[...] The revolution in 1974 was the beginning of dramatic political,
economical and social changes in the country. In 1986, when Portugal became a member of
the European Community (now European Union), the economy began to grow even faster
than it had been the case in the years before. “Portugal´s GDP per capita, which had been only
53 percent of the EU average in 1985, has now risen to more than 70% of the EU average by
1997.”1
As I was living in Portugal´s capital Lisbon from 1984 until 1989, I personally experienced
these great changes. I can remember that, e.g., chocolate was not known in Portugal until
1986. I also remember narrow roads which were in an extremely bad condition. Tramways
and busses made me feel like in the 19th century. Furthermore, there were a lot of huts,
particularly in the northern and in the eastern Lisbon periphery which I passed every morning
on my way to school. These huts, in which mostly people from the former Portuguese
colonies were living, disappeared between 1986 and 1990.
Also the infrastructure was getting better and better. Many new roads and motorways were
built, the tramway- and underground-system was modernised, big shopping- malls were built
and you could suddenly buy almost everything (Haribo-Gummibärchen were sold in Portugal
in 1986 for the first time and I guess I was the only one who bought them…)
Beside these positive changes I also recognised, that people have changed their behaviour
since the 1980´s. When I arrived to Portugal with my family in 1984 the Portuguese seemed
to be friendlier than any people I had met before and time did not seem to be important to
them at all. People were just living somehow, many of them were happy, some were not but
nobody really complained about the fact that Portugal was the poorest country in the western
part of the European continent. Of course, the Portuguese are still very friendly, but in my
opinion the difference between the busy and hectic Central Europeans and the Portuguese has
become smaller. It is also quiet obvious that today the Portuguese do everything they can to
improve the economic situation and the standard of living. Portugal wants to catch up. It
already has caught up enormously in the past 15 years and I am sure that this positive
development will continue in the future.
1Department of State,UnitedStatesofAmerica, Portugal 2000: Country Commercial Guide,
http://www.state.gov/www/about_state/business/com_guides/2000/europe/portugal00_02.html, 27/06/02
Table of Contents
1 Introduction
2 Short Presentation of the Country
2.1 General Information
2.2 Geography
2.3 Chronology
3 Summary of the Economic Situation under Salazar and the Time before the Entry into the European Union in 1986
4 The Economic Development in Portugal after its Entry into the European Union
4.1 Economic Growth
4.2 Labour and Employment
4.3 Infrastructure
5 Conclusion
Objectives and Topics
This paper examines the economic transformation of Portugal following its accession to the European Union in 1986. It analyzes the transition from an isolated, agrarian-based economy under the authoritarian "Estado Novo" regime to a modern, integrated European economy, focusing on growth, labor market dynamics, and structural infrastructure improvements.
- Historical context of the Portuguese economy before and after 1986.
- Impact of EU membership on macroeconomic stability and GDP growth.
- Transformation of the labor market and employment trends.
- Development of national infrastructure through EU-funded projects.
- Challenges and future prospects regarding EU expansion and competitiveness.
Excerpt from the Book
4.3 Infrastructure
Portugal´s economic growth since 1986 has been accompanied by immense investments in infrastructure improvements, mainly funded by the EU. “From 1987 to 1998, Portugal received net financial flows from the EU of approximately $24 billion.”
As a result, the infrastructure of the country has improved very rapidly, particularly in transportation. Before 1990 a drive from Cascais or Estoril to the centre of Lisbon via the only existing road – the so called “Avenida Marginal” (“Coastal Road”) - took almost one hour and during the rush-hour even longer. In 1990 a new motorway was completed, connecting Lisbon with its western suburbs. The traffic-jams on the “Marginal-Road” could be reduced considerably. Now a drive from Cascais to Lisbon takes about half an hour.
In 1998 – the year of the EXPO - the Portuguese capital presented itself with an almost completely modernised infrastructure. Many old tramways had been replaced by new ones, the Lisbon metro had modernised its stations, new metro-stations had opened and a new bridge across the Tagus River had been completed. The new Vasco da Gama-Bridge covers a distance of over 18 km and is today the second-longest bridge in Europe. To the existing 25th of April-Bridge, a lower deck for rail traffic was added.
Summary of Chapters
1 Introduction: Provides a personal account of Portugal's socio-economic evolution since 1984, highlighting the shift from poverty to rapid modernization after joining the EU.
2 Short Presentation of the Country: Offers a geographical and historical overview, defining the country's physical structure and administrative regions.
3 Summary of the Economic Situation under Salazar and the Time before the Entry into the European Union in 1986: Analyzes the isolationist economic policies under the Salazar regime and the subsequent political instability prior to European integration.
4 The Economic Development in Portugal after its Entry into the European Union: Details the transition toward manufacturing and services, supported by structural reforms and significant infrastructure investment.
5 Conclusion: Evaluates Portugal's successful integration into the European economy while addressing concerns about future competitiveness in light of EU eastward expansion.
Keywords
Portugal, European Union, Economic Development, GDP, Infrastructure, Salazar, Estado Novo, Labor Market, Unemployment, Privatization, Modernization, Foreign Direct Investment, Cohesion Fund, Industrial Transition, EU Expansion.
Frequently Asked Questions
What is the fundamental focus of this paper?
The paper explores how Portugal's accession to the European Union in 1986 served as a catalyst for economic growth and modernization, transforming the country from its status as the "poor man of Europe" into an integrated EU member.
What are the primary thematic areas covered?
The key themes include the historical economic background under the Salazar regime, the subsequent transition toward an EU-oriented economy, labor market dynamics, and large-scale infrastructure development.
What is the primary objective of the research?
The objective is to document and analyze the correlation between EU membership, structural financial support, and the resulting tangible improvements in Portugal's economic standard of living and infrastructure.
Which scientific methods are utilized in this work?
The work employs a descriptive analysis of economic data, historical timelines, and comparative statistics, supplemented by personal observations from the author's residence in Portugal.
What is discussed in the main body of the work?
The main body focuses on the chronological history of the country, analysis of economic growth rates, labor statistics including minimum wages and unemployment, and the specific impact of infrastructure projects like the Vasco da Gama Bridge.
Which keywords characterize this paper?
Key terms include Portugal, European Union, economic growth, infrastructure, labor market, and structural reform.
How did the infrastructure of Lisbon change specifically in 1998?
In 1998, coinciding with the EXPO, Lisbon saw an overhaul of its public transport system, including modernized metro stations, new tramways, and the completion of the Vasco da Gama Bridge.
What concerns does the author have regarding the future of Portugal in the EU?
The author expresses concern that the eastward expansion of the EU might lead to a reduction in financial assistance for Portugal, as funds are redirected to support significantly poorer Eastern European nations.
- Citar trabajo
- Thilo Weber (Autor), 2002, Portugal - Economic Development after its Entry into the European Union in 1986, Múnich, GRIN Verlag, https://www.grin.com/document/20013
