The economic changes in Spain in recent decades have had varying impacts on different geographical areas. While some rural and small to medium metropolitan areas have seen job losses and slow income growth, large metropolitan areas have experienced more dynamic behavior. Demographic changes have also varied, with differences of almost ten years in average population age between provinces. These transformations have led to increased disparities in inequality and well-being indicators when measured at the municipal level.
The VI Report on inequality in Spain by the Alternativas Foundation 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. Conversely, 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 various 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, attracting both companies and workers. However, the reasons for these disparities extend beyond economic factors to include social, institutional, and cultural influences.
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. The dichotomy between urban and rural areas does not fully capture the diversity of economic inequalities across different regions, calling for a combination of territorial and people-focused policies to improve well-being.
To address the growing accumulation of disadvantage in certain areas, a combination of policies focusing on territories and individuals is necessary. Traditional redistributive policies have a greater impact on intra-territorial inequalities, while policies promoting social development are essential to address complex economic and social challenges. Identifying and addressing areas with low levels of well-being requires global public interventions to tackle these multifaceted issues effectively.