What is the Bilbao Effect?

Have you ever heard of the term "Bilbao Effect?" It refers to the positive economic and cultural transformation of a city thanks to one or more iconic buildings.

Actually, the term comes from the Spanish city of Bilbao, which at the turn of the millennium turned from an abandoned metallurgical center into a real tourist gem in a fairly short time. The building that seems to have performed the miracle of transformation is a branch of the Guggenheim Museum.

So, in the early 1990s, Bilbao was a bankrupt city with a lot of social problems. Half of the young population was unemployed, there were many abandoned ruined houses, a polluted river, floods, and degraded areas. And on top of that, it has a terrible reputation - radical movements are active in the city, and crime and vandalism are rampant.

The common misfortune has pushed political forces, groups of businessmen and officials at all levels to a consensus that Bilbao needs an impetus for development. And the city needs to be prepared for this impulse. Bilbao began to be literally transformed - decisively and consistently. Buildings were repaired and cleaned of dirt, streets were landscaped, and urbanists and architects were invited from all over the world to create a wonderful environment.

The port area and industrial facilities were relocated, the coastal area was reconstructed and filled with cultural and tourist attractions. Subsequently, the subway and a new airport were opened, and tourist infrastructure facilities began to operate.

And finally, they completed the construction of the grandiose Guggenheim Museum building, which has attracted a million visitors every year since its opening in 1997. In the first three years of the museum's operation, Bilbao paid 100 million EUR in taxes, and today the figure is measured in billions.

Today's Bilbao is a flagship example of a city that has successfully coped with just transition. This is not a reason to believe in miracles, but a proof that creative solutions multiplied by the hard work of a large community can produce amazing results. The secret of Bilbao's success, which is unfairly associated exclusively with the creation of the museum, actually lies in the concerted efforts of the government, business and community to achieve a vision of the future, in a quality strategy and bold decisions.

A miracle will never happen if you don't prepare the ground for it to happen.