Marking 50 years since the revolution that brought democracy to Portugal, the nation reflects on its journey. While significant strides have been made in areas such as freedom of the press, elections, healthcare, education, and workers’ rights, the country acknowledges that there is still room for improvement.
Raquel Varela, a social historian, emphasizes the enduring legacy of the revolution in establishing workers’ rights and creating a comprehensive National Health Service and education system. She highlights the transformative social impact of these advancements, extending beyond rights and freedoms to encompass welfare, job security, and protection.
However, Portugal’s economic landscape presents challenges. Productivity per worker remains significantly lower than the Eurozone average, and the country struggles with precarious labor conditions and deteriorating public services. This productivity gap has widened in recent years, with Portugal falling behind Estonia, Latvia, Lithuania, Croatia, Romania, and Poland.
According to Varela, the country’s productivity issues stem from the prioritization of capital over labor. She points to the degradation of public services in favor of capital returns through interest and loans, leading to a decline in production capacity and erosion of essential services.
Portugal’s GDP per capita also lags behind the European average, ranking 18th among EU member states in 2023. Despite surpassing Poland and Estonia, it remains 17 percent below the EU average. Economic historian Nuno Palma highlights Portugal’s position as the poorest country in Western Europe, with persistent deficiencies in human capital, education levels, and political institution functioning.
Palma criticizes the allocation of European funds, arguing that they fail to foster innovation and instead provide a false sense of security. He contends that these funds perpetuate a lack of urgency for change and foster competition among companies without driving transformative economic dynamics.
Furthermore, Palma accuses the two major post-revolution governing parties, the PS and PSD, of failing to implement reforms that could elevate Portugal to the level of its European counterparts. The country’s recent downgrade to a “flawed democracy” and its 31st position in the Economist Intelligence Unit’s world ranking underscore the need for further progress.
As Portugal celebrates its democratic journey, it acknowledges both the triumphs and the persistent challenges. The anniversary serves as an opportunity to reflect on the achievements of the past and to address the areas that require continued attention to ensure a more prosperous and equitable future for the nation.
