SGI 2022 | Portugal | Key Challenges

Key Challenges

Recent Governments Experts

SGI experts on Portugal

Sofia Serra da Silva

Sofia Serra-Silva is a Postdoctoral Research Fellow at the Institute of Social Sciences, University of Lisbon. She earned her PhD in Comparative Politics (Political Science) from the University of Lisbon (2020). In the spring semester of 2023, Serra-Silva held the position of FLAD Visiting Professor in the Department of Government at Georgetown University in Washington, DC. Her academic path has been marked by significant stints as a visiting scholar at prestigious institutions such as Oxford University, the University of Leeds, and the University of Vienna, further enriching her intellectual and professional journey. Her scholarly work has earned publication in a variety of academic journals, including Policy & Internet, Party Politics, and The Journal of Legislative Studies. Sofia’s research spans a broad spectrum of subjects such as parliaments, political parties, political behavior, and public engagement. Her investigations delve into areas ranging from the electoral success of parties to the quality of democracy and the nuances of digital politics.

Carlos Jalali

Carlos Jalali is assistant professor at the University of Aveiro and researcher at the Governance, Competitiveness and Public Policies Research Centre. He earned his doctorate in political science from the University of Oxford, having previously received an MSc in development economics (University of London) and a BA in philosophy, politics and economics (University of Oxford). He has published more than thirty articles and book chapters examining Portuguese political institutions and politics.

César Colino (Coordinator)

César Colino is associate professor at the Department of Political Science and Public Administration at the Spanish National Distance-Learning University (UNED) in Madrid. He has taught at the University of Salamanca and the Autonomous University of Madrid and has been visiting researcher at the Max-Planck Institute for the Study of Society (MPIfG) in Cologne and Research Officer at the Institute for Research in Public Administration (FöV) in Speyer, Germany. His recent research and publications have addressed issues of comparative public policy and administration, comparative federalism, and constitutional reform in federations with a focus on the Spanish, German and Canadian federal systems. He has published in journals such as Policy & Politics; Comparative European Politics; Public Administration; Regional & Federal Studies; and Publius: The Journal of Federalism. He has recently published a book on comparative administration (in Spanish) Gobiernos y administraciones públicas en perspectiva comparada, Valencia: 2013 (with S. Parrado y J. Olmeda), and is the author of the forthcoming chapter “National and European patterns of public administration and governance,” in the Handbook of European Politics, José M. Magone ed. London: Routledge (with Eloísa del Pino).

Portugal faces six key challenges:

Need to enhance
capacity-building,
foresight

The first challenge is the capacity to govern with foresight. Portugal scored poorly in several areas related to strategic foresight and anticipatory innovation, societal consultation, impact assessment, and ex post policy evaluation. While efforts are underway to address these weaknesses, they continue to affect the quality of policymaking and the ability to address future problems. Enhancing capacity-building and accountability within public administration, promoting stakeholder engagement for diverse perspectives, and establishing transparent monitoring and reporting mechanisms are essential. Fostering a culture of learning and adaptation within government institutions will be key to improving policymaking effectiveness and sustainability.

Gap between policy measures, delivery

The second challenge is the gap between government measures and actual policy delivery. Although Portugal produces ambitious programs and plans, these frequently fall short in terms of implementation. This recurring issue has persisted across successive governments.

Decline in public
service sustainability

The third challenge is the significant decline in the sustainability of key public services, particularly in education and health. This issue is partly a consequence of the first two challenges. The aging workforce in these fields was identified long ago. However, weaknesses in governance with foresight, along with the gap between planning and implementation, have resulted in these issues not being adequately addressed in a timely manner. Consequently, there has been a considerable decline in the quality of these public services.

Aging population
a challenge

The fourth challenge is Portugal’s aging population. In 2023, Portugal had the second-highest median age in the EU-27 at 47 years, surpassed only by Italy (Eurostat, 2024). Moreover, its old-age dependency ratio (population 65 or over to population 15 to 64) is the highest in the EU-27 at 38% (Eurostat, 2024). The country has done little to address both the causes and consequences of this demographic crisis.

Economic model
driving emigration

The fifth challenge involves Portugal’s economic model, characterized by low wages and high youth unemployment, which fosters continued high levels of emigration. The profile of emigration is also changing to include those with higher qualifications, in addition to those with lower qualifications who have traditionally been the main source of emigration.

Taxation not
sufficiently
progressive

The sixth challenge concerns the lack of progressivity in taxation. Research on the distributional effects of indirect taxes in Portugal highlights fiscal policies that could markedly enhance tax progressivity. For instance, Araujo (2019) provides valuable insights into these policies. Additionally, the Organisation for Economic Co-operation and Development recommends two approaches to enhance fiscal justice in Portugal: the implementation of a combination of inheritance and gift taxes along with progressive capital income taxes, and the establishment of a comprehensive global wealth tax (OECD, 2018).

Citations:

Araújo, A. 2019. “The Distributional Effects of Indirect Taxes in Portugal.” Master Thesis in Economics from the NOVA – School of Business and Economics. https://run.unl.pt/handle/10362/66382

OECD. 2018. The Role and Design of Net Wealth Taxes in the OECD. Paris: OECD Publishing. https://doi.org/10.1787/9789264290303-en

OECD. 2020. Innovative Citizen Participation and New Democratic Institutions: Catching the Deliberative Wave. Paris: OECD Publishing. https://doi.org/10.1787/339306da-en