The financial achievements of Salazar: «financial dictatorship» as the road to political unity, 1928-1932

Abstract

The article examines the financial achievements of Salazar from an unconventional perspective. The importance of his financial policy is revealed from two points of view: (a) as part of personal political strategy to reach and consolidate power, (b) as an essential component of his search to establish Portugal on a new footing in the international economy, and so to build a new model of domestic economy and politics. The main theme of the article is the link between finance, economy and politics in Portugal, at a time of transition from one model to another, as well as the fundamental importance of international financial flows for contemporary Portuguese society. Policy design, and hence the political «model» in each phase, depends on this preliminary exercise.