PC is a People's Republic with some clear Socialist politics, but at the same time is a friend of über-reactionary Zartania. "How can that be?", you may ask.
Well, you know Lenin's saying, "one step backwards, two steps forward"?
PC was intended to be a communist country, a minor red power. Hey, I even based the Portocapitalian flag on the Cuban one! It didn't take long until I abandoned this idea.
The leaders of the Peaceful Revolution quickly realised that they'd have to change certain aspects of their political thinking if they were to stay in power. They needed support from non-communist countries, such as Zartania and Cimera. They needed the sympathy from neighbouring Ordland. They needed certain neoliberal economical reforms to rebuild the country's infrastructure. They needed to take one step backwards.
At the same time, they couldn't simply renounce to their ideology! They still needed to give the people what they promissed during the Peaceful Revolution. They implemented the collective farms. They implemented free access to high-quality schools, hospitals, electricity, water, and all. Most of the taxes are now applied on areas such as welfare, health and education. One step forward.
And now, four years after the establishment of the People's Republic, major industry is being nationalized. The government has publicly announced its intention to withdrawn the neoliberal economical reforms, now that they already had their result. The fiscal incentives to multinational companies is being pulled out, and foreign investiments are once again being heavily regulated. Another step forward.
But, does Porto Capital now aims on being a Communist power? No, not at all! We have no intention on this. Neither does our people - except, of course, some minor groups. They enjoy the freedom of speech of a democracy, and the government does not want to take it away from them¹. We do want to have trade with the entire world, not to close ourselves in a red bubble. We do need the friendship of Zartania and Cimera, not a military alliance with the PROG. In short, the original ideology of the Peaceful Revolution has been modified to such a degree that it can't be called communist anymore. It is still considered Socialist. In some aspects this Socialism is near to Communism, in some other aspects it can be best described as Welfare State-like. But definitively not Communist.
Is this considered taking another step backwards? Your choice. The government's official stance on this is "we do not follow any classical ideology, we advance with our own ideals and actions". What's yours?
So, as you can see, there's no need to worry about evil commie Portocapitalians sponsoring revolutions in your country! Our definition of Socialism is more akin to Solelhada than to, say, the PROG. We believe in the construction of a Socialist country through democratic means, not through a revolution.
But oh, please... Don't tell Zartania about any of this. Please.
 Yeah, we do have a Department of Propaganda, but their only job is making patriotic and informative posters on Adobe Photoshop, not go arround yelling "OMG WE R TEH GREATST NATION EVAH!!!!!1111 BELIVE THIS OR DIE SCUM!!!!!!!!!!11111shift111one"