The “long stagnation of economic growth” and “interruption of the convergence process” of the Portuguese economy, this increase that may have fallen into the “trap of middle-income countries”, concludes a study by the Francisco Manuel dos Santos Foundation (FFMS).
In the work, entitled “From ‘made in’ to ‘created in’: a new paradigm for the Portuguese economy”, the authors argue that “more robust economic growth and greater convergence towards the European Union are essential to reduce poverty and inequalities, ensuring the sustainability of public debt and Social Security and avoiding the vicious circle of lower growth, more emigration, lower growth in Portugal”.
In this context, the work indicates that the “long stagnation of economic growth and the interruption of the convergence process in the 21st century reflect the exhaustion of a model of development and progress that the Portuguese economy may have fallen into the ‘trap of middle-income countries’ ” , contributing that “the way out of this trap is only possible by giving knowledge, skills and innovation a central place in the process of wealth creation”.
The authors also warn that “the existence of efficient financial markets and availability of credit are crucial for the creation of new companies, for investment, for the adoption of new technologies and, consequently, for the growth of productivity”.
In addition, a statement with the main characteristics reads, “efficient insolvency processes are essential to improve resource efficiency and for productivity growth”.
The FFMS work also argues that “the availability of ‘venture capital’ is a factor that contributes to the probability of success of the most innovative companies, namely in the embryonic stage of projects originating from universities or research centers in which patent holders may have access to access the capital “.
With regard to the role of the State, the study concludes that “create conditions for workers to move to sectors and regions where there are more jobs and better prices.”
In this way, “social protection must be promoted for workers, regardless of their employment relationship, access to qualification and requalification programs and conditions that favor mobility in access to transport and housing”, according to the document.
In the study, the Foundation also offers several public policies, namely “negotiating and creating as conditions, in a very close articulation with the scientific and technological system, so that, in 2030, all multinationals based in Portugal belonging to the group of the world’s largest investors in I WOULD [Investigação e Desenvolvimento] acquired established R & D & I centers [Investigação, Desenvolvimento e Inovação] in national territory”.
The authors also defend, among other things, an elimination of “Portugal’s disadvantage in fiscal terms compared to its direct competitors in attracting FDI [Investimento Direto Estrangeiro] The IRC tax through the elimination of the state distribution “and the review” of the nomination processes for the regulatory entities “as well as the guarantee of” their autonomy in budgetary terms” and the” accountability mechanisms for the results achieved in the improvement conditions of competition in markets and in creating conditions for innovation”.
The FFMS seems to understand, with this work, that weaknesses characterize the Portuguese economy and that public policies can help promote the sustainable growth of the Portuguese economy in the next decade, according to the same note, which adds that the research project was developed by a team of national economists, coordinated by Fernando Alexandre, from the University of Minho.
The study will be presented on Friday and Saturday in Lisbon.