The Old Folks At Home (29 November)

I went to the old folks home in Alcúdia yesterday. They had rung me up and asked me to come by. There was a surprise on entering the “residencia”. I remembered it when it was the Alcúdia hospital. The place has been completely transformed. They describe it as not really a hotel and not really a hospital, but it looked and felt more like a hotel.

I said to them that a perception of a residencia, among many Brits at any rate, is probably that of the “old folks home”, one of elderly people sitting around in stiff-backed chairs, staring aimlessly at a television screen, not always smelling of lavender, and waiting for the next trolley of tea to come by. The residencia really isn’t like that.

They wanted to do something about increasing awareness of what the place is really like, but that’s for elsewhere, as there is – along with every other part of Mallorca’s economy – a crisis in the residencia sector.

Workers at residencias across Mallorca have added their voices to the growing number of personnel that is either not being paid or is being paid late. Though the regional government or town halls don’t operate residencias, the companies which do are paid by government and the companies in turn pay staff salaries. Or don’t, as the government is in debt to them, as it is in debt to all manner of providers.

A protest planned for today outside the regional parliament by workers from different residencias adds to one staged by a hundred workers at the residencia in Marratxí on Saturday. It had been announced that November salaries for the staff in Marratxí would not be paid, this coming on top of delays in the past few months.

The residencia workers are far from being the only ones who have suffered because of the inability of government (or town halls) to pay suppliers, but problems with payment at this time of the year are particularly acute, given the proximity of Christmas.

The system of payment for those in the public sector isn’t collapsing, but it is on foundations that seem to be becoming ever more shaky, as is the edifice of the Mallorcan and indeed Spanish welfare state.

The residencias, in addition to their permanent residents, provide an important service through their day centres. These are important especially for the elderly who live alone and/or in conditions that are not much better than destitution.

A misconception that surrounds local society, in addition to one that the welfare state is particularly generous, which it isn’t, is that the family always takes care of its own, the elderly included. The family does of course provide, but not quite to the same extent that it once might have.

The Economic and Social Council for the Balearics has released information regarding the number of people aged 65 or older who live on their own. The percentage in the islands as a whole is just under a third, and one half of these either have no or very little by way of contact with family, while some 22% also have no obvious friends to call upon. Pensions, which Mariano Rajoy says he will safeguard, can be as low as 250 euros a month.

Demands placed on agencies outside the established welfare state have rocketed in the past few years, and not only for help for the elderly. The Cruz Roja and the Catholic charity, Caritas, are just two that have had to step in as a combination of economic crisis and a societal shift that has lessened the strength of the family has left an increasing number of people with little or no safety net; and crisis has itself contributed to undermining the wherewithal of some families to go some way to providing this safety net.

Crisis is not just damaging economically but also socially, and the strain of crisis is such that opposition parties accuse the regional government of stripping away nearly 250 million euros from that part of the budget that includes welfare and the family; a budget described as the “most anti-social” that the Balearics have experienced.

It is against this background, therefore, that the services of the residencias, more important than ever, find themselves also subject to the virus that is crisis and to a cycle of crisis that is vicious and seemingly never-ending.

Alcúdia’s old folks home, and more than just an old folks home, is mightily impressive. Whether the agencies of government are taking much notice of how impressive, however, is another matter entirely.

Any comments to andrew@thealcudiaguide.com please.

You Have The Poor Always With You

What does the Spanish region of Extremadura have in common with Ethiopia? (And don’t say that both start with an “e”.)

The two share a strikingly similar percentage in terms of their respective rates of poverty. The measures are different, as greatly different factors come into play, but the percentage of the population of Extremadura currently in poverty is 38%. In 2005, according to figures released by the CIA, Ethiopia, only six notches above the poorest two countries in the world in terms of per capita income, had a poverty rate of 38.7%.

Don’t let us confuse the two figures. Local standards of living mean that the poverty rates are calculated quite differently, but even so, if African poverty is considered a bad thing, which it is, should we not be somewhat alarmed by a level of poverty in Spain that, in relative terms, is equally as bad?

Extremadura, as revealed by new figures from the INE (the Spanish national statistics office), is Spain’s poorest region. And the Spanish are getting poorer. Provisional figures for 2011 suggest that there has been an increase of just over one percentage point, to 21.9%, of people in Spain who live below the breadline, defined in terms of a two-child family with an income of less than 15,820 euros a year.

The Balearics sit in the middle of the league table of rich and poor parts of Spain;20.6% of the population in 2010 existed in poverty, almost exactly the same as the national average of 20.7% last year. Taking the CIA’s statistics, Spain, to put it bluntly, is the poorest country in western Europe. It is poorer than many countries in eastern Europe, and the Balearics are pretty much bang on the same mark.

National and regional wealth do paint a different picture. The Balearics, by GDP per head of population, is one of the wealthiest parts of Spain, and Spain is rated by the IMF as the twelfth richest nation in the world. Not that this necessarily counts for much when a country can get itself into such a crisis of debt. And there is no getting away from the fact that economic crisis has added to the level of poverty and from the fact that, regardless of GDP figures, there is real hardship in the Balearics and an increasing inequality in the distribution of wealth.

Among the various statistics that inform the INE’s report is a measure of “delays in payments related to the main dwelling” (by which is meant ability to meet mortgage or rent payments, among others). On this measure, the Balearics are by far the worst region in Spain, by almost five percentage points more than the next poorest performing region, the Canary Islands.

Such a finding can be interpreted in different ways. It could be that people have overstretched themselves where mortgage commitments are concerned – which has certainly been the case – but it might also suggest that the Balearics, and property values in particular, are too expensive, relative to general earnings capacity.

If this is so, and one is inclined to believe it to be so, then the regional government’s decision to unblock projects for more luxury property development and the fact that the luxury real-estate market is relatively buoyant at present (buoyant especially where overseas buyers are concerned) put the situation into sharper relief, and it borders on the obscene.

The national government and the regional government in the Balearics operate, by comparison with other European countries, from a low base when it comes to provisions of a welfare state. But what provisions there are, are due to fall to an even lower base. The Bauzá administration is entirely mute on the subject of welfare, save for its wishes to make cuts. And these cuts have so far been more drastic than in any other part of Spain, and we yet to have revealed the full horrors that await under a national Partido Popular government.

In a few days time, we will witness the physical manifestation of the absurdity that is the local economy. The dole queues will be snaking along streets, miles upon miles of humanity, looking for its annual handout from a government that is in no position to make it. Unemployment, greater levels of poverty, cuts to services, cuts to assistance, while all the time the government abrogates responsibility to the private sector and shows not the slightest interest in any form of welfare policy.

One in five people in the Balearics living in poverty, and rising. Two in five in Extremadura. And this is meant to be a wealthy country.

Any comments to andrew@thealcudiaguide.com please.