Salvador Garcia-Ruiz: "Enough with the excuses! Let's move from speeches to actions"

Salvador Garcia-Ruiz is an economist and high-flying executive. Born in Santa Perpètua de Mogoda (Barcelona), he studied at Universitat Pompeu Fabra and lived in New York. He has worked at McKinsey, Goldman Sachs, Caixa Manresa, Fundació Catalunya La Pedrera and has also been CEO of the newspaper ARA. His information diet is very varied.

"It is impossible for a CEO to know everything, but it is very important that they know what they can do and what they cannot," he assures. Currently, he is co-general director of Abacus, an investor in thestartup Roka Furadada, one of the promoters of Catalunya Sense Límits and a professor at UPF. The key to everything? The team and the shared path. No excuses or objections. A dream? "A society full and committed to respect for diversity, freedom, and equal opportunities."

--- Why did you study Economics?

--- It was the degree that interested me the most. I studied at Pompeu and was given a scholarship to do a PhD in Economics in the United States, but then McKinsey came with the proposal that if I did well, they would pay for a master's degree in New York.

--- First McKinsey and then Goldman Sachs. Symbols of corporate power?

--- I was very young and saw that they were companies with a lot of impact and prestige, but I wasn't aware of the influence they could have. I learned a lot, especially at McKinsey, and it's knowledge that has served me for life. --- How is capitalism lived there? It depends a lot on where and how you experience it. Capitalism in Abacus is not the same as in a large Ibex company or a multinational. The Anglo-Saxon vision normalizes capitalism much more, and if you have a reformist vision here, they will tell you that you are center-left, whereas if you have it there, they will consider you very left-wing. Not many people raise their voices.

"Capitalism in Abacus is not the same as in a large Ibex company or a multinational"

--- Inclusive or extractive institutions?There is a book titledWhy Nations failof Daron Acemoglu and James A. Robinson that talks a lot about power and the quality of institutions that ultimately regulate the economy and our lives. In fact, there is a direct relationship between the quality of public institutions and the role that extractive elites play in the evolution of the economy. This is an important problem in the United States, but also here.

"There is a direct relationship between the quality of public institutions and the role that extractive elites play in the evolution of the economy"

--- Back in Catalonia, he worked at Caixa Manresa. Have bank mergers been a matter of State or common sense?The cajas disappeared because they didn't do their job well. This was the main reason. It is also true that the cajas were not too comfortable for power and there was a will for them to disappear. And there was a concentration of bad credit as in many savings banks throughout the State.--- Why?I would not look for culprits and would recognize the value of those cajas that still exist such as Caixa d'Enginyers, Laboral Kutxa or the rural cajas. In life, it is good not to look for excuses, even if the wind blows against you. When things don't go well, we have to think about how much of it is our responsibility. The rest are excuses… --- What is the most important thing when it comes to being and choosing a CEO?I have never chosen a CEO, but I remember a study by Steven Kaplan and Morten Sorensen that refers to general skills, execution (vs. interpersonal), charisma (vs. analysis), and strategy (vs. management). This study concludes that execution ability is more important than interpersonal skills for successfully doing the job.--- The Peter Principle warns that organizations often promote those who do their job well up to their level of incompetence.--- It is impossible for a CEO to know everything, but it is very important that they know what they can do and what they cannot.

"The savings banks disappeared because they didn't do their job well, although it is also true that they were not too comfortable for power"

--- Have you done well as a senior executive?

--- The key when things have gone well for me is the team and collaborators. You have to know how to listen and have the humility to let yourself be helped by those who know more than you, both for the things you don't know and for the things you think you know.--- You have been CEO of the ARA newspaper for 6 years. What is the present and future of the journalism business?--- The present is complicated because quality journalism costs money and people find it very difficult to pay for journalism. It is then that one enters a vicious circle where despite the need for quality journalism, people do not pay and then the quality drops and even less is paid and there is more precariousness. Good journalism costs money. Traditional media have to think that language and communication codes have changed and people are increasingly informed through different channels.

"Quality journalism costs money and people find it very difficult to pay for journalism. The great challenge is to change and understand this new informative reality"

--- What are these channels?

--- My children and I get informed differently. Imagine how society will be informed 15 or 20 years from now. The great challenge for journalists and the media is to change and understand this new informative reality that will come. If they do not adapt, they will become increasingly dispensable. It is also true that journalism has to earn the right to define itself as good journalism. What we were talking about with the excuses…

--- What is your information diet like?

--- I pay to be informed in theDiari ARA, Vilaweb,El Diario.esorThe Guardian. I also useExpansión,El Confidencial, La Vanguardia, theFinancial TimesorThe New Barcelona Post. Every morning I spend a good while reading and throughout the day I get informed through the networks that find you and know what you like through the algorithm. Relevant news ends up reaching you.--- What is your vision for Abacus? Abacus wants to be a tool at the service of the country, in the field of education and culture through cooperativism. It was born 55 years ago with the will for pedagogical reform and is now reinterpreting its origins. It is present and contributes to schools that today have many more needs that go beyond school supplies.

"Abacus wants to be a tool at the service of the country, in the field of education and culture through cooperativism." Salvador Garcia-Ruiz

--- The merger between Abacus and Som marked a before and after.

--- The objective of the merger is to lead the cultural and educational sector and participate in communication, magazines, books, documentaries, or films. There was an act of generosity on the part of both Abacus and Som, and the result is a success story that can be scalable. --- What is your relationship with Mediapro and what is your common project?We think that in Catalonia there is space for a platform of educational, cultural and entertainment content with new formats. To promote it, we have partnered with two great partners such as Mediapro and Minoria Absoluta, from whom we can learn a lot and build great things together. If we all have Netflix, HBO or similar, why can't we have a content platform designed and created in Catalonia, which also has good international content in original version?--- Is it necessary to defend Catalan more and better from within companies?We must defend Catalan from and in all places, and this responsibility cannot be delegated solely to businesses, because the public administration also has to defend it, as do all citizens. Surely many companies could do more, but I don't think this is the main problem for Catalan.

"Why can't we have a platform for educational, cultural, and entertainment content conceived and created in Catalonia with international impact? We have partnered with Mediapro and Minoria Absoluta to make it possible"

--- What is the main problem then?

--- Our attitude to defend and use Catalan in daily life, and the priority that the administration gives it when ensuring that one can live fully in Catalan.

--- Are more mergers needed?

--- Some companies in Catalonia need to gain size and critical mass, either through mergers or capital from other investors. If this does not happen, then there is a limitation on growth and ambition. It is not a specific issue of cooperativism but also of family businesses. It has a lot to do with the Catalan mentality. --- And the competition?Now we can do projects from Abacus and Som that were previously impossible, either due to financial muscle or knowledge. Concentration allows for more ambitious projects due to scale and investment capacity. However, to what extent are we able to break the barrier to be even more leaders?--- Patronage Law: myth or reality?--- In Catalonia we have few tools, but the ones we have could be used much better. It seems that a new Patronage Law will be approved in the State, but in Catalonia it is not even contemplated. It is a good example of everything that could be done with insufficient tools that we have but do not use.

"Mergers allow companies to gain size and critical mass, while also enabling them to undertake more ambitious projects due to scale and investment capacity"

--- Do culture and business need to go more hand in hand?

--- The objective of companies is not to create culture, but to provide a good return to shareholders, have employees in good conditions, or respect their environment. Cultural responsibility should not be shifted to companies, but all those companies that do it well by promoting intangibles that are not their direct business, such as culture, society, or the environment, should be recognized.--- He is an investor in Roka Furadada, which wants to "reduce the incidence of skin cancer and other diseases related to ultraviolet radiation." Has there been a paradigm shift in health after the pandemic?We have a great public healthcare system that is too often collapsed. If you have a serious illness, it is resolved well and quickly, but if it is not so serious then you encounter a long waiting list. I don't know if more should be invested in health, but surely it should be invested better.--- How do you see the city of Barcelona?--- Rather it would be how citizens see it... Their main concerns are security, cleanliness, and housing. This means that the city is failing and expelling its citizens because the housing problem mainly affects young people. Security, cleanliness, and housing are essential for quality of life and must be prioritized to prevent them from becoming a problem.

--- Is the Catalan capital experiencing a sweet moment or one of decadence? --- I don't buy into the discourse of Barcelona's decadence and I think we have a city that has an extraordinary appeal not only for its tourism, which by the way should be regulated, but also for companies, startups, research, and innovation. I insist, however, that we must reverse the concerns of citizens and find solutions.

"I don't buy into the discourse of Barcelona's decadence because it has an extraordinary appeal, but it is a priority to find solutions to concerns about security, cleanliness, and housing"

--- What role should civil society and public-private collaboration play?

--- Everyone must play the role they want and that corresponds to them. Public-private collaboration can surely better solve the problems of citizens.--- For example?It is the best way to guarantee access to housing with an acceptable rent, in the same way that we could talk about healthcare with the case of the Sant Joan de Déu Hospital or education with TecnoCampus or the University of Vic. We must break mental barriers with the anti-business bias while there must be an efficient administration.--- What must the priorities be?--- The commitment to public education for equal opportunities or the commitment to fight against climate change must be a priority. For example, the sixth hour must be recovered in public school classrooms. We have to fight for politicians to go beyond promises and commit to turning what they say into reality.

"We must move from speeches to actions, both in business and in society. We must demand that politicians turn what they promise into reality"

--- Politicians keeping their promises?

--- We must move from speeches to actions, both in business and in society. Do we want to fight against climate change? Then let's not hinder renewables as has been done in recent years in Catalunya. Do we want a more just society with quality education for everyone? Let's recover the sixth hour.--- Is the entrepreneur the good guy or the bad guy in the movie?The generalization is unfair to both the private and public sectors. There are good and bad people everywhere. We have to vindicate the figure of the entrepreneur and congratulate all those who risk their capital, whether they do well or not. I do not perceive this anti-business bias in society, but this phobia is more present in some media. We must denounce when there are excesses or abuses by the private sector, while also recognizing its importance and the role it plays. Civil society must demand this and make it a reality because its commitment goes far beyond the company.--- Is more economic and business pedagogy needed?--- In the media there is a bias against business, but it is true that most people who study at universities will end up working in a company. Universities should be more active so that companies are present. This change of mentality must be made.

"We have to vindicate the figure of the entrepreneur and congratulate all those who risk their capital, whether they do well or not"

--- In 2013 you wrote a book titled Catalunya Last Call: proposals to make the country rise again. What is still valid 10 years later?

--- Barcelona has a role as the capital of Catalonia and a key instrument within the metropolitan area that is still very valid. Barcelona has to assume and exploit this leadership position much more. Our main claim in the book from 10 years ago was to be an industrial country again. I would like this to be true, but I believe that the main current concern is how we get the public administration to facilitate private activity and not put obstacles to any initiative that wants to be carried out, whether it is opening a supermarket, a gas station, a factory or a logistics center.

"The public administration has to facilitate economic activity and not put obstacles or be a brake on the creation of wealth and qualified jobs"

--- What kind of obstacles?

--- Like an obstacle course that costs time and money. It makes no sense. It is not about lowering the standards of demand, but about streamlining it because it is a brake on economic activity, on the creation of wealth and qualified jobs. I wish Catalonia would become an industrial country again, which was the claim 10 years ago, but surely we urgently need the reform of the administration that has been accelerating in the opposite direction in recent years. --- The previous interviewee of Persona a Persona, Gabriel Masfurroll, asks you the following questions: How do you think AI will impact the educational world?

"The main future competencies are knowing how to read and write as the key to critical thinking"