The First Industrial Estate In Spain

For those of us who don't work on it or have cause to enter it, the Son Castelló industrial estate in Palma is likely to only come into the consciousness because of the queues of traffic that build up along the motorway if you happen to time your journey wrong. But there is way more to Son Castelló than any old industrial estate.

Once called Son Perera, Son Castelló has a long history. A certain Joan Castelló acquired the finca in 1578. He was from a family of tanners: industrialists of yore. Ownership of the estate was handed down to family members over the centuries until, in 1952, it became the possession of family relatives, the Roses Montis brothers. In 1955 they set about selling off the estate, and ten years later 84 "quarterades", valued at 53 million pesetas, were bought by the Associació Sindical d'Indústries de Mallorca, otherwise known as ASIMA, an organisation that had been established for the purpose of promoting industrial enterprises. On 3 November 1967 the polígono industrial was opened. It was the first privately owned industrial estate anywhere in Spain, and its first president was one of its founders, Ramón Esteban Fabra, whose name is intimately linked to Son Castelló and to ASIMA, which this year has been celebrating its fiftieth anniversary.

To mark its fifty years, a book was published in the spring which, replete with photos, anecdotes and factual information, charted its background, and it is a story that is one of the most remarkable in the history of Mallorcan business, because what ASIMA did was to break the mould of how Spanish business operated.

Fabra and his contemporaries were considered to be crazy and idealists. In 1964, despite the free-market liberalism that the technocrats of Opus Dei had presented to Franco as an alternative to the disastrous insularity of autarky, business was still dominated by the concept of organising workers and employers within vertical structures. While this system had been conceived as a means of supposedly keeping unionism and worker discontent at bay, it was one which favoured large businesses and created an environment that did not incentivise new business. ASIMA rejected the system. It not only developed Spain's first industrial estate, it also became the first genuine business association in Spain, and its idealism was founded on precisely those things that the vertical structure inhibited: enterprise, initiative, innovation, entrepreneurship.

ASIMA was to go on to involve itself in other projects. In a way it borrowed from the Victorian ideas of British companies like Lever and Cadbury in that it created social housing for workers and donated land for the building of a secondary school. But it also created the first proper training school in Spain and the first system of what nowadays might be referred to as "incubators" for entrepreneurial ideas and innovation. And overseeing these developments was the visionary, Ramón Esteban Fabra.

The tale is told of how Fabra went to Madrid to present his ideas. He was greeted with suspicion. Having a space for all sorts of trades and professions, having an association for them, giving them the room to grow and develop just wasn't how things were done. The greatest obstacle he faced wasn't so much the government but the Falange. It had been the driving force behind the vertical structure and adhered strictly to the notion of the supreme unity of Spain. Fabra appeared to be proposing something which went against this. In the end, he was able to convince the sceptics in Madrid that laws on labour and on "Spanishness" were not going to be broken. There was agreement but there was Francoist insistence that the industrial estate be called La Victoria; Son Castelló would have been too "un-Spanish". It was only when the regime ended that the original historical name Son Castelló was adopted.

I have argued previously that far from being insular and parochial, Mallorcans, in terms of business at any rate, have long been outward-looking and entrepreneurial. They have had to be because of geography. Tourism brought with it businesses that are now global brands, like Meliá, but the story of Son Castelló shows that the business instinct was wider than tourism. Indeed, the very fact that it was founded at the same time as tourism boomed demonstrates that there were those who appreciated that tourism could do only so much for the economy: businesspeople and not politicians.

There is a twist in this story. A mystery. In February 1983 Fabra went missing. His body was found in the sea off Magalluf. There was no sign of violence. He was clothed except for his trousers. He had drowned, but there was, from what I can make out, no good explanation why. He was 55 years old. ASIMA wanted Son Castelló to be renamed after him. Officially it is. But everyone knows it as Son Castelló.

Photo: Ramón Esteban Fabra, found from an article which would appear to have been published in "Ultima Hora" on 26 February, 1983.

Mallorca Is Open To Business: Or is it?

The Balearic Government wants to make life easier for businesses. It wants to promote and encourage entrepreneurship, to simplify procedures, to make the finding of relevant information and relevant decision-makers easier, to attract foreign investors and to develop local talent.

It wants to do all these things and up to a point it is going about them in the right way. It talks the talk, but whether it walks the talk is another matter.

A gathering of mainly British businesspeople and others on Thursday last week at the offices of the Centre Balears Europa (CBE), part of the government's department of the presidency, was designed to impart information regarding "the changing landscape of business opportunity for European entrepreneurs in the the Balearic Islands". This was the title of the meeting at any rate.

It wasn't a bad meeting insofar as the most interesting aspect of it was to hear from a body that few people knew existed - the IDI, the institute for business innovation. It was interesting as there appear to be people within the institute, and by extension, therefore, the government, who do seem to know what they're talking about and who do seem to be genuinely committed to pursuing the objectives set out at the top of this article.

It was a pity, then, that I left the gathering with a distinct sense of pessimism, one formed by different factors: administrative structures, culture and attitudes.

There is an admission, and God knows why it has taken so long for there to be an admission, that governmental and agency structures that businesspeople have to confront are labyrinthine to say the least. Ultimately, what is needed is a flat structure, one which, culturally, places the user (the businessperson and/or company) above, and which serves this user. When there are as many agencies as there are, it is hard to see how such flatness can ever be achieved. Not while turf wars and vested interests remain endemic.

I give you a case in point as to how the government wanted to flatten decision-making but was denied the opportunity because of the interests of town halls and the Council of Mallorca. It was the process for obtaining permissions for hotel conversion. The town halls and Council were meant to have been taken out of the equation, but they refused to be. One-nil to the vested interests.

Changing bureaucratic structures can only come with a fundamental change of culture. This isn't necessarily a cultural change that brings about more Anglo-Saxon attitudes towards business, i.e. those which are more in tune with the needs of business and entrepreneurs, and away from an obstructive, everything in triplicate and then in triplicate again just to be sure, southern European mindset. These attitudes may well help, but there is also a question of cultural change of public sector mentality, and this is one that is universally obstinate in resisting change.

While the Balearics might look to northern Europe for guidance, it might be recalled how the British public sector once was. It still carries baggage from the past, but cultural change was one that proved hard, despite the insistence of Margaret Thatcher and then John Major. It can be done, but it doesn't happen overnight, especially if the structures inhibit or even prohibit its being effected.

Attitudes die hard. The landscape may apparently be changing for European entrepreneurs, but neither the CBE nor the IDI has fully cottoned on to the fact, if their websites are anything to go by. The best one can say is that the IDI does at least have a Castellano version; the CBE doesn't even have that. So much for an apparent wish to make English a language of business locally. Talking the talk (but only in Catalan), rather than walking it.

When there is a linguistic attempt to engage foreign investors, the attempt ends up being mind-boggling. I give you a different case in point: the translation into English of the new tourism law. Reader-friendly it most certainly wasn't.

Just how much do the Balearics and Mallorca want foreigners to invest and to pursue business activities? It is a key question, and I'm afraid that there is antagonism that stems from parochialism and even xenophobia (which is far more prevalent away from Palma and its cosmopolitan satellites, it should be noted). The reaction to Media Markt's opening from parts of the local business community has pretty much betrayed this antagonism, it being couched in an insular Mallorcan style.

But for big-ticket business, such xenophobia can be overcome. The labyrinth of bureaucracy can be worked through. Relationships can be formed easily with governmental leaders. Big-ticket business can do these things, but what of the small business or the one man? The IDI and the CBE might hope they can make life easier, and I wish them every success, but optimistic I am not.


Any comments to andrew@thealcudiaguide.com please.