Institutional quality crucial for Spain's economic growth

The presentation highlights a strong positive correlation between the effectiveness of public administrations and GDP per capita, explaining two-thirds of the variability in per capita income across European countries in 2023. It underscores that this effectiveness, rather than the sheer size of public spending, is the crucial factor for economic prosperity, as no correlation exists between public administration efficiency and the percentage of public expenditure to GDP.

Furthermore, while aggregate institutional indicators capture general regulatory frameworks, actual performance significantly depends on how specific entities are organized, governed, and managed, allowing for "islands of excellence" to emerge even within broader institutional imperfections.

To enhance institutional effectiveness, the Governor outlined three key principles for high-performing public organizations.

These include management autonomy coupled with administrative coordination, a long-term strategic orientation balanced by continuous evaluation, and a merit-based approach to talent that encourages openness.

The presentation then showcased three illustrative Spanish cases—the National Transplant Organization, the Catalan scientific ecosystem, and the Teatro Real—as micro-examples of how these governance principles can materialize and drive exceptional results within the national context.