POLITICS & ECONOMICS
In the final quarter of the 20th century, a new era of Portuguese history has begun. From the late 1920s under the dictatorship of António Salazar, the country was a virtual recluse in the world community. The principal concern of foreign policy was the futile defense of Portugal’s African and Asian colonies. Domestic industry and commerce were dominated by a few wealthy families, in an economic framework of extreme fiscal tightness.
The Carnation Revolution of 1974 brought this era to an end. At first the re-establishment of Democracy was a painful process, but since the 1980s Portugal has assumed an increasingly confident Western European demeanour. Entry into the European Community was welcomed at all levels of society, and led to an explosion of new construction, the like of which Portugal had never seen. Traditional exports, such as cork, resin, textiles, tinned sardines and wine, have been joined by heavier industries such as vehicle construction and cement manufacturing.
Grants and loans from the EU have funded the building of new roads, bridges and hospitals, and brought significant improvements in agriculture. Even though Portugal still has the second lowest GDP in the European Union, for huge sections of the population, standards of living have risen enormously.