The revolution of
25th April 1974 transformed the political and social set-up and gave great hope
to the people of Portugal .
Thirty-nine years on, hope is in short supply. It has evaporated in the face of
the intractable economic crisis. What has gone wrong?
During the decade
before 1974, the country was still relatively underdeveloped with poor
infrastructures and inefficient agriculture, but growth rates for GDP were
among the highest in Europe . By 1973, the
on-going colonial wars were exacting a heavy toll in terms of financial cost
and in promoting mass emigration among the better educated and most technically skilled who wanted to
avoid conscription.
The ‘Carnation Revolution’ replaced
dictatorship with democracy. It also led to a succession of economically inept
governments and a litany of mismanagement, corruption and greed that has
brought the country to the edge of bankruptcy.
In the aftermath
of the military coup, the nationalisation of banks and industries and the expropriation
of agricultural estates led to collapse across all sectors of the economy.
The 1980s saw a
return to economic and social stability of sorts. After joining the European
Union in 1986, trade ties increased, structural and cohesion funds flowed in,
and tourism took over from farming and fishing as the main economic activity in
the south of the country.
Living standards
continued to rise and prosperity spread among an expanding middle class in the
1990s. On 1st January 2001, Portugal
adopted the euro. In the five years that followed, household debt expanded,
unemployment increased and GDP growth dropped to the lowest of any country on
the continent.
At the beginning
of 2010, Portugal joined Italy , Ireland ,
Greece and Spain in a
full-blown debt crisis that the Socialist government of José Sócrates was
unable to bring under control. One of its last acts in 2011 was to apply for a
bailout from the International Monetary Fund and the European Union.
As the centre-right
government of Pedro Passos Coelho struggles to repay the €78 billion bailout, a
need for a second mega loan may be looming. Some analysts insist Passos Coelho
has lost his way in a mission impossible - that the debt burden is such that Portugal will
never be able to pay it off. If that is the case, what is point of trying?
Among those who
hold that opinion is Mário Soares, an arch critic of the dictatorship who rose
to prominence immediately after the revolution. The former Socialist leader and
now elder statesman said recently in a radio interview: “No matter how much
[the government] impoverishes people or steals from their pensions, the state
will never be able to pay back what it owes. When you can’t pay, the only
solution is not to pay.”
He is urging all
left-of-centre political forces to bring down the present government and
repudiate the austerity measures demanded by the IMF-EU troika of lenders.
Before the
Carnation Revolution, people all across the country were restive and hungry for
change. They are again. Contempt for authority is being fuelled by the collapse
of many businesses, rising costs and austerity measures that are impacting on
education, employment and health, causing widespread suffering, especially
among young families, the elderly and the poor.
Proposals for
even more severe austerity are infuriating vociferous opponents who increasingly
see the present government as taking on the mantle of a dictatorship.
Amid the current
paucity of hope, street protests in what is being described as a “historic day
of struggle” are planned for May 1.