31 May '11, 3pm

Former colonies come to #Portugal’s rescue

It is a special kind of relationship, and one that could prove crucial to Portugal’s recovery. In a reversal of history, the Iberian nation is now relying on the trade and financial support of its former colonies to help it through its worst-ever financial crisis. Brazil is considering buying some of Portugal’s sovereign debt, while Angolan investment has increased by more than 250 per cent in three years. Although Portuguese companies do not usually have the financial clout to compete in emerging markets, a common language and cultural links with other Lusophone countries such as Mozambique and even India could give them an advantage. Portugal has retained relatively positive relations with its ex-colonies. “Angolans and the Portuguese were actually subject to the same debilitating dictatorship,” says Fernando Jorge Cardoso, co-director of the Institute for Strategic and ...

Full article: http://www.monocle.com/monocolumn/2011/05/12/former-colon...

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