An OECD (Organisation for Economic Co-operation and Development) analysis of Spain’s business transformation over the past decade highlights the vitality of Spanish multinationals, which, in recent years, have undertaken “a spectacular internationalisation process”. Signed by Javier Santiso, Deputy Director and Chief Development Economist of the OECD Development Centre, the study particularly commends the work of companies such as Inditex, Santander, BBVA, Telefónica, Ferrovial and Sacyr Vallehermoso, which have helped make Spain a “symbol of economic modernity”.
In the report, Santiso points out that “there are half a dozen Spanish companies at the top of the international ranking”. Proof of this success is the fact that Spanish companies can now be found in every world ranking. BBVA, Santander and Telefónica, for example, are now listed among the world’s 100 largest companies in the Forbes Global 2000 list, where 29 of the 2,000 companies listed are Spanish. Likewise, the Fortune Global 500 ranking of the top 500 corporations worldwide, in terms of turnover, included nine Spanish corporations in 2006, one more than the previous year (ten years ago no Spanish company appeared in this coveted list).
Over the past ten years, Spanish companies have moved on from playing solely on the domestic front, and now hold an important role internationally. They have made major advances in the globalisation of their businesses. Most Spanish companies began this process in Latin America, and then moved on to other markets such as Europe, North Africa and China.
The internationalisation of Spanish companies, such as Inditex, Ferrovial, Santander, BBVA and Telefónica, is linked to the economic development of the country. Twenty years after joining the EU, Spain is now the ninth largest economy in the world in terms of GDP.
Santiso highlights the fact that the international expansion of companies is associated with a generational change of Spanish business people. "More and better made in Spain executives are being exported," says Santiso, who points to the increasing number of Spaniards being offered important positions in foreign multinationals. The OECD study also underscores the ranking of Spanish business schools. The IESE and Instituto de Empresa Business Schools are both among the top five European schools.
According to the study, the main Spanish cities are among the top locations in Europe for setting up multinationals; Barcelona is the fifth most attractive city in Europe, ahead of Amsterdam, Zurich and Milan, and Madrid is the seventh, a far cry from its seventeenth place in 1990.
Furthermore, Santiso believes that Spain should become the international business centre between Latin America and the rest of the world. He points out that multinationals "require greater incentives from Spain if it is to strengthen its role as a Latin American business centre". In Santiso’s opinion, if this strategy is pursued, "banks, companies and institutions will benefit greatly and Spain will position itself at the forefront of global business, with highly qualified jobs and an international work environment". The OECD study recommends the development of organisations engaged in intellectual analyses and Latin American study centres to help establish Spain as the bridge between Latin America and the rest of the world.
