Tuesday, December 12, 2023

The OECD has warned that the poverty gap in Spain is higher than average

The Organization for Economic Cooperation and Development (OECD), which brings together 38 countries and is known as the club of the rich, once again highlights the shortcomings of Spain in a new study.

In its annual report on structural reforms, it emphasizes that our labor productivity per employee, measured in dollars of Gross Domestic Product (GDP), will be 86.3 dollars in 2022, compared to 89.1 for the OECD average, and far from 144.5 of the five best countries.

Regarding unemployment, Spain has the highest unemployment rate: 12.9% in 2022, above the 5.9% OECD average.

On the other hand, the authors of the study show that in Spain the social assistance programs are not completely effective in fulfilling their function: reducing poverty. The reasons are “inefficiencies in administrative systems, complex rules and lack of coordination.” The poverty gap, once taxes and social assistance are taken into account, is much higher than the average in Spain.

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Their proposal to correct these inefficiencies is to create an office that will concentrate on care services for the unemployed and vulnerable population.

Another recommendation that the OECD has repeated to Spain for some time, and which appears again in the report, is that it should strengthen the collaboration between educational institutions and companies to strengthen the study plans and advise young people. It’s about “better adapting studies to the needs of the labor market.”

Market unit

On the other hand, the OECD recommends that Spain strengthen the application of market integration law. He considers that many regulations in the region are hindering this, and this is weighing on the expansion of developing companies.

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They determined that “in some sectors, such as professional services and commerce, the regulations are strict and differ between autonomous regions, something that weighs the expansion of developing companies.”

They also spoke, as they have done in the past, in favor of “gradually” eliminating different regulations depending on the size of the companies. They admit that this will result in problems when it comes to growth, which will exceed a certain threshold where they will have to submit to new rules.

Nation World News Desk
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