Iván Carballo Romero

124103545

Assignment 2
Iván Carballo Romero
124103545
4º Business
19th of April 2024

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1. Introduction
Bilbao is a Spanish city located in the Basque Country, specifically in Vizcaya. It is the capital of
Vizcaya and a reference point in Spain, both economically and in terms of welfare. However, currently
there are general problems in Spain such as unemployment and low salaries among others. In this paper I
will focus on the most critical issues affecting bilbao in order to improve both its economic indicators
and its relationship with the environment.

2. Analysis of the current situation

2.1. Economy
2.1.1. Strengths

 Variety: Bilbao has made progress in expanding its economy beyond industry,
towards services and tourism. Based on information from the Bilbao City Council,
the services sector, which includes finance, education and professional services
accounts for 72% of the city’s Gross Domestic Product (GDP) highlighting the
success of diversification efforts.

 Employment: Bilbao has managed to keep unemployment rates low compared to the
average. According to data from the Spanish National Institute of Statistics (INE) as
per the available data Bilbao’s unemployment rate hovers around 10% lower than
the national average of roughly 15%.

 Investment: Bilbao has attracted foreign investment especially in key sectors like
renewable energy and infrastructure. As per information from Bilbao Bizkaia Action
(BBA) foreign direct investment (FDI), in Bilbao amounted to €1.2 billion in 2023
bolstering job creation and economic development.
2.1.2. Weakness

 Specific Sector Dependence: Despite efforts to diversify Bilbao still relies heavily
on sectors like tourism and services. This reliance makes the city susceptible to
shocks as seen during the COVID 19 crisis when tourism related activities took a
hit. According to data from the Bilbao Chamber of Commerce tourism significantly
contributes to the city’s GDP. The closure of tourist spots and hospitality businesses
during the pandemic led to losses and job cuts.

 Income Inequality: Bilbao faces income inequality issues with variations seen
across neighborhoods and demographic groups. Data, from the Bilbao City Council
highlights that some areas struggle with poverty rates and unemployment levels
worsening income disparities. While the city’s economy has expanded not all
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residents have benefited equally. This unequal distribution has sparked tensions.
Made it challenging to address socio economic gaps.

 Youth Emigration: The problem of youth emigration persists in Bilbao, where

educated young individuals often leave in pursuit of job prospects elsewhere.
According to data provided by the Spanish Youth Institute, a considerable number
of individuals, from Bilbao opt to move to cities or even abroad leading to a loss of
skilled individuals and potential workforce for the city’s economy.

 2.2 Livability:

2.2.1. Strengths:

 Green spaces: The city has several parks and green areas, such as Doña Casilda
Iturrizar Park and Etxebarria Park. These places help you to disconnect from the
city center where it seems much more stressful.

 Public transport and health: In Bilbao we have great public transport, it must be said
that in the Basque Country we have a special regime called the Economic
Agreement which gives us more freedom to carry out works in the Basque Country,
as well as health. Osakidetza is the health organism in the Basque Country which is
the best compared to the rest of Spain.
2.2.2. Weaknesses

 Air Quality: Like all large cities, Bilbao has problems in terms of air pollution, due
to the industry in the city. This can have a negative effect on the quality of life of the
city's residents and is an issue that needs to be addressed as soon as possible.

 Housing prices, in Bilbao are a concern in the downtown area and sought after
neighborhoods. When housing costs outpace income levels it can result in insecurity
and displacement impacting the quality of life for those, with incomes. To enhance
livability and promote equity it's crucial to tackle affordability challenges by
implementing policies that support the construction of housing and enforce rent
control measures.
2.3. Sustainability
2.3.1. Strengths

 Public Transportation: Bilbao has a extensive public transport system that includes a
metro, tram lines and bus services. This reaching network promotes eco travel
options reduces the need, for private cars and helps cut down on carbon emissions.

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 Green. City Planning: In its planning efforts Bilbao integrates spaces and parks to
offer residents access to recreational areas while fostering biodiversity in the city
environment. Projects like the Bilbao River Regeneration Project have rejuvenated
waterfront spaces enhancing sustainability and improving residents’ quality of life.

 Renewable Energy Initiatives: Bilbao is actively incorporating energy sources into

its energy mix. The city has invested in wind and solar energy projects to decrease
reliance on fuels and build a sustainable energy infrastructure.
2.3.2 Weaknesses

 Waste Management: Efforts have been put into encouraging recycling and reducing
waste. There is still space, for enhancing waste management methods to reduce the
effects and boost recycling rates. Climate Change Effects in Bilbao is at risk of
climate change consequences like rising sea levels, severe weather conditions and
heatwaves. The changing climate poses threats to infrastructure, biodiversity and
public health underscoring the need, for strategies that focus on adaptation and
resilience to tackle these issues.

3. Proposed Strategy
3.1. Boosting the Economy

 Supporting Innovation Centers: Set up. Finance innovation centers or startup hubs
to aid businesses and startups in growing sectors, like renewable energy,
biotechnology, and digital technology. Provide incentives and grants to spur
entrepreneurship and innovation fostering a climate of creativity and economic
variety.

 Enhancing Skills Training: Execute skills development initiatives in partnership

with institutions and industry collaborators to offer training in high demand fields.
Focus on skills, ecofriendly technology, and innovation to equip the workforce with
the skills for upcoming job opportunities.

 Promoting Investments: Enhance endeavors to draw investments by highlighting

Bilbao’s position, skilled labor force and business friendly atmosphere. Provide
perks such as tax benefits, subsidies and simplified regulatory procedures to attract
corporations and promote investment in industries.
3.2. Improving Quality of Life

 Developing Green Infrastructure: Invest in establishing and maintaining

infrastructure like parks, urban greenery, and green roofs to enhance the city’s

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appeal and encourage biodiversity. Implement zoning policies for spaces to ensure
access to recreational areas and green spaces, across different neighborhoods.

 Strategies to Reduce Noise Pollution: Take steps to lessen noise pollution by

soundproofing buildings, near transportation hubs and industrial areas. Enforce
rules on noise levels coming from construction sites and nightlife venues to
safeguard the wellbeing of residents.

 Initiatives for Affordable Housing: Introduce programs for housing like building
income residential areas and implementing rent control policies to tackle housing
affordability issues. Collaborate with profit groups and developers to boost the
availability of affordable housing units and offer housing assistance to low-income
individuals.
3.3. Sustainability Efforts

 Initiative for Cleaner Air: Create and execute a plan for air by reducing air pollution
from industries, transportation, and other sources. Invest in eco transportation
technologies such as buses and bicycles while encouraging the use of public
transport to cut down emissions.

 Reform in Waste Management: Introduce reforms in waste management to enhance

recycling rates and minimize waste production. Enforce recycling programs, offer
incentives for businesses and households to recycle and invest in facilities for waste
sorting well as composting infrastructure.

 Measures for Climate Resilience: Develop strategies for climate resilience to

address the city’s susceptibility to climate change impacts, like floods and
heatwaves. Invest in projects that focus on infrastructure, like roofs and permeable
pavements to manage stormwater runoff and combat the urban heat island effect.
3.4. How to execute?
Form a task force involving representatives from sectors, including government bodies,
businesses, nonprofits, and local community organizations to oversee the execution of the
proposed plan.
Allocate funding and resources to support the implementation of policy measures outlined
in the strategy giving priority to initiatives with potential impact and practicality.
Regularly monitor progress. Evaluate results by tracking performance indicators to gauge
the effectiveness of policy measures and make any required adjustments. By putting these
policy measures into action Bilbao can boost its economy, quality of life and sustainability

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promoting long term prosperity and wellbeing for its residents while creating a thriving
city, for future generations.
4. References

 https://www.bizkaia.eus/fitxategiak/05/ogasuna/abagunea/dokumentuak/Indicadores
%20marzo%202022.pdf?hash=b9e3f9ab5fb419267ea1c1ee9fdf0136

 https://datosmacro.expansion.com/ccaa/pais-vasco

 https://www.ine.es/prensa/cre_2022.pdf

 https://www.eustat.eus/bancopx/spanish/id_4351/indiceRR.html

 https://www.bizkaiatalent.eus/ciudadanos-ciudadanas-bienestar-estado-espanol/

 https://www.deia.eus/bilbao/2023/11/29/presupuestos-2024-apuntalan-futuro-
bilbao-7578161.html

 https://beaz.bizkaia.eus/index.php?
option=com_content&view=article&id=134&Itemid=335&lang=es-es