One of the smallest and least developed nations in Western Europe, Portugal played a far greater role in history than it does in modern world affairs. The socioeconomic gap between Portugal and its partners in the European Union is so great that it will probably take generations to narrow the chasm.

Mainland Portugal, excluding its possessions, the Azores and Madeira, is the southwestern corner of Europe. Its hills and mountains are the western edge of the Iberian Plateau, whose narrow western coastal plain faces the Atlantic Ocean. This maritime location has been one of the factors of its destiny, for the sea dominates much of Portuguese life. The proportion of its coastline to land area is more than twice that of Western Europe. Portugal's shape is a modified rectangle, running 360 miles (580 kilometers) from north to south and varying from 80 to 140 miles (130 to 225 kilometers) in width.

Contiguous with Spain, eastern Portugal is a continuation of the Spanish Meseta. The region is rugged, barren, and sparsely populated. The hills and plateaus run close to the sea north of the Tagus River and in an east-west-trending ridge in the Algarve of the southern part of the country. The highest peak in Portugal, Malhao da Estrela at 6,532 feet (1,991 meters), lies in the Serra da Estrela. Nevertheless the general terrain pattern of western Portugal is basically low hills and plains. Northern Portugal is quite hilly, especially north of the Douro River. Between the Tagus and the Douro, there is a coastal plain. South of the Tagus, which divides the country roughly in half, the land generally lies below 600 feet (180 meters). The region is best described as a gently rolling landscape. Other rivers that reach the coast are the Mondego and the Sado. The Douro reaches the sea at Oporto, while the Tagus descends to Lisbon--both key urban centers of modern Portugal. (See also Lisbon, Portugal.)

Portugal has a Mediterranean climate, with mild, rainy winters and hot, dry summers. Its temperatures and rainfall reflect the influence of the sea. Northern Portugal has temperatures in the 40s F (4o-9o C) in the winter and the 70s F (21o-26o C) in the summer. Its rainfall averages 35 inches (89 centimeters) per year. In contrast, southern Portugal has a climate resembling that of the Costa del Sol of Spain, with winter temperatures in the 50s F (10o-15o C) and summers near 80o F (27o C). Its rainfall is lower--20 inches (51 centimeters)--and the summers are very dry.

Portugal's natural vegetation resembles that of Spain, but as a result of its damp climate the north has more forests than does the north of Spain. The trees are typically oak, chestnut, and pine (sandy plains), while in the center cork and oak predominate, with bush and grasslands farther south.

The people of Portugal are remarkably homogeneous, with physical characteristics that are common to the Mediterranean region. They tend to be somewhat shorter than the European average, however, and commonly have darker complexions. In the mid-1990s the population of Portugal was 9.9 million, or a quarter that of Spain. The average density was about 279 per square mile (108 per square kilometer). Vital rates resemble those of Western Europe, with a stable birthrate of 11.5 per 1,000, a death rate of 10.7 per 1,000, and an infant mortality rate of 11 per 1,000. The north is rather densely populated and urbanized, while the south is far less so. There has been significant rural-urban migration, and the country has assimilated more than 600,000 refugees from its former overseas empire. During the 1950s and 1960s there were significant labor flows to the more industrialized nations of Western Europe. Their remittances have measurably aided the national economy. Such opportunities no longer exist in Western Europe and there has been a return migration that has added to the country's high unemployment rate of 15 percent.

Three out of five Portuguese have not finished the first four years of elementary education. The number of illiterates in the population above 15 years of age is estimated to be 1.3 million, or nearly 13 percent. The number of people 20 to 60 are equal to the population under 20 and over 60--a dependency that is a major burden on the active members of the labor force.

By the early 1990s, Portugal's population was just over 10 million, a little more than triple the 3.1 million estimated to live in the country in 1801. The main causes for this slow growth were a high infant mortality rate for much of these two centuries and an emigration rate so extreme that in one decade, the 1960s, the country's population actually fell. These trends have reversed in recent decades. The country's infant mortality rate at the beginning of the 1990s--10 per 1,000 in 1992--remained somewhat higher than the European average but was one-fifth of that registered two decades earlier. Emigration also slowed markedly as prosperity appeared in Portugal in the second half of the 1980s. Moreover, a massive influx of refugees from former Portuguese colonies in Africa in the second half of the 1970s caused a population surge.

Although population estimates are available for earlier years, the first official Portuguese census was taken in 1864. It showed a population of approximately 4.3 million. Thereafter, the population increased slowly at rates often well under 1 percent per year. Only during the 1930s and 1940s did the population increase at over 1 percent per year. During the 1960s, the population actually fell by over 300,000 and in 1970 amounted to more than 8.5 million. During the early 1970s, population continued to fall or was stagnant. This demographic trend was the result of widespread emigration. Many Portuguese left their country in these years to find employment abroad or to avoid military service in the wars Portugal was fighting in its colonies in Africa.

In 1974 the country's population showed its first sizeable increase and by 1981 reached nearly 9.8 million, 1.2 million more than it had been ten years earlier. The settling in Portugal of an estimated 500,000 to 800,000 refugees from the country's African colonies accounted for most of this increase. During the first half of the 1980s, the population grew at a rate of about 0.8 percent a year, then declined. As of the early 1990s, population growth was estimated at 0.4 percent a year. By the beginning of 1992, the population of Portugal, including the Azores and Madeira, was estimated at nearly 10.5 million. Population specialists projected that if existing trends continued, the country's population would peak at 10.8 million in 2010 and fall to 10.5 in 2025.

The Lisbon area was the region of greatest population growth in absolute terms, in part it was the seat of much of the country's governmental apparatus, as well as its manufacturing and service sector jobs. Until the 1960s, the area's population increases were mainly inside the city of Lisbon, but since then the suburbs have grown most rapidly. The central city's population remained largely stagnant or even declined in some years, while that of the suburbs surged. High city rents, crowding, the decline of old neighborhoods, pollution, and the squeezing out of housing by commercial enterprises were among the causes of this new suburbanization of Lisbon's outlying districts.

Portugal's daily cultural life centers on the home and family. The great majority of people are practicing Roman Catholics, so the church is also a center of religious and cultural activity. People tend to gather in the evening in cafes, where entertainers sing melancholy folk songs called fados. Another area of entertainment is the popular bull ring, where animals are not slaughtered as is the common practice in Spain. The Portuguese national sport is futeball--called football in the rest of Europe and soccer in America.

The most significant cultural achievements of the past date from the 15th and 16th centuries. 'The Lusiads', the finest works in Portuguese literature, were written by Luis de Camoes; a distinctive architectural style--the Manueline--emerged in the ornate monasteries and cathedrals of Belem and Coimbra; and the noted paintings of Nuno Goncalves date from that era of discovery.

Modern fiction has taken two forms: one with regional overtones and the other stark realism. In the latter group there are fictional studies of Portuguese rural life typified in works by Jose Maria de Eca de Queiros, Eugenio de Castro, and Miguel Torga. Regionally oriented fiction has depicted life in Brazil, the Azores, and East Africa. Lyric poetry, however, remains of great significance, and abstract painting and sculpture have a strong following.

Portugal's capital, Lisbon, with more than 830,000 inhabitants, is a quasi-modern metropolis. It offers a strong contrast to the dominantly rural countryside. Not only is it the nation's largest city, but it is a major port, commercial center, and the hub of the country's heavy industries. Lisbon was almost destroyed by an earthquake in 1755, but remnants of the earlier era are still charming tourist attractions (see Lisbon, Portugal). Oporto is the second largest city. Both possess institutions of higher learning, but the major university is at Coimbra. Braga in the north is the leading religious center.

Portugal is among the poorest nations in the European Union, largely because it has only recently created a significant manufacturing sector. In the late 1980s and early 1990s Portugal had the fastest-growing economy in Europe, showing an average of 4.5 percent GNP growth per year; however, in the mid-1990s its per capita gross national product (GNP) was still only about one third of the Western European average.

From the 1970s the Portuguese economy has been in a constant state of crisis, largely due to the domestic shortcomings. A large number of Portugal's trading partners are economically troubled; thus the market for its products has declined. This, coupled with excessive overseas purchases, has resulted in a negative balance of trade that contributes to the budgetary deficit.

Internally, capital and labor productivity are both very low, and few enterprises are in the technically advanced high-growth sectors. Expenditures on research and development are also very low. A large share of economic activity lies in the hands of state agencies. Energy, transportation, banking, insurance, and heavy industry were nationalized in 1974. Despite some privatization since then, the general structure remains largely unchanged. In Portugal such activities often operate at a loss.

The role of agriculture has been greatly reduced since 1974. It now accounts for less than 10 percent of the GNP and employs roughly 12 percent of the labor force. About 45 percent of the land of Portugal is arable. The remainder is handicapped by steep slopes, infertile soils, and, in the south, by low and erratic precipitation. The major portion of the cultivated area is devoted to the production of cereal grains--mainly wheat. Portugal is one of the world's leading wine producers. Its best-known export is port wine, which is produced mainly in the Douro Valley. Olive oil is also a leading export. Such fruits as apples, pears, and peaches are raised in the north, while oranges are grown in the warmer south. Limited amounts of these fruits are exported.

Land reform, though initially troubled, has eased the lot of Portuguese farmers. Yet actual improvements in irrigation, fertilizers, and mechanization have lagged far behind initial plans. Thus agricultural productivity is still very low. The country continues to be a major importer of grain and other foodstuffs.

There are reported scattered reserves of nonferrous ores, but the only significant product is tungsten, which is a major export. Although some coal is mined, it is of low quality, and the country depends on imports of petroleum and natural gas. This is a considerable drain on Portugal's balance of payments.

Manufacturing has risen to 30 percent of the GNP. Light industries predominate, and handicraft production is still significant. These industries produce textiles, apparel, leather goods, ceramics, cork products, and canned fish (anchovies, sardines, and tuna). Heavy industries produce steel, metal products, machinery, and petrochemicals. In regional terms the Oporto-Braga area in the north focuses on labor- intensive light industries, while the Lisbon-Setubal urban centers are dominated by capital-intensive heavy industries. High-tech plants exist, but their production is not significant. From the 1970s Portugal greatly improved its transportation network, but its infrastructure is still that of an underdeveloped country. A key problem is the railroad gauge, which differs from that of the rest of Western Europe.

Portugal has been a republic since the monarchy was overthrown in 1910. It has a single-chamber legislature, the Assembly of the Republic, with 230 members who serve four-year terms. Their selection is by popular vote and proportional representation. The president, who is head of state, serves a five-year term subject to renewal. He presides over the Council of State and appoints the prime minister, who presides over the Council of Ministers. This council, comparable to a cabinet, must have majority support in the Assembly.

The president sets election dates, directs foreign policy, serves as commander in chief of the armed forces, and decides on the constitutionality of laws passed by the Assembly. The prime minister, as head of government, directs government policy and approves the national budget. It is the responsibility of the Council of Ministers to draw up a government program and present it to the Assembly shortly after a prime minister is appointed. The Assembly votes on policies and laws suggested by the prime minister and the council. The country is divided into 18 districts. The district governors are appointed by the minister of the interior.

Portugal's unique position on the Atlantic Ocean gave it an advantage when Europe began searching for new routes to the East. What has been called the Golden Age of Discovery began with the support of Prince Henry of Portugal (see Henry the Navigator). Explorers who sailed under Portuguese patronage included Bartholomew Diaz and Vasco da Gama, who pioneered routes around Africa to the Orient (see Diaz, Bartholomew; Gama). Beginning in the 16th century Portugal amassed a huge empire in the Far East, Africa, and South America--an overseas empire about 23 times the size of the home country. In addition to the Azores and Madeira (now autonomous regions), the empire included Portuguese Timor; the peninsula of Macao, attached to China; the African colonies of Angola, the Cape Verde Islands, Mozambique, Portuguese Guinea (now Guinea-Bissau), and Sao Tome e Principe; Brazil, now the largest nation in Latin America; and the little colonies of Goa, Daman, and Diu on the Indian Ocean.

In 1580 the Portuguese royal family died out. Philip II of Spain had his forces occupy the country. He was soon accepted as Philip I of Portugal. He and his successors ruled Portugal until 1640 amidst gradually increasing resentment. Finally, while Spain was embroiled in war with France, Portugal threw off the Spanish yoke. John, duke of Braganca, was selected to become the new king. He was crowned as John IV on Dec. 15, 1640. The house of Braganca remained on the throne of Portugal until 1910, although its hold on power was frequently challenged.

Portugal forged a new and enduring alliance with England that lasted through the Napoleonic era in the early 19th century. Throughout much of this time Portugal's security was difficult to maintain, because its two allies--France and England--were often at war with each other. Difficulties were greatest during the Napoleonic wars, which devastated much of Portugal. When Napoleon's armies overran the Iberian Peninsula in 1807, they forced the Portuguese King John VI to flee to Brazil. The Peninsular War lasted until 1814, when the duke of Wellington finally defeated the French armies. John VI returned in 1821, but Brazil declared its independence a year later, ending Portuguese power in Latin America. Internal strife continued for several decades, however.

By 1892 Portugal had been plunged into bankruptcy. Internal dissension culminated in the assassination of Carlos I and his eldest son, Luis, in 1908. Two years later his successor, Manuel II, was forced to abdicate, and Portugal was proclaimed a republic.

Civil strife nevertheless persisted until 1926, when a military dictatorship gained control. Antonio de Oliveira Salazar became premier in 1932. With the establishment of his "new state" in 1933, he was given dictatorial powers. Salazar ruled Portugal for 36 years (see Salazar, Antonio de Oliveira). When Salazar became ill in 1968, he was replaced by Marcello Caetanao. This new dictator was determined to hold onto the remnants of empire at all costs. This led to his overthrow by army officers on April 25, 1974. The new president, Gen. Antonio de Spinola, pledged decolonization. Soon the colonies were abandoned, one by one. Portuguese Guinea (now Guinea-Bissau) became independent in 1974. Angola and the other African colonies followed in 1975. By 1976 only Macao was left, and that was scheduled to revert to China at the end of the century.

After two years of turbulence and military rule, a new constitution was adopted in April 1976, and the first free elections in 50 years were held. At first the new government had strong Marxist leanings, but the failed economic policies of the Communists lost them support.

Constitutional reforms in 1982 made it more difficult for the Communists to return to power. The Social Democratic party managed to stay in power into the early 1990s. In July 1989 the constitution was revised to remove Marxist elements. Faced with a distressed economy, the Social Democrats quickly abandoned their socialist principles. The left-wing Socialist party won the October 1995 elections, and Antonio Guterres became prime minister.

Portugal, along with Spain, joined the European Union (EU) in 1986. The results were a strong five-year expansion of the economy, boosted by strong consumer spending, investment, and privatization of businesses.

Official Name. Portuguese Republic.

Capital. Lisbon.

Mountain Ranges. Serra da Estrela, Serra de Monchique, Serra da Ossa.

Highest Peak. Malhao da Estrela, 6,532 feet (1,991 meters).

Major Rivers. Douro, Mondego, Sado, Tagus.

Population (1996 estimate). 9,927,000; 280.0 persons per square mile (108.1 persons per square kilometer); 35.6 percent urban, 64.4 percent rural (1995 estimate).

Major Cities (1991 estimate). Lisbon (681,063), Porto (309,485), Vila Nova de Gaia (247,499), Amadora (176,137).

Major Religion. Roman Catholicism.

Major Language. Portuguese (official).

Literacy. 86.8 percent.

Leading Universities. Portuguese Catholic University, Technical University of Lisbon, University of Lisbon, all in Lisbon; University of Aveiro, Aveiro; University of Coimbra, Coimbra; University of Evora, Evora Codex; University of Minho, Braga Codex; University of Porto, Porto Codex.

Form of Government. Republic.

Chief of State. President.

Head of Government. Prime Minister.

Legislature. Parliament; unicameral Assembly of the Republic, with 230 members popularly elected; four-year terms.

Voting Qualification. Age 18.

Political Divisions. 18 districts and 2 autonomous regions.

Chief Agricultural Products. Crops-- potatoes, grapes, tomatoes, corn (maize), wheat, olives, apples, oranges, cabbages, rice. Livestock--cattle, pigs, sheep.

Chief Mined Products. Salt, copper, kaolin, coal.

Chief Manufactured Products. Textiles, wearing apparel, food products, fabricated metal products, electrical machinery, tobacco products.

Chief Exports. Port and Madeira wines, olive oil, tomato paste, figs, cork and other wood products, textiles, ships, tungsten.

Chief Imports. Food, grain, fuels, petroleum, natural gas.

Monetary Unit. 1 escudo = 100 centavos.