Portugal aspects of decolonization

Abstract

This paper has emphasized that Salazar's prolectionist policies strengthened the position of these large consortia which dominate Portuguese capitalism. These cartels were unable to 'develop' simultaneously the economy of metropolitan Portugal and that of the colonies. The state was economically too weak; to extend to the large corporations the type of public assistance now normal in developed capitalist countries; indeed the companies operating in the colonies were obliged to supply a wide range of free goods and services to the Portuguese armed forces. The withdrawal of restrictions on foreign capital was welcomed by most of the large consortia, which wished to drawn on the resources of the European and American multinationals and also to integrate the Portuguese economy into the expanding European market.