The Pro-Independence Movement in Catalonia

The Pro-Independence Movement in Catalonia

Most Catalonians do not regard themselves as Spanish but Catalans. In other parts of Spain and Europe, such considerations raise eyebrows. Convergencia Unio is the existing main political party in Catalonia. It has governed the autonomous region for more than two decades. Its goal is to ensure heightened levels of self-government. As a political movement, the party identifies itself as 'Catalanists' (Catalonian nationalist). Over the past few years, there have been intensified calls for regional independence to ensure economic and social development. However, given the complicated nature of Spain and EU politics, chances of Catalonian Republic formation are dim.

Reasons

Catalans push for independence because of three reasons: First, Spain does not understand nor accept Catalan language and culture. Therefore, Catalans are not protected or fostered. For three centuries, Catalans have experienced cultural and linguistic discrimination, peaking during 36 years of Gen. Franco Francisco’s dictatorship. Second, common that a well-defined region such as Catalonia should gain-governance to ensure that voice of its people resonates in the UN and EU as they seek to address their problems. Lastly, there is a notion that secession of Catalonia will yield economic prosperity. Proponents this argument are convinced that Spanish central treasury receives more of Catalonian tax that it deserves. 

History

As an Autonomous community, Catalonia has a population of more than 6 million inhabitants. Its size is larger than Finland, Ireland, and other 10 EU members. Greeks, Phoenicians, and Romans once inhabited and established civilizations in Catalonia. The region has also received a brief influence from Arabs.  During the middle ages, it was Crown of Aragon’s central components, those becoming an important power in the Mediterranean.  A royal marriage during the 15^th Century re-united Catalonia with the Kingdom of Castle though it remained one of the kingdom's confederate states.  It enjoyed its own language, laws, and had a well-established parliamentary structure. War of Harvesters broke out against Castilian government and resulted in an independence of Portugal. Catalonia lost the war, forcing it to surrender its northern regions to France. Again, Catalonia lost the War of Spanish Succession in the 18^th Century, resulting in a wipe-out of all its institutions and language. Catalan state structure was eventually lost as cultural assimilation continued for the next two centuries.

The national conscience of Catalans re-emerged at the end of 19^th Century as nationalist ideologies took hold in Europe.   Initially, it was a movement that longed for medieval political glory, literary advancement, and cultural richness. The movement later evolved into a regionalist undertaking that demanded greater political autonomy. Years prior to Spanish 1936 Civil War, Catalonia gained partial self-rule enjoyed on multiple occasions. In fact, Catalans proclaimed the Catalonian Republic twice within the Iberian federation, but Francisco’s victory in 1939 marked a beginning of the darkest era in Catalan history (Zamagni, 2000).

General Francisco’s regime shaped the history of modern Catalonia. During his rule, many Catalans suffered systematic and cruel attempts of cultural annihilation. Repression of collective and individual cultural entitlements such as a public use of Catalan language became rampant. People were punished for expressing their culture and identity as Catalans. As democracy swept across Europe in the 1970s, Catalans recuperated their institutions, language, and culture (Pollack & Taylor, 1983). Massive demonstrations were held in 2012 and 2013by nearly 1 million people regarding themselves as ‘indepententists’. Several non-binding referendums and unofficial votes have been held between 2000 and 2015 calling for immediate democratic change for autonomy in the region. Already, the existing autonomous government is substantially responsible in areas such as healthcare system, policing, culture, and education.

Fiscal Imbalance

There is a fiscal imbalance between Catalonia and Spain. The autonomous region is dynamic and relatively rich as compared to the rest of Spain. However, by EU standards, Spain as a whole is considered one of the poorest. Catalonia (with less than 20% of Spain’s demography) provides more than 20% of the country’s GDP and a third of its exports and industrial production.  A quarter of Spain’s total taxes come from Catalonia, even though the region’s public investment is scarce (Abbot & Jonnes, 2013).  Between 1982 and 1998, Spanish government regionalized investment was a mere 8.5 % in Catalonia. It fails to represent the overall tax remittances.

Tax

Dissatisfaction of Catalans emanates from the government’s control of tax collection system and its skewed decisions on fiscal revenue distribution in the country. As such, Catalonia residents exchange regional public expenditure for tax payments to Madrid. In addition, the central government does not provide all the necessary data on how it calculates its public spending. Studies indicate that Catalonia has one of the highest fiscal imbalances in the EU. It makes it hard for the autonomous region to be globally competitive should it opt for an exit from Spain.  Catalan firms, on the other hand, pay high taxes but receive low infrastructure investment and public services. Not only does it damage territorial and social cohesion, but it also hampers modernization and growth of a Catalonian economy.  On one hand, a lengthy period of permanent centralism has yielded a loss of sense of reality for most of the people in the region. On the other hand, ‘political correctness’ in Spain inhibits many commentators and politicians from talking openly about such issues that threaten national unity. In light of this, it is clear that fiscal imbalance is a fundamental argument tabled in support of immediate secession. If Catalonia gains its independence, there will be no need of paying taxes to Spanish central government for investment elsewhere. Instead, taxes will be redirected for investment within the new government.

Structural Flaws

There are major structural flaws in the existing inter-regional system of solidarity.  First, any solidarity system ought not to compromise the donor’s economic health like the current system does. Secondly, Spaniards designed the existing system when there were higher disparities between the country’s regions. After decades of the European Union's presence, remarkable changes and developments have occurred rapidly. Indeed, if Spain is compared to other EU states, it can be noted that contrasts in Spain’s regions are not as abysmal as thought. In fact, Germany, UK, France, and other countries have highly substantial inter-regional disparities. Third, status quo supporters ignore that Catalan autonomous region has one of the highest intra-regional rates of disparity in income, both socially and territorially. The current system falls short of tackling these disparities in an effective manner. Independence of Catalonia and its membership to the EU implies its eligibility to EU preferential area structural funds. It is ineligible currently as it is considered a unitary entity.

Independence Viability

Critics argue that Catalonia is too small for economic independence and sustainability to be attained. However, the suggestions of existing evidence point to a contrasting reality. For instance, nearly all of the top 10 richest states in the world today (per capita GDP) have lower or equal population to that of Catalonia. In addition, the notion that Catalonia will not prosper economically because of lack or scarcity of natural resources is flawed and non-factual. A study is yet to be conducted to establish a correlation between economic prosperity and abundance of natural resources. While there are instances like Norway that support such relationship, others strongly refute it. A case Venezuela, an oil-rich country, proves that poor management of abundant natural resources can prompt an economic disaster (Drury & Lutztig, 2006). On the other hand, Japan is one of the South Asia’s richest despite having a few natural resources.  It is true that economic development demands the use of natural resources and is a mandatory requirement for a country that desires prosperity. However, this objective is attainable via international trade and globalization, not being politically dependent on large countries.

Anti-secessionist central theme states that Spain is Catalonia’s major market. Therefore, an economic catastrophe is imminent should the region secede from the mainland as it will lose a key ally and trading partner (Bover et al., 2000). What the naysayers do not realize is that Catalan could redirect its products to other EU member states, especially if it is admitted as one of the members. Secondly, Spanish nationality is not a factor as its citizens buy Catalan products due to price and quality. Besides, it is a norm for neighbouring countries to engage in trade and to establish bilateral ties due to mutual economic benefits. For example, Spain is Portugal’s largest trading partner.

EU

European integration process supports Catalonia’s or Scotland's independence. In fact, the maintenance of intermediary role of the state between local powers and the EU leads to a higher transaction cost thus hampering the development of the economy. Specifically, in semi-federal or federal states such as Belgium or Spain, maintaining a central state is a complex task that demands an enormous amount of resources (Jeronimo & Soydemir, 2000). Therefore, EU will support Catalina’s secretion process due to its economic desirability. It will reduce the economic burden carried by EU and Spain.  EU is already calling into question the existence of centralized old European states such as France and Spain because they drag down the continental economy, especially after the devastating consequences of the financial crisis (Albers, 2009). An increase in economic efficiency in the EU is attainable if member states become smaller and less bureaucratic. It is also the best way to ensure proper representation of Catalan interests as opposed to a representation by the Spanish government that constantly repress its language and culture. Lastly, EU is a de facto body that lowers the potential independence cost as it provides a free trade area for the new state. EU will also save Catalonia's need for an incurrence of cost to create a new currency.

In summary, Europe is a continent that has flourished because of a nation –state creation. Despite a centralist unitary Spanish state, Catalonia exists today. Catalan nationalist movement, for more than a century, has focused on linguistic and cultural promotion. Multiple years of centralism have eroded reality perception for the majority of Catalonians, resulting in their acceptance of a skewed administrative relationship that infringes on their rights and personal interests. Today, there is an insufficiency of policies that are culturally focused. Politicians of Catalan autonomous region should openly inform the public about the high price they pay to be part of larger Spain. Residents of Catalonia should be made aware that the existing fiscal imbalance results in a critical underinvestment that hurts the economy in the long-run.  People should realize that a new national structure of administration allows Catalonia to be competitive in the global arena. Social cohesion, infrastructure modernization, and better public services will be guaranteed by its independence. 

References

Aalbers, M. (2009). Geographies of the financial crisis. Area, 41(1), 34-42.

Abbott, A., & Jones, P. (2013). Procyclical government spending: a public choice analysis. Public Choice, 154(3-4), 243-258.

Bover, O., García-Perea, P., & Portugal, P. (2000). Labour market outliers: Lessons from Portugal and Spain. Economic Policy, 15(31), 380-428.

Drury, A. C., Krieckhaus, J., & Lusztig, M. (2006). Corruption, democracy, and economic growth. International Political Science Review, 27(2), 121-136.

Jeronimo, V., Pagán, J. A., & Soydemir, G. (2000). Privatization and European economic and monetary union. Eastern Economic Journal, 26(3), 321-333.

Pollack, B., & Taylor, J. (1983). The transition to democracy in Portugal and Spain. British Journal of Political Science, 13(02), 209-242.

Zamagni, V. (2000). Southern Europe: from the Periphery to the Center?.Revue économique, 303-313.