A Crisis to Change Social Trends

Macroeconomic indicators are showing that the long-awaited recovery of our economy has begun to activate. Despite the persistence of some risks, Funcas forecasts a growth of 6.3% in GDP for the year 2021 and 5.8% in 2022. This represents strong growth that will place Spain at the forefront of the recovery of European economies. Without a doubt, this is excellent news for our economy.

However, these good prospects should not overshadow the social reality that the country faces after a very tough year of pandemic. The economic impact of the health crisis is being enormously unequal, particularly affecting the most vulnerable groups, such as those with the lowest incomes, individuals with lower education, or those in greater job precariousness.

There is particular concern about the situation of young people—4 out of every 10 were unemployed at the end of 2020—and women, who are more present in the sectors hardest hit by the crisis. This has resulted in a significant increase in the number of people in extreme poverty or at risk of social exclusion, with a change in the configuration of poverty, incorporating individuals with middle and even higher education. This explains, according to preliminary studies, why there has been an increase of 40 to 60% in the volume of social interventions carried out by organizations such as Cruz Roja or Caritas.

This difficult context has highlighted more than ever the importance of the Social Work and Action carried out by the foundations affiliated with CECA. Throughout 2020, despite operational and logistical difficulties, these entities managed to mobilize around 20,000 volunteers and reach nearly 25 million beneficiaries. Half of them, more than 12.9 million, belong to specific groups, such as children and youth, individuals at risk of social exclusion, people with special needs, and the elderly.

This has been made possible thanks to a social investment of 772 million euros, which once again positions the Social Work and Action as the largest private social investor in our country. This figure is particularly significant considering that the dividend income of CECA’s foundations has been significantly reduced following the ECB’s decision to limit the distribution of profits by banking entities (which are significantly participated in by banking foundations).

In response to the new scenario caused by the pandemic, foundations have had to make an extraordinary effort to reorient their programs and reallocate resources to address the most urgent needs during this year, namely, those of a social and health nature. This explains why 70% of the total investment has been primarily concentrated in the areas of Social Action and Research, with allocations of 327 and 208 million euros, respectively.

Among the measures implemented by these areas, notable actions include support for social dining facilities and food banks (which assisted over one and a half million people, of which 360,000 were under 14 years of age) and backing for 350 research projects aimed at combating Covid-19. There was also the distribution of medical supplies at a time when, let us remember, there was an acute global shortage of these types of items.

As I mentioned at the beginning, the nascent improvement in our economy is hopeful news and, undoubtedly, it will help address the difficult social situation that the pandemic has exacerbated. However, it should not be forgotten that if the most vulnerable groups are the first to feel the impact of a crisis, they are also often the last to benefit from the effects of recovery.

In this regard, CECA’s Social Work will continue to be close to those most in need, acting as a connecting element to strengthen social cohesion and the welfare state.

Moreover, in light of the magnitude of the challenge we face, it is urgent to utilize the Recovery, Transformation, and Resilience Plan to lay the foundations for truly inclusive growth, implementing ambitious reforms and maximizing the social impact of European aid. With 23% of our population living at risk of social exclusion, our country cannot afford to miss this unique opportunity. We must take advantage of this crisis to change the trend.