Glossary -- Spain
- Council of Europe
- Founded in 1949 to foster parliamentary democracy, social and
economic progress, and unity among its member states. Membership is
limited to those European countries that respect the rule of law and
the fundamental human rights and freedoms of all those living within
their boundaries. As of 1988, its membership consisted of twenty-one
West European countries.
- European Community (EC--also commonly
called the Community)
- The EC comprises three communities: the European Coal and Steel
Community (ECSC), the European Economic Community (EEC, also known
as the Common Market), and the European Atomic Energy Community
(EURATOM). Each community is a legally distinct body, but since 1967
they have shared common governing institutions. The EC forms more
than a framework for free trade and economic cooperation: the
signatories to the treaties governing the communities have agreed in
principle to integrate their economies and ultimately to form a
political union. Belgium, France, Italy, Luxembourg, the
Netherlands, and the Federal Republic of Germany (West Germany) are
charter members of the EC. Britain, Denmark, and Ireland joined on
January 1, 1973; Greece became a member on January 1, 1981; and
Portugal and Spain entered on January 1, 1986.
- European Currency Unit (ECU)
- Instituted in 1979, the ECU is the unit of account of the EC
(q.v.). The value of the ECU is determined by the value of
a basket that includes the currencies of all EC member states. In
establishing the value of the basket, each member's currency
receives a share that reflects the relative strength and importance
of the member's economy. In 1988 one ECU was equivalent to about one
United States dollar.
- European Economic Community (EEC)
- See EC.
- European Free Trade Association
- Founded in 1961, EFTA aims at supporting free trade among its
members and increasing the liberalization of trade on a global
basis, but particularly within Western Europe. In 1988 the
organization's member states were Austria, Finland, Iceland, Norway,
Sweden, and Switzerland.
- Gross domestic product (GDP)
- The total value of goods and services produced by the domestic
economy during a given period, usually one year. Obtained by adding
the value contributed by each sector of the economy in the form of
profits, compensation to employees, and depreciation (consumption of
capital). Most GDP usage in this book was based on GDP at factor
cost. Real GDP is the value of GDP when inflation has been taken
- Gross national product (GDP)
- Obtained by adding GDP (q.v.) and the income received
from abroad by residents less payments remitted abroad to
nonresidents. GNP valued at market prices was used in this book.
Real GNP is the value of GNP when inflation has been taken into
- International Monetary Fund
- Established along with the World Bank (q.v.) in 1945,
the IMF is a specialized agency affiliated with the United Nations
that takes responsibility for stabilizing international exchange
rates and payments. The main business of the IMF is the provision of
loans to its members when they experience balance-of-payment
difficulties. These loans often carry conditions that require
substantial internal economic adjustments by the recipients.
- Organisation for Economic Co-
operation and Development (OECD)
- Established in 1961 to replace the Organisation for European
Economic Co-operation, the OECD is an international organization
composed of the industrialized market economy countries (twenty-four
full members as of 1988). It seeks to promote economic and social
welfare in member countries as well as in developing countries by
providing a forum in which to formulate and to coordinate policies.
- Basic Spanish currency unit. Consists of 100 centimos, but these
are no longer in legal use. In terms of the United States dollar,
the exchange rate averaged 60 pesetas in 1965, 56 pesetas in 1975,
79 pesetas in 1980, 126 pesetas in 1982, 173 pesetas in 1984, 154
pesetas in 1985, 134 pesetas in 1986, 107 pesetas in 1987, and 113
pesetas in 1988.
- Value-added tax. A tax applied to the additional value created
at a given stage of production and calculated as a percentage of the
difference between the product value at that stage and the cost of
all materials and services purchased as inputs. The VAT is the
primary form of indirect taxation applied in the EEC
(q.v.), and it is the basis of each country's contribution
to the community budget.
- World Bank
- Informal name used to designate a group of three affiliated
international institutions: the International Bank for
Reconstruction and Development (IBRD), the International Development
Association (IDA), and the International Finance Corporation (IFC).
The IBRD, established in 1945, has the primary purpose of providing
loans to developing countries for productive projects. The IDA, a
legally separate loan fund administered by the staff of the IBRD,
was set up in 1960 to furnish credits to the poorest developing
countries on much easier terms than those of conventional IBRD
loans. The IFC, founded in 1956, supplements the activities of the
IBRD through loans and assistance designed specifically to encourage
the growth of productive private enterprises in less developed
countries. The president and certain senior officers of the IBRD
hold the same positions in the IFC. The three institutions are owned
by the governments of the countries that subscribe their capital. To
participate in the World Bank group, member states must first belong
to the IMF (q.v.).