tastes. The eurozone is made up of 17 sovereign states each with its own language, customs, traditions and culinary tastes. See what I'm getting at?
You've seen the tourist promotional ads, "Spain is different!" Well, it is. What happens in the rest of Europe, also happens in Spain except over here, everything is exaggerated by a factor of ten. I'm reminded of TV star and comedian Bill Cosby. In one of his routines he would go around asking college kids why they did cocaine. "Because it intensifies the personality, man," they would respond and Cosby would counter, "OK, but what happens if the person's an a-hole?" This analogy is the best way to describe Spain - very intense but, more often than not, obnoxious and irritating. To understand what makes Spain tick you have to go back and understand its history.
Spain in the context of Europe
What makes Europe such an attractive travel destination is its history, culture, traditions and diversity. Europe has it all: power, intrigue, scandal, sex, wars, religion, science and arts.
At the same time, it is these very attributes that are the downfall of Europe. Thousands of years of traditions, customs, war and distrust are hardwired into every European. So, while on the exterior the economic powers are genuinely trying to unite the continent through the European Union, the underlying sentiment among members is one of animosity and apathy.
Why the animosity? Because of pride. Pride is at the root of everything that is wrong with Europe. Individual member states take pride in their rich history and their contributions to the arts and sciences. So they are not about to readily accept the dictates of a pan European institution that compromises their sovereign will. No place is this more evident than in Spain.
There's a little known book that was published back in 1969 by Fernando Díaz-Plaja. The book, "The Spanish and the 7 Deadly Sins," is a narrative explaining the attitudes of the Spanish. In the foreword the author states that he had not realized the character of the Spanish until he traveled abroad and observed different cultures. In so doing, he found new insight into his native land. It's a short book just 200 odd pages long but two-thirds of it are dedicated to two sins in particular: pride and envy, one being a corollary of the other.
Pride
Perhaps the strongest emotion of the Spanish, however displaced it might be, is pride. The term 'humble spaniard' is a complete oxymoron; the species doesn't exist. Miguel de Unamuno (1864-1936), Spanish philosopher and essayist, expressed it this way in his book, Obras Selectas (Selected Essays): True humility, in those who feel superior to others, is to admit they are superior. And that, in a nutshell, is the definition of Spanish humility.
I remember that as a boy in the 60s traveling to Spain to visit my aunts and uncles, I would ask my uncle why he never bothered to learn English. "What???!!! Me, learn English? Why should I learn English when half the world speaks Spanish? Maybe it is the English who should learn Spanish!" That was the conventional wisdom back then because in its golden age, the sun never set on the Spanish Empire. The Spanish were the conquerors, never the conquered. And a lot of that sentiment has carried on into the present day.
A few years ago I asked several colleagues who where in their 30s why English in Spain was not as widespread as in other European countries. The answer this time was because Franco, through censorship, discouraged the use of foreign languages in the arts. This is not entirely true. There was censorship but it was aimed at political and moral issues. In fact, there were movie houses in Madrid dedicated to showing foreign films in original version. In these cinemas I got to see the original undubbed versions of Night of the Living Dead, Alfred the Great and the Beatles' Yellow Submarine. I found it amusing that a group of people who had not even been born during the Franco dictatorship were so certain of their answer. I suspect that my young colleagues found it more convenient to blame Franco for Spain's inability to embrace the English language because it acquits them of any responsibility, even though they had every opportunity to change that course of action after Franco passed in 1975. But that never happened because films continued to be dubbed. So my colleagues' argument falls flat on its face. I can only conclude that the Spanish still held on to my uncle's way of thinking.
Shortly after Franco's demise, a new constitution was drafted and all the political parties that heretofore had been banned were allowed parliamentary representation. Keep in mind that the representatives of these parties were Franco's sworn enemies (the socialist left and the communists) and now they were in power. So I imagine that shortly thereafter they decided to rewrite the history books, this time with Franco as the evil stepmother and the socialists as the heroic Prince Charming who saves the innocent and abused Spainderella by recovering her fragile glass dignity at the palatial steps of history and restoring her to her rightful place at the throne of the world. The free thinking liberal socialists would be the saviors of Spain.
Credit where credit is due
Spain experienced its greatest prosperity at the hands of the socialists, largely due to the country's entry into the EU and its access to low interest development funds. But by the same token, the country also experienced its two worst economic downturns in history during socialist administrations.
I wasn't around for the first one in 1993-94 but I was present for the second one in 2008. On this point everyone is in agreement: Spain didn't start the crisis but it should have managed it better. So what happened? Simply put, pride.
Rodriguez-Zapatero(ZP), the socialist candidate, assumed power after the electoral defeat of the centrists in 2004. He had inherited a stable growing economy with a budget surplus. During the 2008 elections, when financial markets started going topsy-turvy, ZP denied Spain was being affected. He constantly stated that Spain was in the Champion's League of world economies and that unemployment, while growing, was under control. Now I'm not an economist nor do I claim to know the ups and downs of financial markets but I'm guessing ZP figured he had enough of the budget surplus he inherited to ride out any economic storm. He dismissed the severity of the problem. He figured that if he reiterated that there was nothing to worry about, the people would have to believe him. After all, finance is a question of confidence. It all came to a head when Paul Krugman, 2008 Nobel Prize in Economics, had a tête-à-tête with Zapatero and warned the president of the impending implosion Spain was about to experience. Zapatero's response: "Krugman doesn't know what he's talking about. We are fine." This response was coming from someone who had never worked a day in his life in any sort of business or economic capacity.
This was the height of arrogance and ignorance. Zapatero could not fathom being a failure or going down in history as the president that caused the worst financial crisis of all time. His pride would not allow it, never mind its effect on millions of people. We all know how that ended: Zapatero finally resigned in disgrace and called for anticipated elections in 2011 which his party lost.
As soon as the centrists took over, they initiated economic reforms, the kind of reforms the socialists should have undertaken but decided to defer due to their unpopularity. So what do the leftists do, they convene a general strike and accuse the administration of taking the road to ruin. The culmination of all this is that Javier Lopez, secretary general of the second largest labor union, CCOO, affirms on national TV that the right to strike supersedes the right to work.
In other words, the socialists are liberals and open minded. They believe in the freedom of expression but only if your views coincide with theirs, otherwise they will insult and intimidate you. If you don't believe me, go ask Lourdes Hernandez, lead singer of the rock group Russian Red when she admitted being a centrist and the subsequent backlash she suffered at the hands of the socialists. They basically labeled her a traitor and a disgrace as an artist. You see, the socialists believe they have a monopoly on intelligence and the arts and, as such, all artists by nature are anti-establishment. It is inconceivable that an artist be anything but left leaning.
We see a lot of pride and arrogance coming from all sides in Spain. It doesn't matter who you are or what your background is. If you are Spanish, you are proud and arrogant. It's in the DNA.
When so much pride and arrogance is coming out at you from one place, it should raise red flags. In my case, my flags are telling me that Spain suffers from a case of national collective inferiority complex. It's not rocket science. People who display airs of superiority do so to disguise their deep rooted inferiority. It's that simple and that complicated.
I've always wanted to do a critique on Spain as much as I've always detested the thought of writing one. Anyone who knows me, knows I don't put any stock into opinions because I firmly believe that opinions are like nose hairs - everybody has them but no one wants to see them displayed in public. Here in Spain, opinions are a fundamental part of the social fabric; you not only have the right to an opinion, you are encouraged to express it and take part in coffee shop debates. In Spain everyone is an expert on everything. However, these debates are usually one sided in that everybody expresses a position but no one cares what you think. The unwritten maxim is: When I want your opinion, I'll give it to you.
Why Spain? Because Spain offers a perspective of itself unlike that of any other country in Europe. It is a microcosm of the eurozone itself. Spain is composed of 17 autonomous provinces each with its own dialect, customs, traditions and culinary tastes. The eurozone is made up of 17 sovereign states each with its own language, customs, traditions and culinary tastes. See what I'm getting at?
You've seen the tourist promotional ads, "Spain is different!" Well, it is. What happens in the rest of Europe, also happens in Spain except over here, everything is exaggerated by a factor of ten. I'm reminded of TV star and comedian Bill Cosby. In one of his routines he would go around asking college kids why they did cocaine. "Because it intensifies the personality, man," they would respond and Cosby would counter, "OK, but what happens if the person's an a-hole?" This analogy is the best way to describe Spain - very intense but, more often than not, obnoxious and irritating. To understand what makes Spain tick you have to go back and understand its history.
Spain in the context of Europe
What makes Europe such an attractive travel destination is its history, culture, traditions and diversity. Europe has it all: power, intrigue, scandal, sex, wars, religion, science and arts.
At the same time, it is these very attributes that are the downfall of Europe. Thousands of years of traditions, customs, war and distrust are hardwired into every European. So, while on the exterior the economic powers are genuinely trying to unite the continent through the European Union, the underlying sentiment among members is one of animosity and apathy.
Why the animosity? Because of pride. Pride is at the root of everything that is wrong with Europe. Individual member states take pride in their rich history and their contributions to the arts and sciences. So they are not about to readily accept the dictates of a pan European institution that compromises their sovereign will. No place is this more evident than in Spain.
There's a little known book that was published back in 1969 by Fernando Díaz-Plaja. The book, "The Spanish and the 7 Deadly Sins," is a narrative explaining the attitudes of the Spanish. In the foreword the author states that he had not realized the character of the Spanish until he traveled abroad and observed different cultures. In so doing, he found new insight into his native land. It's a short book just 200 odd pages long but two-thirds of it are dedicated to two sins in particular: pride and envy, one being a corollary of the other.
Pride
Perhaps the strongest emotion of the Spanish, however displaced it might be, is pride. The term 'humble spaniard' is a complete oxymoron; the species doesn't exist. Miguel de Unamuno (1864-1936), Spanish philosopher and essayist, expressed it this way in his book, Obras Selectas (Selected Essays): True humility, in those who feel superior to others, is to admit they are superior. And that, in a nutshell, is the definition of Spanish humility.
I remember that as a boy in the 60s traveling to Spain to visit my aunts and uncles, I would ask my uncle why he never bothered to learn English. "What???!!! Me, learn English? Why should I learn English when half the world speaks Spanish? Maybe it is the English who should learn Spanish!" That was the conventional wisdom back then because in its golden age, the sun never set on the Spanish Empire. The Spanish were the conquerors, never the conquered. And a lot of that sentiment has carried on into the present day.
A few years ago I asked several colleagues who where in their 30s why English in Spain was not as widespread as in other European countries. The answer this time was because Franco, through censorship, discouraged the use of foreign languages in the arts. This is not entirely true. There was censorship but it was aimed at political and moral issues. In fact, there were movie houses in Madrid dedicated to showing foreign films in original version. In these cinemas I got to see the original undubbed versions of Night of the Living Dead, Alfred the Great and the Beatles' Yellow Submarine. I found it amusing that a group of people who had not even been born during the Franco dictatorship were so certain of their answer. I suspect that my young colleagues found it more convenient to blame Franco for Spain's inability to embrace the English language because it acquits them of any responsibility, even though they had every opportunity to change that course of action after Franco passed in 1975. But that never happened because films continued to be dubbed. So my colleagues' argument falls flat on its face. I can only conclude that the Spanish still held on to my uncle's way of thinking.
Shortly after Franco's demise, a new constitution was drafted and all the political parties that heretofore had been banned were allowed parliamentary representation. Keep in mind that the representatives of these parties were Franco's sworn enemies (the socialist left and the communists) and now they were in power. So I imagine that shortly thereafter they decided to rewrite the history books, this time with Franco as the evil stepmother and the socialists as the heroic Prince Charming who saves the innocent and abused Spainderella by recovering her fragile glass dignity at the palatial steps of history and restoring her to her rightful place at the throne of the world. The free thinking liberal socialists would be the saviors of Spain.
Credit where credit is due
Spain experienced its greatest prosperity at the hands of the socialists, largely due to the country's entry into the EU and its access to low interest development funds. But by the same token, the country also experienced its two worst economic downturns in history during socialist administrations.
I wasn't around for the first one in 1993-94 but I was present for the second one in 2008. On this point everyone is in agreement: Spain didn't start the crisis but it should have managed it better. So what happened? Simply put, pride.
Rodriguez-Zapatero(ZP), the socialist candidate, assumed power after the electoral defeat of the centrists in 2004. He had inherited a stable growing economy with a budget surplus. During the 2008 elections, when financial markets started going topsy-turvy, ZP denied Spain was being affected. He constantly stated that Spain was in the Champion's League of world economies and that unemployment, while growing, was under control. Now I'm not an economist nor do I claim to know the ups and downs of financial markets but I'm guessing ZP figured he had enough of the budget surplus he inherited to ride out any economic storm. He dismissed the severity of the problem. He figured that if he reiterated that there was nothing to worry about, the people would have to believe him. After all, finance is a question of confidence. It all came to a head when Paul Krugman, 2008 Nobel Prize in Economics, had a tête-à-tête with Zapatero and warned the president of the impending implosion Spain was about to experience. Zapatero's response: "Krugman doesn't know what he's talking about. We are fine." This response was coming from someone who had never worked a day in his life in any sort of business or economic capacity.
This was the height of arrogance and ignorance. Zapatero could not fathom being a failure or going down in history as the president that caused the worst financial crisis of all time. His pride would not allow it, never mind its effect on millions of people. We all know how that ended: Zapatero finally resigned in disgrace and called for anticipated elections in 2011 which his party lost.
As soon as the centrists took over, they initiated economic reforms, the kind of reforms the socialists should have undertaken but decided to defer due to their unpopularity. So what do the leftists do, they convene a general strike and accuse the administration of taking the road to ruin. The culmination of all this is that Javier Lopez, secretary general of the second largest labor union, CCOO, affirms on national TV that the right to strike supersedes the right to work.
In other words, the socialists are liberals and open minded. They believe in the freedom of expression but only if your views coincide with theirs, otherwise they will insult and intimidate you. If you don't believe me, go ask Lourdes Hernandez, lead singer of the rock group Russian Red when she admitted being a centrist and the subsequent backlash she suffered at the hands of the socialists. They basically labeled her a traitor and a disgrace as an artist. You see, the socialists believe they have a monopoly on intelligence and the arts and, as such, all artists by nature are anti-establishment. It is inconceivable that an artist be anything but left leaning.
We see a lot of pride and arrogance coming from all sides in Spain. It doesn't matter who you are or what your background is. If you are Spanish, you are proud and arrogant. It's in the DNA.
When so much pride and arrogance is coming out at you from one place, it should raise red flags. In my case, my flags are telling me that Spain suffers from a case of national collective inferiority complex. It's not rocket science. People who display airs of superiority do so to disguise their deep rooted inferiority. It's that simple and that complicated.
Saturday, March 31, 2012
Just an update to yesterday's post
For the last two days I've been commenting on the state of the Spanish economy. And then out of the blue, as if to confirm what I had been saying all along, I found this article on the BBC website which explains in greater depth the Spanish financial crisis. However, the conclusion is the same: Right now, the Spanish are Europe's spain in the ass.
Friday, March 30, 2012
Spain's General Strike: gearing up for round two
Labor unions stage massive protests across Spain leaving the government groggy but not out. Unfortunately, this is only round one.
It was like watching a game score instant replay only five months later. Yesterday's general strike was highly reminiscent of Athens last October and the unions are promising more of the same unless the government of Mariano Rajoy backs down on its labor reforms.
Facing massive debt, unprecedented levels of unemployment and a stagnant economy, Rajoy's measures include the reduction of worker compensation, company incentives for new hires, higher taxes and lower government spending, all in an attempt to reverse the country's economic fortunes of late.
Sounds like a solid plan, right? So how come my gut tells me it's all marron glacé? You know, as in sugar coated pellets of doo-doo? I understand the reduction in worker comp. I understand the company incentives for new hires. And I understand lower government spending. But higher taxes???
The administration needs to increase revenue to cover pensions, health care and unemployment benefits, I get that. But raising taxes is a double edged sword, one that will have serious consequences. It is not feasibly possible or proper to raise taxes on a populace that is already reeling from the devastating effects of the unconscionable decisions taken by the previous administration.
I don't have the exact figures but there's approximately one million households that have zero income; every eligible member is unemployed and their benefits have run out. That's translates to about 4 million people with no means of livelihood. Other families are surviving under heavy strain because only one member has a job. So, if we now increase basic staples such as food, shelter and energy, where does that leave these people?
I'm not an economist nor do I claim to understand all the nuances of fiscal policy. But through sheer common sense, I can tell you this: you raise taxes and you are not going to induce increased private spending and investment which is what leads to higher productivity and employment. On the contrary, it has the opposite effect. It's time tested and proven. If you want to increase investment, employment, production and turnover, reduce taxes and reduce public spending.
The only thing this government has achieved thus far is to provide cannon fodder for the leftist unions. And more rhetorical bombs are going to fly before the situation gets better. Get ready for round two.
It was like watching a game score instant replay only five months later. Yesterday's general strike was highly reminiscent of Athens last October and the unions are promising more of the same unless the government of Mariano Rajoy backs down on its labor reforms.
Facing massive debt, unprecedented levels of unemployment and a stagnant economy, Rajoy's measures include the reduction of worker compensation, company incentives for new hires, higher taxes and lower government spending, all in an attempt to reverse the country's economic fortunes of late.
Sounds like a solid plan, right? So how come my gut tells me it's all marron glacé? You know, as in sugar coated pellets of doo-doo? I understand the reduction in worker comp. I understand the company incentives for new hires. And I understand lower government spending. But higher taxes???
The administration needs to increase revenue to cover pensions, health care and unemployment benefits, I get that. But raising taxes is a double edged sword, one that will have serious consequences. It is not feasibly possible or proper to raise taxes on a populace that is already reeling from the devastating effects of the unconscionable decisions taken by the previous administration.
I don't have the exact figures but there's approximately one million households that have zero income; every eligible member is unemployed and their benefits have run out. That's translates to about 4 million people with no means of livelihood. Other families are surviving under heavy strain because only one member has a job. So, if we now increase basic staples such as food, shelter and energy, where does that leave these people?
I'm not an economist nor do I claim to understand all the nuances of fiscal policy. But through sheer common sense, I can tell you this: you raise taxes and you are not going to induce increased private spending and investment which is what leads to higher productivity and employment. On the contrary, it has the opposite effect. It's time tested and proven. If you want to increase investment, employment, production and turnover, reduce taxes and reduce public spending.
The only thing this government has achieved thus far is to provide cannon fodder for the leftist unions. And more rhetorical bombs are going to fly before the situation gets better. Get ready for round two.
Tuesday, March 27, 2012
Europe’s Spain in the ass
Europe’s brightest financial planners are at loggerheads with the Greeks over their bailout package but Spain is the tumor in Europe’s behind waiting to metastasize.
We all know the situation; we’ve read the stories. France and Germany, designers of a unified monetary system in Europe are seeing their plans begin to unravel thanks to the economic conditions of the PIIGS (Portugal, Ireland, Italy, Greece and Spain).
Spain is a microcosm of Europe. It is divided and socially fractured. Unlike the former republic of Yugoslavia, which was a coalition of independent states created after World War I, Spain has been Spain since Ferdinand and Isabella married in 1469 with its heyday occurring during the reigns of Charles V and Philip II. Spain’s decline began with Napoleon’s conquest of Europe and reached its nadir with Franco’s dictatorship. Since then, the Spanish have been trying to find themselves.
Spain is one of the old continent's original colonizers, the others being Britain, Portugal, France, the Low Countries and, to some extent, Italy. However, with the exception of Portugal, Spain has never achieved the prosperity of the other members of this illustrious club. The Spanish will tell you this is due to the 40 years of Franco dictatorship. While true to a certain extent, the answer is oversimplified.
A large part of Spain’s problem, as mentioned earlier, is its lack of unity. There is a general mistrust among the different autonomous regions of Spain. Unlike other nationalities that put country above personal interests, Spain has no such sense of patriotism. In fact, Spain is the only country I’m aware of where people are accused of being fascists for displaying the flag. This means that there is little or no consensus among political parties when it comes to implementing sound fiscal policy because individual interests outweigh collective ones.
The current economic climate is the perfect example. Spain got caught up in the subprime debacle because its economy had evolved from an agro-industrial base to an economy based on real estate speculation. There was land to develop, money to be made and everybody could get in on the act.
The socialists took over from the centrist right government in 2004 inheriting a healthy economy. By 2008, the chinks in the armor started to show. Throughout his second administration, president Zapatero refused to carry out any substantial financial reforms which led to a loss of confidence and an early call to elections in 2011.
Now the centrist right party is back in power and the hard decisions have to be made. Their first call to order was to comply with EU directives to keep the budget deficit in check and to reform the financial system to reduce unemployment rates. The measures include reducing workers severance packages, modifying the universal health care system, a reduction in civil servants’ compensation, eliminating redundant or inoperative ministries, greater freedom for small business owners to negotiate labor contracts and a slew of other initiatives - basically, everything the socialists should have done but never did.
So now the socialists are screaming “Foul!” and promising a whole series of actions including a general strike and civil disobedience. Sounds like Greece, right? Yes, except for one major difference. Spain’s GDP for 2011 is approximately four times that of Greece, five times that of Portugal and six times that of Ireland. It is twice the combined GDP of Greece, Potugal and Ireland. And unlike Italy which has a large industrial base and is therefore able to manufacture goods and recover its economy, Spain’s economy is based on services.
Hence, while a Grecian debt default may be bad for France and Germany’s image, Europe has the capacity to survive it. The same cannot be said for a Spanish default which could cause the Euro to fail entirely.
What it boils down to is that expenses are going up and wages are going down. Whether this will spur employment remains to be seen. So far, unemployment rates remain the same but are forecast to rise and that means spending will continue to decline. It’s going to get worse before it gets better. How much worse is anybody’s guess. But if it does get worse, the Athens riots will only be a prelude to what’s coming.
We all know the situation; we’ve read the stories. France and Germany, designers of a unified monetary system in Europe are seeing their plans begin to unravel thanks to the economic conditions of the PIIGS (Portugal, Ireland, Italy, Greece and Spain).
Spain is a microcosm of Europe. It is divided and socially fractured. Unlike the former republic of Yugoslavia, which was a coalition of independent states created after World War I, Spain has been Spain since Ferdinand and Isabella married in 1469 with its heyday occurring during the reigns of Charles V and Philip II. Spain’s decline began with Napoleon’s conquest of Europe and reached its nadir with Franco’s dictatorship. Since then, the Spanish have been trying to find themselves.
Spain is one of the old continent's original colonizers, the others being Britain, Portugal, France, the Low Countries and, to some extent, Italy. However, with the exception of Portugal, Spain has never achieved the prosperity of the other members of this illustrious club. The Spanish will tell you this is due to the 40 years of Franco dictatorship. While true to a certain extent, the answer is oversimplified.
A large part of Spain’s problem, as mentioned earlier, is its lack of unity. There is a general mistrust among the different autonomous regions of Spain. Unlike other nationalities that put country above personal interests, Spain has no such sense of patriotism. In fact, Spain is the only country I’m aware of where people are accused of being fascists for displaying the flag. This means that there is little or no consensus among political parties when it comes to implementing sound fiscal policy because individual interests outweigh collective ones.
The current economic climate is the perfect example. Spain got caught up in the subprime debacle because its economy had evolved from an agro-industrial base to an economy based on real estate speculation. There was land to develop, money to be made and everybody could get in on the act.
The socialists took over from the centrist right government in 2004 inheriting a healthy economy. By 2008, the chinks in the armor started to show. Throughout his second administration, president Zapatero refused to carry out any substantial financial reforms which led to a loss of confidence and an early call to elections in 2011.
Now the centrist right party is back in power and the hard decisions have to be made. Their first call to order was to comply with EU directives to keep the budget deficit in check and to reform the financial system to reduce unemployment rates. The measures include reducing workers severance packages, modifying the universal health care system, a reduction in civil servants’ compensation, eliminating redundant or inoperative ministries, greater freedom for small business owners to negotiate labor contracts and a slew of other initiatives - basically, everything the socialists should have done but never did.
So now the socialists are screaming “Foul!” and promising a whole series of actions including a general strike and civil disobedience. Sounds like Greece, right? Yes, except for one major difference. Spain’s GDP for 2011 is approximately four times that of Greece, five times that of Portugal and six times that of Ireland. It is twice the combined GDP of Greece, Potugal and Ireland. And unlike Italy which has a large industrial base and is therefore able to manufacture goods and recover its economy, Spain’s economy is based on services.
Hence, while a Grecian debt default may be bad for France and Germany’s image, Europe has the capacity to survive it. The same cannot be said for a Spanish default which could cause the Euro to fail entirely.
What it boils down to is that expenses are going up and wages are going down. Whether this will spur employment remains to be seen. So far, unemployment rates remain the same but are forecast to rise and that means spending will continue to decline. It’s going to get worse before it gets better. How much worse is anybody’s guess. But if it does get worse, the Athens riots will only be a prelude to what’s coming.
Monday, January 23, 2012
Why La Liga will always be second best
Much is said about Spain's first division La Liga football. If you live in Spain you'll hear phrases like "The best league in the world!" or "The best players in the world." True, Spain are the current World and European champions and ranked number one by FIFA.
But having the best players in the world and being the number one ranked national team does not necessarily mean having the best league in the world. When local TV commentators, journalists and sports pundits all say La Liga is the best league in the world, you have to wonder by what parameters "best" is measured.
I can only conclude that "best" is in reference to having Lionel Messi (Barcelona) and Cristiano Ronaldo (Real Madrid) playing in two of Europe's most successful clubs. In fact, the last time a club other than these two won a league championship was back in 2004.
La Liga has become so predictable; there's no parity. If Barcelona doesn't win it, Madrid will or vice versa depending on your inclinations. Two clubs do not a league make but in this case, they do. The combined annual budgets of these two clubs is more than the rest of the eighteen first division teams put together.
Moreover, the rest of the teams never play at 100 percent unless they're playing Madrid or Barça because that's the only bragging right they have left; it's their only prize because they are not going to win anything else. So the only matches worth watching are those involving Madrid or Barça, and then, only to see if they lose.
The second half of the season starts next weekend. Already we know that it's going to be either Madrid (1st) or Barça (2nd) at the top by season's end. There's no other possible outcome.
That's why the English Premier League is, in my opinion, the best in the world. On any given year, any one of five or six teams can take top honors. Aside from Manchester United and Chelsea, you also have Manchester City, Arsenal, Tottenham and Liverpool.
Secondly, and most importantly, the EPL knows how to market its league. They've adjusted their playing times to capture both the North and South American and Asian markets. La Liga has so far discarded favoring the huge Asian market.
Third, the EPL has made inroads in the US. The US is the last major market open to all leagues and it is huge in terms of sponsorships and TV rights. La Liga has only recently tapped into this market but is not as nearly well know as the EPL.
So, is La Liga the best league in the world? Definitely. The second best.
But having the best players in the world and being the number one ranked national team does not necessarily mean having the best league in the world. When local TV commentators, journalists and sports pundits all say La Liga is the best league in the world, you have to wonder by what parameters "best" is measured.
I can only conclude that "best" is in reference to having Lionel Messi (Barcelona) and Cristiano Ronaldo (Real Madrid) playing in two of Europe's most successful clubs. In fact, the last time a club other than these two won a league championship was back in 2004.
La Liga has become so predictable; there's no parity. If Barcelona doesn't win it, Madrid will or vice versa depending on your inclinations. Two clubs do not a league make but in this case, they do. The combined annual budgets of these two clubs is more than the rest of the eighteen first division teams put together.
Moreover, the rest of the teams never play at 100 percent unless they're playing Madrid or Barça because that's the only bragging right they have left; it's their only prize because they are not going to win anything else. So the only matches worth watching are those involving Madrid or Barça, and then, only to see if they lose.
The second half of the season starts next weekend. Already we know that it's going to be either Madrid (1st) or Barça (2nd) at the top by season's end. There's no other possible outcome.
That's why the English Premier League is, in my opinion, the best in the world. On any given year, any one of five or six teams can take top honors. Aside from Manchester United and Chelsea, you also have Manchester City, Arsenal, Tottenham and Liverpool.
Secondly, and most importantly, the EPL knows how to market its league. They've adjusted their playing times to capture both the North and South American and Asian markets. La Liga has so far discarded favoring the huge Asian market.
Third, the EPL has made inroads in the US. The US is the last major market open to all leagues and it is huge in terms of sponsorships and TV rights. La Liga has only recently tapped into this market but is not as nearly well know as the EPL.
So, is La Liga the best league in the world? Definitely. The second best.
Sunday, June 27, 2010
High time we got rid of the old guard
Everytime I see a football match I get more disheartened with the game. The ongoing South African World Cup is no exception. On the same day, in two crucial knockout matches, the referee decided the outcome of the game before a stunned and speechless world. In one game a legal goal was not awarded and, in the second, an illegal goal went up on the scoreboard. Football is the only sport where a consensus need not be reached on a foul to determine the sanction as dictated by the rules. The referee has absolute dictatorial powers and can do as he wishes. All this occurs because football's world governing body, FIFA, is headed by a stupid, stubborn old man who thinks he is God's gift to the beautiful game.
Football belongs to the players and their fans and not to Sepp Blatter and his band of idiots. It's time to get rid of the old bastard.
Blatter refuses to accept techological aids such as goal cams and video replays to resolve dubious line calls. He says it will slow down the game. Helloooooo! Hey Sepp, have you ever seen what happens whenever one of your refs makes a controversial call? The game comes to a screeching halt as players swarm the zebras to demand an explanation. So how is that quicker or more effective than a video replay?
Another thing that's really dumb is this concept called "stoppage time". Seriously, is there anything more inane? What's the point in having a game clock if at the end of the match you can add on anywhere from one to five minutes or even six or seven? Here's a quick fact in case you haven't been watching your own games, Sepp. On average, the ball is in actual play only 26 minutes during any half. Wouldn't it just be easier to have two 30 minute halves and a time keeper to stop the clock everytime the ball goes out or the referee blows his whistle? This way game delaying tactics such as last minute substitutions become a non-issue. The game is played the full 60 minutes regardless of fouls, faked injuries or substitutions.
The other stupid thing about football is how referees interpret the rules. Golf, which is much more complex, and has inifinitely more playing variations and circumstances, has a rule for every kind of situation a player may encounter on the course. And the rules leave no doubt as to what action to take or apply. Football is the only sport where the referee is free to interpret the rules to his own liking, such as what constitutes an intentional or unintentional handball in the penalty area, or how or if a player is offside. Here's a clue, Sepp: if you can't apply the rules to the same standard in EVERY game, get rid of the rule. You either apply the rules equally to everyone or you don't apply them at all.
What's clear is that the sport has to evolve and needs to leverage the benefits of technology. The referee can never have the authority to determine the outcome of the game, or have we forgotten the Champions League semifinal match between Chealsea and Barcelona in 2009? Otherwise, we're not talking about the beautiful game, Sepp. We're talking bullshit - you're bullshit.
Football belongs to the players and their fans and not to Sepp Blatter and his band of idiots. It's time to get rid of the old bastard.
Blatter refuses to accept techological aids such as goal cams and video replays to resolve dubious line calls. He says it will slow down the game. Helloooooo! Hey Sepp, have you ever seen what happens whenever one of your refs makes a controversial call? The game comes to a screeching halt as players swarm the zebras to demand an explanation. So how is that quicker or more effective than a video replay?
Another thing that's really dumb is this concept called "stoppage time". Seriously, is there anything more inane? What's the point in having a game clock if at the end of the match you can add on anywhere from one to five minutes or even six or seven? Here's a quick fact in case you haven't been watching your own games, Sepp. On average, the ball is in actual play only 26 minutes during any half. Wouldn't it just be easier to have two 30 minute halves and a time keeper to stop the clock everytime the ball goes out or the referee blows his whistle? This way game delaying tactics such as last minute substitutions become a non-issue. The game is played the full 60 minutes regardless of fouls, faked injuries or substitutions.
The other stupid thing about football is how referees interpret the rules. Golf, which is much more complex, and has inifinitely more playing variations and circumstances, has a rule for every kind of situation a player may encounter on the course. And the rules leave no doubt as to what action to take or apply. Football is the only sport where the referee is free to interpret the rules to his own liking, such as what constitutes an intentional or unintentional handball in the penalty area, or how or if a player is offside. Here's a clue, Sepp: if you can't apply the rules to the same standard in EVERY game, get rid of the rule. You either apply the rules equally to everyone or you don't apply them at all.
What's clear is that the sport has to evolve and needs to leverage the benefits of technology. The referee can never have the authority to determine the outcome of the game, or have we forgotten the Champions League semifinal match between Chealsea and Barcelona in 2009? Otherwise, we're not talking about the beautiful game, Sepp. We're talking bullshit - you're bullshit.
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