Political-Legal Context Concept
Political-Legal Context designates a group of contextual variables with influence in the performance and in the activity and represents the political situation and legal principles and conditions allocation of powers and provides the legal framework of the society.
Are examples of Political-Legal Context variables the following:
- Political stability: In Portugal there has been a certain governmental continuation since 1986, since the rotation of the political parties in the power hasn’t had substantial reflexes in the adopted policies. Alongside of this political stability, the generalized adherence to the principles and goals of the European Union has contributed to the rise of the country’s international credibility, providing, beyond the important Community funds, influx of high amounts of equity in the form of foreign direct investment (FDI). The annual impact of 2,3% of the Community funds and 2,5% of the FDI over the GNP growth between 1990 and 1994 is an evident signal of the political stability relevance and the adherence to the European Community.
- Economical Policies: The adoption of the liberal economical policies has the tendency to contribute for a long term creation of new companies and more employment, while more restrictive policies and closed to the exterior usually have negative effects in the private initiative. In Portugal stands out the privatization policy and opening of several sectors to the private initiative and foreign investment (like are the cases of banking, insurance and other financial services, transports, energy, communications, among others), which contributed to a faster modernization of these sectors, with positive impacts in employment levels, wages, and general economy.
Translated from Portuguese by Susana Saraiva, Portuguese-English and English-Portuguese translation specialist. Contact: email@example.com.