António Salazar and the Economy of Portugal (1928—1959)

Abstract

Researchers debate on whether the economic policy of António Salazar’s regime was effective, as good macroeconomic performance contrasted with high levels of poverty and low wages. The article proposes to abandon the universalist view on efficiency and consider instead, what goals the Portuguese government put forward and to what extent they were achieved. The paper analyzes the first 30 years of António Salazar’s being in power, when the regime set different goals. In the early years, it pursued financial and economic stability. It was only since the mid-1930s, however, when the first modest steps were taken to increase economic development. The results corresponded with these goals. The severe economic crisis was overcome by the early 1930s, and the country’s moderate economic growth was consistent with the modest goals set by the António Salazar’s government.