The discovery of a consignment of books of Protestant propaganda in Seville in the autumn of 1557 convinced the Spanish inquisitors of the existence of clandestine circles that promoted doctrines that contradicted Catholic orthodoxy as redefined between 1547 and 1552 during the first sessions of the Council of Trent. The discovery of a second community of religious dissidents in Valladolid a few weeks later, followed by the arrest on suspicion of Lutheranism of Bartolomé de Carranza y Miranda, archbishop of Toledo, on 22 August 1559 created the impression in the royal court of Philip II that Spain had escaped an odious heretical conspiracy hatched by foreigners and supported by members of its own nobility and senior clergy. Some of the outstanding figures among the Seville and Valladolid dissidents cannot, contrary to what historiography has long maintained, be characterised simply as Erasmists; many of them subscribed to the doctrinal core of Protestantism. There were several networks of Lutherans in Spain, as well as among the communities of exiled Spaniards throughout Europe. The Reformation made a greater impression in Iberia than has long been assumed.

Southern European Fascist regimes claimed to be ruled by a higher concept of ‘social justice’. While the propagandistic nature of this claim is clear, this chapter argues that behind it lies a coherent (if at times paradoxical) ideal that directed the action of states and institutions. Drawing on the cases of Italy and Portugal, this chapter charts the roots of fascist ‘social justice’ and how it reflected a core set of ideas about the relationship between the individual and the state where hierarchy and the primacy of the nation shaped a deeply anti-egalitarian idea of justice.

Between 1500 and 1800, Iberian society was characterized by high inequality of income and wealth, low real wages that stimulated working relatively long hours and days, and some expansion consumption focused on low-quality manufactures. Despite the high levels of wealth of the upper groups living in large urban centers such as Madrid, Lisbon or Seville, Iberian consumption patterns did not experience a consumption revolution as they were highly conditioned by relatively low living standards. Although the second half of the eighteenth century was a turning point in Portugal and Spain – due to a reduction in the price of manufactured goods and greater openness to cultural foreign influences – economic and social changes excluded many disadvantaged groups of low-income earners, women, young children and poor people.

This chapter surveys the economic growth experience of Iberia since the early nineteenth century. After more than a century dominated by sluggish growth and divergence from Western Europe, there was a substantial acceleration in GDP and per capita GDP growth of both Iberian economies c. 1950. As a result, in the very long term, Iberia has partially closed its initial gap with the Western European core. The chapter also shows that, in the case of Spain, the early 1950s represent a divide between a hundred years of moderate growth dominated by factor accumulation, and half a century of fast growth led by total factor productivity (TFP). By contrast, this intensive model of growth was not shared by Portugal, where per capita GDP increases so far have been mainly associated to factor accumulation, rather than to TFP increases. Finally, new estimates of regional historical GDPs show that regional inequality emerged after the first long wave of modern economic growth and market integration. By 1950, the geographical patterns of regional inequality were well established, and since then they have just been consolidated. As a result, a poor Iberia has emerged that spreads over a continuous area around the border between Spain and Portugal.

This chapter analyses the reasons behind changes in the intensity with which inventions and other changes in production took place in early modern Iberian polities. Rather than quantifying the impact of science on the economy and determine the direction of causality – two processes that were interconnected – this chapter studies the developments in science, knowledge and technology in relation to what is known about the economic performance of the Iberian economy. It analyses first the improvements in the agrarian sector, before showing some technological advances in the non-agrarian part of the economy. The chapter describes especially the innovations in specific areas of manufacturing like shipbuilding, textiles (woollens, silk and cotton) and mining. The last section discusses the role played by the institutional framework, and it explains how the Iberian monarchies promoted technology and knowledge in different ways.

To say that good institutions are a fundamental condition to foster economic growth is close to platitude. However, it is important to explain how it happens, and therefore the main aim of this chapter is to present and discuss the role played by both private and public institutions in decision making processes related to the implementation of economic policies encouraging economic growth. By discussing the lessons from the Iberian experience throughout the nineteenth and twentieth centuries, the chapter tries to disclose the similarities and differences between both countries, with a main focus on the way how the institutional environment helps to explain the circumstances that favour or hinder economic performance. This comparative approach begins with the age of the liberal revolutions in the early years of the nineteenth century and closes with the processes of democracy building and European integration in the two last decades of the twentieth century. The study of institutional changes and continuities in Spain and Portugal during this long period offers multiple opportunities to better understand the articulation between the economic and business environment, the dynamics of the markets and the economic policies designed or implemented by the state, in fulfilment of its regulatory role.

This chapter collects the historical threads about the economic growth of the two Iberian nations. From a disappointing nineteenth century, during which they fell behind the rest of Europe, and the conflicts of the first half of the twentieth century, the two nations quickly caught up from the 1950s. Growth was mostly extensive and pulled by physical capital accumulation, with small contributions from human capital or productivity. The Iberian divergence from its European peers has often been blamed on natural endowments, modest domestic markets and savings, as well as on second-nature geography (market access). However, this volume shows that all of these were endogenous to the growth itself, which requires looking for deeper explanations. Institutions and the political equilibria that underpin them loom large here. After a century of fragile liberal monarchies and radical republican regimes, the two nations stood out for their long authoritarian regimes. Inward-looking economic policies promoted by the dictators favoured domestic incumbents but harmed the growth potential of the two countries. Only their gradual reopening from the 1950s unleashed this potential. Nevertheless, the gains from growth have not been equally distributed and convergence stalled in the new millennium, with the adoption of the Euro.

This chapter covers the history of banking in the Iberian Peninsula from the early nineteenth century to the beginning of the twenty-first century. The narrative provides a complete, albeit brief, historical overview of how the financial structures of the two countries have evolved. It also offers a comparative perspective of the two financial systems, pointing out to their similarities and their differences. The first part of the chapter describes the formation of the Portuguese and the Spanish banking systems. Special attention is given to the main changes that took place since their early beginnings to the consolidation and modernization of the banking structure in both countries. The second part traces the history of the two Iberian central banks: the Bank of Portugal and the Bank of Spain. The last section compares the banking structure and development of the two Iberian nations, and brings out their similarities and differences. First the attention is focused on comparing the main features of the Portuguese and Spanish private commercial and investment institutions. The chapter finishes with a brief evaluation of the historical role played by the Bank of Portugal and the Bank of Spain.

This chapter examines the conflictual context of the slave trade on the Loango coast. European slave merchants competed with each other, and French slave merchants from various ports clashed as well. French slave traders provided local agents with goods that had local demand and also attempted to respond to the specific tastes of local rulers and agents, to whom they paid customs, often referred to as presents. When these arrangements failed, ship captains did not hesitate to give themselves the upper hand by sabotaging their European rivals. The chapter shows how, on occasion, French traders also physically assaulted even their compatriots by stealing their cargos of commodities and human beings. Despite European pressures to monopolize the trade in the region, the rulers of Ngoyo, Kakongo, and Loango kept significant control over their territories during the eighteenth century. However, on some occasions, Ngoyo’s Woyo residents of Cabinda supported the French to fight the Portuguese who also attempted to control the region. Likewise, in some situations, local traders sided with specific French traders in detriment of others as well. Understanding these conflicts is central to grasp the importance of gifts of prestige and local agents in the trade of enslaved Africans on the Loango coast.

This chapter offers an overview of the Luso-Brazilian World in the Age of Revolutions. It surveys key episodes culminating in the independence of Brazil, including the transfer of the Portuguese Court from Lisbon to Rio de Janeiro, the Napoleonic invasion of Portugal and its long-term political implications, the creation of a Reino Unido (United Kingdom) from 1815 and the resistance that this reconfiguration of the Portuguese empire provoked. The chapter then traces the impact of the 1820 liberal revolution in Portugal, which sought not only to establish a constitutional monarchy, but to return the seat of the monarchy to the Peninsula. This effort to return to the status quo ex ante was rejected in Brazil and precipitated independence. Far from a denouement, however, Portugal and Brazil continued to influence each other’s political evolution in the aftermath of formal empire.

The reinstallation of liberal constitutionalism in Spain in 1820 was the first major challenge to the conservative political system of the Restoration, with far-reaching effects on the European and American continents. Spanish liberals endeavored to continue a political program based on the constitution of Cádiz (1812), although they encountered many obstacles in the form of inner discord and, especially, a local robust counterrevolutionary movement which enjoyed external support. The Trieno Constitucional was a moment of rapid and intense politicization, which surpassed the social elites to reach into a wider public that included popular sectors. A vigorous public opinion was developed and elections with mass participation were held at various administrative levels. The reverberations of the Spanish revolution were felt abroad. Naples-Sicily, Portugal and Piedmont-Sardinia soon adopted the Cádiz constitution. Moreover, during the Triennium the American possessions of the Spanish and Portuguese monarchies secured their independence, at a critical moment in which the Iberian metropoles were unable to delay the process anymore. Ultimately, the return of liberalism to Southern Europe was short-lived. The constitutional regimes fell after interventions accorded by the continental powers endorsed the local reactionary interests.

The Epilogue addresses the legacies of wartime neutrality and collaboration in Macau. The war period provided a peculiar blueprint for later developments in terms of bilateral Sino–Portuguese relations and of local practices in the enclave, including towards new waves of refugees. The Epilogue also covers recent written and visual representations of wartime neutrality and collaboration in Macau.

This chapter centres on Macau’s experience from the occupation of Hong Kong in December 1941 until the end of the war in September 1945, when the enclave became the last foreign-ruled territory in China to remain unoccupied by Japan. It argues that collaboration through compliance was a way of avoiding occupation. In this period, the practice of neutrality in Macau reached a peak of ambiguity. It was marked by the interplay of different forces and important new players competing for political legitimacy, economic control and social influence. These included Chiang Kai-shek’s government, Wang Jingwei’s Reorganised National Government, Portuguese colonial authorities, Japanese military forces and local elites.

This chapter introduces the main themes and arguments of the book. It places Macau in the history and historiography of the Second World War in China and in Portugal, and contrasts Macau with other foreign-ruled territories in China, such as the International Settlement and the French Concession in Shanghai. The chapter also revisits the history of Sino–Portuguese relations in Macau, framing the enclave’s Second World War experience in a larger context of global connections, ambiguities and relative autonomy unfolding since the sixteenth century.

This chapter analyses the multifaceted impact of the arrival of thousands of refugees in Macau, showing how relief activities depended on the pragmatic interplay and cooperation of different state and non-state actors. Focusing on Chinese refugees from Shanghai and Guangdong province, and on Portuguese Eurasian refugees from Shanghai and Guangzhou, the chapter details how an unprecedented refugee influx constituted both a crisis and an opportunity for the territory’s administration, local population and the refugees themselves. These wartime refugee waves led to the emergence of a peculiar wartime cosmopolitanism in Macau, which sprang from new flows of people, capital and ideas from major treaty-port metropolises.

With an international focus, this chapter analyses Portuguese neutrality in wartime China before the fall of Hong Kong in late 1941, with reference to the British and Japanese imperial presence in the region. It argues that the war in South China saw Macau and its Portuguese administration engaged constantly with these two major imperial powers in a precarious balance marked by continuities in Portugal’s relations with its old ally, the United Kingdom, and a novel proximity to Japan that generated contradictory practices on the ground.