1/7/11

Today we visited DKV which is a Spanish multi-national health insurance company. We went to their main facility in Barcelona. DKV is especially active philanthropically, the most prominent being that their main facilities has around 250 employees and the vast majority of them have some form of physical handicap.

The work done at the main facility is primarily working with pharmacists who prescribe drugs for patients, DKV is then contacted by the pharmacist and they in turn pay for it or work with the patient per special cases. This was a cool trip because I got to see the insurance side of pharmacy.

Silvia Agullo then provided us a course on corporate social responsibility. She not only outlined how corporations are trending toward more "Green" branding, but that consumers were more willing to forgo luxuries if it meant getting more healthy fruits, vegetables, and meats. In short, the green revolution is starting with our stomachs.

She began and ended her presentation with how DKV and many for that matter all companies are finding it more profitable in the long run to not only work towards gaining a profit, but profit by working ethically.

We got back early and it was around 60 degrees so we went to the beach, some people jumped in, but that just wasn't happening. I finally had an excuse to use the panaramic view...

In the middle of the day I went to El Corte Ingles which is like Macy's except this store had a 4th and 5th section for appliances and food. It was absolutely packed but I forged again, found a sweet coat, and even helped an elderly spanish man find his way to the televisions.


At night we walked around Barceloneta which is the medieval part of town. We wanted to get into the church Santa Maria del Mar, but it was closed by the time we got there, I plan on going back again. I love the Architecture.

I had some weird looking fish for dinner that actually tasted ok. I also had octopus, that was great.

1/6/11 "Free Day"

Today we went to La Sagrada Familia and Parc Guell.

La Sagrada has been in the works since the late 19th century and will hopefully be completed by 2026, the anniversary of Gaudi's (The architect) death. Few things in this world can compare to that first moment when you walk through the door and it just hits you. This is unlike anything you have seen before.

Next we went to Parc Guell which was another of Gaudi's works. It over looks the city and you can see all the way to the mediterrean and there is just a sea of peach and brick in between.

Also, during everyone's siesta I made a pie chart of my expenses, as far as I can account for thus far in the trip. In Euros. (1/1- 1/5) I found it interesting, I thought that I would be spending more on food. Wait until I start buying gifts.

1/5/11 "Epiphany- Play"

Last night 1/5/11 is arguably the greatest night on the Spanish calendar, it celebrates The Epiphany, the visitation by the three kings. This holiday brings the Christmas season to an end, and what an end it was.

During the parade we watch as three kings pass by with many floats in between, there was even one for Coca-Cola. It was tailored towards little kids, all of the floats were tossing candy. It was far beyond any parade I have ever seen, 10x better than when the cardinal's world series parade and something I will definitely want to bring my kids to.

1/5/11 "The Family"

I got sick on the bus riding out to Punto Blanco, a family owned sock company. I think I drank too much tap water. Punto Blanco was a really cool visit, we were guided by a professor and IQS who had worked at Punto Blanco for a few years as an operations manager. He took us through the entire factory laying out the steps needed to make socks. The more interesting part of the tour came when we talked about the market P.B. is currently in.

Since their heyday in the 70's-80's, P.B.'s market share has dwindled from 15% to now around 5%. The reason for this is because many sock companies in Spain have moved production to China were the labor is much cheaper. He said that for other companies this was the best strategy because for every pair of socks they made in Spain it would cost E1.20, if they shipped it from China it would cost E.30. Punto Blanco is in bad shape, they have lost most of their market in normal socks and have resorted to offering high-end socks for niche markets. They are also looking to expand into underwear, but the outlook seems bleak.

Punto Blanco is making 0 profit. They are not making money nor are they losing it. Their primary goal is not money, but to keep jobs for their current workers. They are only willing to cut jobs and outsource if it means keeping to business afloat so that they can employ people. Business students are shocked and appalled, but they don't understand the family ideals.

1/4/11 "Espana"

We had our second day at IQS today, taught by an economics professor at the university. In a number of words he outlined the crisis that Spain is currently in. Spain's market dropped by 17% in the previous year, the 4th lowest in the world for 2010. This is contrasted by Asian and South American markets who had vastly outperformed European markets, the highest, mongolia. Saw a market increase of over 170%. This shows the increased investment in marginal economies.

The reason that the Spanish economy is doing so poorly is because it is based mostly in Construction and Tourism. Both of those took a major hit with the recent recession. People are unwilling to spend money on trips if their economic future is uncertain and credit is no longer easily available. Past credit terms made building projects possible which in normal circumstance would have simply been turned down.

We the went to visit the bank la caixa, learned about the causes of the sub prime crisis and ways in which the European Union, Spanish government, and the bank itself are dealing with the recession.

1/3/11 Play "Siestas are the Bomb"

After school we went to City Hall around 1:00pm for a guided tour. The building was built in the middle ages. You take a left and go up a black marble staircase entitled "The Black Stairs." A mural on the stairs depicts the personas of the cities around Barcelona who are presenting their most popular products for the woman. Next we went into a reception hall which is open to all citizens of Barcelona for weddings. Next we went into the room with the parliament of barcelona meets. They meet once a week on friday, their are around 30 members with the mayor and his various chairs. It is open to the public. The last room "The Hall of Chronicles" is a collection of paintings on the walls by Josep Maria Sert. They tell the tale of Flor's quest for the orient and how it got really F'd up. Haha.

After that we walked around, saw the town square. I Tried to order a hamburger-like dish from this spanish chain of restaurants, it didn't go to hot. It got a sub with bacon and cheese, but it actually tasted great. Every turn there is something wonderful to see. I have heard many cities tout the fact that they are vibrant and full of life. Barcelona is the first city to truly lay claim to the title.

I had Hake(a fish) for dinner and got drunk with the RA's. We had a beer, they thought we were drunk, it was pretty funny.

I'm started to get used to the spanish life style, siestas are the bomb.

1/3/11 School "In Hoc Signo Vinces"

Song for the day: Alohamora- Pogo

We had our first day at IQS which is the university that we will be taking all of our seminars at. It was founded around 1905 and IQS stands for Instituto Químico de Sarrià (Chemistry Institute of Sarria) Sarria was a town before it was incorporated into the city of Barcelona. It was a short but beautiful walk to the jesuit university, it's been fifty degrees all week.

In our first class we learned about the history of IQS from the vice president and how they came up with this exchange program. He then went on to outline a little bit of Spanish history, how they have been a part of the European Union, and how they have dealt with the economic crisis.T

The European Union has increased from the initially 15 countries to a total of 25 in 2004 and are looking to expand to 28 by adding Bulgaria, Romania, and Turkey. This would affect Spain most directly in its labor market. Spain has historically had the lowest wage rates of any country in the Eurpoean Union, if Bulgaria, Romania, and Turkey join the EU they will make Spanish's advantage shrink because they have lower wages. If these three countries join the EU it will also mean the center of the EU will shift from France towards Germany. This will make it more difficult for Spain to ship goods to more distant parts of the UE.

In 1992-1993 there was an economic crisis due to the gulf war, unemployment skyrocketed to 24% but has since annual dropped to its lowest rate of 8% in 2007. With the new economic constriction unemployment has since reached 20%, which is the highest compared to countries withing the European Union. Spain is part of a disrepute group of countries going by the name of P.I.G.S. (Portugal, Italy, Greece, and Spain) Spain's credit was reduced which means that it's interest rates are higher.

For Spain it is very hard to regulate many things in the economy because they do not have an important fiscal tool, the ability to apply policies to money. Because many independent countries use the Euro it is impossible for one country to mess with it. What Spain does with its currency in terms of devaluation or the like affects everyone within the EU.

Unlike America which has state fiscal policies and then federal policies, the European Union just has state policies. There is no Internal Revenue Services to coordinate umbrella policies. Because there is no "Federal" power, countries who are well off such as Germany, Norway, and France are less likely to be willing to help the PIGS.

Another interesting thing about the Spanish economy is that when you get a job you are given a contract. For example, if you work for a company for 12 years and are then fired, the company is obligated by law you pay you for 45 days worth of pay for every year that you worked. In this case someone would be given 45x12= 450 days worth of pay, almost 1.5 years worth of pay. Because of this companies are less likely to fire people, but because they have such massive costs associated with firing people, they are more willing to simply reduce the hours of everyone. Also, companies are less likely to fire workers if they have worked there a long time, but their productivity has severely diminished. This goes along with the trend that Spain has had minimal productivity increases over the past decade. If there is not increase in productivity a country cannot flourish. Many companies have begun using short-term contracts where, after a year, they can evaluate their hire and either dismiss or offer a longer-term contract.