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The Spanish Economic Experience

Lessons and Warnings for Latin America

Author(s): Paul Isbell
Publisher(s): Elcano Royal Institute of International and Strategic Studies, Madrid, Spain
Date of publication: 5 Mar 2004
Volume number: 2004
Issue number: 20
Format: PDF
Pages: 24
URL: www.realinstitutoelcano.org
Series: Elcano Royal Institute Working Papers

Description: This paper analyzes Spain's successful transition from a socialist to a market economy and explains how the Spanish example could be used as a role model for Latin American countries. According to the author, in the pre-transition phase Spain's situation resembled the one Latin American countries are in at the moment (presence of a regulatory state and a dominant church). However, the author sees major differences in the timing, the pacing, and the sequencing of the transition phase. In addition, Spanish policy-makers concentrated on institutional reforms and thus managed to remain politically autonomous. Some constructive lessons for Latin America are the necessity of deep regional integration in a stable economic environment, a monetary policy allowing prosperity to increase, and a political culture of consensus. The author warns, however, that although Spain might be a point of reference, Latin American countries should not just blindly copy Spanish policy as the circumstances and preconditions are not always the same.

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	The Spanish Economic Experience Lessons and Warnings for Latin America Author(s): Paul Isbell Publisher(s): Elcano Royal Institute of International and Strategic Studies, Madrid, Spain Date of publication: 5 Mar 2004 Volume number: 2004 Issue number: 20 Format: PDF Pages: 24 URL: www.realinstitutoelcano.org Series: Elcano Royal Institute Working Papers Description: This paper analyzes Spain's successful transition from a socialist to a market economy and explains how the Spanish example could be used as a role model for Latin American countries. According to the author, in the pre-transition phase Spain's situation resembled the one Latin American countries are in at the moment (presence of a regulatory state and a dominant church). However, the author sees major differences in the timing, the pacing, and the sequencing of the transition phase. In addition, Spanish policy-makers concentrated on institutional reforms and thus managed to remain politically autonomous. Some constructive lessons for Latin America are the necessity of deep regional integration in a stable economic environment, a monetary policy allowing prosperity to increase, and a political culture of consensus. The author warns, however, that although Spain might be a point of reference, Latin American countries should not just blindly copy Spanish policy as the circumstances and preconditions are not always the same. General note: © 2004 Elcano Royal Institute of International and Strategic Studies. Download: English - Download the full-text document (305 KB)

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The Spanish Economic Experience

Lessons and Warnings for Latin America