Portugal and Angola at a new historical crossroad

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Essay

Portugal and Angola at a new historical crossroad

Rostislav Murzagulov

Institut d'Etudes Politiques de Paris

MPA Candidate

rostislav.murzagulov@sciencespo.fr

+ 33(0)646241478

117 Bd Saint Germain, 75006 Paris

Paris - 2014

INTRODUCTION

The capital of Portugal didn't witness this kind of things even in the course of summit meetings of the European Union: recent state visit of the President of Angola Josй Eduardo dos Santos to Lisbon became a great event and drew attention of even those Portuguese people, who have never been interested in politics.

Specially constructed pavilion with tribunes at Empire Square, highest readiness condition of Security Services, cordoned off streets, huge cortege, favorable media coverage spoke for aspiration to emphasize respect and demonstrate maximum interest in leader of the largest Portuguese-speaking country of Africa. It was all the more striking because usually both the President of Angola himself and his party caused antagonism of Portuguese press.

Angola has been fighting hard against Portuguese colonizers using military means for over a decade and a half. In civil war which followed that events and lasted for over quarter of a century, affection of considerable number of Portuguese policy elite representatives and journalists have clearly sided not government, but rebels. After their eventual overthrow in 2002 and consequential economic boom which has turned Angola into world champion in terms of GDP growth, tonality of coverage of events in the former colony remained the same.

And suddenly, as with a wave of a wand, everything has changed. Outside observer could think that relations between these two countries represent pathetic ideal and indissoluble brotherhood, and the President of Angola who visits Lisbon for the first time for almost three decades of his administration - has always been the best friend of Portugal.

This sharp metamorphosis is explained easily and prosily. Over the last years Angola has rapidly become one of the largest importers of Portuguese products. After start of global crisis which affects Portuguese economy more and more painfully as the months roll by, such market outlets can't be slathered. Portuguese public officials regularly use flattery striving to get certain privileges for their country. But, probably, this tactics, raised to the rank of one of external policy tools, has never been so obvious as in case with Angola.

After negotiations the President of Portugal emphasized that his country aims at "strategic partnership" with Angola. "I hope, that this visit will become the most important step not only in strengthening of political relationships between two countries which are excellent, but also in strengthening of economic, social and cultural relations", - mentioned Cavaco Silva.

Having placed economy at the first place, the President made it clear that he relies on Angola. More truly, on its fat purse. Because if the country continues to increase purchases of Portuguese products, and this is what exactly happening now, despite of crisis it can soften fall which the westernmost country has been suffering since the last year.

Josй Eduardo dos Santos during this historical visit promised Portuguese people financial aid and it was provided in form of significantly increased volume of investments from Angola into economy of Portugal. Portugal achieved trade surplus with Angola, which reached almost two billion euro. Over three subsequent years not less than 70 thousand of Portuguese people emigrated to Angola for getting paid work. 33 thousand of Angola citizens are officially registered in Portugal.

However this idyll ended in October 2013, when Portugal launched inquiry of origin of Angolan entrepreneurs' funds, being invested into Portuguese economy. Conclusions were made promptly - funds are connected with corrupt regime of the President of Angola. Leaders of the African country called this accusation biased and declared, and pointed out that Angola can redirect vector of strategic partnership to other countries.

In this paper it will be referred to what prerequisites existed for promotion of cooperation, what losses will be sustained by both parties due to break-up of cooperation and what ways out for this situation may be.



1. DEVELOPMENT OF RELATIONS BETWEEN PORTUGAL AND ANGOLA WITHIN THE FRAMEWORK OF COMMUNITY OF PORTUGUESE LANGUAGE COUNTRIES (CPLC)

Colonies of Portugal have always been for this country both its advantage and its Achilles' heel. Thanks to colonies Portugal have been "with its back turned on Europe" and "with face turned to Atlantic" for centuries, but when after five centuries of power in Asia, Africa and Latin America, Portugal had to return to its European roots and initial borders - in an "instant empire turned into small undeveloped country on the periphery of Western Europe and consequences of this transformation can be still felt" Pak Anna "Lusotropicalism" theory of Gilberto Freyre"//9 Conference of Africanists. Africa in the context of North-South Relations. Abstracts. - Moscow, 2002..

After end of colonial era mutual alienation, caused by historical claims and grievances, was observed in relations between Portugal and Angola. As the result almost all the former ties were broken. At present lost ties are actively recovered. Using ideas of "historical intended purpose", "theory of humane Portuguese colonialism" and "European missionary in Africa" Documento Melo Antunes ou dos "Nove" (06.08.1975)//http://www.uc.pt/cd25a/wikka.php?wakka=poderpol26. Portugal tries to build new relationships with its former territories, which would meet the interests of both African countries and Portugal itself. At that cooperation mainly develops in two directions:

Ш on bilateral basis;

Ш within the framework of Community of Portuguese Language Countries founded in 1996 (Coraunidade dos Paises de Lingua Portuguesa (CPLP)).

In 1996 Charter of the organization formalized the following core objectives of its participants Estatutos da Comunidade dos CPLP. - Lisboa. - 1996.:

* political and diplomatic cooperation in the sphere of international relations, mainly, through more active participation in international forums;

* cooperation in all the spheres, including education, health care, science and technologies, defense, agriculture, public administration, legislation, public security, culture, sport and social sphere;

* realization of projects on promotion and protection of Portuguese, mainly with the help of International Portuguese Language Institute.

Millennium Declaration adopted at the VI Conference of heads of states and governments of CPLC, proclaimed eight new objectives of the organization in July 2006: "eradication of poverty and famine, increase of access to basic education, gender equality and conferring more rights to women, infant mortality reduction, improvement of birth conditions, as well as reduction of mortality rates during childbirth, fighting AIDS, malaria, tuberculosis and other deathful diseases" VI Conferencia de Chefes de Estado e de Goverao da Comunidade dos Paises de Lingua Portuguesa. Bissau, 17 de Julho de 2006. Declarafao sobre os Objectivos de Desenvolvimento de Milenio: Desafios e Contribuifao da CPLP..

Article V of the Charter formalized basic functioning principles of the Community, which include equality of rights, non-interference in internal affairs, respect for national identity and territorial integrity, promotion of mutually beneficial cooperation.

General strategy and basic areas of focus of CPLC are determined within the framework of summit meetings which are held by heads of states and governments twice a year. Annually there are held meetings of Council of Ministers, where activity of the Community is coordinated, its budget is approved. In Lisbon Permanent Coordination Committee (PCC) convenes on a monthly basis, at its meetings one representative of each country of CPLC is present. Executive secretariat works, own bulletin is issued. Economic, scientific and cultural events are hosted under the patronage of the organization. Headquarters of the organization is located at Lisbon.

Thus it was established structure of working bodies of CPLC, which must realize itself in certain actions within the framework of universal program aiming primarily at political goals. For Portugal which didn't have such high economic potential as, for example, France and United Kingdom, it made good sense to unite former colonies around it namely on political basis.

Thus famous Portuguese Africanist A. Torresh considers to be obligate emphasis on namely political cooperation between former mother country and colonies: "Portugal and African Portuguese-speaking countries have more bases for cooperation than just business interest. CPLC may become a political tool of general project for seven Portuguese-speaking countries, in which some of them may become privileged members in the future" Adelino Torres. Horisontes do Desenvolvimento Africano. No Limiar do Seculo 21. - Lisboa. -1998. - P. 209..

After achievement of certain political success, member countries of CPLC, including Portugal and Angola, directed their efforts to other spheres of activity as well:

a) military collaboration;

b) economic cooperation;

c) social cooperation;

d) free movement of people within the framework of CPLC;

e) protection and spread of Portuguese in the world.

1.1 Military collaboration between Angola and Portugal within the framework of CPLC

Military collaboration is one of the most important aspects of collaboration within the framework of CPLC. On the one hand, significance of this area of activities is explained by challenging environment in the world, including that due to increasing terroristic threat. On the other hand, in author's opinion, military collaboration would allow Portugal to control African countries and particularly Angola. Data exchange, joint training of military cadres gives opportunity Europeans and Brazilians to supervise processes inside of African countries Comunicado Final da Cimeira Constitutiva da CPLP. - Lisboa. - 1996..

In particular, development in this direction was promoted by series of agreements in military sphere signed in 2003 between Angola and Portugal, which also affected military engineering, training of staff for mine clearing, military education for Angolans in Portugal, as well as creation and reorganization of military infrastructure of Angola.

1.2 Economic cooperation between Angola and Portugal within the framework of CPLC

Economic cooperation within the framework of CPLC is emerging along with development of the Community. At present CPLC establishes the following goals for economic cooperation:

· to develop economic, social and cultural initiatives for eradication of poverty;

· to promote economic dynamism, macroeconomic equilibrium, financial stability, transparency and competition;

· to ease debt burden of the poorest countries;

· to expand the volume of trade. Estatutos da Comunidade dos CPLP. Julho 2002. - Brasilia.

Core in intention is the idea to mold general economic strategy for Portuguese-speaking countries, which could increase sales and investments within the framework of CPLC on multilateral basis. The first practical step in this direction was taken by creation of Forum of entrepreneurs of the Community in July 2002 with the assistance of Ministry of Foreign Affairs and Ministry of Economic Affairs of Portugal, as well as Portuguese Association for Economic Development and Cooperation. Objective of the Forum became:

· development of closer contacts between entrepreneurs of CPLC;

· promotion of foundation and strengthening of associations between entrepreneurs in member countries;

· distribution of information on projects, programs, tenders within CPLC and regional organizations, the countries are members of;

· development of strategical partnership;

· search of new forms of financing;

· contribution to training of human resources in the field of economics and entrepreneurship;

· assistance in demolition of obstacles on the path of developments of international trade in goods and services.

Portuguese Association for Economic Development and Cooperation became a body which represents Forum of entrepreneurs of CPLC. "Pulse of the Planet" journal, Moscow //2004.06.03.

1.3 Social cooperation between Angola and Portugal within the framework of CPLC

First of all, social cooperation of Portuguese-speaking "seven" is aimed at poverty reduction, promotion of human rights in African countries, in particular, sexual equality, advancement of women and children. In November 2006 CPLC signed protocol with Commissioner of UN for human rights, which provides mutual consultations and exchange of information concerning defense of human rights. www.cplp.org/comunicados.

Integral part of social program of Portuguese-speaking community is fight against gender discrimination and violence against women. Commission on gender equality and rights of women operates within the organization, it's in charge of initiatives and measures for safeguard of the rights of women, their more active role in society and peace-building, prevention of physical, psychological and sexual abuse.

In December 2006 member countries of CPLC started campaign for fight with illegal child labor within the territory of their countries. This campaign provides creation of working team, publication of editions and posters, creation of special centers, posting of information on the website of CPLC and other.Estatutos da Comunidade dos CPLP. Julho 2OO2. -Brasilia, 2002.

1.4 Free movement of people within the framework of CPLC

Conference of heads of states and governments, which was held in Brazil in July 2002, set out one more point of cooperation between countries of CPLC. Its result became adoption of resolution on free movement of citizens within countries of CPLC (up to 90 days), in addition to which it was signed agreement for introduction of multiple entry visa for the period of 360 days for certain categories of citizens, for example, politicians, scientists, sportsmen. Further, these agreements have been repeatedly revised, but it's evident, that this line of cooperation, removing physical barriers between countries, is very effective.

1.5 Spread of Portuguese in the world

Important area of cooperation remains protection and spread of Portuguese in the world. As it was stated above, foundation of CPLC started with project on protection and spread of Portuguese in the world.

For Portugal protection of its language in former colonies plays extremely important role: despite of the fact, that about 200 million people in the world speak Portuguese, it loses ground under the influence of British and Francophone communities, which introduce English and French both in system of economic relationships and everyday communication. For example, in Mozambique, surrounded by English-speaking countries, English is the second most frequently used European language in the country, and only 30 % of its population speaks Portuguese. Declarafao Constitutiva da Comunidade dos Pafses de Lingua Portuguesa- CPLP. - Lisboa. - 1996.

But in Angola Portuguese is native language for people, the larger portion of population of the country speaking it and this is one of the most important cooperation aspects. Probably, for Portugal use of Portuguese in Angola became the main tool of political and cultural cooperation, which also significantly facilitates entrance of Portuguese companies into market of Angola. In fundamental Declaration of the organization it was emphasized, that Portuguese "represent historical connection and common heritage, which became result of centuries-old shared history, which must be appreciated". Declarafao Constitutiva da CPLP. - Lisboa. - 1996.

Leadership of Portugal worked out number of measures, aimed at spread of Portuguese language and culture, preservation of their importance in former colonies. Programa do XIII Govemo Constitucional. 1995.; Programa do XIV Goverao Constitucional. 1999.; Programa do XV Govemo Constitucional. 2002.

These measures included among others:

· foundation of new Portuguese language centers and branches of the Camхes Institute http://www.instituto-camoes.pt/cvc/index.html., the main objective of which is spread of lusophonic Lusophone - A Portuguese speaker. culture at Universities or higher educational establishments abroad, in particular in Portuguese-speaking Africa;

· reorganization of educational network;

· educating teachers of Portuguese as foreign language;

· signing contract-programs, purpose of which is evaluation of status of Portuguese of teachers at foreign Universities, where they work;

· working out of radio programs, teaching Portuguese as foreign language by concluding contract with telecommunication company "RTP" through broadcasting of channels "RTP International" and "RTP Africa";

· introduction of system of evaluation and certification of Portuguese as foreign language;

· development of program on providing grants for primary education in Portugal, mainly, within the framework of Lusophonia program and organization of educational programs in various countries in accordance with scientific and professional criteria;

· program for providing grants for those studying the language as foreign;

· development of programs, oriented at strengthening of use of Portuguese as working language in international organizations;

· assistance in realization of projects for studying and creating new tools and techniques for teaching Portuguese;

· creation of virtual Camхes center, providing information on study of Portuguese as foreign language, history of the language and other;

· informational support of libraries, creation of virtual centers for studying language.

1.6 Critics of CPLC

According to Anna Pack Pak Anna "Portugal's Current Policy towards Portuguese-speaking African Countries"//Southern Africa on the Threshold of the Third Millennium. - Moscow, 2001. there is a point of view among representatives of diplomatic circles of Angola that Portugal loses ground in former colonies and its aspirations to extend influence in African countries with the help of CPLC is unreasonable. Some experts from its inception considered CPLC to be a nonviable organization. According to this point of view basis for this Community of Portuguese-speaking countries must become economic cooperation and business partnership: "Cost what it may for defenders of "illusive" but not real CPLC, it's necessary to get real in order to understand that CPLC can't and mustn't be organization based on image of Portugal and Brazil".

This opinion is shared by Portuguese researcher E. Lopesh, who thinks, that foundation of CPLC is "a good idea and it's necessary for CPLC to become a political priority of countries of Lusophonia, bit it's just a political structure with limited organizational and financial possibilities and low level of dealing with civil society"

Portuguese politicians in response to such representation state, that organization founded by Portugal is viable, there are just problems caused by specificity, history and problems of each particular country. Though skeptics think that the point is not in difference of mentalities, but in the fact that Portugal has neither real mechanisms of interaction with former colonies, nor economic and financial means for their attraction.



2. BILATERAL COOPERATION BETWEEN PORTUGAL AND ANGOLA

The principal direction of collaboration between Portugal and Angola is cooperation in the field of economy and trade. For Portugal economic relations are of strategic nature, what is determined by number of factors.

Firstly, for Portugal Africa represents a source of income alternative to incomings from European funds. Country's government has already come up against situation where facilities coming from EU in form of grants, funds and subsidies had become more modest. Portugal is under the necessity of ensuring alternative sources of income, which include, first of all, former colonies, what is promoted by historical connections, commonness of language and adequate knowledge of African market.

Secondly, leadership of Portugal made its aim to secure to the country vast market outlet for their products, where they are competitive. Instead of nostalgic and historical aspects in the forefront necessity to ensure market outlets and raw material markets was put. It's difficult for Portugal to come into European, American or Asian markets, where large and recognized companies have been operating for many years. Moreover, set of goods which can be presented by Portugal at the international market is quite limited - textile and agricultural products, articles made from cork, wine and so on.

There is a kind of "habituation" to products from former mother country in former colonies: local citizens know products and brands, accompanying documents and certificates don't require translation. That's why from point of view of former Minister of Economic Affairs of Portugal L. Mir Amaral "significant step to success of Portuguese economy may become moving of part of production and goods to third countries, in particular, along Atlantic arc". Diario de Noticias // 29.05.1997.

As of today development of economic cooperation of Portugal with former colonies includees several tools:

* arrangement of political conditions for economic cooperation;

* provision of economic and financial aid;

* work of Portuguese Language Institute (PLI);

* intra-industry cooperation;

* activity of ISEP Portugal - Institute of Companies for external market. http://www.icep.pt/conheca_nos/sobre.asp.

Primarily, arrangement of political conditions for economic cooperation, what means development of legal framework (particularly, in regard to double taxation and customs regulation), visits of heads of Portugal to African countries, exchange of government and ministerial delegations, organization of various forums and meetings of entrepreneurs.

The Republic of Angola is the main economic partner of Portugal among Portuguese-speaking countries of Africa. According to ex-Minister of Foreign Affairs of Portugal Freitas do Amaral "Angola has always been in heart of Portuguese people. I know that Angola also has special attachment to Portugal and this fact is a good basis for more intensive cooperation in those fields where it's possible, mainly, in sphere of politics, economy, diplomacy, trade and sport."Paises da CPLP tem peso especifico na cena mundial - http://www.noticiaslusofonas.com/view.php?load=arcvie.

Despite of such declared "emotional attachment" of Portugal to its former colony, it's easy to suppose, that main interest of Portugal in Angola is rich mineral resources of the country, first of all, oil and diamonds, as well as water and timber resources. Besides, the country provides basic access to central and southern regions of Africa for Portuguese goods.

Starting early 2000s it has been observed growth in Portuguese exports to Angola. In 2001 export from Portugal to Angola reached 500.67 mln. euro, what is 35.3 % more than in 2000. In 2002 export index reached 569 mln. euro. Monografia de Angola.1998-2000. - Luanda, 1998. - P 135.

Primary group of exported goods included: engineering products and equipment - 21 % (or 104 mln. euro), food - 16.7 %, beverages - 9.1 %, chemical products - 10.2 %, as well as furniture, agricultural products, cars, paper - 5 %.

Onwards export of Portugal to Angola continued to increase: in 2003 it amounted to 649 mln. euro, and in 2004 it was 672 mln. euro (2.3 % of overall export of Portugal abroad that year). At the end of 2006 Angola lied in the ninth place in Portuguese export.

But, please note, that growth of export didn't affect nomenclature of goods, which has just slightly changed after end of civil war in Angola. It may only be mentioned reduction of export of food and increase of equipment and industrial products content. portugal angola collaboration community

In 90s import of Angolan products to the former mother country was marked by high level of sales of mineral fuel in the beginning of decade and its decline in the late 90s. The main products, which were imported by the Portuguese from this African country, included products of agriculture (34.6 %), pearl, precious gems and valuable materials (24.5 %), mineral fuel (22.4 %). Angola exported the following products of agriculture to the former metropole - diamonds, coffee, fish, seafood. In 1999 it was observed slump in Angolan import to the former mother country, but then there was visible tendency towards constant growth of indicators.

Over the last decade structure of products, exported to Portugal, has just slightly changed. In the early 2000s Angola imported to Portugal the same products as it did in 90s.

Direct investments of Angola to economy of Portugal continue to grow. Angola leads among other countries of PALOP in terms of volume of direct investments to the former mother country - 93.1 %.

In Angola Portuguese business has strong stands in financial sector. Branches of Portuguese banks operated or are operating in the country: "Banco Espнrito Santo e Comercial de Lisboa ", "Banco de Fomento e Exterior", "Banco Portuguкs do Atlвntico", "Banco Totta & Acores", "BPI". In the middle 2000s Portuguese bank BPI was aggressive at the Angolan market, this bank invested 120 mln. euro into economy of the country.

Among construction companies the most famous is Teixeira Duarte which managed to return to Angola in 1978 and settled there. For long period of time Portugal has owned almost whole hotel business, including the best hotels in Luanda and considerable proportion of restaurant business.

In 2002 subsidiary BIVAK of Portuguese company Bureau Veritas acquired right to fiscalization of export and import in the country and inspection of goods, sent to Angola.

It is not surprising that under conditions of such economic growth, and, mainly, development of petroleum industry, Angola attracts foreign investors. Growth of business activity is primarily observed in oil and diamond industry, in the field of communications and creation of new infrastructure.

Despite of existing economic and political risks Angolan economy attracts investments. Since 2002 till 2004 about 10,250 mln. dollars has been invested into economy of Angola in form of direct investments. And just part of these investments belonged to Portuguese companies. Only 30 million from 455 million dollars invested by the USA into economy of Angola in the first half of 2004 belonged to Portugal. Аfrica Hoje//Maio 2004.

Portuguese companies compete with French, English, South African, American, Chinese and Russian companies, which invest their funds into projects of Angola in fields of oil and gas production, diamond industry, sphere of communications, construction and trade. For example, among European oil operating companies, which work in Angola, French company Elf Akitan dominates, it possesses 50 % in joint enterprise, performing oil development in shelf zone in estuary of the Congo River in the north of the country.

Among other European companies there should be noted British Petroleum-Amoco (United Kingdom), Shell (English-Dutch company), and Portuguese company "Netrogal" holds not leading position at all.

Specific indicator of growth of economic activity of Angola and at the same time competition of Portuguese companies with companies from other countries is annual International Fair of Luanda. Over the recent years number of participants of the fair has been increasing, thus, in 2004 renewed pavilions of the fair accepted more than 600 European, African, American and other companies. Portugal features in FILDA, mainly, products of building and construction, food and textile industry. Africa Hoje// Novembro 2003.

For authorities of Angola foreign investments are important, that's why they welcome foreign companies, which come to the market.

Luanda shows tendency towards diversification of economic relationships, what is primarily explained by interest in investments into economy, destroyed by war. Lisbon exerts every effort for "protection" of its capital in Angola. The Prime Minister of Portugal in 2002-2004 D.J. Barroso during his visit to Angola emphasized that "Angola is an opportunity which can't be lost".

In 2003 it was signed collaborating agreement between two countries and Indicative collaboration program for 2004-2006 to the total amount of 42 mln. euro.

Angola is the largest market outlet for Portuguese products in former colonies, and also it's a country rich in natural resources, in extraction of which Portugal would like to participate directly.

Despite of end of the war and relatively stable political situation in the country, nevertheless, Portugal faces some challenges, such as competition with other European companies (recently Asian companies, primarily, Chinese ones, have become active at the market of Angola), indebtedness of Angola and, the main reason, inability of Portugal itself to interest Angola in cooperation with it.

Portugal could take leading positions at the market of Angola only by proposing considerable investments to it or beneficial partnership and having become market outlet for Angolan products. Angola, as any developing country, will provide access to its market to that country or companies, which propose the biggest investments.

During the period when investment opportunities are not very high, on the contrary, Portugal is only able to propose Angola to act as investor in economy of Portugal and this is what has been happening over the last years.

3. CONCLUSION AND THE POLICY RECOMMENDATIONS

Constantly increasing presence of Angolan structures in economy of Portugal and explicit currying favour with rich former colony cause conflicting emotions in Portugal. In humoristic appendix "Enemy of Society" Publico newspaper, for example, dedicated the whole spread to jokes about strengthening of influence of Angola. "Sonangol Angolan oil company. buys Portugal", - tells one of the headlines. "Lisbon will be renamed into New Luanda, and Porto - into Northern Ndalanatdu", - says another. "Portugal withdraws from euro zone and joins kwanza zone", - forecasts the third one. Photo collages show the President of Angola, who is pulling a cart full of dollars, and Prime Minister of Portugal, who is sweetly offering a guest to buy something from him.

Against this backdrop it's not surprising, that Portuguese authority were criticized within the country for extremely high level of cooperation with Angola, regime of which is considered to be corrupted by many experts.

Many people consider to be not a fluke the fact that the first female billionaire in Africa, according to estimates of Forbes, became daughter of the President of Angola - 40-year-old Isabel dos Santos. According to data of Forbes, daughter of self perpetuating the President of Angola Josй Eduardo dos Santos, who has been sitting since 1979, possesses several blocks of shares in the largest Portuguese and Angolan companies. She possesses 19.5 % of shares of Portuguese bank BPI, what approximately amounts $465 mln. Besides, Isabel dos Santos possesses 28.8 % of shares of cable television operator in Portugal ZON company. Forbes magazine appraised this property at $385 mln. Along with that, she possesses shares amounting to $160 mln. in Angolan bank BIC. Unidentified source also informed Forbes, that dos Santos is a shareholder of cell phone company Unitel in Angola and possesses not less than 25 % of shares, which cost "minimum one billion dollars".

Professor of Johns Hopkins University (USA) Peter Luis, specializing at study of Africa, also says that the President of Angola and his relatives possess many assets of the country. At that he emphasizes that these organizations are of dubious provenance and have opaque structure.

According to estimations of IPRIS Portuguese Institute of International Relations and Information., amount of Angolan investments in Portugal increased from 1.6 to 116 mln. euro for the period since 2002 till 2009. Luanda has free capitals, while Lisbon has to privatize everything what is possible to privatize, in accordance with agreement (May 2011) with European Union and International Monetary Fund (IMF), it must sell the whole or part of TAP Portugal national airline, BPI bank and so on. What is the origin Angolan capital? Angola is rich in oil and diamonds, but high corruption level is still an important factor of development of Angola.

Rafael Marques, expert of anti-corruption non-governmental organization Global Witness, thinks that Portugal must ask questions concerning origin of this money: "If not to ask these questions, Portugal will turn into "laundry" for misbegotten gains of Angola. Of course, people in Portugal are very concerned about this fact, but, unfortunately, I think, the more money will be obtained from Angola, the less questions about its origin will be asked."

The President of Angola has made it clear to his Portuguese colleagues, if VIP-persons of Angola are not freed from charge of corruption - Angola will sever historical ties with Portugal and redirect cooperation line to other countries. Thus, it's evident, that authority of Portugal will have to make a difficult choice in response to ultimatum, delivered by partners from Angola. There are two possible options - to lose rich relative, but to save face in the eyes of Western partners or to prolong receipt of affluent stream of money of dubious origin, but to be criticized by liberals.

It looks like one of those situations, when there is no the only one right solution and opportunity to choose one of the extremities.

On the one hand, it's evident that Portugal can't afford loosing strategical partner, which is seeking for opportunity to place free capitals. But on the other hand - authority of Angola is not everlasting and policy elite which will take over the government after it may ask Portugal harrowing questions about money, which was diverted from people of Angola in an illicit way, while people of Angola live for 2 dollars per day on the average. Probably, question on return of these investments will be raised.

Portugal needs investments, but it must accept them responsibly, guided by respect for international law rules.

That's exactly why author of this essay considers the following actions of government of Portugal to be reasonable in the current situation:

1. Calling of maximum high-level international conference with involvement of structures of UN, EU, Organization for Economic Cooperation and Development and so on, concerning problem of possible laundering of money, stolen in Angola, through investment of it into economy of Portugal.

2. Quickest possible, but objective and open completion of the stated investigations of corruption cases with announcement of the proved results.

3. Working out of strategy for compensation of incurred losses for those investors from Angola, participation of which in corruptive schemes won't be proved.

4. To develop program of attracting investments from CPLC countries, including Angola, with provision of number of considerable preferences in confirmation of maximum preferential treatment of honest investors from CPLC countries.

This decision seems to be impractical in the times of crisis only at first glance. Attention of both honest and criminal investors is now locked on Portugal. For everyone it's important the answer - whether motivation of receiving quickie can be more important for European country, than deliberate policy of avoiding of turning Europe into "laundry" for criminal money from all over the world. In case if criminal money is rejected by Portugal - the country will get much more in future, if it doesn't let criminals to get into the very heart of economy of the country. I'm sure, that such approaches will also be evaluated on merits both by the European Union and honest investors, which won't have to compete with criminality.



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33. http://www.icep.pt.

34. http://www.cplp.org.

35. http://v^nvw.stop.co.mz/news/.

36. http://www.ipad.mne.gov.pt.

37. http://www.parlamento.ao.

38. http://www.dnci.net.

39. http://www.bna.ao.

40. http://www.iie-angola-us.org.

41. http://www.jomaldeangola.com.

42. http://www.soas.uk.

43. http://www.ecowas.int.

44. http://www.dw.de/angola-ends-partnership-with-portugal/a-17165355.

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