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The Portuguese Republic is the 37th richest nation in the world. Its per capita income of $19,000 is one-third of that of the Big Four Nations. The Portuguese economy is heavily concentrated on services (67.3 percent), and only 10 percent of the workforce is engaged in agriculture. Growth has declined in recent years, and is currently reported at 0.4 percent. Unemployment (7.7 percent) is causing some concern, but inflation (2.3 percent) is well under control.

There are great income disparities in Portugal, and the country ranks 38.5 on the Gini Index of Inequality. The richest 10 percent of the population hold 28.4 percent of wealth, but the poorest 10 percent claim only 3.1 percent. According to unofficial estimates, one out of every five Portuguese lives below the poverty line, and 15 percent of the population lives in abject poverty. The health of this group is particularly precarious. The United Nations Development Programme (UNDP) Human Development Reports rank Portugal 37th out of 177 countries on overall quality-of-life issues.

The Portuguese government spends 9 percent of the total budget on health. Just under 10 percent of the Gross Domestic Product (GDP) is allocated for health programs, and the government allots $1,791 (international dollars) per capita for health. Almost 70 percent (69.7 percent) of healthcare expenditures are covered by the government, but only 6.5 percent of health funding is used for social security programs. The private sector accounts for 30.3 percent of health expenditures, and 95.70 percent of this spending is derived from out-of-pocket expenses. There are 3.42 physicians, 4.36 nurses, 0.08 midwives, 0.55 dentists, and 0.95 pharmacists per 1,000 population in Portugal.

Healthcare in Portugal is provided by three distinct entities. The National Health Service (NHS) offers universal coverage. Many Portuguese are insured by professional health subsystems, which cater to particular occupations. Private insurers meet the needs of those not covered by either the NHS or professional health groups. Around a fourth of the population is covered by professional health subsystems, and 10 percent is covered by private insurance companies. All others are insured under the NHS. Implementation of national health policy is the responsibility of five regional health administrations. Taxes from workers and employers provide the basis for NHS funding, while premiums support the other health-care systems.

Portuguese cities are polluted by industrial and vehicle emissions, and coastal areas, such as above, are experiencing water pollution.

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In Portugal, social insurance is mandatory for workers and the self-employed. Special systems cover miners, longshoremen, railway workers, and merchant seamen. Other people are covered on a voluntary basis. Workers contribute 11 percent of earnings, and self-employed individuals contribute 25.4 percent for mandatory coverage or 32 percent for voluntary coverage. Employers are required to contribute 23.75 percent of payrolls. Social Security provides benefits to the elderly, the disabled, and survivors. Cash benefits are issued for illness and maternity leave. New mothers are guaranteed full salary for six months before and two months after the birth of a child. Fathers may also receive cash benefits for childbirth and adoption. Either parent may receive cash benefits while on leave to care for an ill child. Grandparents may receive full salary for leave taken during the month after the birth of a child who lives in the same home.

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