Portugal Country Profile Research Paper

Cultural Analysis

Introduction

Portugal is a country in the European continent with a huge history in the fields of seafaring and ancient discoveries. Portugal experienced a coup that was masterminded by the military in 1974. This marked the beginning of democratic and institutional reforms.

Portugal is considered to be the founding member of North Atlantic Treaty Organization (NATO); it joined the then European Community and now European Union in 1986. Currently, it is a non permanent member of the UN Security Council.

Brief Discussion of the Country’s Relevant History

With the destruction of the city of Lisbon in 1755 due to earthquake, Portugal lost much of its status, prestige and wealth. However, there was a revolution in 1910 that removed the powerful monarchy and thereafter, the country was characterized by a brutal and tyrannical regime for the next six decades until the 1974 revolution masterminded by the military.

Portugal is considered to be one of the ancient and the oldest state in Europe. Its history is traced back to AD 1140 when Alfonso Henriques became the first king after a rebellion that dragged on for nine years.

Alfonzo and his successor expanded the state’s territory by annexing other lands like Lisbon, which was in the hands of the Moors. The present day territorial boundary of Portugal was secured by Alfonso III in the year 1249.

Portugal was threatened by Napoleon’s army and this forced the royal family to seek refuge in Brazil where they managed the affairs of the country from Rio de Janeiro for 14 years. Napoleon’s army was expelled in 1811 by the British, and this led to the return of the royal family.

The assassination of King D. Carlos in 1908 led to the overthrow of the monarchy hence paving way for the creation of Portugal’s Republic in 1910; and last year, Portugal celebrated the centenary establishment of the Portugal Republic.

Traditionally, the Portuguese are known all over the world as explores. Inspired by Prince Henry the Navigator, the prominent Portuguese explorers are Vasco Da Gama, Bartolommeo Diaz and Pedro Alvaro Cabral who made explorations in the regions of South America and Asia.

Portugal established herself as an influential colonial power by scrambling for African colonies. It built colonies in Mozambique, Angola, Sao Tome, Guinea Bissau and Cape Verde and Brazil in South America (Foreign and Common Wealth Office 1). Portugal held the first democratic election in 1974.

Geographical Setting

• Location

Portugal is located in the South Western Europe and it borders Atlantic Ocean to the west and south; it is located west of Spain in the Iberian Peninsula.

These boundaries were defined in the 13^th century and included the autonomous regions of Azores and Madeira archipelagos, which are located in the Atlantic Ocean. Portugal occupies a land area of 92, 207 kilometer square. Its geographical position is considered geostrategic due to its proximity to Europe, America and Africa.

• Climate

The climatic condition of Portugal is that of maritime temperate; the northern part is cool and rainy while the southern part is warm and dry. The Azores and Madeira are considered as autonomous provinces of Portugal; the distinct climatic conditions of Azores and Madeira makes Portugal to be considered as a region with micro climates.

The highest altitude is in the mountainous chain of Serra da Estrela, which is 1,991 meters. The uppermost spot of the nation is the mountain of Pico, positioned in the Archipelagos (2,351 meters). Generally, the climate of Portugal is that of mild winters and temperate summer. November and December are wet months while April and September are the least wet months.

• Topography

The northern part of Portugal is lowland and of a middle altitude. The highland is equally distributed between the northern and the southern part.

Portugal is characterized by mountainous ranges like Penada and basins like Tagus and Sado. The south coast part of the country is steep. The long rivers like Tagus, Douro and Minho rise in Spain. Portugal is not a country of uniform topography.

Social Institutions

• Family. The Nuclear Family

The family is the primary pillar of the Portuguese society. The patriarchal and the nuclear structure of the Portuguese family are the main norm and ideal of Portuguese society.

Before the promulgation of the Republic’s constitution, the father assumed the headship of the family, and his wife and children were under the obligation to honor and respect the authority of the father.

The father had the moral duty and obligation to protect and provide for his family. The role of the wife in a family was restricted to household while the men attended to their businesses or professions.

• The Extended Family

In Portugal, the extended family is closely knitted and each member of the family benefits from the primary family network. Loyalty to one’s family is considered critical in contrast to any other relationships like work or business.

Nepotism in Portugal is a noble thing since it is assumed that it is important to employ people with whom one knows and trusts. The extended family and the kinship relations it creates are very important.

The lower class and the working class had limited extended family ties. Kin relationships were weak outside the family. The local and the national system were founded on ties from extended family and the patronages which were the primary institutions.

• Female/Male Role: Changing or Static?

The role of the men or women drastically changed following the promulgation of the new constitution in 1976 and the modernization of the economy. Traditionally, women were only allowed to attend to children and other household tasks and were often in the company of their husbands when they went out.

The modernization of the economy has led to the increased employment of women in the formal labor force and outside their homes. The emergence of revolutionized ideas regarding the place of women in the society altered the nature and structure of the Portuguese family.

The constitution created a civil code where both men and women were equal in marriage, and women were no longer restricted to the responsibilities of the household.

Education

• The Role of Education in the society

The primary education in Portugal is undertaken in two different phases: there is the primary cycle which takes four years, and the second cycle is termed as a preparatory and takes a period of two years.

Majorities of the primary schools are public. The rural population only undertakes the primary cycle while the preparatory which is the fifty and the sixth grade is meant for those with the intention of proceeding to secondary education.

• Secondary Education

Secondary education in Portugal is equated to junior schools in America. It is composed of a unified course curriculum period taking two years. The eleventh and twelfth grades or complementary course takes a span of two years; the twelfth grade was meant to prepare students to join higher education, mainly the Universities and the technical colleges.

• Higher Education

The higher-education system encompasses of four universities namely: Porto, Lisbon, Coimbra and the Technical institution of Lisbon. Six new universities have recently emerged. These are: Nova, and other five located in Minho, Aveiro, Evora and Algarve.

There are also post secondary schools, institutes and academies. Admission to institutions of higher education is highly competitive. A student can take an average of five years to complete a university and be awarded a Licentiate but there is a provision of two additional programs for someone to qualify for a degree (Photius 1).

• Literacy Rates

Portugal has a literacy rate of approximately 94 percent. Enrolment to primary institutions is almost 100 percent.

Political System

• Political Structure

Portugal is a Republic with three branches of government namely:

1. The executive which is made up of the president who is head of state and government, the council of state, which is the presidential advisory body, the prime minister who is the head of government, council of ministers;
2. The second branch is the legislature which is the official assembly of the country, and it is composed 230 deputies. The legislature is unicameral in the form.
3. The third branch is the judicial which consists of all the courts and major political parties; it consists of the Supreme Court, the district courts, courts of appeal and the constitutional tribunals.

The Portuguese Republic is founded on democratic laws, which are established based on universal suffrage, pluralism of expression and opinion and respect for fundamental rights and civil liberties.

The president of the country, the assembly of the Republic, the government and the courts are all the sovereign bodies of the Republic. The president is the supreme leader of the country and is elected by direct and universal suffrage for a term of five years and will be subject to a re-election for one term. The legislative functions of the Republic are vested on the assembly which is composed of 230 deputies.

• Political Parties

Portugal is a multi-party Republic with the following political parties: the Socialist Party, the Social Democratic Party, the Portuguese Communist Party, Popular Party, Green Party and the Left Bloc.

• Stability of Government

Portugal underwent a period of transition from an authoritarian rule to a stable parliamentary democracy or semi-presidential system in the year 1974 after the military coup.

Following a period of political uncertainty, political instability and agitation by the communist forces, Portugal ratified and promulgated a new constitution in 1976. Among the changes in that constitution included the trimming of the powers of the president and putting the military under the regime of civilian control; all these laid the foundation for a stable multiparty democracy (U.S. Department of State 1).

The prime minister is the head of government in Portugal, and he is nominated by the assembly and appointed by the president. The prime minister is entrusted with the duty of appointing council of ministers and submits to the assembly for approval.

The legislature is elected after a four-year term while the presidential term is limited to two-five year terms. Presently, Portugal enjoys social and political stability due to its ability to embrace dialogue and to appreciate diversities in culture and lifestyle.

• Role of Local Government

The government drives the politics of the Republic, and also it is in charge of pubic administration. The government also is responsible for the implementation of the national budget after it is presented by the assembly of the Republic. The government is also charged with legislative, political and administrative duties of the Republic.

Legal System

• The Court System

Portugal practices the civil law system and there is also a constitutional review of legislative acts. There are three categories and ranks of courts namely: constitutional court and court of audits and plurality of courts.

The constitutional court is considered a course of recourse by other courts on matters of constitutional interpretation, and the court of audit have jurisdiction over fiscal matters, public expenditure, and it has the right of opinion over government expenditures. Other courts are the judicial courts and the administrative and fiscal affairs courts.

Religion

• Which Religions are prominent?

The prominent religion in Portugal is the Roman Catholic with approximately 84.4 percent subscribing to it.

• Membership of Each Religion

Other religions apart from Roman Catholic are: Protestant Christians who consist of 2.2 percent while other religions are 0.3 percent, and the unknown are 9 percent.

• Any Powerful or Influential Cults

Due to the dominance of the Catholic religion, there is no cult in Portugal.

Living Conditions. Diet and Nutrition. Typical Meals

There are three meals in Portuguese: breakfast is considered an important meal of the day which is dominantly pastries and coffee. Soup can also be taken for breakfast. Their national dish is referred as “Cozido”.

• Food Available

Fish forms the primary part of Portuguese meal and meat, rice and potatoes from the majority of their dishes. Portuguese prefer salads to vegetables. Dried codfish is a prominent dish in Portugal.

Housing

• Types of Housing Available

People in the rural areas lived in substandard houses without electricity and water while the people in urban areas lived in rented apartments.

• Do most people own and rent houses?

Majority of the Portuguese population rents their houses; it is estimated that 60 percent of the population lives in rented houses. Tight bureaucratic controls and rigid laws and regulation discouraged the construction of houses.

• Type of Clothing Worn at Work

In corporate offices, Portuguese wear dresses, polo shirts and trousers while other work places demand the wearing of suits and neckties.

Language

• Official Language(s)

Portuguese is of Latin origin and is the main official language in Portugal. There is also Mirandese which is official but only used locally.

• Spoken versus Written Language(s)

Portuguese is the main written and spoken language.

Economic Analysis

Population

• Total

The estimated total Portuguese population according to the July 2011 estimation is 10, 760,305. Portugal it is ranked number 75^th in the global population analysis. The country is experiencing an increasing elderly population due to the reduced fertility and increased life span.

• Growth Rates

According to the 2011 estimates, the population growth rate was approximated to be 0.212 percent, making it position 179 in the world comparison. This is largely due to variations in social behavior like decrease in a number of the population getting married and high cases of divorces.

• Number of Live Births

The mortality rate in Portugal is seven live births for every 100,000 people.

• Birthrates and Death Rates

Based on 2011 estimates, Portugal has a birth rate of 9.94 births for every 1000 people, ranking number 174 in world comparison. The death rate is 10.8 deaths for every 1000 people hence ranking it number 42 based on world comparison.

Distribution of Population

• Age

The following is the age structure system in Portugal: 0-14 years 16.2 percent, 15-64 form about 65.8 percent of the population, while 18 percent of the population is over 65 years of age. The median age in Portugal is 40 years.

• Geographic areas (urban, suburban, and rural density and concentration)

An estimated 61 percent of the Portuguese population lives in urban areas and majority of them are concentrated in the capital city, Lisbon. The rate of urbanization is rated at 1 percent annually. Lisbon is considered to be the mostly densely populated and it is followed by Madeira which hosts a third of the total population density. The northern region, despite having the largest population resident wise, has a lower population density when compared with Lisbon.

• Migration Rates and Patterns

For every 1000 people, there are 2.98 percent migrants. Net migrations have skyrocketed since the year 1990 and it is the primary contributor to Portugal’s population growth. Portugal experiences immigrants in flow from its previous colonies particularly in Africa, central and Eastern Europe. Brazil has joined the list of immigrants in recent time. Portugal also receives, though in small number immigrants from India, China and Pakistan. Most of the immigrations are of economic nature. This immigrant population is of younger age than the natives hence they form a substantial number in the labor force. Men form the larger composition of this labor force.

• Ethnic Groups

Portugal’s citizens are of black African origin that immigrated to Portugal and numbered only 100,000 at that time. In the last two decades, there are also East Europeans and black Africans who are the minority.

• Economic Statistics and Activity

The Portuguese economy is highly diversified and it is dominantly service oriented. After joining the European Union, the government has privatized several corporations while liberalizing the principal areas of the economy like the financial and the telecommunication sector.

Portugal qualified for the Economic and Monetary Union in 1998 and it was allowed to circulate the Euro in 2002. The economy of Portugal has steadily grown since 1990 more than even the EU average. Its GDP per capita stands at two thirds of the EU average.

The main obstacles and the challenges to the economic growth and productivity are the poor system of education and the rigidity of the market. Portugal is competitively low in terms of attracting foreign direct investment due to the government’s involvement in the economic sector.

The heavy purchases of 2020 bond by the European Central Bank pushed its yield down, a phenomenon that is unsustainable in a country like Portugal with high public debt. The inability of Portugal’s borrowing cost to plummet will force it to look for rescue funds from the euro-zone.

The economy of Portugal is anticipated to shrink due to its implementation of austerity measures that will facilitate its qualification for international rescue package. The country opted for Euro bail out after its legislature rejected governments proposal of spending cuts and increase in tax as a measure to resolve the budget deficit making it the third country after Greece and Ireland (Lima and Reis1).

Gross National Product (GNP or GDP)

• Total

From the 2010 statistics, the Gross Domestic Product of Portugal stood at approximately $208 billion. The greatest contributors to the GDP are: agriculture 2.5 percent, industrial sector 22.9 percent while the services sector is 74.7 percent. The per capita GDP of the same year was approximated to be $23, 965.

• Rate of Growth (GNP or GDP)

The economic growth rate per annum is +1.3 percent based on the 2010 estimates.

• Personal Income per Capita

The GDP per head during the year 2009 stood at 80 percent of the European Union average.

Distribution of Wealth

• Income Classes

There are three income classes in Portugal: the elites, the middle class and the lower classes. The elites comprise of the nobility, land owners and heads of government. The middle class is composed of industrial workers, working class and government workers. The lower class is the segment of the population who are unemployed population (Photius 1).

• Proportion of the Population in each Class

The middle class form majority of the pollution followed by the lower class. The elite class is the minority.

• Surface Transportation Modes

The main modes of transport are the air, land, sea, rail and road. Portugal has a total of 65 airports; 43 are paved while 22 are unpaved. There are also pipelines which mainly transport gas and oil both crude and refined.

Portugal has 3,319 kilometers of railway line; 2,700 kilometer broad gauge and 192 kilometer narrow gauge. It also has 82, 9000 kilometer of road network, with 71, 294 kilometer paved and 11, 606 kilometer unpaved. The country also has 210 kilometer water way.

The country also has 111 merchant marines which include bulk carriers, tankers, containers, Liquefied gas, cargo, chemical tankers, petroleum tankers, passenger cargo and passenger and vehicle carriers.

Maritime is slowly growing as the widely used mode of transport particularly in its foreign trade and with regards to connection to European markets; railway transport is the most used mode of transport. The Atlantic coastline is instrumental in the development of sea and maritime connections.

Portugal has one of the most highly developed road infrastructure in Europe. Its highways are considered to be of high class. The Lisbon world fair was considered as the catalyst for the development of major building works (AICEP Portugal Global 17).

With regards to the air transport system, Portugal has well established airports and airfields. TAP is the national air carrier for Portuguese.

• Ports

There are five principal national ports and terminals in Portugal namely: Leixoes, Lisbon, Setubal, Aveiro and Sines.

Communication Systems

• Types

The main system of communication is the telephone with approximately 4 million people having access to the main land line while 15 million have access to the mobile phone. The telephone system utilizes modern technology with state of the art network spectrum.

It makes use of broadband and efficient capabilities. The domestic telephone system is an integrated network of coaxial cables, with open wires, microwave radio and domestic satellite earth stations. The Portugal’s country code is 351. There is also the internet system of communication and the country internet code is.pt. The internet users are approximately 5.17 million (CIA 1).

Foreign Investment

• Opportunities

Majority of the direct investment in Portugal is from Germany and Spain. Spain has heavily invested in the financial sector while Germany has invested in the industrial sector particularly automotive sector.

The need to diversify investments has led to the emergence of Brazil with their investment and USA with Cisco and Microsoft as the major investors in the Portugal market. Trade and manufacturing are the crucial economic sectors that have high tendency of attracting foreign investment and contribute to approximately 68 percent of the total foreign direct investment.

The financial and insurance sectors are slowly gaining prominence as favorable sectors though their contribution to the Portuguese economy still remains minimal (AICEP Portugal Global 60).

• Industries

The main lucrative sectors that are favorable for direct investment are: automotive and components sector, energy, biotechnology, electricity and electronics sector, chemicals, Information and communication sector and tourism. The Palmela plant of the Auto-Europa is the number one in the automotive market and has positively and heavily contributed to the growth of the Portuguese economy.

Embraer, which is a Brazil investment company, has also contributed substantially to the Portuguese economy due to its firm technological component. Embraer is the third biggest manufactures of airplanes in the globe and it is the largest producer in the production of commercial planes.

Renault is also another industry that contributes to the economy of Portugal. Its 28.8 million Euro investment in the C.A.C.I.A factory led to the creation of 100 direct jobs.

Other industries that have invested in the European market are: COFICAB which deals with the manufacturing of telecommunication and electric lines and cables, Iberdrola which is investing in the energy sector, Green cyber which has invested in the biodiesel plant, Cisco, Nokia, Siemens, IKEA group, Leroy Merlin a French company dealing With Do it yourself items, and Martinhal Resort in the tourist sector (AICEP Portugal Global 62).

International Trade Statistics. Major Exports

Portugal exports agricultural products, oil and chemical products; other exports are plastics, rubber, optical and precision equipments, tools and machinery, vehicles other transport materials, textile products, mineral and mineral products, wood pulp and wood and cork. Its major export partners are Spain, Germany, France, Angola and the UK.

Trade Trends. Major Imports

The main Portuguese imports are agricultural, food, oil and chemical products new and used cars, wines, household goods, vehicles, machinery, computers, food, beverages and minerals. Its imports partners are Spain, Germany, Netherlands, France and Italy. Portugal is the world’s leading producer of cork.

Balance of Payments Situation

• Surplus or Deficit

Because Portugal heavily relies on the service sector, its balance of payment is always in deficit. Recent statistics indicate that Portuguese trade deficit was 1323 million Euros.

• Recent Trends

Over the last five years, there has been annual growth in the exports of goods and services at an average of 2.5 years. The biggest margin ever witnessed in the increase of exports was in 2009 when it hit a high of 16.4 percent.

Following the recent revival of the economies of Portugal’s trading partners, exports are projected to increase and it will be the sole driver of Portugal’s economy. The European Union is Portugal’s largest trading partner and it accounts for approximately 72 percent of the total trade.

Exchange Rates

• Single or Multiple Exchange Rates

There is a singular exchange rate in Portugal and it is Euro versus the US dollar

• Current Rate of Exchange

The current exchange rate stands at 0.755 per US dollar according to the 2011 rates.

• Trade Restriction

Portugal belongs to the European Union economic bloc and always it gives preference to trading with EU members.

• Embargoes

The import rules in Portugal are in line with that of the EU member states. Portugal is not subjected to any embargo on imports or exports but it levies EU common tariff from other countries that are not members of EU. As a member of UN in good standing, Portugal follows the resolutions of the EU and UN regarding foreign trade and currently it has slapped embargo against Iraq based on the EU economic sanctions

• Quotas

The goods protected by Quota are mainly agricultural products like seeds, cereal, wines and milk and milk products. This is aimed at protecting the local industries.

• Import Taxes

This is administrated by a department in the ministry of economy. Non-liberalized imports can be subjected to the following forms of import duty: import license and import certificates. Import certificates involve varying the validity period of particular products

• Tariffs

The tariff system of Portugal is guided by the European nomenclature and there is no restriction on imports.

• Licensing

With regards to import license, goods that are restricted are subjected to restrictions based on quantity.

• Custom Duties

Trade between the European Economic zones is exempted of custom duties.

Labor Force

• Size

There are approximately 5.581 million people in the labor force and are distributed in the following sectors: agriculture 11.7 percent of the labor force, industry 28.5 percent and services sector approximately 59.8 percent of the labor force (Economist Intelligence Unit 1 ).

• Unemployment Rates

The unemployment rate in Portugal stands at 10.8 percent and it is number 117 in the global ranking comparison.

The marketing of oil and oil product on Portugal.

Product: Garp Energia is the number one dealer of oil market in Portugal. It sells its products directly to clients in wholesale and retail segment. It has a market share of 34 percent and 800 service stations.

Place: the company’s refinery is located in Matosinhos and Sines both totaling up to a capacity of 330, 000 barrels a day. Sines refinery is the largest in the Iberian Peninsula.

Price: the price of oil is dictated by the international market pricing regime. Oil and oil products and gas retails at a cheaper prices because it is locally produced unlike in countries where they import it.

Promotion: the advertisement and promotion of oil and oil products is marketed by the department of energy. The presence of oil and gas will likely attract foreign investors due to the low cost of production involved with the presence of energy in a country (Galp Energia 1).

Works Cited

AICEP Portugal Global. “Portugal country profile.” Portugal Global, 2011. Web.

CIA. “The world book fact: Portugal.” Central Intelligence Agency, 2011. Web.

Economist Intelligence Unit. “Portugal: trade regulations.” Economist Intelligence Unit, 2002. Web.

Foreign and Common Wealth Office. “Portugal: country information.” Foreign and Common Wealth Office, 2011. Web.

Galp Energia. “Refining & Marketing.” Galp Energia, 2011. Web.

Lima, Joao and Reis, Anabela. Portugal Says Economy to Shrink Twice as Much as Forecast Under Added Cuts. 2011. Web.

Photius, Coutsoukis. “Current Economy profile.” Portugal – Economy Index, 2004. Web.

U.S. Department of State. “Background note: Portugal.” U.S. Department of State, 2011. Web.