Finance imbalance, labor imbalance: the case of Spain

Abstract

The current crisis has its roots in a financial imbalance with its epicentre in the United States. This imbalance has affected more to Europe for his greatest weakness to respond to the challenge of an integrating global production system (globalization). The key competition now resides in the knowledge that allows the control and assimilation of the wealth of information available. That is what increase innovation and create more employment and of higher quality. The Europeane conomy, especially Spain, have opted for a growth model with numerous segments where there is little competition and low productivity. Thisis offset by a gradual reduction in labour costs and an increase of technological capital imports. It requires a change of course to introduce more competition in the markets for goods and services through appropriate regulation. That competition is what enables a greater and higher quality employment demand. In turn, requires a transformation of the educational system, which enables a more active social participation, and tighter bid to demand requirements.