The development of the political party system in Portugal in the light of economic and political changes (1976-1991)

Abstract

The article analyses the development of the political party system in the light of economic and political developments. The author picks out the factors that explain changes in the party system, and analyses the way that political changes and perceptions of economic changes influenced the vote. There is also a study of the way that political and economic developments influenced each other, thus contributing to changes in the party system. Governmental stability depends on the development of a country's economic circumstances. The governments that were coalitions had greater difficulty in formulating coherent policies. This was due not just to the difficulties coalition partners had when trying to co-ordinate their policies, but also to the economic instability that prevailed until 1985. Governments in which one party enjoyed a majority were able to prepare policies more easily, not only because of the simple process required for a decision to be taken, but also as a result of the improvements in the economy. Portugal's entry into the EU, which coincided with a period of prosperity, reinforced the stability of the system. An analysis of the political and economic cycles in this small and open economy showed that distributive policies in Portugal became more important, particularly before elections, because the parties lacked social bases. However, pre-election booms did not always take place, in particular in 1979, 1983, and 1995. Incumbent governments had external commitments, namely IMF loans (1979, 1983), and the Maastricht criteria (1995). These undertakings precluded expansion policies before elections, whatever the type of government (a coalition, or one with a majority).