From autonomy to crisis
In 1976, Madeira became an autonomous region of Portugal. Since then, the archipelago has levied its own taxes and managed its social affairs budget. In fact, only foreign policy and defense were dependent on Lisbon. The island thus came to have its own government, remaining relatively independent of the Portuguese metropolis. From 1978 to 2015, the same man, Alberto João Jardim, presided over Madeira's autonomous government, the longevity of his "reign" having long been the subject of debate among his detractors, who did not hesitate to compare him to a dictator. However, he and his party (the PSD, Social Democratic Party, of which there is a branch in every village on Madeira!) have ensured the archipelago's economic growth and the development of the island's infrastructure, particularly since Portugal joined the European Union in 1986: Madeira then obtained the status of outermost region, which enabled it to receive much-needed Community aid until 2006. Most of this aid was injected into road and hotel infrastructure, greatly increasing the island's tourist capacity. As a result, Madeira has gone from being a poor and neglected region to one of the richest in Portugal.
An economy that is struggling to recover
As the 2008 financial crisis hit the world, and Portuguese Prime Minister José Sócrates resigned in 2011 after implementing highly unpopular austerity measures, the Madeiran archipelago also found itself embroiled in a financial crisis, which European Union aid failed to stem. In February 2012, at the height of the debt crisis, Angela Merkel declared Madeira to be an example of the misuse of European structural funds: "We built tunnels and freeways without increasing competitiveness". In fact, the causes of the crisis in Madeira are mainly due to risky real estate investments and numerous construction projects initiated by Alberto João Jardim and then finally abandoned, all using public funds and other lucrative contracts.
The end of the Alberto João Jardim era
It was Alberto João Jardim's questionable management of the island's budget, which led to tensions with Lisbon, that prompted him to resign in 2015. This was followed by early regional legislative elections, which gave Miguel Albuquerque, current PSD leader and former mayor of Funchal, the presidency of the Autonomous Region of Madeira. Following the austerity plan, the situation has improved markedly, and the problem of poverty has now given way to "rich-country problems" such as pollution and the destructuring of the landscape. Madeira has the lowest unemployment rate in the country, now standing at 5.2% inQ2 2024. The once heavily indebted small island (over 6 billion euros), criticized for its bewildering publicly-funded construction projects, managed to reduce its public debt by 3.2% in 2023 (5 billion euros).
An agrarian economy
Thanks to its fertile volcanic soils and tropical climate, Madeira has historically found the tools for its development: agriculture has been the mainstay of the archipelago's economy for 500 years, and even today, almost single-handedly represents its primary sector (10% of the working population is employed in agriculture). In the 15th century, the privileged strata of the European population developed a taste for sugar, a luxury commodity that became highly sought-after, so much so that Portugal - like all other European colonial powers - began to plant sugar cane on a massive scale to meet this demand. African slaves were moved from Cape Verde to the sugar cane plantations that soon covered Madeira. Today, all that remains of these intensive crops are small plots used to make brandy(aguardente, Madeira's rum) or the local gingerbread, bolo de mel, made from molasses. Cereals and vines are also traditional crops in Madeira, to which were later added flowers, of course, but also vegetables (cabbage, corn, carrots, climbing beans, tomatoes, lettuce and potatoes) and tropical fruits, led by bananas (an essential commodity for Portugal, on which Madeira continues to be economically very dependent), but also pineapples, mangoes, guavas and avocados. However, due to the island's steep terrain and the consequent impossibility of motorized efforts, the development of these crops has been, and continues to be, a titanic task.
Fishing and breeding
As for animal proteins, while there is no real cattle farming on the island (although there are a few cows for milk), fishing is a substantial part of the Madeiran diet. While there are no harbours on the north coast (which has no natural shelters and is constantly exposed to the wind), there are five on the south coast. From east to west, these are Caniçal, Machico, Funchal, Câmara de Lobos and Calheta. This traditional fishery is carried out using small, colorful boats or rather outdated trawlers. In addition to tuna (50% of Madeira's catch), bonito and paddlefish, the star fish here is theespada, or sabrefish, a variety of eel typical of the archipelago's waters, which accounts for around a third of what the sailors catch. A good metre long, wrist-thin, anthracite-black and armed with impressive teeth, it is fished with lines sometimes 1,500 m long and equipped with dozens of hooks: theespada is caught at a depth of around 1,000 m and brought to the surface, eyes bulging with decompression. Every evening, theespada fishermen leave the port, their luminous lights blending in with the stars out at sea. Then every morning, for over a century, they unload their cargo at the Funchal market or in the villages, transported in vans criss-crossing the countryside with loudspeakers blaring. In every restaurant and with every sauce,espada is the undisputed master.
