The governor of the Bank of Spain, José Luis Escriva, believes that in Spain there are still “important duties to carry out at the national level” to improve the effectiveness of administrations and public institutions. The community framework is also an outstanding task.
“There is a 75% correlation between GDP per capita and the effectiveness of government and the quality of public administrations”, he underlined in his presentation at the 2024 International Banking Conference organized by Banco Santander. It has been proven, since the 1960s, that institutional organization is a very important element in determining the functioning of an economy, he assured.
In a graph, he showed how the efficiency of public administration contributes more to GDP per capita in Denmark, the Netherlands or Finland than in Bulgaria, Romania or Poland, which show an opposite trend. “There is a big difference between countries“, he said, inviting us to look at those who display better behavior to improve the overall growth of the euro zone.
“There are many opportunities to leverage best practices to boost overall growth and productivity,” said the Governor of the Bank of Spain. In his speech, Escriva highlighted the importance of venture capital in channeling financing and highlighted the differences that persist between EU countries in access to financing from banks and markets for avoid creating an ecosystem in which failure is extremely punitive and discourage innovation.
