Welcome to the Official page of the Presidency of the Portuguese Republic

Honourable President of the Society of Economists
Honourable President of the Conference Organizing Committee
Fellow Economists
Ladies and Gentlemen,

I begin by greeting the Society of Economists and its President, who has fought so vigorously for the fostering and dignifying of the profession. This initiative is, after all, an expressive testimony of the vitality of the Society. I equally greet the President of the Organizing Committee of this II Conference of National Economists and all the delegates who will be discussing, throughout two days, issues both complex and opportune.

To Professors Manuel Jacinto Nunes, Bento Murteira and Simões Lopes, as well as to Professors Ernâni Lopes and Eduardo Catroga, to whom tribute is being paid today by the Society of Economists, I address my great appreciation and friendship. It is more than fair to publicly recognize the relevant contributions they have given in respect of economics, statistics and management and, further, their quality as scholars of exceptional standard that trained generations of economists and managers in our Country.

I am particularly pleased, as President of the Republic, to address all of you in the opening session of this Conference. I cannot however forget my training as an economist which, naturally, branded my thoughts and greatly aided me in dealing with the challenges that I have faced in my public responsibilities.

In modern societies the role of the economist is vital. The knowledge of economic sciences is fundamental for the public powers to manage the State’s resources with a strategic sense, with efficiency and fairness. It is equally instrumental in company management, particularly when dealing with the competitive challenges that are faced in our global age.

Economists, whether because of the amplitude of their specific training, or because of their capability to absorb differing areas of knowledge, are decisive performers in the modernization of the economy and of society.

They are expected to contribute towards the rationalization of means and to the innovation of products and methods. They are also expected to foster a renewed social responsibility of the economic agents, whether public or private.

I highlight, particularly, their role as fostering agents for the necessary changes to guarantee economic and social progress.

Who, better than economists, understands the relevance of innovation as a factor for company competitiveness and as a tool to improve the efficiency and the quality of public policies? And it is also from them that political solutions are expected which permit contemplating, in this procedure of necessary and inevitable change, the concerns relative to fairness and social cohesion.

On the other hand, their professional activity, particularly of those dedicated to management, provides them with a privileged understanding of corporate social responsibility. This is a new dimension of entrepreneurial activity, which becomes ever more relevant the more we advance into global markets. The sustainable competitiveness of any corporation must include social responsibility as one of its assets of assertion and success.

Also urgent is the development of entrepreneurial initiative, especially among young people. Here, as well, the actions of economists can be of great importance. From the intelligence, the initiative and the experience of many economists have appeared concepts, models, and tools with structuring impact not just on the economy but on society itself.

I will cite one only instance, which I believe particularly stimulating and opportune to recall on this occasion: that of Muhammad Yunus, a Professor of Economy who created a new credit concept, known worldwide today as “micro credit”. He did not just create the concept. He personally undertook it. The social and economic impact was of such a size that Muhammad Yunus became a reference. He was awarded the Nobel Prize, not for Economy as could have been supposed, but the Nobel Peace Prize.

Rationalization, innovation, social responsibility and entrepreneurship are thus primary terms in the exercise of the economists’ profession. I underline that the competitiveness of Portuguese corporations and the effective accomplishment of the national public policies will largely depend upon the quality of the services rendered by Portuguese economists.

Ladies and Gentlemen Conference Delegates

Portuguese economy is at a decisive phase. The irreversible globalization, the unstoppable wave of technological change and the deepening of European integration place the economy of our country in the face of challenges which cannot be adjourned.

We know however, that these are phenomena that generate extraordinary opportunities, which could become a unique lever for development. If we know how to take advantage of the opportunities deriving from technological innovation, from European integration and from globalization, we will harvest the due result, that is: the improvement of the well being and quality of life of our people.

For these reasons, the attitude facing such challenges must be that of responsibility, but also of confidence. These challenges are not new to Portugal, and our History and our resources justify our facing the future with a firm will to conquer.

Any resigning attitude with respect to the achievement of the Portuguese economy during these first years of the 21st century is totally unacceptable. Apart from growth rates lower than those of our European partners, Portugal has accumulated various unbalances, including some macroeconomic. Unbalances which are not sustainable and the resolution of which is vital, failing which these could constitute not just a short term problem but, above all, a heavy obstacle to future development.

For this reason we cannot conform ourselves to a minimum recovery dependent upon economic environmental fluctuations. What we require, in reality, is a return to the real convergence with the more developed groups of the European Union.

All of us – people, political and economic agents, public institutions, the civic society in general – must have this ambition. If we are weak in our ambitions it will be harder to muster our energies and obtain good results.

The restart of the Portuguese economy largely depends on the development of a continued and sustained export capability, which is not cyclic or derives from single opportunities.

The high external deficit of the Portuguese economy is a motive for concern, since it absorbs essential resources and could become the source of serious constraints to the normal running of the economy.

Apart from the indispensable control of the public finances, it is necessary to attend to other vital conditions to guarantee high levels of competitiveness to the Portuguese economy.

The concern with the quality and efficiency of public policies is of vital importance.

The trust of the people, of the social and economic agents and, particularly, of the investors much depends upon the quality of public governance. This means not only public policies adequate to new demands and realities, but also strong and credible institutions, effective and transparent procedures, and a firm fight against corruption at all levels of the public powers.

We must also be motivated to act, quickly and consistently, in the face of changes in the economic and social paradigms deriving from European integration and globalization.

The endeavour to innovate must not be limited to entrepreneurs: new technologies must allow a more effective relationship between the public administration and the people and, above all, contribute towards the improvement of the definition and execution of public policies, specifically in the areas of health, education, social security and the environment.

This is a challenge that must be answered by the State. But it is equally a challenge for the economists, whose intervention cannot be exhausted with the incessant search for economic progress.

The economists must concern themselves with new phenomena such as high rates of unemployment and the eventually contrary effects which may result from growth policies, and conceive systems of social security that guarantee minimum consuming levels and well being to the people who are more affected by the transformation procedures and renewal of the economies.

It is in this context that I wish to call your attention to the relevance of NSRF, a tool which I consider will have real structuring effects on the national economy. We must have in mind what the acronym means: National Strategic Reference Framework. This term is very expressive and we must not lose sight of it. NSRF must be a reference with a strategic reach and a really national projection. Portugal must be placed within the average of the European Union in the period 2007-2013. This must be our ambition.

The economists and managers present here will certainly recall what we learnt in the subjects of economic development: growth based upon the mere accumulation of capital is not sustainable. Only increase in productivity will ensure greater levels of well being: this means a permanent concern with the quality and return on the investments, with technological and entrepreneurial innovation and with the role of savings.

For this exact reason, the approach we have to make to this NSRF must not be solely quantitative. The main criterion to measure its merits must be its effective contribution to the sustainable development of our Country, in its treble perspective: economic, social and environmental.

The community supports have to be critically administered and it is crucial that the execution of the NSRF is strategically carried out, run as a reference for public policies and even for public and private investment.

It is thus necessary that NSRF is an effective mustering and coherent tool. That is, it must not only involve the Central Administration, but also the regional governments, the local authorities, the corporations, and the general civil society.

NSRF is a unique opportunity to call on the various officials of the State and of the economic, social and environmental areas, to reflect on and debate our collective future. It must be understood as a tool which interprets an implicit contract between the State and the people, aiming towards the global development of the country. And it has to be executed in accordance with our ambitions.

I thus make an appeal to our economists to become involved in the debate on guiding and applying community funds.

I know, we all know, that the NSRF also places the Country under external scrutiny, as regards the quality and coherence of the strategic guidelines, the efficiency and the transparency of management and the mustering of the Country. This is a challenge that demands a strong political guidance, but also national endeavour and conscience which must not be underestimated and much less made hostile.

In this context of national mustering I must highlight, particularly, the role of SME’s. A very important part of our productive structure is made up of Micro, Small and Medium Sized Companies, which cover the whole of the national territory, create a significant economic value and generate employment. Their sustainability is a fundamental component for a balanced economic development and for the Country’s social cohesion.

SME’s deserve, for this reason as well, special attention from public policies. The very necessary restructuring of our productive fabric cannot be made by ignoring SME’s, nor can it be just a statistic corollary of their disappearance. It is vital that our small companies are allowed the opportunity to modernize and grow in a fair and balanced competitive environment.

It should be stated, to this effect, that the European Commission is preparing to place the issue of SME’s in the centre of its reforming agenda. In the statement that the European Commission prepared for the European Council meeting in Lisbon, this intention is explicitly referred: to free the growth employment creation potential of SME’s and to make full use of their innovative capabilities. As such, the European Commission will prepare, until the end of 2008, a Small Business Act for Europe, in order to foster a number of measures determined for the support of the development of SME’s.

This is, in effect, an economic as well as a social cohesion and territorial duty. The issues of land use development and, particularly, territorial cohesion, must be a concern for economists. The desertification and population ageing in many areas in the interior of the Country demand that a common battle be waged by Public Administration, local authorities, and economic and social agents. This is an urgent demand.

Fellow economists,

The challenge is clear: place Portugal on the front line of the European Union. The answer to this challenge, as demanding as it is incontrovertible, cannot be subject to economic environmental fluctuations or even defensive. This challenge can be overcome with the mustering of the will of the Portuguese.

Economists, due to their basic training, to their professional experience, to their culture of activity, have a relevant opinion that must be heard. An opinion of the more experienced but also of the younger economists who are now in the beginning of their professional careers. The Country needs the contribution of the young economists, their talent, their enterprising capability, their culture of risk and innovation. They are a precious resource that must be encouraged and given value.

The opinion now belongs to the delegates to the Conference. I hope your work results in a notable success.

Thank you very much.