There are a number of strategies that were applied by Spain to revive its economy. A number of literatures provide these strategies.
The integration of Spain into world economy is one of the key strategies that made its economy grow. Similarly, the development of standardized exchange rates systems resulted in the economic growth of the country in 1950’s. The preferential agreement that was made by Spain with European Economic Community in 1970’s also contributed to its economic growth (Aguado 6).
From the year 1977 up to 1980, political equality in Spain contributed to its economic growth. Similarly, since 1986 until now, the country has gained entry into the European Economic Community. This made it to adopt the Euro. Spain has got a number of economic benefits from adopting the Euro.
The advantages include minimized chances of depreciation of currency, as well as having inflation and interest rates consistent with other nations among several other benefits (Aguado 5).
Similarly, Spanish firms now compete internationally with companies operating in other European nations. A number of Spanish firms like telecommunications providers and banks are some of the largest firms globally. All of them have economic benefits to the country.
The international image of Spain as well as its foreign policy has also contributed enormously to its economic growth. Similarly, the increment in the number of multinational firms made the economy of Spain grow (Aguado 4).
Little farm production and war made Spain be a poor nation during the 1950’s. The economy, however, improved after the United States military bases were established within the country in the year 1953.
The economy improved due to the fact that there was improved domestic production as well as the arrival of tourists. The incorporation of Spain into the UN in the year 1955 made the country to attract investors from other countries thereby reviving the economy of the nation.
Royo also explored the strategies that were employed by Spain so as to revive its economy. He stated that economic growth was attained by the country by means of buying private and government enterprises, as well as financial investments in several economic sectors.
He stated that telecommunication and the banking sectors of the nation led to its economic growth. He also stated that Spanish politics influenced its economic globalization (25).
Globalization as well as the opening of the markets of Spain contributed to its economic growth. Similarly, the privatization of the enterprises which were owned by the government as well as the reforms that were made in Spain’s labor markets resulted into its economic growth.
These factors contributed to several benefits such as unemployment rates reduction, lower rates of interest rates and low prices of goods and services. The reforms that were made in the sector of electricity also steered the country to attain economic growth.
Economic globalization is the major factor that resulted into the growth of Spain’s economy (Royo 24). Spain’s organizations also played key roles in reviving its economic growth. Similarly, Spanish banks revived the economy of the nation. For instance, they developed strategies that countered disagreements among interdependence within the economy as well as the state’s affairs.
Conclusion
In conclusion, there are numerous strategies that were employed by Spain to revive its economy since 1950’s.
Such strategies include the development of standardized exchange rates systems, gaining entry into the European Economic Community, adoption of the Euro, competition of Spanish firms with other multinational firms, increment in the number of multinational firms in Spain, the establishment of United States military base in the country, government’s purchase of several private entities, financial investments in numerous sectors, as well as globalization. All these strategies made the economy of Spain to grow.
Works Cited
Aguado, Saturnino. “Spain in the Globalization Process.” 2001: 4-7. Web.
Royo, Sebastian. Still Two Models of Capitalism? Economic Adjustment in Spain. (2011):20-34. Web.