Interview with José Manuel Bolieiro, Regional President, Autonomous region of the Azores

10 Dec Interview with José Manuel Bolieiro, Regional President, Autonomous region of the Azores

Mr. President, as you embark on your second term, how do you envision the evolution of the Azores under your leadership compared to your first term? What key initiatives or changes do you plan to implement?

José Manuel Bolieiro (JMB): Let’s start by stating that the autonomous region of the Azores operates with political autonomy, having its own policies and government distinct from the central government of Portugal. The Portuguese government supports the development of the Azores, but the autonomous government represents the democratic will of the Azorean people. It formulates development strategies and political policies that may diverge from those of the central government.

During our initial mandate, our perspective was shaped by the reality of the unique challenges posed by small islands and economies. We sought to alleviate the burdens imposed by government intervention, which often hindered the capacity of entrepreneurs. In pursuit of this goal, we have endeavored to decrease the presence of public enterprises, aiming to foster opportunity and prevent undue competition from state-owned entities against private firms. There are private enterprises with Azorean ownership and local management but there are also national and even international corporations. In fact, I have actively encouraged foreign investment across various sectors in the Azores.

This was the initial focus I aimed to establish as a politician and government representative, intending to distinguish our administration from previous ones. While this initiative arose from necessity due to the limited private sector presence in the Azores, it became imperative to assume control over various activities that would otherwise have been managed by private enterprises. Now, I am endeavoring to inaugurate a new phase, facilitating opportunities for private investment that align with the strategic objectives of our government. A crucial aspect to foster competitiveness in attracting investment pertained to taxation. Being in the Azores, we’ve implemented a 30% reduction in tax rates. This reduction applies to national tax rates on personal and family income, corporate taxes, and consumption taxes. Essentially, while the national tax rates stand at X, we’ve decreased these rates by 30% in the Azores. Consequently, individuals, families, and both national and foreign companies investing in the Azores pay lower taxes compared to those on the mainland. This adjustment addresses the considerable tax burden in place.

Could you outline the pillars of socio-economic development that your government prioritizes for the Azores? How have these priorities evolved from your first term, and what new strategies do you intend to pursue?

JMB: Our aim is to foster an economy centered on transactions, wealth creation, and tradeable goods, encompassing both services and tangible products. We may lack the robust industrial production capacity, but we do possess an economy capable of generating tradeable goods, notably in the agri-food and maritime-food sectors.

Certainly, we also offer services as a tourist destination, which should be innovative and supported by reduced tax burdens for private investors across all sectors that drive the economy using their own resources. This approach emphasizes the region’s endogenous capacity. That was my strategic bet. The other strategic bet was to promote the Azores and its economy internationally. Hence, whenever possible, such as in this interview, I take the opportunity to discuss the Azores and its potential for attracting foreign investment.

We need to acquire know-how, which can be achieved through joint ventures, investment funds, and venture capital. It’s also important to encourage entrepreneurs to reside here, stimulating their creativity and leveraging the potential of the region. Even in the midst of digital transformation, it’s possible to generate wealth across all sectors, albeit in more intangible forms. The digital era enables us to be globally connected despite our island location in the North Atlantic. I also aim to promote this approach. Another focus was on developing a mobility strategy. We are an archipelago with nine islands, each with its own micro-economy characterized by significant demographic and economic disparities. It became crucial to facilitate inter-island mobility by reducing the burden of excessive costs on families. To address this, I introduced the Azores Tariff, which sets a fixed price of 60 euros for round-trip travel between any two islands, irrespective of the origin and destination islands.

Because I believe it’s crucial to uphold the principles of territorial continuity and regional unity in an outermost archipelago situated far out in the North Atlantic. To provide some context, Leonor and I are currently on São Miguel Island, the largest and easternmost island in the Azores. It’s worth noting that we’re approximately 600 km away from the westernmost island, Flores Island. Regarding the projection of territorial continuity, whether I want to travel from São Miguel to Flores, which is the furthest island, or Corvo, I can do so for 60 euros round trip. Similarly, if I want to go to the nearest island, Santa Maria, I also pay the same 60 euros. This means that families or companies no longer base their mobility choices on price or geography, but rather on the opportunity to reach any destination for the same financial effort.

This concept embodies the European principle of territorial continuity and cohesion, which I’m implementing here. It’s innovative and doesn’t exist elsewhere in Europe or in our country, across any mode of transportation—land, sea, or air. I introduced it specifically for air travel, the only regular and annual means of connecting the islands. Another challenging effort is improving the external accessibility of the Azores to the continent and beyond, including Europe and North America. I’ve been working to enhance the Azores’ reputation as both a tourist and business destination, aiming to amplify something small into something significant. When assessing a country’s wealth and its ability to generate wealth with its endogenous resources, two elements often come into consideration.

Considering our landmass and geographical position, we may appear small, isolated, and distant. However, when viewed within the context of spatial and maritime fields, the Azores possess the potential to become a global benchmark, initially nationally and within Europe, then extending globally, for research, modernization, and technological innovation. This is especially true in areas that remain largely unexplored today, notably in the field of the blue economy. This involves understanding the depths of the ocean, its rich biodiversity and biomass, as well as the potential mineral resources it holds. Such endeavors align with the Sustainable Development Goals outlined by the United Nations. In this way, we are establishing reference points for future human, plant, and animal life, with the Azores serving as a laboratory for the future. This involves understanding and exploring various aspects. Therefore, significant investments can be attracted to the region, particularly in scientific research, technological innovation, strategies for environmental sustainability, preservation of biological diversity, and the exploration of untapped resources.

This is why I emphasize that the Azorean Sea is now an asset for the future economy. It represents a dimension beyond our current capabilities as policymakers. We lack the financial, scientific, and technological resources to fully explore its vastness and complexity. Therefore, I’m working towards establishing a consortium strategy for research in the blue economy field. Our significance is now global, given the size of our sea, which rivals that of many nations. To illustrate, the Azores Sea ranks as the world’s 20th largest territorial sea and exclusive economic zone, and the fifth largest in Europe. We’re no longer discussing remote and impoverished 9 islands; rather, we’re addressing an immense reservoir of untapped wealth with the potential to benefit humanity. The sea, being a carbon sink, plays a pivotal role in addressing climate change. Therefore, we possess an asset that could contribute significantly to global sustainability, even in a future market for carbon credits. This ensures fairness in sustaining human, plant, and animal life on a planetary scale.

What advantages would you highlight to potential residents and investors considering the Azores? How does your government plan to leverage these advantages to attract further investment and talent to the region?

JMB: As the president of the regional government, I’m constrained by the fact that many competencies fall under the jurisdiction of the central government rather than the regional government.

Within the framework of my own competences, for example in tax matters, I have already exercised as much as I can. And that’s why I’m territorially competitive in tax matters with the mainland, therefore with the continent and even with Madeira. But in other matters, I have a lot of limitations. I therefore have more evidence of the geostrategic nature and dimension than of regulatory and legislative capacity. And what I need to do is influence my country to take a different view of the interests of the Azores, of the Azoreans, which are also the interests of the country, because we add value to Portugal.

Portugal faces challenges in technological innovation and transitioning to global trends due to its small size and limited financial and economic capacity. To address this, Portugal relies on integration into European Union consortia. This applies not only to the maritime field, but also to the space domain, which I’d like to discuss as well. Let’s begin with the maritime domain. In the maritime field, the digital transition renders the Azores Sea appealing for transatlantic connections between North America and Europe. Our strategic positioning enhances this appeal, particularly in communication technology for data transmission and smart cables. Moreover, the placement of intelligent sensors allows us to monitor climate change, natural events, and underwater exploration in the North Atlantic. Our geography provides a protected environment for these endeavors.

Firstly, the Azores boast a strategic positioning. Secondly, why are they protected? Because the exposure of submarine cables to international waters is minimized compared to other areas. This uniqueness stems from our considerable sovereignty and relatively exclusive location. Thus, any entity, private or public, interested in digital transition, data transmission, or deploying sensors in deep-sea submarine cables can find opportunities here. Our waters are exceptionally deep, with minimal continental shelf. Even in this respect, defense is heightened and more protected. Potential saboteurs or terrorists face increased surveillance and encounter challenges in reaching great depths where fiber optic cables are laid. Consequently, the Azores possess a competitive advantage in this business. While we may not fully control it, we can benefit from royalties for allowing other entities, public or private, to utilize and enjoy these resources.

I’ve been advocating for European consortia, with Portugal collaborating alongside countries like Germany, Spain, Italy, and France, particularly in the blue economy sector. Such collaboration could extend beyond Europe to include international partners, such as the United States. For instance, Google has shown interest in this endeavor. The goal is to address the intermittency and latency issues in data transmission across the vast fiber optic cables spanning the Atlantic. Therefore, we need to develop latency elements or accelerators. This is crucial in areas like gaming, stock exchange, and telemedicine, where excessive latency is unacceptable. The Azores can serve as a docking station for introducing these accelerators, capitalizing on our various assets.

One of our assets is minimal exposure to international waters, along with the advantage of being strategically located in a geography that bridges North Atlantic to continental Europe and North America, including the United States and Canada. Additionally, it’s easy to extend connections to the South Atlantic, reaching Africa or South America through derivatives routes with reduced exposure to international waters. This allows for integration into the territorial waters of respective maritime states along the coasts of various continents. Fortunately, modern technological configurations align well with the generational sensitivity towards sustainability and energy transition. Here, we can address the need to cool engines and data centers. Given our abundance of water resources, including saltwater from the sea and freshwater, alongside access to geothermal energy, we’re in a privileged position. Thus, we can significantly reduce energy expenses for cooling and latency treatment by utilizing renewable, non-polluting, and inexhaustible energy sources.

Our geothermal energy, while emitting some carbon as a natural process, can be harnessed for intervention in this area. Additionally, we have other renewable energy sources such as wind, water, and photovoltaic. Although photovoltaics are more technologically advanced, wave energy is also a possibility. When establishing a data center, combining tethering and emissions control for latency management, we benefit from redundancies in energy supply. Redundancy is ensured because the private sector can explore options such as drilling geothermal boreholes and collaborating with public entities for geothermal synergy. This allows for a public supply network as well as private networks utilizing various energy sources including geothermal, wind, and hydroelectric. This capability sets our territory apart from others.

This dimension provides us with opportunities. Ultimately, our goal is to receive compensation through royalties for the gains derived from these competitive advantages in digitalization. I also aim to expand on this idea. Another concept I want to discuss is understanding the water column, which I mentioned earlier. I don’t know if Leonor is familiarized but the understanding of the water column follows a hierarchical logic. We begin with the mesopelagic zone and descend to the bathypelagic, abyssopelagic zones to finally the hadopelagic.

Scientifically, the term refers to depth. Studying the water column allows us to understand how depth impacts biodiversity. It’s essential for investigating climate change, ocean warming, and noise pollution, as well as for gathering knowledge through vibration sensors. For instance, it helps us monitor activities like bomb testing or the launching of atomic missiles, which can affect the seabed. Given our central location in oceanic connections, we can gain insights into atomic submarine experiments and nuclear media. It involves experimenting with underwater vibrations at significant depths, which can be recorded with appropriate sensors. We could establish a global monitoring system to detect and regulate nuclear experiments conducted underwater or on land. Additionally, it would enable us to observe and understand the behaviors of cetaceans at greater depths.

We can utilize scientific knowledge to understand and track changes in the sounds produced by various marine mammals such as whales and dolphins. This enables us to grasp the impacts of factors like ocean warming, pollution from ships, surface noise, vibrations, and human activities on marine life. Such understanding is essential for effective conservation efforts. The Azores could serve as an excellent laboratory for such studies. As a representative of our territorial waters, we also seek compensation for our participation. I have been involved in global initiatives, such as the establishment of protected marine reserve areas, aligned with the United Nations’ sustainable objectives with a deadline of 2030. We are aiming to implement these reserve areas by 2024. This initiative aligns with the United Nations’ primary objective of protecting 30% of the sea to preserve biodiversity and mitigate overfishing. We are setting a prestigious example, particularly for the younger generation, demonstrating our commitment to environmental sustainability. However, it’s crucial to ensure that this effort also brings social and economic benefits to our region and its people. We potentially have an asset here.

Forward-thinking entrepreneurs can recognize these opportunities as businesses of the future, rather than the present. While some are already emerging, the boldest innovations project toward future enterprises. Apart from the blue economy, tourism is another significant aspect. We have the opportunity to transition from exploiting the ocean to appreciating it, shifting from a hunting-based economy to one centered on contemplation. A pioneering example of this transition is our shift from whale hunting to whale watching. Here, we can capitalize on our marine and maritime biodiversity without depleting it by offering observation opportunities, which can be profitable in the form of tourism. This aligns with the concept of the tourist economy centered on observation and contemplation, which people are willing to pay for. I wanted to emphasize this aspect within the blue economy.

Additionally, in the realm of the space economy, we also hold significant potential. I often jokingly suggest that the Azores could serve as a laboratory for the future. At our easternmost point, we can observe space from Earth. In the central area, we have the capability to observe Earth from space. Meanwhile, in the westernmost area, we possess weather radars to monitor the consequences of climate change, including its impact on the United States, the coast of Europe, and our own region. These radars are particularly useful for monitoring unusual natural phenomena, often induced by hurricanes and other weather events.

Hence, in the realm of space, establishing a spaceport or space technology center in Santa Maria necessitates a consortium. Portugal and its counterparts possess the capability for a competitive space strategy. Competition exists even within Europe. The consortium should ideally comprise Portugal, Spain, Italy, and Germany. France has French Guiana, while the United Kingdom includes Scotland. Moreover, Russia, China, and the United States are major players in this arena. Interestingly, for broadcasting, suborbital and orbital launches, which involve minimal interference with aeronautical movements, are conducted here in Santa Maria since it operates more like a free zone in that sense. Consequently, both orbital and suborbital launches enjoy greater flexibility in choosing launch days, among other factors, as aeronautical navigation primarily occurs farther north of the Azores. We rely on apps like Flight Radar to monitor this activity.

It’s convenient to observe the convergence of airplanes at a distance from our designated area, reducing conflicts. However, the issue of orbital debris is increasing. So, there’s a necessity for a future business strategy to address waste removal and bring it back to Earth. Our advantage lies in the environmental sustainability of space operations. Our capsules for suborbital and orbital satellite launches can be retrieved safely, falling into the sea without impacting populations or posing risks, especially in areas with minimal maritime traffic.

Launches can occur once the capsule has landed and is ready for recovery and reuse. This approach offers a competitive edge in terms of environmental sustainability and resource management. Instead of depletion, resources are recycled, recovered, and repurposed. Additionally, there’s a need to revise collection methods, as some current practices involve shooting, leading to the destruction of satellites and the creation of micro waste in space. The waste remains present. It’s no longer sizable, existing as small particles due to fragmentation. Ideally, capturing and examining these particles to establish a safe zone for each is crucial. However, this process isn’t straightforward. The Azores, given their strategic location, play a significant role in addressing these challenges. Furthermore, we benefit from a climatic advantage. While we experience occasional extreme natural phenomena, they are highly predictable and fortunately rare. Interestingly, such events tend to occur further north in the Azores. For instance, the Space Technology Center, where launches take place, is situated in Santa Maria, the southernmost and easternmost island.

Could you send a last message to the readers of USA Today, namely for people who are looking to invest or visit the Azores?

JMB: I’d like to raise awareness among Americans about the leadership of the future and its significance. Future leadership should be viewed through the lens of emerging generations and their values. It’s crucial for future leaders to align with the evolving concerns and priorities of these generations, who advocate for sustainability across social, economic, and environmental realms.

It’s about fostering an innovative lifestyle rooted in preservation, emphasizing a quality of life where individuals prioritize working to live, rather than living to work. My daughters, who critique me on this, underline the goals of working to survive, not live to work. And underscore the importance of humanitarian principles, dignity, equal opportunities, and respect for diversity. They also advocate for a long-term commitment to life, including environmental sustainability for the planet and all forms of life.

This is the essence of future leadership. Now, let’s consider the future of leadership itself. Leaders face a grim future if they fail to grasp this trend and rely solely on momentary populism. While they may achieve short-term electoral gains, their long-term prospects are uncertain. However, such leadership will inevitably face severe condemnation from future generations. They will be remembered negatively for their detrimental impact. Therefore, the future of leadership hinges on leaving a positive legacy for present and future generations, earning praise, commendation, and trust. Moreover, their descendants will likely feel compelled to disavow the legacy of poor leadership, as it offers no lasting value. The future of leadership is inevitably linked to understanding the needs of future generations. Therefore, aspiring leaders, whether on a domestic or global scale, must prioritize this perspective. It’s essential for anyone seeking leadership roles within the United States or influencing its global leadership to bear these considerations in mind.

The Azores can play a crucial role in this endeavor, especially considering the presence of the American military base here. This base has been essential for both deterring war and fostering peace. It serves as an advanced frontier in the defense of the United States, safeguarding it from potential conflict. Additionally, as global partners, the Azores have played a pivotal role in projecting American influence and defending peace in Europe.

I’m well acquainted with the Azores, including our geography and geostrategic position. However, why limit our significance solely to the military domain? Shouldn’t we also aspire to leadership in innovation, technology, preservation, conservation, and planetary sustainability? Above all, the Azores should serve as a true laboratory for scientific, research, and technological experiments. This approach will enable us to maintain our global competitiveness, even amidst emerging major players like China and India. Unfortunately, nations such as North Korea, Russia, and Iran also pose challenges, particularly in the realms of science and military technology.

These are the points I wish to emphasize. The Azores should no longer remain invisible regarding their potential for the global future. Instead, they should become a point of reference for all who are willing to leverage our geostrategic value and intellectual, political, and economic significance. That’s the message I’d like to leave you with.