The Turkish-American Professor of economics, Daron Acemoglu, from the Massachusetts Institute of Technology (MIT) that Portugal has identified two problems regarding Portugal’s economic prospects, one of which involves "aspects that are very archaic."
The renowned economist, he is in the world's top ten, said that the main problem is that Portugal is way behind in terms of its human capital because its workforce has not been sufficiently educated, but now it is catching up.
Acemoglu went on to explain that "the second problem is that many aspects of the Portuguese economy are archaic." The economy is not geared to "create jobs, especially jobs with high productivity," said the 46-year old economist who was attending a Deutsche Bank and Catholic University sponsored conference entitled "How to make Portugal more prosperous."
Asked in an interview with 'Expresso' about Portugal's three years of adjustment which has now come to an end, the economist said there had been much positive progress, but stressed that there is still much to be done with regard to the public sector. Also, he warned also that this was not the time for domestic consumption to start rising.
Acemoglu also referred to the adaptation made to the Portuguese economy in the post-financial crisis but that has been using “the strengths that were already there" such as in tourism, agriculture, footwear and clothing which does not create new strengths.
"The reforms that were made in the last three years have been in the right direction, but I see that Portuguese society as a whole has sensed the gravity of the situation and the urgent need of reform."
"What I can say is that the public sector as a whole is too large and inefficient in Portugal. It has to be included in a debate about which parts of government are necessary and which are not."
This is a debate that Prime Minister, Pedro Passos Coelho, has had from time to time, he realises what needs to be done to trim the fat of the state, and then backs down in the face of union pressure and Constitutional Court rejection of his key measures.
Comments
Their salaries , expenses and bonuses should be drastically cut until they put the country back on its feet .
They exist to prevent private sector profit, to stop work from being done, to axe any investment.
That's their job, it's what they were hire to do. "Nao" is a safe answer that's the least likely to get a bureaucrat into trouble.
Insisting on immediate compensation for actual and future loss and stress on a no fault proved basis for anyone of any (EU?) nationality in the public or private sector stopped from employment or promotion, getting business contracts or hindered in any way from progressing their trade legally and licensed due to their voting preference.
And smash once and for all this idiocy that these political party labels mean anything in these more retarded societies.
It is still just the 'rosfeti' elite horsing around .... covering all the bases.
And stop their funding ! As an example of their 'honesty' - when will any of these politicals come clean on their party political expenses before getting their next 'fix'?
Acemoglu should have focussed on this and kept repeating it for at least the first 20 minutes of his lecture. Then periodically returning to it so that late arrivals and the Relvas degree types also got the message.
He should have stressed that Portugal's society had not developed for the last 100 years. First Salazar then ... post Salazar /EU.
No revolution » no change.
There is still the mindset that the elite make the decisons, right or wrong, and the ordinary Portuguese just carry them out.Being nobodies their opinions and advice irrelevant.
That is the real - Naaa really?
How would you like him to describe it?
Naaa really?