The Rise of Spain as a Connectivity Leader in Europe
Spain has emerged as a leader in connectivity in Europe, according to the second report on digital economy perspectives for 2024 published by the Organization for Economic Cooperation and Development (OECD) on Tuesday. This advancement is attributed to a combination of strategic public policies, significant investments, and effective use of European funds. In particular, the connectivity infrastructure, especially fiber optics, has seen remarkable growth in the last decade, placing the country in a privileged position compared to its European counterparts.
Strategic Investments and Policies
- In 2016, only 35% of fixed broadband connections in Spain used fiber optics.
- By 2023, this number had surged to 86%, a feat credited to a combination of wholesale access regulation that stimulated competition and the allocation of public funds.
Investment Comparison
With a budget exceeding $20 billion (approximately €18.9 billion), Spain has invested the most in digital strategies out of 19 cases analyzed. This push has been largely fueled by EU recovery funds, surpassing other EU countries like Italy and Germany, who have invested $18.3 billion (€17.2 billion) and $4.494 billion (€4.2 billion) respectively. Spain’s investment rate also exceeds the European average in terms of GDP, with a spending of 1.5%, more than half a percentage point higher than neighboring countries.
Regulation and Development
One key factor in this progress has been the wholesale access regulation implemented by Spain in 2016, allowing alternative operators to access fiber infrastructure in areas lacking sufficient competition. This incentivized private investment while ensuring broader access. By 2021, geographically considered “competitive markets” expanded, allowing more flexibility in regulatory obligations and further fostering development. The support of the European Regional Development Fund also played a role in financing key programs to bring next-generation broadband to rural areas, narrowing the digital divide between urban and rural areas.
Labor Transition Challenges
Despite advancements, Spain and other OECD member countries still lack policies to facilitate labor transitions. The need for worker training, especially in jobs at risk of automation, is emphasized. While only a third of countries have adequate policies to protect workers, nearly 85% have implemented social policies to cover users of abusive practices and regulate the use of new technologies.
The Future of Work
The OECD reassures those concerned that new technologies will destroy millions of jobs, noting that many will need to be adapted. Even jobs at high risk of automation, such as manufacturing or administrative tasks, require key skills that machines cannot replicate. The organization details that from 2012 to 2021, OECD countries experienced growth in digitized employment without net job destruction, though growth was much lower in high-risk automation jobs (6%) compared to lower-risk roles (18%).
Skills Development and Gender Disparities
Instead of entirely replacing employees, companies will need to train them. The OECD highlights a surge in demand for social skills, critical thinking, and creativity in countries like Germany, France, and the United States. Conversely, routine tasks like basic data management or administrative duties are becoming less relevant.
A weak point identified is the underrepresentation of women in new technologies. Less than 1.5% of young women aged 15 in OECD countries aspire to work in this field, compared to nearly 10% of young men. Gender stereotypes play a part in this disparity, contributing to the imbalance in the labor market where men are three to seven times more likely to work as specialists in this sector, perpetuating wage and opportunity gaps.
Conclusion
Spain’s rise as a connectivity leader in Europe showcases the impact of strategic investments, effective regulations, and utilization of EU funds. While progress has been made, challenges in labor transitions and gender disparities persist, emphasizing the need for continuous policies and initiatives to bridge these gaps.
FAQs
1. How has Spain become a leader in connectivity in Europe?
Spain’s advancement in connectivity is attributed to strategic public policies, significant investments, and effective use of European funds, particularly in expanding fiber optic infrastructure.
2. What challenges do OECD countries face in labor transitions?
Ongoing challenges include the need to train workers, especially in jobs vulnerable to automation, and the lack of policies to facilitate smooth labor transitions.
3. What gender disparities exist in the tech sector?
Women are underrepresented in new technologies, with stereotypes contributing to the imbalance in the labor market and perpetuating wage and opportunity gaps.