Portugal

Civilization can be traced in Portugal back to neolithic times, through the settlements of the Phoenicians, Carthaginians, and Romans. Later, the Christian “reconquista” halted the Muslim advance and colonization of the country and gave rise to the maritime empire that provided for economic growth in the 15th and 16th centuries. This, in turn, was followed by a period of Spanish domination and occupation during the Napoleonic wars. By this stage, Portugal had lost much of its power and influence.

It was not until the end of the 19th century that poor living standards and inept government precipitated a republican bacldash. The monarchy was finally overthrown on October 5, 1910, replaced by a republic. However, the political scene was far from stable. From 1910 to 1946, military intervention became the normal means of governmental change in Portugal. A Catholic monarchist, General Antonio Oscar Carmona, emerged as president and remained in office until 1951. During this period, Portugal had many of the trappings of a fascist state, including secret police and tacit support for Franco during the Spanish Civil War.

It was also during this period that Antonio de Oliveira Salazar first served as prime minister in 1932. Salazar is often credited as being the guiding hand of Portuguese development and its progress to a modern economy. Indeed, from 1950 until Salazar s death, it is estimated that gross domestic product (GDP) per capita in Portugal rose at an average rate of 5.66 percent per year, well ahead of European counterparts. Salazar remained in power until 1968, when he suffered a stroke. He died in 1970.

The continuing economic and political problems of the right-wing government caused tensions to grow and resulted in an almost bloodless left-wing coup, led by disenchanted army officers on April 25, 1974. However, until November 1975, the situation remained precarious, with various factions vying for [Page 1296]power. The summer of 1975 saw elections and victory for the socialist party under the leadership of Mario Soares. This signalled the beginning of a period that has seen gradual strengthening of democratic processes and further integration of Portugal into the European economy. In 1986 Portugal joined the European Community (EC), giving it access to funding and the potential for much-needed economic growth.

For administrative purposes, Portugal is divided into 18 districts and 2 autonomous regions (the Azores and Madeira), and in 2008 the population of Portugal is estimated to be approximately 10.5 million. The president is the head of state, elected by popular vote, with a five-year term. The leader of the majority party or the majority coalition is appointed prime minister and head of government by the president and leads the unicameral Assembly of the Republic. The assembly comprises 230 seats, with members elected to serve a four-year term. In the elections of February 20, 2005, the Portuguese Socialist Party was the biggest winner, with 121 seats.

The Portuguese economy has developed gradually over the last 20 years, and like many Western economies, it has diversified and become increasingly service based. The basis of this change has been policies, similar to the Thatcherite policies dominant in the United Kingdom in the 1980s, which have seen privatization of public sector organizations and liberalization of key markets.

...