The document summarizes how the global economic crisis has led to increased poverty and social inequality in Spain. It shows that since 2008, there has been a dramatic rise in poverty, hunger, and inequality in Spain, with the country now having the largest inequality of the 27 EU countries. Key statistics are presented showing that the number of people at risk of poverty and social exclusion has risen by over 1 million between 2009 and 2010. The challenges of reducing poverty in Spain are growing as objectives to combat poverty and social exclusion through employment rates and other measures have not been achieved.

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Poverty and Social Inequality in Spain
This report shows there has been a dramatic rise in poverty, hunger and inequality
across Spain since the outbreak of the economic crisis in 2008. It has become the
country with the largest inequality of the 27 countries of the European Union
(EU). Throughout this essay, we attempt to explain how the global economic
crisis has led to increased poverty and social inequality in Spain, using the “Risk
Rate of Poverty and Social Exclusion” AROPE.
Keywords: poverty, social inequality, Spain, economic crisis, AROPE rate. Fátima Paredes
fmparedesm@gmail.com
Linkedin:fatimaparedes
Emagazine:Scoop poverty-and-social-
inequality-in-spain
@fatimaparedesm
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Report prepared for:

2. In order to explain how the global economic crisis has led to increased poverty and social
inequality in this country, we will use the New Institutional approach, which focuses on
developing a sociological and political view of institutions1. We will also handle a basic tool,
the “Risk Rate of Poverty and Social Exclusion” AROPE2, an indicator devised for measuring
the poverty and social exclusion in the European Strategy 2020, adopted by the European
Council in 2010 for all states member.
The mutual European objective is to converge on a common template to make Europe
intelligent, sustainable and inclusive. Hence, each country suits their own objectives
according to 2020 Strategy, depending on their social, political and economical context. In the
case study of Spain:
 Population at risk of poverty or social exclusion (AROPE): the stated goal was to move
from the current figure of 10.6 million people, to a figure of 9.1 and 9.2 million.
 Employment rate of the population between 20 and 64 years: Spain established 74%
(instead of 75% as Europe), and sub-goal of an employment rate of 68.5% among women.
 Dropout: was established in 15%, compared to 10% of the EU 2020.
 Proportion of population aged 30-34 with tertiary education: Spanish goal was 44% versus
40% in EU.
However, until today these objectives have not been achieved, leading to alarming results for
Spanish society. The Eurostat statistics from 2009 and 2010 show a worrying increase of over
one million people at risk of poverty and exclusion (10.665.615 for 2009, 11.666.827 for
2010; a 2’1% increase).
Figure 1. AROPE rate evolution in Spain (2004-2010). Source: Eurostat.
1 Based on the book Theory and Methods in Political Science, edited by David Marsh and Gerry Stoker, the
New Institutional Approach pays attention to the way in which institutions embody values and power
relationships, and the obstacles and opportunities that offer institutional design. This New Institutionalism
emerged as a reaction to the ‘undersocialized’ character of dominant approaches in the discipline.
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The European Union consider people are at risk of poverty and social exclusion (AROPE), when income level
is below the poverty line, suffer severe material deprivation, or live in households with low work intensity.
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3. The challenge of reducing poverty in Spain, far from moving towards the goal, goes in the
opposite direction. These statistics show that we require a huge transformation in shaping
social policies, to achieve the proposed objectives and combat the negative effects of the
difficult economic situation.
The United Nations Office of the High Commissioner for Human Rights points out that
austerity measures may violate human rights. Governments, notably in Europe, have
responded to mounting deficits with “austerity” measures, making drastic reductions in public
expenditure. Austerity has entailed rapid decreases in standards of living, as cuts have been
made to public services and social protection, while unemployment levels have risen
dramatically. By ratifying the Human Rights Covenant, States Parties have a legally binding
obligation to progressively improve, without retrogression, universal access to goods and
services such as healthcare, education, housing and social security and to ensure favorable
conditions of work, without discrimination, in accordance with established international
standards. These rights must be achieved by using the maximum of the available resources.
Moreover, austerity measures are a disincentive to economic growth and thereby hamper
progressive realization of economic and social rights. Several United Nations human rights
experts have recently highlighted how austerity measures are incongruent with economic,
social and cultural human rights and called for banking sector reforms and human rights-
based approaches out of financial and economic crisis. The social insecurity and political
instability, as seen in some places of Europe these days, were also potential effects of the
denial or infringement of economic, social and cultural rights. In a recent statement, the
United Nations High Commissioner for Human Rights, Navi Pillay, expressed concern over
rising social tensions inflamed by the effects of the economic crisis in Greece and Spain and
the broader adverse impacts of austerity measures on the most vulnerable.
Figure 2. AROPE rate evolution in the European Union (2009-2010). Source: Eurostat.
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4. In conclusion, the economic crisis has led on the degeneration of people’s living conditions,
increasing inequalities and destroying the Welfare State. The effects of the crisis are growing
exponentially and the measures implemented to struggle poverty and social exclusion are not
effective. The right-wing Popular Party (PP) government and its Socialist Party predecessor
have imposed one draconian austerity package after another, cutting in health care, education
and social services budgets, raising taxes and adopting new labour laws.
Therefore, poverty reduction should be directly related to a more equal society. Spain has
remained, compared with developed countries in our environment, in a lower position of
public spending on cash benefits, services and tax relief to families. This is not effect of the
current situation, even before the crisis, social spending was reduced in comparison with other
European Union countries with the same income levels (social spending in Spain has always
been substantially lower). In the last years, Spain has not bet on social protection, not taking
care of people at risk of poverty and social exclusion. Moreover, in times of crisis, when the
social needs and the number of people at risk of poverty grow, the response generated has
been to diminish, even more, the social protection.
All the data mentioned above, from an organizing perspective, provide a map of the subject
and signposts to its central questions. As the new institutionalism asserts “institutions are the
variable that explain most of political life, and they are also the factors that require
explanation” (Peters 1999:150). The economic crisis is deeply affecting the whole society.
This is a sample of the unprofitable institutions and policies that exist to struggle poverty and
social exclusion, which are proof of the urgent need to rethink social policies for citizenship.
In Spain, poverty and social exclusion are undermining directly the fundamental right of
having enough resources to live a dignified life, ensuring the coverage of basic needs and a
minimum level of welfare.
References
 European Comission Eurostat, “European Social Statistics”, (2012). <
http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=
KS-31-12-666 > (24/11/2012).
 Instituto Nacional de Estadística, “Nivel, Calidad y Condiciones de Vida”, (2012).
<www.ine.es/jaxi/menu.do?type=pcaxis&path=%2Ft25%2Fp453&file=inebase&L=0>
(24/11/2012).
 United Nations Office of the High Commissioner for Human Rights, “Austerity measures may
violate human rights”, (2012).
<http://www.ohchr.org/EN/NewsEvents/Pages/AusterityMeasures.aspx> (20/11/2012).
 World Socialist Web Site, “Poverty, hunger and inequality grow in Spain”, (2012).
<http://www.wsws.org/articles/2012/oct2012/spai-o24.shtml> (26/10/2012).
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