Matilde Mas (doctoral student in economics and director of international projects at the Valencian Institute of Economic Research, Ivie) believes that the reconstruction of Valencia must take the train with the money that will come from Spain and Europe: encourage this, instead of rebuilding businesses. and houses located in the same flood zones where they were located be rebuilt in a safe location. “It’s a drawer.” He considers it essential that the money “arrives now” for those affected. And that the devastated companies of Horta Sud, almost all SMEs or micro-SMEs, take advantage of the opportunity to digitalize, also with European funds: “It is not now a question of building planes in this area , but rather to build the same windows as before, but in a different way and in a place that will not flood next time.
Faced with unprecedented destruction, how can we rebuild?
The first condition of construction is that this does not happen again. We now need to know how to proceed and react to the risk of disaster. The news of what we are learning about what has been done and what has not been done is enough to bring tears and indignation.
If you copy, you earn a lot, for example in Japan, the Netherlands or the USA. There, they manage emergencies with automatic processes, tested and understood by everyone. And now we received a little message which was not understood, whereas in Japan alerts are projected on all pedestrian crossings. Within 15 minutes, with good warning, all the people who died at home or in the garage – mostly, as well as those who died en route by car – climbed one or two floors and were rescued.
And how to proceed with economic reconstruction? Many affected people in the region complain that the money has not yet arrived.
In the short term, we need to support people materially and provide them with housing. It is also essential, and this has more or less been done, to restart the production system, by restoring the mobility of workers and the transport of goods. It was also important for the state to say “we are here, don’t worry” by announcing financial assistance. This is very good for stopping the blow, but on condition that they are carried quickly. You must do it now. There are people who have had to move to live with acquaintances and that cannot last. We must now bring this money to families and provide them with security. Additionally, if there is no speed, some businesses will have to close.
How to invest the money that comes from Spain and Europe so that it can be used to the maximum?
First of all, for years, construction in river beds has been authorized, which is not possible. We need to evacuate the part of the cities that is at risk, because we know it will happen again, even if we don’t know when. The context is now favorable because there is awareness. We cannot take away people’s property, but we can create industrial or residential land and encourage the transfer of homes and businesses. Municipal councils are very reluctant to expand the territory, perhaps because the citizens themselves are also reluctant to modify their environment, but they must do it. In addition, there is now an additional incentive: there is a serious housing problem.
And in businesses?
We must use European funds and try to modify the productive specialization of these cities, which generally have low productivity and very small businesses. You can create knowledge hubs. You can create a business center with public money and stimulate change to a new mode of production. It’s not about making planes all at once, but about making the aluminum windows that you made before with more advanced technology, about digitalizing your business, and there are also European funds for that. Let them start differently in a non-flooded site. Missing this opportunity is a mistake. And rebuilding the factory or the house on the site where they stood, in a flood zone, is wrong.
Another problem that became evident after the floods is the mobility crisis, with the disappearance of 130,000 cars…
These highly populated areas will need to have better public transport in the future, because here the dependence on the car is very strong, although this is also a question of culture. Reducing the car fleet is important for many reasons, but it requires a response with public transport, or with bicycles like in the Netherlands, which are also very prone to flooding. We have another opportunity here. It would also be important to promote teleworking, because after the pandemic, many companies stepped back and returned to in-person work. Where possible, of course, which is not the case for commerce. This can solve many mobility problems if you have trained workers.
What should we do in the long term?
A review of infrastructure and public works to avoid flooding – canals, ravines – but this will take time. To do this, we must anticipate a struggle that is taking place and will take place on this issue, that between ecologists and developers (developers, builders). It is a complex balance, but reasonable agreements must be made.
At ground zero, there is a distrust of the aid that will finally arrive, if there is corruption, it will be left behind… How can we avoid it?
All you have to do is apply the law. Everything is invented. Distrust is normal because we didn’t start by setting the best example for them. It started with a political confrontation and without any help. It is also important that all promises made are kept, even if not in the short term. But don’t let them stay in the air. And I don’t mean that anyone is going to keep the money. Promises can be broken due to incompetence or because priorities change. If you continue to leave this doubt and do not clearly demonstrate that you will do what you say, the damage caused to the credibility of the institutions will be irreversible. It is obscene, in the English sense of the word, for them to argue and for the streets to be cleaned, it is a ruinous tactic.
Would it help to have more transparency in the distribution of money or emergency rewards?
The first system of transparency is the eyes, which see how your friends and acquaintances are doing and whether or not they have received help. And then the accessibility of data, Open Data, is very important. Here at Ivie, we follow European funds to know what they are spent on, not out of distrust, but to know if they are going to innovation. To me, transparency means you have access to what the money is being spent on, not in bulk, but on a micro level. But sometimes institutions protect themselves so that people don’t look at them too much. Access should be granted as long as it is justified and protects confidentiality, where appropriate.
What impact will this tragedy have for the province of Valencia in terms of consumption, housing or employment?
The housing problem has worsened, because now more people are looking for housing, those who had a ground floor and cannot return at the moment. In economic terms, the latest study by the Bank of Spain estimates that the impact will be 0.2% on national GDP. This is very little because it happened in a very small part of a province whose growth is based on work and not on innovation, so it is not relevant in the overall effect for l ‘Spain, which is also experiencing a soft moment and where all the economic forecasts are good. The tragedy has no external repercussions, it is limited to specific people, in an area which has many small businesses with low productivity levels.
Mazón’s government opted for a lieutenant general to lead the reconstruction. Will the military logistical and organizational method contribute anything to the reconstruction of the area?
Not necessarily. I find it very difficult to manage without getting involved in politics, as the new vice-president said. Occupying a political position, won’t you listen to the politician? I don’t really think this is the most suitable profile. Public administration is quite a complex thing, it’s not easy, and I imagine that he will say what must be done and that the civil servants who know the system will come and tell him that we cannot do the things as we want. I have the impression that it will be ineffective and a source of conflict between two very different worlds.
