## _cr08242 ## Source details **Canonical URL:** [_cr08242](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08242.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08242.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08242.pdf.json) --- ### Introduction and strategic orientation - Overarching objective: "achievement of sustainable human development based on a strong, dynamic productive system, on the enhancement of its human capital, technological training, and its culture, in the context of balanced regional development, solidarity, social justice, democracy, and environmental awareness." - Medium-term outlook: GPRSP II covers the period 2008-11. - Five major strategic aims: good governance, human capital, competitiveness, infrastructure building, and social cohesion. - Central poverty-reduction approach: - Primary channel: structural policies to promote inclusive economic growth. - Complementary channel: redistributive, socially compensatory policies targeted at highly vulnerable groups. - Key external-level challenges noted: transition to middle-income country (MIC) status, accession to the World Trade Organization (WTO), accession to the Special Partnership with the European Union. ### Participatory process and implementation instruments - Consensus-building process elements: - Working sessions led by the Minister of Finance and Public Administration. - Technical Secretariat for Development Support (STAD) defining logical framework, budgeting, and indicators; consultations with municipal chambers, civil society, and private sector. - Communications and capacity-building commitments: - Formulate a Communications Plan to (i) raise public awareness, (ii) mobilize communicators, (iii) manage expectations. - Socialize/train personnel in government research units and private organizations to use the GPRSP II instruments (logical framework, monitoring and evaluation system). - Accompanying instruments: - Logical framework and monitoring and evaluation system covering budgeting, indicators and targets. - Database for electronic organization of sectoral contributions and documentation. ### Structure of the GPRSP and key content areas - Document organization: three major sections - Current context (macroeconomic framework, real economy, socioeconomic dimension, poverty dynamics, vulnerabilities). - For a Transformation Agenda (state transformation, public administration modernization, democratic gains, competitive economy, knowledge society, cultural promotion, social solidarity, poverty reduction). - Major strategic development aims presented in five pillars (Pillars I–V). - Pillars summarized: - Pillar I – GOVERNMENT REFORM: macroeconomic outlook, good governance, transparency, economic openness, justice reform, civil protection. - Pillar II – HUMAN CAPITAL: education system modernization, science & technology, technical and vocational training, health, youth, gender equality. - Pillar III – COMPETITIVENESS: focus on tertiary sector (especially tourism); private sector role. - Pillar IV – INFRASTRUCTURE BUILDING: territorial organization, transport, communications, energy, water management. - Pillar V – SOCIAL COHESION: public and private actors’ social responsibility; social protection and inclusion. ### Human Resource Development — findings and priorities - Education system indicators and trends: - Net enrollment rate in elementary education: 71.5 percent (1990/91) → 95.1 percent (2005/06). - Secondary education enrollment rate: 58.1 percent in 2005/06; girls ~61.8 percent. - Percentage of trained teachers: 67.2 percent (2000/01) → 81.4 percent (2005/06). - Transition from elementary to secondary: 70.7 percent (2000/01) → 80.8 percent (2005/06). - Pass rate: 62.1 percent (2001/02) → 65.2 percent (2005/06). - Dropout rate (overall): 9.4 percent (2001/02) → 10.6 percent (2005/06); girls 8.6 percent, boys 13 percent. - Literacy rate (2006 QUIBB): overall 78.7 percent; women 71.9 percent; men 86.5 percent. - Juvenile literacy rate: over 93 percent. - Public education and training expenditure: nearly 23 percent of the government’s 2007 general budget expenditure. - Vocational and technical training: - Vocational training supply in civil construction: covered one-third of all vacancies. - Tourism-related vocational training supply (catering, touristic guides, languages): about 17.1 percent of vacancies filled; no training offered in room, table, and bar services, restauration, cooking, entertainment. - Technical education staffed by over 400 teachers and monitors. - Employment skill composition: - Employee formal education distribution: 61 percent elementary, 29 percent secondary, 4 percent higher training. - Sectoral employment: "Agriculture and fishing" ~ one-third of employment; unskilled workers 54 percent in that sector; "health" and "education" account for nearly 32 percent and 26 percent of specialized employees respectively. - Policy priorities and recommendations: - Construct new secondary schools to eliminate cohabitation of elementary and secondary education. - Amend rules governing the Pedagogical Institute (IP) to elevate it to an Associated Unit of the University of Cape Verde. - Mobilize resources to establish and operate the University of Cape Verde. - Expand vocational training in sectors with labor shortages, notably civil construction and tourism-related services (room, table, bar services, restauration, cooking, entertainment). - Address shortages of professional skills, with attention to women heads of households and young persons; improve access to credit. ### Current context — governance, public administration, and decentralization - Governance and reform highlights: - Economic Transformation Strategy underway to create conditions for sustained private-market growth and poverty reduction. - ICT Task Force (NOSI) formed for adoption of technologies across public functions. - Simplification of registration and notarial procedures: issuance times reduced from days to minutes; decentralized birth registration with fee exemptions. - Decentralization measures: - Local Finance Law 79/VI/2005 passed; Decentralization Framework Law passed. - Municipal Computerization System (SIM) advancing as part of ICT Strategic Program and Electronic Governance Action Plan. - Justice and rights: - New Criminal Code, Criminal Process Code, Law on Constitutional Court, Ombudsperson; introduction of mediation and arbitration procedures. - National Plan for Gender Equality and Equity (PNIEG) approved; Plan to Combat GBV approved in 2007. - Consumer protection and sector regulation: - Competition governed by Decree-Law (2/99); Competition Council established but not yet in operation. - Regulatory agencies in operation: AAC, ANAC, ANSA, ARE, ARFA, and BCV; ARFA and IMP still being established. - ARFA received financial support under the Growth and Competitiveness Project exceeding half a million U.S. dollars. ### Macroeconomic framework and Agenda for Change (2008–2011 projections) - Stated medium-term macroeconomic strategy anchors growth in macroeconomic stability and envisages two-digit GDP growth sustained over 2008-11. - Investment projections: - Gross internal investment (gross fixed capital formation) average: 60,7% of the GNP (compared to 40% in 2004-2007); average nominal growth rate: 25.5%. - Private contribution to gross fixed capital formation: average 50.5% of GDP and 83.2% of the total; average growth rate: 27.6% in current terms. - Public investment average: approx. 10.2% of GDP (16.8% of total); CVEsc 15,7 billion nominal, reaching CVEsc 20,4 billion in 2011. - Sectoral average annual growth rates (2008-11): - Agriculture, forestry and livestock: 4.5% - Fishing: 4.4% - Industry and energy: 7.7% - Construction: 17.8% - Trade: 8.07% - Hotels: 13.6% - Transport and communication: 7.7% - Banks and insurance: 5.4% - Key macro projections and indicators (Table 13 / Table 14 as presented): - GDP (real growth rate): 2008: 7.8; 2009: 8.4; 2010: 10.2; 2011: 10.2 - Inflation: 2008: 3.0; 2009: 2.8; 2010: 3.3; 2011: 3.1 - Broad Money (growth rate): 2008: 12.6; 2009: 13.5; 2010: 16.1; 2011: 14 - Overall Budget Balance (CVE 10^9): 2008: -3,4; 2009: -2.0; 2010: -1,4; 2011: -2,5 - Overall Budget Balance (as % GDP): 2008: -2.7; 2009: -1.3; 2010: -0.8; 2011: -1.4 - Public Investment (CVE 10^9): 2008: 11.8; 2009: 13.6; 2010: 17.7; 2011: 19.9 - Foreign Exchange reserve (months of imports): 2008: 3.2; 2009: 3.3; 2010: 3.4; 2011: 3.5 - Nominal GDP (CVE 10^9): 2008: 129.6; 2009: 144.6; 2010: 160.7; 2011: 178.9 - Total Revenue (% GDP): 2008: 31.4; 2009: 31.7; 2010: 31.9; 2011: 31.7 - Tax Revenue (% GDP): 2008: 23.1; 2009: 23.3; 2010: 23.7; 2011: 23.3 - Investment Expenditure (% GDP): 2008: 12.2; 2009: 12.1; 2010: 13; 2011: 12.5 - Weight of Credit Economy in Net Internal Credit (%): 2008: 72.4; 2009: 75.6; 2010: 76.7; 2011: 78.6 - Balance of payments and reserves: - Broad money supply projected to evolve from approx. CVEsc 111 billion in 2008 to CVEsc 167 billion in 2011. - Cash holdings in foreign assets average: approx. CVEsc 50,4 billion; ascending to CVEsc 59,8 billion in 2011. - International reserves average: approx. 3,4 months of imports. - Current account average annual deficit: approx. 8% of the GDP (structural deficit despite services surplus). - Export of services average in the period: CVEsc 68,1 billion; tourism yearly average approx. CVEsc 45,5 billion. ### Pillar I — Government reform: priorities and instruments - Rationalization of government structures: - Strengthen strategic research, assessment/control functions, and regulatory oversight. - Share common instrumental services at ministerial/inter-ministerial levels; expand ICT use and streamline bureaucracy. - Modernization of public administration: - Implement network of citizens' centers and government portal; establish administrative inspection service; adopt new posts, careers, and salaries plan (PCCS). - INAG to become a government academy; integrate human resource training plan; implement public workers' training fund. - Fiscal management and public finance instruments: - Implement new Budget Management Law, National Public Chart of Accounts, new Public Contracting Code, Law on Planning Foundations, medium-term expenditure framework, and SIGOF consolidation. - Contain operating expenditure; prioritize obligatory expenditure; adopt multi-year public investment program to support GDP growth of approximately 10 percent while maintaining sustainable inflation and budget deficit levels and reducing unemployment from 18.3 percent in 2006 to single-digit figures by 2011. - Decentralization and regional development: - Implement Framework Law on Decentralization; municipal autonomy measures; municipal finance reforms; Municipal Computerization System (SIM). - Justice, security, civil defense and rights: - Expedite judicial reforms, strengthen fight against gender-based violence, improve notarial/identification services, and institute a National Civil Defense System. ### Pillar II — Human capital: education, training, science & technology - Education system modernization guided by principles: quality, equity, social relevance, cost-sharing, gradual decentralization, social partnership. - Targets and measures span preschool, basic, secondary, higher education, adult education, science & technology, and vocational training. - Strategic Vocational Training Plan 2006-2010 with six strategic aims (integrated education/training/employment system; national qualifications; permanent introductory vocational training; continuing education; teacher retraining center; occupational training observatory). - University strengthening: regulatory standards, accreditation, research promotion, distance learning expansion, infrastructure development for the University of Cape Verde. ### Pillar III — Competitiveness: horizontal measures and sector strategies - Systemic approach: safeguard macroeconomic stability; implement horizontal measures to reduce contextual costs and bolster productivity. - Horizontal measures include: - Innovation Policy (ICT, Intellectual Property, Quality Management, National Quality System). - Private sector promotion: Agency for Business Development and Innovation; Growth and Competitiveness Fund strengthening; leasing and risk capital frameworks; completion of privatizations (ENAPOR, CABAVE, TAVC, EMPROFAC). - Fiscal policy reforms to reduce overall tax burden while preserving fiscal consolidation; modernization of DGCI and tax procedures via ICT. - Improved regulation: capacity building for regulatory agencies; creation of competition authority. - Promotion of dynamic sectors: - Tourism: measures to improve accommodation quality, incentives for integrated projects, PPP frameworks for special touristic zones, product diversification (agro-tourism, cultural tourism). - Internationalization of services: transport, telecommunications, financial services, warehousing, ship repair, aviation services, international registry. - Financial sector modernization: open to operators, promote Cape Verde Financial Center, credit risk management, SME financing programs. - Integrated rural development and "New Agriculture" focusing on irrigation, micro-irrigation, value addition, farmer services, R&D linkage, and food security measures. ### Pillar IV — Infrastructuring: transport, energy, water, land use planning - Land use planning instruments and targets: - Laws and instruments: Law on Land Use; Law on Land Register; national cartography production; National Land Register System; Territorial-based Geographical Information System – SIT; EROT regional plans. - Transport and communications: - Airports: National Airport System Plan, runway and terminal upgrades (Ilha do Sal, Praia, São Pedro, Boa Vista), completion of S. Pedro expansion. - Ports: transformation of Porto Grande (S. Vicente) into a maritime hub; modernization/expansion of Praia Harbor, Palmeira Harbor, Porto Novo, Sal Rei, Vale de Cavaleiros; roll on-roll off operations; logistics and intermodality priority. - Roads: Highways Sector Support Program (RSSP) with US$45 million; Road Maintenance Fund (FMR); vehicle fleet growth 1995→2005: Light vehicles 8,048 → 26,741 (332.3%); Heavy vehicles 2,004 → 5,739 (286.4%); Motorcycles 931 → 2,358 (253.3%); TOTAL 10,983 → 34,838 (317.2%). - Energy and water: - Electra production growth (energy): 2003–2006 annual rate 8.1%; energy at end-2006: 250,921 MWh. - Energy losses growth rate 2003–2006: 15.0%; losses as % of production reached 21.5% in latest series cited. - Electricity sales growth rate 2003–2006: 7.5% (series growth noted). - Fuel costs account for between 85 and 90 percent of Electra’s variable costs; 96 percent of energy produced with diesel generators; alternative energy contribution < 4 percent. - Access to power (2006): 70 percent of households; urban 88 percent; rural 45 percent. - Rural electrification: project for solar photovoltaic panels and mini wind turbines to supply 12,000 isolated homes; home connections for low-income families: equipment to connect some 4,000 households. - Water production (Electra 2006): total 4,309,769 m³ — desalinated 3,797,875 m³ (88 percent); groundwater 511,894 m³ (12 percent). - Water losses: averaging 29.8 percent of total output by volume. - Access to water (2006 CWIQ): 44 percent household connections; 37 percent public standpipes; total 84.9 percent have a more or less secure water supply system; rural piped water only 28 percent. - Sanitation and wastewater: - Nationwide 38.9 percent of households lack minimally acceptable sewage facilities; rural 56.6 percent. - Wastewater disposal (2006): disposal well/sewer combined: 34.5 percent nationwide; 7 percent of rural families dispose via sewers/disposal wells. - Solid waste collection: 59.7 percent use garbage containers/carts nationwide; 27.3 percent dispose in nature. ### Pillar V — Social cohesion: social protection, employment, food security, health, youth, gender - Social protection and inclusion: - Social Pension: Decree-Law 24/06 creating the Social Pension. - Beneficiaries of social pensions (2007): 21,361. - Annual cost of the program reported: around $790,058,000 (as presented). - Goals: universalize social security, extend noncontributory schemes, increase and diversify social allowances. - Employment and labor: - Active population (2006): 183,254; Employed: 149,680; Unemployed: 33,574; Unemployment rate: 18.3 percent (versus 24 percent in 2005). - Female unemployment: 23 percent; male: 14 percent. - Informal work: ~70 percent (105,295 of 149,608 employed) working without formal contract; domestic employees informal rate 95 percent. - Average yearly pay per worker: 94,164 escudos (1990) → 215,986 escudos (2006). - Youth unemployment and policy: data show high youth unemployment rates; policies emphasized on vocational training, entrepreneurship, and targeted credit lines. - Poverty dynamics and targets: - Asset-poverty (2001-02 → 2006): National 36.5% → 24.9% (difference -11.7); Urban 24.9% → 17.2% (difference -7.8); Rural 50.8% → 31.3% (difference -19.5). - MDG challenge: lift 47,000 people out of extreme poverty. - PNLP and PLRP programs supporting community facilities, local initiatives, vocational training, and microcredits. - Food security and response to global grain price rises: - Structural vulnerabilities: over 80% of food consumption dependent on imports; energy dependence; scarce arable land. - Domestic availability notes (as presented): - Rice: coverage guaranteed until mid-November 2008; significant price increase possible in June/July due to international market. - Maize: coverage guaranteed until mid-November 2008; no price increases forecasted. - Wheat: coverage guaranteed until mid-July 2008; domestic price rise approx. 10% possible. - Policy measures: exemption of Import Duty and VAT on Grain; realignment of domestic prices; possible restoration/adjustment of FESA; reduction of inter-island transport and port service costs; strengthening ANSA regulatory capacity. - Health and demographics: - Population estimate: 499,796 for 2008; 51.6 percent women; 60 percent younger than 25 years. Population estimate for 2011: 527,269. - Life expectancy (2008): men 68.5 years; women 76.3 years (other presented figures in Agenda for Change: women 76.1, men 72.3). - Infant mortality references: infant mortality rate trends and targets—Infant Mortality Rate projection series: 29,1 → 27 (presented in logic framework). - HIV/AIDS prevalence: 0.8 percent in 2005 (men 1.1 percent; women 0.4 percent). - Malaria incidence (presented): 2005 incidence per 100,000: 14.3; 2006: 16.5. Malaria deaths: 2005: 1; 2006: 7. - Maternal mortality cited: "it declined from 30 per 100,000 in 2003 to 14.5 in 2005." - Gender and youth priorities: - National Plan for Gender Equality and Equity (PNIEG) and Plan to Combat GBV; affirmative action measures emphasized. - Youth measures: Youth Association Support Fund, vocational training, entrepreneurship credit lines, Youth Centers and Telecenters, Youth Hostels, municipal summer camps, and "Leisure and Sport on the Streets". ### Costs, financing, and implementation arrangements (2008–2011) - Total cost 2008-2011: CVEsc 82,394 million (747 million Euro). - Guaranteed financing: CVEsc 43.799 million (397 million Euro) — consolidated 2008 budget and guaranteed external financing. - Gap (forecasted financing needs for 2009-2011): CVEsc 38.595 million (350 million Euro). - Costs allocated by pillar (million CVE, guaranteed / gap): - Horizontal issues: Guaranteed 1.971; Gap 2.116 - Good Governance: Guaranteed 4.537; Gap 4.815 - Human Capital: Guaranteed 6.481; Gap 9.541 - Competitiveness: Guaranteed 3.576; Gap 2.629 - Infrastructuring: Guaranteed 25.485; Gap 15.594 - Social Cohesion: Guaranteed 1.750; Gap 3.899 - Total: Guaranteed 43.799; Gap 38.595 - Internal financing scenarios (based on MTEF 2009-2011): - Scenario 1: co-financing with internal resources of up to 50% of the gap annually. - Scenario 2: investment of up to 60% (conditioned to a decrease of the current expenditures). - External financing modalities and partners: - Budget Support (MoU for Budget Support signed by Austria, ADB, World Bank, The Netherlands, Spain, Portugal and the European Union). - Project Aid; Concessional loans; Debt relief conditioned to GGPRSP financing; Food aid. ### Implementation, monitoring and evaluation (M&E) — system design and pilot - M&E system characteristics: - Capable of quarterly or semiannual progress reviews. - Simple, low-cost, relying on existing hardware/software where possible. - Federated sectoral systems harmonized with central DGP/STAD. - Critical conditions for success: - Operational institutional framework; recruitment of local professionals with precise TORs; specialized short-term training; procurement of specified computer equipment; access to SIGOF and INE BDEO. - Pilot project expected results: - Progress report on system implementation and PRSP II implementation. - Database on functional program monitoring (BDMP) with PRSP performance indicators and physical/financial indicators for priority projects. - Strengthening of INE Official Statistical Database; support for sectoral databases (BDS). - Training for DGP/STAD and DGPOG staff; provision of appropriate computer equipment. - Institutional roles and information systems: - DGP: technical responsibility for plans and PRSP II coordination; requires permanent internal structure for M&E. - DGPOGs: sectoral planning and monitoring; each should appoint an M&E representative to feed data into the system. - SIGOF: Financial and Budget Information System platform for ministries; linkages required for program physical/financial monitoring. - INE: produce official statistics and Statline dissemination interface; integral to data foundation. *Source: _cr08242 - Growth and Poverty Reduction Strategy Paper II (excerpts) — 2008 PDF chapter/section.* ### 1. INTRODUCTION ........................................................................................................ ### 1. INTRODUCTION ### 1.1 Assumptions of GPRSP II Preparation - Cape Verde has made "huge strides forward" across economic, financial, social, institutional, infrastructural, environmental, and other areas, but remains vulnerable as a small island developing country. - Persistent weaknesses highlighted: - "enormous poverty" and "high unemployment rate" - strong dependence on foreign assistance, evidenced by low coverage of imports by exports, a "huge current account deficit," and a "large share of concessional external financing" - The private sector and market mechanisms are increasingly central, with emphasis on tourism and foreign direct investment. - The government’s evolving role: less dominant in economic functioning but key as regulator and promoter of development strategy. - Key reference frameworks informing GPRSP II: - Government Program for the Seventh Legislature (2006–11) - GPRSP I (used for "lessons learned") - Millennium Development Goals (MDGs) - Economic Transformation Strategy (ETE) — emphasizes transition from comparative-advantages-based development to competitive-advantages-based development. - Time horizon and external challenges: - GPRSP II adopts a medium-term outlook covering the period 2008-11. - Major international-level challenges include transition to middle-income country (MIC) status, accession to the World Trade Organization (WTO), and accession to the Special Partnership with the European Union. - Overarching objective: - "achievement of sustainable human development based on a strong, dynamic productive system, on the enhancement of its human capital, technological training, and its culture, in the context of balanced regional development, solidarity, social justice, democracy, and environmental awareness." - Strategic orientation: - GPRSP II references five major strategic aims: good governance, human capital, competitiveness, infrastructure building, and social cohesion. - Emphasizes a holistic approach based on the logical framework and participatory process. - Prioritizes sustainability, consolidation of past gains, social inclusion, and "positive discrimination in favor of the most underprivileged segments of the population." - Central objective of poverty reduction: - Primarily via structural policies to promote inclusive economic growth. - Complemented by redistributive policies that are socially compensatory and focused on highly vulnerable groups. ### 1.2 Participatory Process for GPRSP Preparation - The PRS requires a broad framework of dialogue and concertation for ownership by public- and private-sector implementers, civil society, and development partners. - Consensus-building and contribution-gathering initiatives: - Working sessions initiated by the Minister of Finance and Public Administration with government colleagues and ministerial planning/management staff. - Actions by the Technical Secretariat for Development Support (STAD) with government departments for defining the logical framework, budgeting, and indicators, and consultations with municipal chambers, civil society, and the private sector. - Sectoral and institutional consultations: - Government departments conducted internal consultations and engaged partners to build the GPRSP II "from the base to the top" across sectors and participation levels. - Communications and capacity-building commitments: - A Communications Plan will be formulated to: - (i) raise public awareness of GPRSP principles, objectives, and targets; - (ii) mobilize official and private communicators to disseminate GPRSP information; - (iii) manage expectations given that not all objectives and outcomes may be achieved within desired time frames. - Steps to socialize/form/train personnel in government research units and private organizations active in job- and income-creating sectors to ensure effective use of the new instruments (GPRSP II, logical framework, and monitoring and evaluation system). *Source: _cr08242 - 1. INTRODUCTION* ### 1.3 STRUCTURE OF THE GPRSP ### 1.3 STRUCTURE OF THE GPRSP ### Overall organization - Following the introduction, the paper is divided into three major sections: - Current context: macroeconomic framework and the real economy; socioeconomic dimension; structure and dynamics of poverty; progress in political situation; vulnerabilities. - For a Transformation Agenda: a vision for the future based on (i) the challenges of transformation; and (ii) medium- and long-term strategic objectives, consisting of: - (a) transformation of the government as a whole; - (b) modernization of the public administration; - (c) the imperative of permanent gains for democracy; - (d) the imperative of a modern, competitive economy; - (e) a knowledgeable society made up of highly skilled human resources; - (f) promotion of the country’s cultural fundamentals; - (g) active social solidarity; - (h) continuous efforts to reduce poverty and guide economic growth; - (i) the creation of strong abilities to manage development. - Major strategic development aims, presented in five pillars (see Pillars I–V below). - Cross-cutting approach to poverty: - Poverty is to be treated across policies and policy measures within an integrated view of development, in a context of globalization, economic openness, and a major role for the private sector in economic growth and creation of productive, employment- and income-generating enterprises. - Accompanying instruments and implementation support: - The paper is accompanied by documents interpreting the logical framework and the monitoring and evaluation system, covering budgeting, the indicators, and the targets for projects whose priorities were set by government departments. - A database was created for electronic organization of sectoral contributions and supporting documentation (strategic plans, action plans, and similar records), with access obtained from links to the respective subjects treated. ### Pillars (Major strategic development aims) - Pillar I – GOVERNMENT REFORM: - Framework of the macroeconomic outlook for 2008–11. - Covers good governance, transparency in fiscal management, economic openness, regional development and political representation, reform of justice, and civil protection. - Pillar II – HUMAN CAPITAL: - Covers human resources essential for economic and social development. - Emphasizes modernization of the educational system from pre-school to higher education, science and technology, technical and vocational training, culture and civic awareness, health, youth affairs, and gender equality and equity. - Pillar III – COMPETITIVENESS: - Crosses all sectors with special emphasis on the tertiary sector (services and employment, especially tourism). - Stresses the role of the private sector in vitalizing the economy. - Pillar IV – INFRASTRUCTURE BUILDING: - Linked to economic development: territorial organization, urban growth, transportation and communications, the energy sector, and management of hydraulic resources as an economic function. - Pillar V – SOCIAL COHESION: - Covers areas where public and private actors assume social responsibility as a basic factor in democracy and civic awareness; emphasizes social responsibility across actors in the development process. ### Chapter 2: Current context (summary) - Purpose: - Describes the situation regarding major aims that inform economic and social activity, identifying progress made and constraints hampering policy formulation and implementation. - Emphases: - Real economy and new challenges for the private sector as engine of the economy. - Socioeconomic context: education sector, unemployment, vocational training, structure and dynamics of poverty. - Political context: political stability, good governance, parliamentary modernization, human rights, freedom of the press, participation, justice, and the gender dimension. - Vulnerabilities: - Territorial discontinuity from being an archipelago of islands. - Environmental risks. - Demographic pressure. - Reduced agricultural production. - Heavy dependency on imports. - These vulnerabilities do not jeopardize development but importantly affect cost structures of financing, management, and operations. ### Political context (Chapter 2.1) — key findings - 2.1.1 Political stability: - Cape Verde has a multiparty democracy with free and fair elections. - Governance is receptive; political freedoms are observed; the press is free; civil society is active, tolerant, and open; political mechanisms are transparent and flexible. - Gains of good governance are evident in macroeconomic stability, stringency of fiscal management, intensified diplomatic action, increased participation in international forums, new partnerships, and greater credibility with the political community and international financial institutions. - 2.1.2 Parliamentary modernization: - Strengthened central role of Parliament. - Measures to enhance efficiency and effectiveness: planning of work, links with parliamentary subjects, development of Special Commissions, hearings and decentralized meetings, greater participation of elected officials and closeness to constituents. - Parliament’s role in dissemination of information and production of data on policy impacts has become clearer; parliamentary sessions inform decision-making on instruments such as the government budget. - 2.1.3 Affirmation of human rights: - International bodies have noted Cape Verde’s performance in defense and promotion of rights, freedoms, and guarantees. - Reorganized electoral logistics and electoral roll; revived electoral polling with survey posts and more resources for electoral administration staff. - National Human Rights and Civic Awareness Program and National Human Rights and Civic Awareness Commission are operational. - Project to introduce teaching of human rights, civic awareness, and a culture of peace from pre-school to secondary level. - Government policies against domestic violence and in defense of children and adolescents; policies for rights of those with deficiencies with partnerships with NGOs; support for national campaigns on rights of persons with deficiencies and prevention, with attention to medical and social issues. - 2.1.4 Social communication: - Major investments since 2001 in modernizing the sector and countrywide information coverage. - Media plurality and freedom of the press upheld; technological capacity allows radio to reach emigrant communities in real time. - Media panorama over the past 10 years: five television stations (four licensed as of 2007), 15 radio stations, seven private periodicals in newspaper form, seven online publications, and several journals. - Emergence of publicity and image agencies, audiovisual production agencies, publicity adjusters, and photography agencies (some registered as commercial enterprises). - Public sector ownership and management of RTC and Inforpress with two government delegates at shareholders’ meetings; reforms underway in technological, organizational, and financial areas. - 2.1.5 Participation spaces: - Heavy investment in civic education to improve civic rights and duties and ownership of development gains. - Civil society organizations effectively involved in decision making; formal spaces for concertation and piloting development programs. - NGOs often organize in networks to improve involvement, seek financing, and implement grassroots projects (gender, youth, human rights, security, environment, water and sanitation, microfinance, HIV/AIDS). - 2.1.6 Justice in the service of citizens and development: - In-depth actions: new Criminal Code, Criminal Process Code, Law on the Constitutional Court, and the Ombudsperson. - Introduction of nonjurisdictional procedures for mediation and arbitration to speed conflict resolution; judges trained to ensure rapid functioning. - Reforms in registration, notarial, and identification: increased staffing and service units, heavy investment in computerization, reduced response times for civil and commercial registration, modernization of premises, creation of corporate identity. - 2.1.7 The gender perspective: - Cape Verde ratified the Action Plan of the Cairo International Conference on Population and Development (1994) and the Platform for Action from the Fourth World Conference on Women (Beijing, 1995). - Subscribed to Goal 3 of the MDGs (2004) – “Promote gender equality and empower women.” - National laws (Constitution, Criminal Code, Electoral Law, Labor Code, Family Code) uphold gender equality. - National Plan for Gender Equality and Equity (PNIEG) drafted and approved to democratize power relationships, improve opportunities, change behaviors and attitudes, and include positive discrimination when necessary. - PNIEG emphasizes capacity building, poverty reduction, employment, sex and reproductive education, exercise of power, gender-based violence (GBV), and social communication. - Council of Ministers approved the Plan to Combat GBV in 2007. - Persisting constraints: (i) imbalance in positions of power; (ii) low representation of women in leadership and national politics; (iii) inequality in income and economic inclusion opportunities; (iv) limited access to technical and vocational education; (v) insufficient gender consideration in policy design, monitoring, and evaluation; (vi) high incidence of gender-based violence. ### Governance (Chapter 2.2) — reforms and instruments - Governance statement: - “Good conduct and transparency in fiscal management, economic freedom, regional development and political representation, the reform of justice, and civil protection thus remain defining characteristics of the organs of governmental and other institutional power.” - Economic Transformation Strategy: - Government began implementing an Economic Transformation Strategy to create conditions for sustained economic growth in a private market economy operating within the global economy and thereby reduce poverty. - 2.2.1 Reform of the government and the public administration: - Administration described as closer to citizens and economic agents, more transparent and equitable, with skilled, motivated human resources. - Administration promotes and regulates public–private partnerships. - ICT Task Force (NOSI) formed to adopt new technologies in public policy, enabling more electronic control and improved management in education data, electoral process, finances and taxes, cartography and cadastre, road transport, and municipal management. - Simplification of registration and notarial requirements; issuance times for birth certificates and registration of companies and automobiles reduced from days to minutes. - Decentralized birth registration to hospitals with fee exemptions; elimination of Customs bureaucratic red tape deepened; a Citizen’s Guide drafted. - 2.2.2 Decentralization: - Decentralization is an ongoing process adjusted to ensure regional and local integration and equilibrium; integral part of government reform. - Measures under consideration to strengthen means and skills of local governments and ensure coordination of deconcentrated public administration departments. - Municipal Computerization System (SIM) project advancing as part of the ICT Strategic Program and the Electronic Governance Action Plan to integrate computerization of municipal offices for more efficient management, planning, information flow, and service delivery. - Local Finance Law 79/VI/2005 passed, giving municipal authorities more power to mobilize financial resources. - Decentralization Framework Law passed, defining local autonomy, levels of administrative decentralization, and providing guidelines and harmony to the decentralization process. *Source: _cr08242 - 1.3 STRUCTURE OF THE GPRSP* ### 2.3 HUMAN RESOURCE DEVELOPMENT ### 2.3 HUMAN RESOURCE DEVELOPMENT ### Overview and institutional issues - The education system consists of the pre-school, school, and out-of-school education subsystems. - Rapid expansion of secondary education has been accompanied by construction and repair of more schools and classrooms. - Persisting cohabitation of elementary and secondary education in some circumscriptions should be overcome with the planned construction of new secondary schools. - Midlevel education currently trains basic education teachers at the Pedagogical Institute (IP). A prevailing policy concern is to raise the IP to the status of an Associated Unit of the University of Cape Verde, which would require amending rules governing the IP and restructuring administered courses. - Higher education faces huge demand from students completing secondary education, exacerbated by a decline in opportunities to obtain higher education abroad and insufficient domestic course supply that does not always correspond to real socioeconomic development needs. - The actual establishment of the University of Cape Verde requires resources and the guarantee of its operation in favor of sustainable scientific, technological, economic, social, and cultural development for Cape Verde. ### Key quantitative findings and indicators - Net enrollment rate in elementary education: rose from 71.5 percent in 1990/91 to 95.1 percent in 2005/06. - Elementary education parity index: one girl to one boy (meets EPT/OMD targets). - Of new enrollees in elementary education, 80.6 percent attended pre-school. - Secondary education enrollment rate: 58.1 percent in 2005/06, with girls at about 61.8 percent. - Percentage of trained teachers: rose from 67.2 percent in 2000/01 to 81.4 percent in 2005/06. - Rate of transition from elementary to secondary education: increased by 10.1 percent, from 70.7 percent in 2000/01 to 80.8 percent in 2005/06. - Percentage of passes at this level of education: grew from 62.1 percent in 2001/02 to 65.2 percent in 2005/06. - Dropout rate: increased from 9.4 percent in 2001/02 to 10.6 percent in 2005/06; 8.6 percent being girls and 13 percent boys. - Dropout in secondary education: 15.8 percent among girls and 23.5 percent among boys. - Literacy rate (2006 QUIBB): 78.7 percent overall; 71.9 percent for women and 86.5 percent for men. - By region: 84 percent in urban areas and 74 percent in rural areas. - Juvenile literacy rate: over 93 percent in all constituencies. - Public education and training expenditure: represented nearly 23 percent of the government’s 2007 general budget expenditure. - Vocational training supply in civil construction: covered one-third of all vacancies. - Vocational training supply in tourism-related areas (catering, touristic guides, languages): about 17.1 percent of all vacancies were filled; no training offered in room, table, and bar services, restauration, cooking, entertainment, etc. - In 2001 about 86 establishments operated continuously; 17 devoted permanently and 69 intermittently to technical or vocational training (four technical schools and 13 vocational training centers/institutes). - Technical education: reformulated to present the third cycle as vocational, specialized; staffed by over 400 teachers and monitors. - Employee formal education distribution: 61 percent with elementary education, 29 percent with secondary education, and 4 percent with higher training. - Sectoral employment skill composition: “Agriculture and fishing” (about one-third of all employment) occupies mainly unskilled workers (54 percent); “health” and “education” services account for nearly 32 percent and 26 percent, respectively, of specialized employees. - Shortage of professional skills identified as a main defining factor of poverty, particularly affecting women heads of households and young persons, compounded by problems of access to credit. ### Vocational and technical training developments - Two employment and vocational training centers opened in Assomada and Fogo/Brava; training units established in technical schools (Praia, Mindelo, Santa Catarina, Porto Novo). - Training centers in São Jorginho and Variante and the vocational training center at the former IFAP were upgraded. - Response capacity of the vocational training center in Pedra Badejo enlarged; center began activities in 2002. - Six vocational training development units were created and staffed; a vocational training center is under construction in Fogo (São Filipe). - Porto Novo technical school opened; Mindelo technical school remodeled, enlarged, and equipped. - Vocational training shortages concentrated in tourism-related services and in specific hospitality trades (room, table, bar, restauration, cooking, entertainment). ### Policy priorities and recommendations (as expressed in source) - Construct new secondary schools to eliminate cohabitation of elementary and secondary education in some circumscriptions. - Amend rules governing the Pedagogical Institute (IP) and restructure IP courses to elevate IP to an Associated Unit of the University of Cape Verde. - Mobilize resources and guarantees to establish and operate the University of Cape Verde to support sustainable scientific, technological, economic, social, and cultural development. - Expand vocational training supply in sectors with clear labor shortages, notably civil construction and tourism-related services, including room, table, bar services, restauration, cooking, and entertainment. - Address shortages of professional skills, with special attention to women heads of households and young persons, and improve access to credit to mitigate impoverishment in rural areas. * _cr08242 - 2.3 HUMAN RESOURCE DEVELOPMENT_ ### 27.2 percent). ### _cr08242 - 27.2 percent). ### Export markets and geographic distribution - The euro zone imports about 79 percent of Cape Verdean products. - Japan's share rose to about 7.4 percent of Cape Verde’s export market. - National exports to the United States fell sharply, possibly due to stringent U.S. market requirements. - Geographical Distribution of Merchandise Exports (Millions of Escudos): - Exports: 1,334.4 (2004), 1,571.0 (2005), 1,819.0 (2006), 1,547.0 (2007) - The Netherlands: 2.0 (2004), 9.0 (2005), 10.5 (2006), 3.7 (2007); Structure (%) 0.2 - Portugal: 1,044.4 (2004), 810.2 (2005), 905.9 (2006), 901.7 (2007); Structure (%) 58.3 - Spain: (2006) 4.7, (2007) 335.0, 496.8, 322.6; Structure (%) 20.9 - United States: 259.1 (2004), 193.8 (2005), 25.0 (2006), 21.5 (2007); Structure (%) 1.4 - Morocco: 0.0 (2006), 202.1 (2006), 161.4 (2006), 113.0 (2007); Structure (%) 7.3 - Japan: 0.0 (2005), 0.0 (2006), 0.9 (2006), 9.3 (2006), 114.3 (2007); Structure (%) 7.4 - Others: 24.2 (2004), 223.0 (2005), 380.8 (2006), 297.4 (2007); Structure (%) 4.5 - Source: DGA and BCV. ### Imports — volumes, composition, and suppliers - Real-term import increase: 12.1 percent in 2007 (14.3 percent in 2006). - Nominal import growth by category: - Capital goods: 71.5 percent - Fuel: 55.4 percent - Intermediate goods: 18 percent - Consumer goods: 8 percent (after 17 percent in 2006) - In volume terms, imports of consumer goods rose by 29 percent (0.4 percent in 2006). - Merchandise Imports, c.i.f. (Millions of Escudos): - Consumer goods: 16,081.8 (2005), 18,898.1 (2006), 20,497.7 (2007) - Intermediate goods: 9,553.3 (2005), 12,063.2 (2006), 14,066.0 (2007) - Capital: 6,536.2 (2005), 8,302.1 (2006), 14,235.4 (2007) - Fuel: 3,322.5 (2005), 4,110.1 (2006), 6,387.8 (2007) - Others: 3,422.3 (2005), 4,205.4 (2006), 4,964.0 (2007) - TOTAL: 38,916.0 (2005), 47,578.9 (2006), 60,150.9 (2007) - Principal suppliers (import market share): - Portugal: 45 percent in 2007 - The Netherlands: 16.2 percent - Brazil: 6.2 percent - Geographical Distribution of Merchandise Imports (Millions of Escudos): - Imports (c.i.f.): 38,459.9 (2004), 38,924.8 (2005), 47,578.9 (2006), 60,135.3 (2007) - Germany: 355.3 (2004), 279.0 (2005), 545.6 (2006), 853.9 (2007); Structure (%) 1.4 - Brazil: 1,757.2 (2004), 3,130.3 (2005), 3,024.7 (2006), 3,743.3 (2007); Structure (%) 6.2 - Spain: 1,475.9 (2004), 2,954.4 (2005), 2,668.3 (2006), 2,666.5 (2007); Structure (%) 4.4 - United States: 5,091.6 (2004), 1,056.7 (2005), 659.9 (2006), 697.8 (2007); Structure (%) 1.2 - France: 940.3 (2004), 772.4 (2005), 1,184.1 (2006), 5,721.7 (2007); Structure (%) 9.5 - Italy: 1,143.2 (2004), 1,548.1 (2005), 2,267.2 (2006), 2,275.1 (2007); Structure (%) 3.8 - The Netherlands: 5,281.0 (2004), 6,119.6 (2005), 5,315.8 (2006), 9,771.2 (2007); Structure (%) 16.2 - Portugal: 16,336.5 (2004), 17,729.3 (2005), 23,878.1 (2006), 27,059.3 (2007); Structure (%) 45.0 - Others: 6,078.9 (2004), 5,325.0 (2005), 8,035.3 (2006), 7,346.5 (2007); Structure (%) 12.2 - Source: DGA; BCV. ### Goods and services pricing, competition, and market regulations - Pricing policy is governed by law and based on macroeconomic stability and guarantee of convertibility of the Cape Verdean escudo with the euro. - Ceiling price rules remain in effect for essential foodstuffs: rice, millet, sugar, wheat, wheat flour bread, potatoes, and onions (after abolishing some monopolies: importing of millet, rice, sugar, wheat, and wheat flour). - Competition governed by Decree-Law (2/99); Competition Council (quasi-legal independent government body) established but not yet in operation. - Need identified: creation of a competition supervisor to examine restrictive practices adversely affecting collective well-being. ### Credit to the economy - Credit to the economy increased by about 31 percent in 2006, compared with 17 percent in 2005. - Growth in credit financed increased economic activity resulting from budgetary policy freeing financial resources channeled to the private sector. - Confidence indicators for processing industry, transportation and auxiliary services, tourism, and trade have shown upward trends. - Footnote: See BCV 2006 Annual Report. ### Economic regulation and regulatory agencies - 2003 legal rules for independent regulatory agencies enacted; public institutions transformed into regulatory agencies. - Current regulatory agencies in operation: 1. Civil Aeronautics Agency (AAC); 2. National Communications Agency (ANAC); 3. National Food Security Agency (ANSA); 4. Economic Regulation Agency (ARE); 5. Pharmaceuticals and Food Product Regulation and Supervision Agency (ARFA); and 6. The Cape Verde Central Bank (BCV). - Maritime and [Port Management] Institute (IMP) to be converted into an agency. - Status of agencies: - AAC, ANAC, ANSA, ARE, and BCV: more or less sound and performing their tasks efficiently. - ARFA and IMP: still being established; ARFA has received financial support under the Growth and Competitiveness Project that has already exceeded half a million U.S. dollars. - Observation: No effective mechanisms yet for regulation of competition distinct from economic regulation. ### Regulation and supervision of pharmaceuticals and food products - Food sector: - In 2005, 21 percent of rural households were in a situation of food insecurity, especially in S. Domingos, Paul, Mosteiros, Porto Novo, Praia, and Santa Catarina. - Instruments combating food insecurity: - National Food Security Strategy (ENSA), 2002–15; - National Food Security Program, 2007–11; - National Strategy for the Development of Agriculture and Fisheries, Outlook 2015, and 2005–08 Action Plan. - ANSA (since July 2002) mission: ensure food security in quantity, quality, and price; direct intervention for essential products: millet, rice, sugar, wheat and wheat flour, beans, cooking oil, and powdered milk. ANSA ensures balanced regional distribution while private sector handles commercial operations. - Pharmaceuticals sector: - National production capacity is now large; expansion of pharmacies and points of sale provides adequate national coverage. - National pharmaceuticals market remains largely dependent on supplies from abroad (nearly 70 percent of consumption needs). - Market penalized by parallel imports, promoting self-medication and consumption of unsafe medication and drugs of doubtful effectiveness, affecting legally established distributors. - Pharmaceuticals market characterized by activity of a single import and wholesale distribution enterprise operating on fixed margins; similar methods used by retailers. ### Consumer protection — risks and institutional capacity - Major consumer health risks related to food: - Unsafe hygienic and sanitary conditions in slaughter, processing, marketing of meat; offloading, processing, sale of fish. - Water quality for the bulk of the population. - Possible residues of pesticides and chemical fertilizers in raw vegetables; residues of veterinary drugs in meat and milk. - Consumption beyond validity term of canned foods. - Adulteration due to unfavorable temperature and humidity. - Pharmaceuticals risks: - Importation and sale on parallel market not subject to quality, safety, or effectiveness controls. - Consumer weaknesses: - Insufficient information and education. - Unfair commercial transactions and lack of laws, regulations, and technical means. - Problems managing consumer-related disputes. - Delays in implementing the Consumer Protection Law and absence of enforcement measures. - Institutional and civil-society developments: - Government member responsible for consumption-related issues. - Activities developing at ARFA. - Dynamic consumer-organization movement, notably Association for the Defense of Consumers (ADECO). - Decision to liberalize the pharmaceuticals market to increase competition and accessibility. - Identified needs: - Improve legal framework and enforcement mechanisms for consumer rights. - Create bodies to mediate consumption conflicts with capacity for information, education, and communications on consumer protection. - Steps taken on legislation for cyber security, protection and security of personal data, publicity and security; creation of bodies for external quality control; formulation of public policy on health, education, vocational training, environment, and information guaranteeing citizen consultation and participation. ### Privatization — outcomes and impacts - Fiscal impact: - More than US$82 million accumulated on the government accounts. - US$8/9 million a year in additional benefits. - US$6/8 million a year in savings with absence of government subsidies. - Economic environment: - Decline in percentage contributed to GDP by enterprises sold. - Overall increase in growing asset volumes of privatized enterprises, except ELECTRA. - GDP growth: - Higher rate than the yield from privatization of enterprises. - Increase in foreign direct investment. - Employment: - Decline at privatized enterprises. - Absorption of sacked workers by mitigation and resizing programs. - Working conditions and labor relations improved. - Structural impact: - Stronger competition in the productive sectors. - Strengthening of competitiveness of privatized enterprises, though still weak in exports. ### Infrastructure and transport — land-use planning, ports, airports, roads - Land-use planning: - Basic Cartography exercise produced digital maps for land-use management, urban planning, infrastructure development; lack of suitably scaled maps for planning urban expansion zones and placement of new productive and basic infrastructure. - Critical infrastructure inadequacies due to shortage of funds for preparation and implementation; projects run behind schedule; lack of supervisory capacity, especially in municipalities; planning and management often haphazard and uncoordinated across levels. - Strategic guidelines for infrastructure development aim to reduce poverty, boost economic development, and physically unify the country through efficient and sustainable transportation systems. - Port facilities and infrastructure: - Movement of containerized cargo has grown at an average annual rate of 19.2 percent since 1995. - Table 1. Total movement in the ports of Cape Verde: 1995, 1996 and 2006 (selected figures) - Total Movement of Vessels (n.º): 3,985 (1995), 4,766 (1996), 6,202 (2006); Growth 6.4% - Coastal shipping vessels: 3,313 (1995), 3,861 (1996), 5,087 (2006); Growth 4.8% - Long-haul shipping vessels: 672 (1995), 905 (1996), 1,115 (2006); Growth 21.4% - Movement of merchandise: 655,550 (1995), 848,300 (1996), 1,712,405 (2006); Growth 9.5% - Coastal (tons): 256,059 (1995), 365,778 (1996), 596,667 (2006); Growth 8.1% - Long-haul (tons): 399,491 (1995), 482,522 (1996), 1,115,738 (2006); Growth 10.4% - Movement of Passengers: 273,914 (1995), 450,673 (1996), 676,646 (2006); Growth 11.7% - Number of containers: 6,390 (1995), 18,512 (1996), 48,321 (2006); Growth 17.3% - Movement of containers (tons): 49,242 (1995), 137,875 (1996), 403,901 (2006); Growth 19.2% - Source: ENAPOR - Port sector weaknesses revealed by shipping growth: 1. Shortage of wharf space suitable for docking different types of vessels used in domestic and international trade. 2. Insufficient port space for the movement of merchandise, in particular containerized cargo. 3. Inadequate equipment for handling different types of cargo. *Source: DGA; BCV; ENAPOR; BCV Boletim Económico (Economic Survey), February 2008; 2006 Annual Report on MDGs; BCV 2006 Annual Report (as cited in the source content).* ### 4. Operational shortcomings with port infrastructure, particularly in terms of port procedures and ### _cr08242 - 4. Operational shortcomings with port infrastructure, particularly in terms of port procedures and ### Ports and maritime transport - Operational shortcomings and red tape slow passage of merchandise through ports and increase overall transport costs. - Constraints particularly severe for international container traffic at: - the port of Praia on the Island of Santiago, and - the big port on São Vicente. - Similar but lesser constraints exist in inter-island transport of goods and passengers. - Priority actions identified in planning for principal ports: - develop logistics services for merchandise transport and value-added services; - develop smaller platforms in secondary ports to rationalize and facilitate inter-island shipment of goods. - Intermodal requirements: provision of parking space for vehicles, properly equipped cargo transfer areas, and good road connections to and between ports and airports. - Current road-transport volumes do not yet justify construction of goods sorting and distribution centers given other priorities. ### Airport facilities and air transport - Major modernization works completed or advanced: - International Airport of Ilha do Sal (Amilcar Cabral International Airport): runway, passenger and freight terminals modernized. - Praia Airport: recently remodeled with new runway and passenger facilities; passenger terminal at Praia Airport is too small to handle two international flights at the same time. - São Pedro Airport on São Vicente Island: work completed; certification awaited. - Boa Vista Island airport: recently inaugurated. - Network includes five additional airfields; three non-operational for security reasons: Mosteiros (Ilha do Fogo), Ponta do Sol (Santo Antão), and Brava airfield. - Strong growth in air traffic (passengers, freight and mail); passenger traffic grew at an average annual rate of 7.5 percent over the last 7 years. - Table 2 (selected statistics from source): - Air traffic (takeoffs and landings) series (1999–2005): 28,631; 34,780; 38,350; 35,444; 34,519; 33,192; 33,034 — ATM TCMA 2.87% - Passengers series (1999–2005): 917,560; 1,138,7 72; 1,243,31; 1,276,2; 1,317,3; 1,495,2; 1,380,5 — ATM TCMA 7.50% - Freight (tons) series (1999–2005): 4,885,9 63; 5,605,6 82; 6,248,6 01; 5,207,7 28; 4,924,9 32; 4,990,1 14; 4,879,2 23 — ATM TCMA 0.54% - Mail series (1999–2005): 442,026; 389,912; 384,678; 370,941; 336,646; 334,537; 457,182 — ATM TCMA 1.68% - Source: Civil Aviation Authority. - Institutional progress: legal, technical and commercial framework aligned with international standards. - Persistent constraints affecting strategic ambitions (becoming hub between West Africa–North America and Europe–South America): - Airport facilities on some islands inadequate for safety (Brava) and quality (Fogo and Santo Antão). - Problems with navigation aids, particularly meteorological information (winds). - No ILS [instrument landing system] at Praia Airport. - Most airfields lack PAPI [precision approach path indicator] systems. ### Road infrastructure and road transport - Significant progress under the Highways Sector Support Program (RSSP) signed in 2005 with a budget of US$45 million; two main components: improving road management, and undertaking road works justified by social impact and socioeconomic effect (ex-ante internal rate of economic return). - Institutional developments: - creation of the Highways Institute (State Highways Authority); - creation of a second-generation Road Maintenance Fund (FMR) funded directly from fuel tax proceeds for road maintenance; - re-equipping the National Civil Engineering Laboratory; - review of public works legislation through IGOP. - RSSP launched pilot projects for contracts for road maintenance by level of service; implementation being assessed. - Vehicle fleet growth (1995 to 2005): - Light vehicles: 8,048 → 26,741 — 332.3% - Heavy vehicles: 2,004 → 5,739 — 286.4% - Motorcycles: 931 → 2,358 — 253.3% - TOTAL: 10,983 → 34,838 — 317.2% - Source: Direcção Geral de Transportes Rodoviários, Ministério dos Transporte. - Threats to the sector: - road system continues to deteriorate; - road accessibility in some areas has not improved or has worsened; - uncontrolled automobile use threatens to increase road maintenance costs; - accident rates have risen. ### Logistics and intermodal transport - Cape Verde lags far behind in logistics and intermodal transport. - Catch-up requires increased supply of adequate infrastructure and equipment. - Priority logistics development areas identified for ports; need for smaller platforms in secondary ports emphasized. - Government intends to attract economic activities to make airport facilities profitable and foster production and employment. - Intermodal efficiency requires parking, equipped cargo transfer areas, and good road links to ports and airports. - Current road transport volumes insufficient to justify goods sorting/distribution centers now. ### Energy production, access, and rural electrification - Electra: licensed utility concessionaire producing desalinated water and electricity; exclusive distribution rights. - Electricity generation (2003–2006): grew by 8.1 percent per year, reaching 250,921 MWh at end-2006. - Table 4 (selected): - Energy production (2002–2006): 178,971; 198,653; 218,813; 236,058; 250,921 — Annual rate 2003/2006 8.1% - Energy losses (2003–2006): 35,559; 40,586; 40,885; 54,069 — growth rate 15.0%; % of production: 17.9% 18.5% 17.3% 21.5% - Electricity sales (MWh) (2002–2006): 117,612; 132,500; 147,306; 161,667; 164,775 — growth rate 7.5%; annual growth series 12.7% 11.2% 9.7% 1.9% - Water production (2003–2006): 21,218; 22,426; 23,350 — growth rate 4.9% - Internal consumption (2004–2006): 9,703; 9,442; 8,727 — trend -5.2% - Source: Electra: Evolução dos Resultados 2002 e 2006. - Electricity tariff data (Electra): - Average rate received per MWh sold: 153 (2003); 151 (2004); 153 (2005); 167 (2006) — Change 2005/2006 9,15% - Source: Electra. - Fuel import bill and costs: - Fuel costs account for between 85 and 90 percent of Electra’s variable costs. - 96 percent of energy still produced with diesel generators; contribution of alternative energy sources (wind and thermal) less than 4 percent of total. - Financial situation: significant portion of increased output not paid for by users due to increases in power losses (15 percent per year) and power sales (7.5 percent per year), limiting Electra’s investment capacity. Electra unable to cover operating costs at government-fixed authorized rates. - Access to power system (2006): - 70 percent of households have access to electricity: 88 percent in urban areas; 45 percent in the countryside. - Nationwide coverage increased over last six years by around 20 percentage points: 16 in urban areas and 24 in rural zones. - Household energy for cooking (2000 vs 2006): - Households relying primarily on gas for cooking: 62.9 percent (2000); 62.5 percent (2006). - Proportion using firewood as main fuel: 33 percent (2000) → 35 percent (2006). - In the countryside, 71 percent of families rely mainly on wood (5.2 percentage points higher than in 2000). - Table 6 excerpts (2000 and 2006 proportions by rural/urban/CVERDE for FOOD PREPARATION and LIGHTING): - Wood (Food Preparation): RURAL 65.5 (2000) → 70.7 (2006); URBAN 8.2 (2000) → 11.1 (2006); CVERDE 32.9 (2000) → 35.1 (2006). - Gas (Food Preparation): RURAL 31.2 → 27.6; URBAN 86.9 → 86; CVERDE 62.9 → 62.5. - Electricity (Lighting): RURAL 29.7 → 44.9; URBAN 80.4 → 87.5; CVERDE 58.6 → 70.4. - Oil (Lighting): RURAL 49.1 → 26.7; URBAN 10.4 → 3.3; CVERDE 27.1 → 12.7. - Candles (Lighting): RURAL 16.7 → 26.6; URBAN 7.4 → 8.1; CVERDE 11.4 → 15.6. - Source: INE – (IDRF 2001/2002 and QUIBB-2006). - Rural electrification: - National electricity coverage ratio: 70.5 percent. - Rural electrification project designed using solar photovoltaic panels and mini wind turbines to supply 12,000 isolated homes that would be technically impossible over the long term to connect to the conventional network. - Work progressing on home connections for low-income families: equipment being purchased and installed to connect some 4,000 households on outskirts of major urban centers. - Note: initial strategy proved ineffective and the World Bank was asked to reformulate the methodology. ### Water production, access, and water management - Electra water production (2006): total 4,309,769 m³ — desalinated water 3,797,875 m³ (88 percent); groundwater 511,894 m³ (12 percent). - 2006 total output grew by 1.1 percent, or 47,168 m³, compared with 2005. - Table 7 (Electra water production, 000 m³; selected): - Total Praia (2002–2006): 1,908; 2,322; 2,344; 2,246; 2,124 — Change 2005/2006 -5.4% - Total Electra production (2002–2006): 3,639; 4,050; 4,086; 4,263; 4,310 — Change 2005/2006 1.1% - Desalinated (2006 share): as % of production 88.1% - Internal consumption (m3 000) (2003–2006): 24; 24; 27; 20 — Change 8.7% - Sales (m3 000) (2002–2006): 2,605; 2,845; 2,849; 2,932; 2,999 — Change 1.8% - Losses (m3 000) (2003–2006): 1,179; 1,211; 1,313; 1,283 — Change 2.9%; % of production ~29.8% in 2006. - Source: Electra, Evolução dos resultados Electra entre 2002 e 2006. - Island-specific changes (2005/2006): - Sal desalinated water production increase 11.5%. - São Vicente increase 7.3%. - Boavista change -2.2%. - Praia wells -4.4%; tunnels -23.7%; desalination -4.5%. - Rate of water loss between production and distribution: averaging 29.8 percent of total output by volume. - Electra asking large-scale hotel operators to include desalinated water production facilities in investment plans to help meet demand. ### Infrastructure access to water and rural water supply - 2006 CWIQ survey (INE) access to water: - 44 percent of population supplied through household connections; - 37 percent through public standpipes; - 6 percent rely on domestic water tanks; - Total 84.9 percent of population has access to a more or less secure water supply system; - 25.1 percent rely on relatively precarious sources. - Rural specifics (2006): - Only 28 percent of people have piped water; - 23 percent rely on less secure sources (wells, watercourses, cisterns, springs). - Only six of 22 municipalities have more than half of households connected to public water system. - Municipalities with notably low piped water coverage: São Domingos, Ribeira Grande de Santiago and São Salvador. ### Water management and groundwater resources - Fresh water sources: underground sources and surface runoff; desalinated seawater excepted. - Technically exploitable groundwater potential: between 44 and 65 million m³ per year. - Volume actually exploited per year: between 36 and 40.3 million m³. - Groundwater production systems (sources INGRH): - Springs/tunnels: 62,668 m³ per day. - Wells: 29,548 m³ per day. - Boreholes: 18,548 m³ per day. - Springs and wells: significant portion used for farming and livestock; roughly 10 percent of households use such water for consumption (INE IDRF). - Borehole water: smaller proportion overall but important for secondary urban centers and rural zones; significant use in irrigated farming (3,320,180 m³ per year) and industry (Praia data: 74,378 m³ per year). ### Basic sanitation and wastewater management - Progress made under Energy, Water and Sanitation Program (PEAS); but nationwide situation remains precarious per CWIQ. - Table 9 (basic sanitation; selected percentages 2000 vs 2006): - Bathroom with toilet: RURAL 21.9 → 32.9; URBAN 62.0 → 68.2; CVERDE 44.8 → 54.0. - No bathroom, no toilet/latrine: RURAL 65.5 → 56.6; URBAN 30.0 → 27.0; CVERDE 45.3 → 38.9. - Nationwide, 38.9 percent of households lack access to minimally acceptable sewage facilities; rural: 56.6 percent. - Only 54 percent of the population has a bathroom with a toilet (urban concentration highest at 60.2 percent). - Wastewater disposal (2006): only 34.5 percent of households dispose wastewater through a septic disposal well or sewer pipe; 30.4 percent pour near the house; 26.5 percent pour in nature. - Table 10 (method of wastewater evacuation 2000 vs 2006; selected): - Disposal well: RURAL 4.7 → 5.9; URBAN 23.7 → 32.5; CVERDE 15.5 → 21.8. - Sewer: RURAL 0 → 0.3; URBAN 17.5 → 21; CVERDE 10 → 12.7. - Near house: RURAL 66.9 → 52.2; URBAN 43.4 → 29.2; CVERDE 53.5 → 38.4. - Nature: RURAL 28.4 → 41.1; URBAN 15.3 → 16.7; CVERDE 20.9 → 26.5. - In towns, only 53.5 percent of families report disposing properly of wastewater; majority (68.2 percent) have bathroom with toilet or connected to disposal well/sewer. - Only 7 percent of rural families dispose wastewater through sewers or disposal wells. - Solid waste collection: - 59.7 percent of families use garbage containers or carts nationwide; - 27.3 percent dispose of garbage in nature; - Rural centers: 21 percent use containers/carts; 53.4 percent release garbage into nature. - Bilateral cooperation projects launched for rural water supply and sanitation on islands including Santo Antão and Santiago, involving municipalities and NGOs. - Remaining shortcomings: scarcity of community wastewater drainage systems, poor hygiene practices — risks to public health and environment, and obstacle to economic development and poverty reduction. ### Socioeconomic context (selected) - Population (INE Summary of Main Demographic Indicators 2000-2020): - Estimated at 499,796 for 2008; 51.6 percent women; 60 percent younger than 25 years. - Population estimate for 2011: 527,269. - Santiago island accounts for about half of national population; city of Praia about one-quarter. - Health indicators and demographics: - Life expectancy in 2008: 68.5 years for men; 76.3 years for women. - Average annual rate of natural increase: 1.97 percent. - Synthetic fertility index: 2.88 children per woman. - Migration: - Historically a country of emigration; net emigration dropped from 9,900 to 8,900 between 1990-95 and 1995-2000. - Negative balance of 1,355 expected in 2008. - Recent shift to net immigration, with many immigrants "irregular" and lacking reception conditions. - Health service access: - 74 percent of households had ready access to health services in 2006. - Infant mortality rate declined from 29.8 per thousand (2000) to 25.3 (2007); target 18.7 per thousand in 2015. - Infant/child mortality rate dropped from 39.6 to [value truncated in source]. *Source: _cr08242 - 4. Operational shortcomings with port infrastructure, particularly in terms of port procedures and* ### 32.8 per thousand. ### _cr08242 - 32.8 per thousand. ### Overall health indicators - Infant or child mortality reference: 32.8 per thousand. - Maternal mortality: "it declined from 30 per 100,000 in 2003 to 14.5 in 2005." - Source cited for tabulated maternal data: WHO Report 2006. ### Maternal mortality — Table 11 (maternal mortality trend) - Year 2001 — Number of births: 12,550; Maternal deaths: 539.8 - Year 2002 — Number of births: 12,345; Maternal deaths: 18.1 - Year 2003 — Number of births: 12,120; Maternal deaths: 433.0 - Year 2004 — Number of births: 11,862; Maternal deaths: 542.2 - Year 2005 — Number of births: 11,554; Maternal deaths: 217.3 - Year 2006 — Number of births: 11,925; Maternal deaths: 541.9 ### HIV/AIDS and infectious diseases - HIV/AIDS prevalence: 0.8 percent in 2005. - Men: 1.1 percent. - Women: 0.4 percent. - Condom use reporting: 72 percent of men and 46 percent of women report using condoms. - Geographic concentration: Santiago accounts for 69.2 percent of cases of infection detected in the country. - Priority groups for intensive care services: drug addicts, prisoners, juveniles between 15 and 19 years, and pregnant women. - Principal manner of transmission: sexual contact in 90 percent of cases. - Women accounted for 58 percent of cases, indicating greater vulnerability. - Prevention and treatment strategy (reinforced in 2004): integrated approach including psychological counseling, treatment of opportunistic infections, and free supply of antiretroviral (ARV) drugs, with a notable impact on behavior. - Tuberculosis: incidence rate declined sharply between 1989 and 2002 due to screening and short-term treatment; described as "may now be said to be under control." - Malaria: "not very endemic in Cape Verde." ### Malaria — Table 12 (incidence and mortality, 2005 and 2006) - Year 2005: - Population: 475,465 - Cases: 68 - Incidence (per 100,000): 14.3 - Deaths: 1 - Mortality rate (per 100,000): 0.21 - Case fatality rate (%): 1.5 - Year 2006: - Population: 483,090 - Cases: 80 - Incidence (per 100,000): 16.5 - Deaths: 7 - Mortality rate (per 100,000): 1.5 - Case fatality rate (%): 8.8 - Source cited for malaria data: WHO Report 2006. ### Health system capacity and institutional issues - Staffing shortages in health institutions highlighted. - Strategic Plan for the Development of Human Resources in Health calls for improvements by 2011, particularly in physicians, nurses and intermediate-level health technicians. - Regional disparities persist. - Growing resort to specialized care increases costs due to evacuations within the country and abroad. - Weak institutional articulation between public and private sectors; government has yet to create conditions to exercise regulatory role and supervise private establishments to avoid shifting burdens to the public sector. ### Water and sanitation - Percentage of people with access to drinking water rose from 42 percent in 1990 to around 85 percent in 2006 (77 percent in rural areas and 93 percent in the towns). - Sanitation shortcomings: - "(i) there is no adequate treatment of wastewater;" - "(ii) only 30.5 percent of households have access to a sewer system or disposal well, and the rate is only 9 percent in rural areas;" - "(iii) only about 50 percent of households have a bathroom and toilet." - Figure source: WHO Report, 2006. ### Employment, unemployment and incomes (2006) - Active population (workforce) in 2006: 183,254. - Increase of 61,190 compared with 1980. - Increase of 11,941 compared with 2000. - Employed: 149,680. - Unemployed: 33,574. - Unemployment rate: 18.3 percent (versus 24 percent in 2005). - Unemployment by gender: - Women: 23 percent. - Men: 14 percent. - Income composition: around 64 percent of family incomes derive from wages. - Poverty among working population: around 29 percent of the working population is poor. - Sectoral employment concentration: primary sector, commerce and civil construction account for about 56 percent of nationwide employment. - Informal work: - Of 149,608 persons employed in 2006, about 70 percent (105,295) were working without any formal contract. - Among domestic employees, informal rate is 95 percent. - Average yearly pay per worker: - 94,164 escudos in 1990. - 215,986 escudos in 2006. - Educational attainment among employed: 35 percent had secondary schooling or more in 2006, versus 29 percent in 2000. - Youth unemployment: - Around 33 percent of the unemployed are young. - Of young unemployed, 52 percent are relatively well-educated. - About 44 percent have completed secondary school (41 percent) or beyond (3 percent). - Gender disparities among youth (aged 15 to 24): - Female unemployment rate: 47.6 percent. - Male unemployment rate: 35.5 percent. - Workforce gender shares: - Women represent about 48 percent of the workforce and (45 percent) of persons working. - Roughly 36 percent of low-income wage earners are female. - Around 42 percent of unskilled workers employed by others are women. - Women constitute a majority (55 percent) of low-income people working for their own account; of these women about 8,000 are unskilled. - Of the unemployed workforce, 61 percent are females; of these 10,293 were previously employed, representing 57 percent of unemployed persons with previous work experience. - Access to employment gap between heads of family: 16.4 percent for women and 10.3 percent for men. ### Poverty: structure and dynamics - Millennium Development Goals challenge: lifting 47,000 people out of extreme poverty. - Reliance on Program to Combat Rural Poverty (PLRP) to create employment, incomes and provide vocational training. - Highlights of the PNLP (National Antipoverty Program): - construction and upgrading of community facilities to provide basic services in education, health, water supply and sanitation; - support for local initiatives; - promotion of training for self-employment and income generating activities, through microcredits. - Surveys (World Bank, INE and DGP) 2004 and 2007 indicate decline in population living in absolute poverty from 49 percent to 37 percent between 1988-89 and 2001-02. - Poverty measured by assets — changes between 2001-02 and 2006: - National: 36.5 percent in 2001-02 to 24.9 percent in 2006; Difference (2001-2006): -11.7 - Urban: 24.9 percent in 2001-02 to 17.2 percent in 2006; Difference (2001-2006): -7.8 - Rural: 50.8 percent in 2001-02 to 31.3 percent in 2006; Difference (2001-2006): -19.5 - Chart source and methodology: Authors’ calculation, using IDRF (2001/02) and QUIBB (2006). - Column headings explained in source: 1. Predicted poverty rate in 2006 based on consumption distribution and per capita GDP growth in 2001 2. Predicted poverty rate in 2006 based on consumption distribution and per capita consumption growth in 2001. 3. Reduction in asset poverty between 2001 and 2006. *Source: _cr08242 - 32.8 per thousand. (PDF chapter/section; WHO Report 2006 cited within).* ### 4. Growth component of the reduction of asset poverty between 2001 and 2006. ### 4. Growth component of the reduction of asset poverty between 2001 and 2006. ### Poverty overview - Poverty remains significant, reflecting essentially the weakness of the productive fabric and its low capacity to generate employment, incomes and well-being for the country's people. ### Labor, family and social protection — institutional capacity and constraints - Programs under the first GPRSP (2005/2007) aimed to improve labor administration and social security to reduce poverty and established strategic objectives to be met through various projects. - Analysis reveals constraints preventing achievement of some objectives, pointing to the need for greater institutional capacity for intervention, especially in labor administration and inspection and social security and integration services. - Current structures are inadequate for enforcement and supervision; cutbacks in the number of inspectors have created a shortage of human resources; technical resources are insufficient for proper inspections. ### Labor relations and working conditions - Strong development performance sparked growth in the world of work, with new business initiatives (up by more than 100 percent on some islands), new forms of work organization, and new approaches to labor relations. - Actions and projects include: - Revision, preparation and approval of various legal provisions, including draft legislation on maritime and aeronautical work, on student workers, and on foreign workers. - Preparation and approval by parliament of the new labor code, to come into force at the beginning in 2008. - Steps for prevention, monitoring and mediation of labor disputes. - Inspection activities covering various enterprises. - Steps to enforce and publicize the basic law on workplace hygiene, health and safety and prevention of workplace accidents and occupational illnesses. - Promotion of dialogue among social partners within the Social Cooperation Council. - Despite importance for decent work (ILO), sector suffers from organizational and institutional constraints: inadequate structures, inspector shortages, and insufficient technical resources. ### Social security and integration — key programs and coverage - Major reform objectives: make social security sustainable and universal, and enhance social justice. - Measures introduced include: - Revisions to the basic law on social security. - Analysis and strategy for development of social security in Cape Verde, focusing on the noncontributory system. - Preparation of a "Social Charter" and "Social Atlas". - Approval of Decree-Law 24/06 creating the Social Pension. - Increase, diversification and improvement of social allowances on the basis of solidarity and social justice. - Bringing employees of the public administration and the banks, as well as independent workers, into the social security system. - Preparation of a medium-term expenditure plan for the sector, with a new approach to planning and strategic management by results. - Coverage and beneficiary figures: - Scope of coverage of the social insurance program for employees broadened to include some 15,000 workers in the government and municipal administrations. - In 2006, the number of contributors rose 4.7 percent over 2005, to 15,560. - In 2006, the number of insured workers increased by 20.7 percent to 62,940. - With the noncontributory system minimum social security floor (established in 1995), there are now 21,361 persons covered by pension programs (merger of the Minimum Social Pension and the Social Solidarity Pension). - Beneficiaries are primarily the elderly, the chronically ill, persons with disabilities, and former FAIMO workers. - Benefits take the form of a monthly pension, which has increased to a current range of $3000-$3150. - With the pension increases in recent years, the annual cost of the program now amounts to around $790,058,000. ### Social integration and access to social services - Actions under way or taken to enhance access to basic social services: - Health services, including patient evacuation, medical assistance and drugs, to guarantee the right to health for the most vulnerable not covered under other protection systems. - Education grants for students from low-income families: the program currently covers 230 students at different levels of instruction (technical and vocational, intermediate or higher education). - Rehabilitation and integration of persons with disabilities, establishment of a national plan for persons with disabilities. - A network of community social workers to support civil society initiatives for combating poverty and social exclusion. - Gaps and needs: - Need to set operating rules and regulations, and to establish a licensing and inspection authority for social services to ensure proper monitoring, coordination, and service quality. - Coverage of social services is inadequate to meet growing needs, particularly those of female heads of family caring for children and for disabled and elderly persons. ### Children and adolescents - Activities target: (i) promoting and publicizing the rights of children, and (ii) protection and social reintegration for children at personal and social risk. - Measures include campaigns of solidarity, awareness raising and education about children's rights; a study of problems facing children and adolescents; and provision of direct services including psychosocial care and support in partnership with other agencies and civil society organizations. - Coverage and institutional developments: - Social services coverage and accessibility greatly expanded in all municipalities; targeted primarily (68 percent) at younger children [to the age of 12]. - 16 municipal committees for the defense of children's rights have been created, covering nearly all municipalities; the last one, in Tarrafal, island of Santiago, is awaiting establishment. - Progress includes strengthened legislation, studies on problems affecting children, and establishment of support services, counseling, and guidance. ### The family - Problems associated with unemployment, poverty, gender inequality, and poor housing conditions include family instability and breakdown, alcoholism, domestic violence, juvenile delinquency, child prostitution, and street children. - Women are most severely affected as increasing numbers of households are headed by women who are the mainstay of the family economically, educationally and socially. - Family support policies have established social programs, services and facilities involving municipalities and civil society organizations, but responses remain insufficient to reduce poverty and marginalization in many families, rural and urban alike. ### Youth - National Youth Policy efforts: encouragement of youth associations, creation of the National Youth Council, juvenile leagues, youth centers and telecenters, and social volunteer work through the Law on Juvenile Associations. - Progress in education, vocational training, employment, culture and recreation, environment and agriculture; need to raise quality of instruction and vocational training to achieve higher specialization. - Training unit expansion and enrollment: - New training units in place (point 2.3) offer quality technical education coordinated with the FP [the vocational training program]. - Number of students enrolled in technical/vocational level more than doubled: from 1,031 in 2000 to 2,598 in 2004. - Hundreds of young people are sent abroad for technical and vocational training. - Promotion of young microentrepreneurs: almost 13,500 contos [a “conto” is 1000 escudos] has been earmarked for financing income- and employment-generating activities for youth. - Labor market outcomes and challenges: - Data for 2005 show that 48 percent of persons between the ages of 15 and 24 years were unemployed, representing 38.6 percent of the economically active population. - Profile of unemployed youth comprises essentially persons with general primary or secondary education, indicating the need for further emphasis on technical and vocational training and measures to encourage entrepreneurship and job creation, including emergency incentives for young entrepreneurs. ### Culture - Cultural advances include promotion and preservation of heritage, application to have the Old City [of Sal] declared a World Heritage site, research into history, anthropology and oral traditions, transfer and conservation of national archives, library system expansion, archaeological and underwater research, book fairs and publication activity. - Cultural promotion emphasizes dialogue, sharing of experience, cultural sustainability and creation of synergies. - Government and artistic community efforts to promote and disseminate culture abroad reflect a policy of international openness, tolerance and appreciation of cultural diversity. ### Sports - Significant investment in sports facilities. - Established "Young Athletes" scholarship and support for sporting clubs and schools; negotiation of program contracts with sports federations. - International achievements: successes of the national soccer team; medals in rhythmic gymnastics, boxing, taekwondo and basketball; medals won by wheelchair athletes in the Zone 2 international competitions. ### Environment - Environmental constraints and impacts: - Low degree of rainwater infiltration and retention causes shortage of groundwater. - Improper farming practices contribute heavily to soil degradation. - Rural exodus has led to uncontrolled squatter settlements, with pollution of soil, air and water from solid wastes and sewage. - Massive removal of rock and sand along the seashore allows seawater infiltration, loss of biodiversity, decline in groundwater quality, and deterioration of tourist areas. - Interdependence between environment and poverty: - Growing demographic pressures in the countryside spur exodus to main cities and secondary towns, saturating infrastructure, raising urban poverty, and creating environmental problems affecting public health and living conditions. - Strategic frameworks and priority areas: - The National Action Plan for the Environment I and II adopted as strategic framework for rational and sustainable management of natural resources and economic activities to combat poverty, with objectives to protect the environment, make water available, create jobs and assure food security. - Priority areas: (i) sustainable management of water resources, (ii) basic sanitation, (iii) biodiversity, and (iv) land-use planning. - Strategic plan for agriculture, municipal environmental plans, and environmental information action plan prepared and in implementation. - Steps taken to insure efficient management of water resources, provide training for farmers, and promote drip irrigation systems through a special program for food security. ### Persistent vulnerabilities - Structural and cyclical vulnerabilities persist despite socioeconomic progress: - Serious drought problems: agro-climatic analyses show the wet season has become shorter and periods of drought are becoming more frequent, with a devastating impact on fragile ecosystems and biodiversity. - Territorial discontinuity: a principal constraint on productivity in the ports and on competitiveness of all sectors; a development challenge for sea and air transport linkages and cost of basic factors for boosting economic activity. - Heavy dependency on imports, particularly fuel and food, makes the economy highly vulnerable to external shocks and price volatility. - In 2004, the adverse impact of rising oil prices was buffered to some extent by lower tariffs, rationalization of indirect taxes, reform of the oil sector, deregulation, public subsidies, and growing transfers and private capital inflows. - The energy sector is especially affected because oil accounts for 93 percent of total energy consumption. - Dependence on remittances and official development assistance: these flows account for 34 percent of GDP, and a significant portion of development efforts is based on transfers. - Major and unpredictable fluctuations in output, together with cyclical and structural factors, constitute enormous risk factors for rural people and are responsible for the intensity of poverty in the countryside, where nearly half of the population is poor. *Source: _cr08242 - 4. Growth component of the reduction of asset poverty between 2001 and 2006.* ### 3. AN AGENDA FOR CHANGE ### 3. AN AGENDA FOR CHANGE ### 3.1. Outcomes - Income per capita stands at US$2,316. - Literacy rate: 79 percent for adults and 97 percent for juveniles. - Human Development Index: .736. - Life expectancy: 76.1 years (women), 72.3 years (men). - GDP has been growing steadily, exceeding 10 percent in 2006. - Exports have performed very well, with a year-on-year increase of 43.5 percent in 2006 versus 17.7 percent in 2005. - Foreign direct investment has been growing strongly, and now exceeds ODA. - Tourism has grown sharply, and for the first time outpaced emigrant remittances. Recognized advances: - Political governance: political and social stability; changeover of government through direct, free, transparent and democratic elections. - Economic governance: macroeconomic stability from sound economic management and sustained economic growth. - Education: strong and persistent commitment to enhancing human development. - Health: life expectancy at birth of 72.3 years in 2006; 76.1 percent of the population with access to drinking water; prevalence rate of HIV/AIDS, calculated at 0.8 percent. - Poverty reduction and social inclusion: between 1988 and 2002, the number of Cape Verdeans living in poverty declined by one-quarter, to 36.7 percent of the population; the remaining poor are closer to the poverty line, and inequality among them has declined. - Lower unemployment: according to INE data, the unemployment rate was....... percent in 2007, versus.......... percent in 2006. Identified weaknesses: - (i) Low domestic productivity with high production costs, inadequate markets, and an ineffective quality control system. - (ii) Need for further improvements in the quality of primary and secondary education; expansion and improvement of technical and tertiary education to create capacities in key development sectors and to increase entrepreneurial capacities. - (iii) Need for sustained progress in pursuing the MDG, especially at the local level; strengthen planning, management and administration capabilities; strengthen the health-care system to meet tourism demands; cope with the spread of communicable diseases. - (iv) Need for basic policies to consolidate macroeconomic stability, decentralized decision making and delivery of public services, promote employment through development of productive sectors with multiplier effects, improve income distribution, enhance social security and environmental protection. - (v) Need for affirmative action on gender, recognizing systemic nature of gender inequalities. - (vi) Cost and availability of electricity; water supply; labor costs and labor market inflexibility. - (vii) High taxes and customs duties. - (viii) Expensive and faulty telecommunications. - (ix) Shortage and high cost of financing. - (x) Lack of specialized human resources. - (xi) Poor performance of the ports. - (xii) Rudimentary economic regulation. ### 3.2. The new challenges of modernization - Accession to the WTO: commitment to rationalizing trading system, reform of legal framework, reduction of tariffs, acceptance of WTO rules and negotiation of concessions with main trading partners; challenge linked to national capacity to take advantage of emerging opportunities and recognize potential of competitors. - Graduation to middle-income status: Cape Verde meets two of the three essential criteria for graduating from the LDC group: Gross National Income and the Human Capital Index; key questions involve effective implementation of the strategic vision to ensure effective and sustainable graduation while mobilizing international financial support to combat poverty and vulnerability. - Strategic partnership with the European Union: partnership aimed at generating alternative flows to reduce structural vulnerabilities, establish income-generating activities to support growth and internal capital accumulation, integrate into the international economy, and boost political dialogue and economic convergence. Strategic concern: - Identify and map key domains of development and strengthen/adapt policies to meet future challenges, maintaining economic growth, significant cuts in unemployment, and the greatest possible reduction in poverty. ### 3.3. Vision Long-term objectives and dimensions: - A nation opened to the world: rely on innovative capacity to position competitively in global market; active participation in global market to create wealth and shared prosperity. - A dynamic system of production: transform economy to reduce vulnerability from dependence on remittances and development assistance; create sustained growth to generate jobs. - Well-developed human capacities: build human capacity to operate at high levels of knowledge and excellence to implement strategies and policies for prosperity. - Emphasis on technological and cultural development: science and technology as crucial for long-term economic development; harmonize sustainable development and cultural vitality; support artistic and cultural creation and dissemination as part of daily life. - Economic growth with social solidarity: growth must be accompanied by social policies (gender perspective, employment, income redistribution, access to education, health, water and sanitation, information and culture) to combat social exclusion and improve social cohesion. - Continuous strengthening of democracy: maintain trust, freedom and security; plans to establish a Provedor de Justiça and a Constitutional Tribunal; continue as a benchmark in building democracy and promoting rights. ### 3.4. Strategic objectives for the medium and long terms 3.4.1. Transformation of the State - Implement an Economic Transformation Strategy to lay conditions for sustainable economic development through sustained growth rooted in a private-based market economy integrated into the global economy, thereby reducing poverty. - Strengthen the State in three basic functions: (i) providing security, (ii) guaranteeing justice, and (iii) fostering economic prosperity. - Reevaluate State role and dimensions; future interventions in governance (central and local) and the three branches of State (executive, legislative and judicial); strengthen and rationalize security, justice and the socioeconomic dimension. 3.4.2. Reform of the public administration - Aim for an administration closer to citizens and economic agents, more transparent and equitable, with better-qualified, motivated human resources; administration that promotes and regulates public-private partnerships. - Strengthen management functions, motivate and upgrade human resources, reinforce regulatory and supervisory role of the State, and ensure greater local capacity to manage development. 3.4.2.1. Strengthening municipal administration - Municipal governments to assume greater responsibilities; require more rigorous resource planning and management. - Adopt policies to reinforce trust in local authorities to promote local development and achieve higher efficiency and effectiveness. - Develop a partnership strategy between public entities and civil society organizations to strengthen citizen participation in decentralization. - Pursue local administration policy based on administrative decentralization to correct regional asymmetries, bring power closer to citizens, rely on public-private partnerships, and transfer skills and resources to municipal entities, especially in education and health. - Leverage strategic partnership framework with the European Union for local government participation and decentralized cooperation; municipalities to design and develop policies consistent with graduation demands. 3.4.3. Permanent benefits of democracy Key aims of democracy consolidation: - Continued, sustained economic growth based on modernization, increased knowledge, innovation, and upgraded human resources and public services. - Ongoing enhancement of national cohesion to reduce poverty and increase solidarity and equal opportunity. - Better quality of life: reduced unemployment, upgraded environment, meeting basic requirements (housing, access to drinking water, energy, health, and education), further improvement in human development indicators, and better territorial organization and cohesion. - Expanded participation areas to promote ownership of democracy and citizenship and strengthen credibility of government and institutions through dialogue with political parties, economic actors, workers, civil society, and representative organizations. - Full affirmation of status as a global nation: integrate Atlantic Islands and diaspora communities, affirm nationality, and develop foreign policy emphasizing economic and cultural position to increase international integration and affirmation. Governance priorities: - Good governance and governance ethics to guide government actions, support approval and implementation of by-laws for public office, and hold public officials accountable. - Ensure proper balance of power and institutional cooperation among branches of government per the Constitution through strengthening institutions, deepening democracy, and achieving broad consensus. 3.4.4. A modern, competitive economy Primary economic policy objectives: - To reduce unemployment to below 10 percent: poverty reduction through more and better employment, prioritizing women. - To achieve double-digit GDP growth rates: based on past performance (GDP grew 10.6 percent in 2007, according to the IMF), current trends, IMF forecasts, and public and private investment outlook, adopt measures to support and consolidate upward trend. Strategy highlights: - Develop the market economy through stimulus to Cape Verde micro, medium, and large-scale enterprises, and promote partnerships with foreign investors. - Promote public/private partnerships and a competition policy to improve institutional conditions for the entry of new businesses across sectors. - Increase efficiency in supplying goods and services through implementation of the privatization program. - Increase productivity to face competitive pressure following WTO accession and new medium-developed country status; raise production, value added and employment opportunities. - Rely on highly skilled human resources and new information and communication technologies to drive innovation in processes, products, and services via an “innovation system.” - Labor Law reform required: enhance flexibility, promote employment, and increase productivity to accommodate informal labor relations (25 percent of employment) and self-employed labor (40 percent of employment). 3.4.5. The knowledge society for innovation, qualification, and employment - Emphasize knowledge- and technology-intensive approach requiring highly skilled human resources in science, technology and innovation. - Define legislative framework to guide education system and transform sciences and technologies into a national innovation system as a pillar for economic development, higher growth rates, productive employment, and a knowledge-based economy. - Support the University of Cape Verde by creating infrastructures: construction of university campuses, strengthening physical and technological capacities, and human resource development in higher education institutions. - Organize an integrated education, training, and employment system: develop a national professional skill and qualification system; establish ongoing education opportunities for initial vocational training at all levels; promote continuing education; implement training and retraining for managers, trainers, and instructors in vocational education; and organize a statistical information system on employment and occupational training. 3.4.6. Information and communication technologies (ICT) to develop human resources and stimulate innovation - Superior technology institutions and the University of Cape Verde to train and upgrade human resources in ICT and support new enterprises in business plans, technical infrastructure, computer management and maintenance, and applications design and calibration. - Define policies and mechanisms to mobilize ICTs to upgrade human resources in two areas: (i) better quality and greater access to the educational and training system; and (ii) ICT training for Cape Verde nationals. - Focus efforts on equitable access to ICTs in primary and secondary schools, promote virtual campuses and distance learning, continuing education for teachers, development of new ICT curricula, and ICT training for different population sectors. - Adopt an innovative approach in capacity building with three action aims: (i) ICT in the schools; (ii) ICT in higher education; (iii) ICT in civil society. 3.4.7. Culture and development - Harmonize human development and globalization by ensuring citizens have thorough knowledge of history, culture, environment, and Cape Verde-specific matters via systemic education and training. - Adopt policies to bring Cape Verde culture to international competitiveness standards and implement strategy for harmonious economic liberalization. - Sector challenges: (i) promote a cultural policy to strengthen national identity and receptivity to modernization; (ii) focus on culture in national planning; (iii) upgrade and promote cultural products; (iv) develop and promote Cape Verde's cultural and historical heritage. - Develop a cultural industry supported by and related to sustained tourism development and poverty reduction. 3.4.8. Active social solidarity Sector objectives: - Help reduce poverty and social inequalities by promoting conditions to improve quality of life and well-being, especially for the most disadvantaged, guaranteeing access to income and basic social services. - Establish institutional capacity to strengthen and consolidate the labor and social security administration system to correct vulnerability and support ongoing sector and development changes. 3.4.9. Poverty reduction and ongoing integration - Sustained average growth rates exceeding 5 percent make poverty reduction achievable. Authorities must build on liberalization dynamics and pursue higher development levels based on new growth and competitiveness models: - Robust growth driven by the private sector to generate wealth. - A competitive economy based on competitive advantages, supported by innovation, productivity, quality, and skills. - Growth to generate employment and reduce poverty. Chart data (Proportion of population living in extreme poverty): - Time series labels: 1990 1993 1996 1999 2002 2005 2008 2011 2014 - Percentage markers in chart: 21 32 16 - Source: National Statistics Institute (INE), 1990 and 1992. Public policy approach: - Pursue public development policies—particularly active social policies—improving and expanding current policies and introducing innovations to address complex social issues affecting vulnerable sectors. - Coordinate and link sector plans and programs including the National Poverty Reduction Program (PNLP), the Growth and Poverty Reduction Strategy Paper (GGPRSP), and the National Gender Equality and Equity Plan to target individuals, groups, households, and least favored communities. 3.4.10. Strengthen national development management capacities Findings from national survey (completed December 2004): - Issues identified: insufficient institutional and human capacities, lack of a unified framework and strategy for capacity building. - Recommendation: design a strategy to guide and coordinate capacity-building activities. Institutional responses: - Establishment of two specialized agencies: the Center for Strategic Policies and Government Reform Coordination Unit under Resolution 36/2006 of August 21, 2006 and Resolution 34/2006 of August 14, 2006, respectively. - In GGPRSP II and a new national planning system, design an appropriate monitoring and assessment system: initial phase to monitor and assess physical and financial project execution; second phase, in cooperation with INE, to design and implement impact assessment (see Title 7 of the present document: Implementation, Monitoring, and Assessment). Capacity-building goals for national development management: - (i) Substantially strengthened institutional capacities to manage development; - (ii) Establishment of capacities to formulate and implement strategic policies; - (iii) Strengthened planning capacities at the national, sectoral, and local levels; - (iv) Strengthened business capacities with external partners; - (v) Thorough knowledge of the structure and operation of key development partner organizations; - (vi) Improved capacities of the National Assembly in its policy making and oversight functions. *Source: _cr08242 - 3. AN AGENDA FOR CHANGE* ### 4. STRATEGIC DEVELOPMENT PILLARS ### 4. STRATEGIC DEVELOPMENT PILLARS ### Overview - Strategy confirmed in GGPRSP II is based on the Government's five pillar development program and a DEVELOPMENT AGENDA emphasizing: GOOD GOVERNANCE, Human Capital, Competitiveness, Infrastructure, and Social cohesion. - Major government policy areas focus on double-digit economic growth and single-digit unemployment. - Emphasis on consolidating policies after Cape Verde's graduation from Less Developed Country status, accession to the WTO, and strategic membership in the EU. ### Pillar I – Government reform #### Rationalization of government structures - Strengthen strategic functions, research, and assessment/control of results to support governance. - Strengthen the government's normative, regulatory, and oversight functions. - Concentrate research and development functions within the University of Cape Verde's institutional catchment areas. - Rationalization and potentially terteriarization of productive functions and services. - Develop and share common instrumental services at ministerial and inter-ministerial levels (budget and financial management, staff, assets) to reduce redundant structures and processes. - Streamline bureaucracy, increase horizontal and vertical communication by reducing chain of command, establish horizontal and matrix project structures, and make substantial use of information and communication technologies. - Improve qualification of processes, tasks, and staff of the central government via new structures implemented through a gradual strategy and pilot testing. #### Modernization of the public administration A. More and better availability of the public administration to citizens and enterprises: - Implement the network of citizens' centers in Cape Verde. - Establish the Cape Verde government portal and the citizenship portal. - Continuously promote and update WebPages for all ministries with current information for citizens, enterprises, and civil society. - Improve quality of accommodation and service for citizens and business persons while phasing in the Law on Administrative Modernization. - Establish an administrative inspection service in the ministry responsible for the public administration to monitor application of measures at national level and in embassies. - Continue efforts to develop public services and civil servants (United Nations Day, UN Public Service Day). B. Qualification of management functions and human resources development: - Give INAG status as a government academy and incorporate it into the University of Cape Verde. - Develop an integrated human resource training plan for public administration nationally. - Establish a training department in the ministry responsible for public administration with coordination, diagnostic, and planning functions. - Implement the public workers' training fund and execute the public administration training program with respective career approvals. - Approve a new posts, careers, and salaries plan (PCCS) and instruments for merit and performance-based assessments. - Gradually implement staff recruitment targeting level III management by competitive process with improved transparency, merit, fairness, equity, and equality. - Improve interdepartmental coordination (planning, budget, management) and strengthen modernization of decentralized government services. - Implement reform to integrate civil servants into the social provident scheme for workers employed by others. C. Strengthen public/private partnerships and government's regulatory and oversight function: - Strengthen qualification and operating capacity of private investment promotion and regulatory agencies. - Simplify rules of financial administration in public goods and services procurement. - Strengthen government auditing and financial control by coordinating education, transparency, and accountability; reinforce CT skills and timely review of inspection and audit reports including irregularities in public asset management. #### Ethics and transparency in public asset management - Government program "Sound Fiscal Management" emphasizes modernization, transparency, efficiency, efficacy, and stringent fiscal management policy to maintain sustainable overall budget deficit and public debt levels through the economic cycle. - Undertake public expenditure classification and efficient, rationalized revenue management to increase "value for money" and increase weight of public investments in total expenditure through multi-year programming and enhanced financial forecasting. - Prepare central government budget within new budget aid mechanisms and the arrangement signed by the government of Cape Verde and the IMF for an economic and financial policy support facility. - Continuity in implementing new fiscal management instruments including: (i) The new Budget Management Law; (ii) The new National Public Chart of Accounts; (iii) The new Public Contracting Code; (iv) The new Law on Planning Foundations; (v) The medium-term expenditure framework, at the global and sectoral levels, supported with the public expenditure review exercise; (vi) Consolidation of the various aspects of the budget and financial management system (SIGOF), including: - (1) Decentralization of budget management (programming, reprogramming, execution, assessment, etc.), implementation of the financial disbursement officer and controller; - (2) Computerization of the tax administration and improvement in revenue management; - (3) Implementation of an asset management system; - (4) Adoption of technological cash management platforms (enhancing the treasury's banking functions); - (5) Adoption and rapid dissemination of electronic payments; - (6) Adoption and commissioning of a new national planning system based on the monitoring and evaluation system; - (7) Building capacities for inspection and oversight of the public apparatus (The Court of Audit/IGF/Public administration Inspectorate); - (8) Dissemination of the SIGOF in all departments of the public system, including the FSA and sovereign bodies. - Containment and classification of operating expenditure: (i) Implement policy to rationalize structures (organic, missions, powers, size, human resource profile); (ii) Urgently implement new human resource management mechanisms: new PCCS; (iii) Prioritize obligatory expenditure and adopt only new expenditure justified by relevance and positive impact based on the need for a primary current account surplus; (iv) Annual budgets should reflect allocation of resources to departments with oversight and regulation functions; (v) Achieve a more equitable allocation of interdepartmental and inter-sectoral resources. - Capital expenditure classification: - Multi-year public investment program guided by government policy aims and plan options combined with economic development strategy. - Medium-term expenditure framework (QDMP) to guide forecasting revenue and allocation of expenditure compatible with sustainability and support for growth. - Main objectives of the multiyear public investment program for the period 2008-2011: - Support GDP growth of approximately 10 percent while maintaining sustainable inflation and budget deficit levels and reducing unemployment from 18.3 percent in 2006 to single-digit figures by 2011. #### Decentralization and regional development - Consolidate and enhance local powers via reforms to foster institutional development of municipalities, training, municipal autonomy, modernization, and legal oversight. - Adopt measures to strengthen municipal capacity and planning, including financial, human, technical, and logistic capacities. - Specific measures to continue decentralization: (i) Consider specific features of the municipality of Praia as political seat and metropolitan center; (ii) Implement the Framework Law on Decentralization; (iii) Stimulate peoples' participation at all municipal management stages, creating fiscal and social control mechanisms; (iv) Promote grassroots solutions and administrative presence at local community level; (v) Approve law on decentralized cooperation to establish information and management system and rules for partnerships between municipalities and private sector; (vi) Adopt mechanisms for strategic coordination in decentralization, peripheral central government administration, and territorial coordination of public policies; (vii) Regulate the new local finance law to promote municipalities' access to credit, introduce technical cooperation mechanisms, and implement the municipal development fund; (viii) Promote research to adopt municipal personnel by-laws based on civil service by-laws and incentive policies to establish qualified municipal staff; (ix) Establish legal conditions to create municipal policy and a framework of central government support for municipalities; (x) Review current by-laws of municipalities and local elected officials. - Use local administrative decentralization to correct regional imbalances via public-private partnerships and transfer of authority/resources to municipal agencies (health and education). #### Expanded areas for participation - Invest in citizenship education to enable people to assume rights and duties and exercise democracy at local and national levels. - Strengthen role of organized civil society and create more areas for participation to involve citizens in management of community interests. - Regulate framework governing civil society organizations and establish new instruments to adapt to dynamics of private nonprofit associations. - Proposed measures: - Approval of NGO by-laws; - Establishment of a support fund for social projects and programs by civil society organizations; - Establishment of a registration system for civil society organizations; - Establishment of a reference frame for nonprofit civil society organizations' charts of accounts. - Youth participation measures: - Implement the Youth Association Support Fund as soon as possible. - Expand Cape Verde Voluntary Youth Corps nationwide. - Install Youth and Telecenters in all municipalities. - Open and operate youth hostels to facilitate exchange and youth employment initiatives. - Establish municipal holiday camps to increase youth participation and exchange. #### Human rights and individual and community liberties - Support policies to fight gender-based violence and protect rights of children and adolescents. - Promote policies to defend rights of disabled persons, including campaigns on disabled persons' rights and prevention of disabilities in partnership with NGOs. - Activities include: - Operations assisting households exposed to economic, social, cultural vulnerability; - Promotion of gender equality and equity; - Strengthening social action in schools to correct social inequalities; - Accountability for young persons in conflict with the law; - Promotion and dissemination of Children's Rights. #### Free, upgraded social communication - Require modern legal framework, independent and credible regulation, impartial professional standards, and public service concession agreements for public information services. - Aim to restore social communication sector to support poverty reduction strategy and democratic participation. - Public agencies must provide high-quality, diversified programming and eliminate gaps in radio and television broadcast coverage; public television and radio signals should reach countrywide. - Upgrade human resources and address distribution challenges; maintain connection with Cape Verdean diaspora. - Adopt policies and instruments to use national social communication as support and partnership mechanism to foster growth, reduce unemployment, and reduce poverty. #### Economic freedom - Index construction variables divided into 10 categories: trade policy, tax burden, government economic intervention, monetary policy, capital flows and external investment, banking and financial system, wages and prices, property rights, and informal market regulation and activity. - Continue work related to Cape Verde's graduation from least developed country status and strategic partnership with the EU. - Substantial investment in human resource qualification is essential. #### Democracy and political representation - Strengthen democratic culture through electoral system reform and use of information society to increase citizens' involvement. - Fundamental measures during GGPRSP II: - Conduct a new general census following electoral code reform; - Test electronic voting at various levels for future generalized use; - Strengthen technical capacities of the electoral administration (DGAE); - Use new information technologies to ensure transparency in census and electoral processes and create e-democracy; - Revise system for updating the electoral census to facilitate suffrage and eliminate legal barriers to transfer of census registries; - Establish a database of Cape Verde citizens registered abroad; - Promote Cape Verde's participation in international and regional organizations to defend the development of democracy. #### Justice reform 4.1.10.1 Improve and expedite the judicial response: - Give special attention to penal process reforms for more expeditious criminal justice and to fight impunity. - Prioritize fight against gender-based violence via juridical and legal framework revision and judicial prioritization of related proceedings. - Strengthen Public Prosecutor’s Office resources and establish specialized office to fight economic and financial crime and corruption. - Simplify rules of civil proceeding, reduce red tape, increase accessibility, and reform administrative contentious matters. - Review by-laws for justices and reassess magistrature management system. - Provide technical consulting to Supreme Court of Justice, Office of the Attorney General, Superior Councils of the Judicial Magistratures, and Public Prosecutor’s Office. - Increase number of judges on the Supreme Court and operate in specialized sections. - Emphasize professional training and capacity building in the judiciary. Judiciary capacity-building measures: - Finalize judiciary organizational reform including small claims courts. - Implement reform of Judicial Secretariats and the Public Prosecutor’s Office. - Continue upgrading existing legal system. - Adopt consistent policy on upgrading and continuing education for officers of justice in proceedings and new technologies. - Complete computerization of courts and place them online internally and with other justice sector systems. - Strengthen fight against gender-based violence and disaggregate statistical data on such crimes. - Promote access to the law by establishing law offices in all municipalities in Cape Verde. 4.1.10.2 Penitentiary services and social rehabilitation: - Launch strategic program to adjust prison facilities for increasing prison population, separation by age, preventive vs. punitive detention, and danger levels. - Execute coordinated projects to promote social rehabilitation of prisoners. - Consolidate legal and institutional measures for supervision and social rehabilitation of children and youth in conflict with the law and conclude juvenile justice system reform. 4.1.10.3 Notarial register and identification modernization: - Generalize modernization and computerization of notarial register and identification services nationwide. - Establish new services where required with differentiated access (online or diversified outlets including Chambers of Commerce and citizens' centers). - Complete projects in commercial legislation to adapt to modern company demands; finalize process of establishing enterprises on the same day. - Revise fee tables to match services. - Promote registration of children at birth through coordinated activities and program training for sector officers. 4.1.10.4 Security of persons and property; threats and strategy components: - Identified threats: - Sovereignty: illegal trafficking (persons, narcotics—especially cocaine—, weapons) and transnational criminal organizations. - Social: various forms of violence, urban criminal activity, links between drug trafficking and HIV/AIDS, deterioration of families, facilitation of terrorist activities due to social vulnerability. - Environment: pollution and environmental degradation. - Economic and commercial: illegal fishing, overexploitation of fishing areas, money laundering, smuggling. - Strategy's three fundamental components: - Reduce drug supply through strengthened control of entry and transit, strengthened law enforcement, and international cooperation. - Reduce demand through primary prevention programs at decentralized level, development of prevention in education/recreation/leisure, assessment of trends, and adapted treatment/social rehabilitation programs. - Strengthen democratic law and fight transnational organized crime, including activities to fight corruption, money laundering, and organized crime. - National security system instituted with three pillars: the police forces (National Police and Judiciary Police), the national information system (SIR), and the armed forces. - Enhance qualification and specialization within police forces, improve coordination to dismantle organized crime networks, and continue resourcing National Police to preserve public order. - Establish and implement national information service (SIR) to provide systematic risk assessment data. - Adapt Armed Forces to practical national needs and continue qualification of human resources and improved strategic management. 4.1.10.5 Civil defense: - Adopt legislation to facilitate implementation of the National Civil Defense System. - Coordinate with local authorities to establish municipal civil defense agencies as main pillars of the system. - Continue efforts to survey, forecast, assess, and prevent natural or technological risks. - Strengthen awareness, information, and training activities for populations, fostering individual/community self-defense and preventative measures. - Include emergency rules and procedures in education programs in coordination with the Ministry of Education. - Expand cooperation with international civil defense organizations (International Civil Defence Organisation). - Establish the National Platform to Reduce the Risk of Disasters according to UN recommendations and prepare the Strategic Action Plan for the National Disaster Reduction Platform. ### Pillar II – Human resources #### General objectives - Support globalization challenges and competitiveness through highly skilled human resources with advanced scientific, technical, and technological knowledge. - Culture and citizenship are essential in shaping attitudes and conduct. #### Modernizing the education system — guiding principles - (i) Quality, focus on process and results of education; - (ii) Equity, sensitivity to local and social differences with emphasis on less favored regions and social groups; - (iii) Social and economic relevance, reflected in constant social and economic progress; - (iv) Sharing costs, management, and decision-making with households; - (v) Responsible, gradual decentralization of education system management reflecting local capacities; - (vi) Social partnership supporting private initiatives at all education levels including higher education. #### Preschool education - Preschool designed for children 4-6 years; not mandatory; costs borne by households, central government, local authorities, and NGOs. - More than 65 percent of the children in Cape Verde attend this subsystem, with imbalances in service and quality in disadvantaged areas. - Measures: - Develop coordination activities and transverse programs involving family, community, and child-centered approaches. - Continue assessments of educational, economic, and health conditions in kindergartens and introduce corrective measures. - Continue training monitors and educational officers and provide educational support and orientation. - Create conditions for social and labor training for educational officers at preschool level in partnership with municipalities, private entities, and NGOs. #### Basic education - Strengthen education quality, reduce geographic and social imbalances, and develop attitudes, values, capacities, and technical knowledge. - Key measures: - Assess quality of basic education subsystem and take measures for improvement. - Revise curriculum and improve coordination with secondary education. - Strengthen and diversify structures and activities for teaching staff; eliminate unqualified teachers and improve pedagogic monitoring. - Strengthen distance learning activities. - Improve and expand existing schools via preventive maintenance, rehabilitation, expansion, and equipment with adapted materials. - Strengthen special education for children with special educational needs. - Strengthen promotion policies and reduce repeater rates. - Enhance management, pedagogic coordination, and innovation professional training. - Establish conditions to effectively increase school hours at municipal levels. - Gradual extension of basic education to eight years considering quality, equity, and financial sustainability. #### Secondary education - Actions to ensure efficacy and sustainability: - Fine-tune general and technical secondary education in coordination with vocational education; implement supplementary occupational training programs in partnership with business community. - Provide generalized access for the first cycle and expand/ control second and third cycles. - Reformulate curricular structure of each secondary cycle. - Reinforce citizenship, democracy, environment, culture of peace, solidarity, and social justice in curricula and practices. - Revisit language education; strengthen special education; implement integrated resource and skill centers for distance learning methods. - Revise school charter to improve management of school flows, program investments in infrastructure and equipment (laboratories, computers, didactic materials), and rehabilitate facilities. - Regulate and support secondary/private education. - Rehabilitate institutions and systems for training, monitoring, updating, and assessment of teacher education; reinstate scholastic and professional orientation mechanisms. #### Higher education - Context: substantial social demand, public and private institutions, trend for foreign institutions and public universities; strategic, legal, institutional framework insufficient. - Measures for next five years: - Prepare, approve, and implement regulatory standards for operation and financing of higher education (by-laws for public, private, cooperative higher education; National Equivalency Commission; financing of stipends). - Accreditation of institutions and courses per quality control standards. - Redefine and strengthen socio-educational policy and financing for higher education. - Establish regulatory body for quality of education to carry out periodic performance assessments. - Promote research and dissemination of results. - Develop and stimulate distance learning activities. - Implement measures for social and academic monitoring of students in Cape Verde and abroad. - Continue to expand ICT infrastructure and distance learning to reduce imbalances; analyze academic results and financing of students abroad to define agreements with host universities. #### Adult education - Extrascholastic subsystem includes adult education, continuing secondary education, apprenticeship, and vocational training. - Implement a national adult distance learning system by radio to broaden socio-professional course opportunities and apprenticeships. - Emphasize distance learning courses for service sector with special emphasis on tourism, environment, and civic education. - Rely on new information and communication technologies and develop Education Radio into a Radio Institute. #### Science and technology and innovation - Establish public university system to support scientific culture, dissemination, adaptation, and use of new processes. - Priority activities: - Formulate a national science and technology policy aligning with human and technical resources. - Gradually generalize Internet links for schools at all education levels. - Promote science clubs and school initiatives focusing on the sea or environment. - Establish conditions for endogenous capacity for research and innovation. - Provide resources for advanced training and technology support programs. - Mobilize the population to support the information and knowledge society. #### Technical and vocational training for employment - View vocational training as factor in development and upgrading human capital to supply skills consistent with growth and competitiveness strategies. - Implement Strategic Vocational Training Plan 2006-2010 with six strategic aims: - Structuring and building an integrated education, training, and employment system; - Development of a national system of professional skills and qualifications; - Establishment of a permanent supply of introductory vocational training; - Promotion and development of continuing education with enterprise and social partner participation; - Establishment and implementation of a continuing education and retraining center for teachers and tutors; - Organization of a statistical information system for vocational training (establish occupational training observatory to produce statistics and monitor impact). - Priority measures: - Institutional reconfiguration of vocational training system; - Establish mechanisms to support vocational training fund under public/private partnerships; - Establish a network of vocational training centers to guarantee territorial coverage, diversified access, and appropriate response to economic and social requirements; - Develop and support dissemination activities for technical and vocational training; - Emphasize development of entrepreneurial capacities, especially in youth. #### Culture, education, and citizenship - Sector strategies: - Adopt an adequate language policy for national language situation; - Develop policy for sustainable cultural infrastructure development and optimized use through outreach and cultural promotion; - Design dynamic policy for book and archive sector; - Implement cultural policy for emigration; - Develop and promote education, training, and qualifications in history, arts (particularly music), and cultural anthropology; - Adopt incentives for diverse areas of art and culture. - Tourism and culture: - Tourism legislation should reflect cultural factors; tourism infrastructure should reflect and be subject to incentives. - Define a percentage return on tourism from cultural investments and provide tax incentives for tourism and economic actors investing in cultural areas. *Source: _cr08242 - 4. STRATEGIC DEVELOPMENT PILLARS* ### 4.3 Pillar III – Competitiveness: Meeting the Challenges of Sustainable ### 4.3 Pillar III – Competitiveness: Meeting the Challenges of Sustainable Development and Globalization ### Systemic and Multidimensional Approach to Competitiveness - Competitiveness is treated from a systemic and multidimensional perspective grounded in the logical framework of the GGPRSP II. - Emphasis on the fundamentally microeconomic nature of competitiveness while recognizing macro- and meso-economic valences at horizontal and sectorial levels. - Cape Verde participates in international rankings such as the index of economic freedom and the World Bank’s “doing business” index. - Core development challenges for the GGPRSP II period: - (i) Achieve robust and sustainable growth within a macroeconomic stability context that creates wealth, employment, reduces poverty, and fosters social inclusion. - (ii) Build a competitive economy supported by trained human resources, productivity, quality, and innovation. - Preconditions to reach two-digit growth and reduce unemployment toward the 10% figure: - Safeguard macroeconomic stability through integrated policy in public finances, the monetary sector, the real economy, and the balance of payments. - Implement horizontal policy measures that reduce contextual costs, strengthen inter-sectoral links, and promote private investment and entrepreneurship. - Promote dynamic sectors where added-value creation aligns with job creation. ### Macroeconomic Stability: Scenario and Projections (GGPRSP II, 2008-2011) - Growth strategy anchored in macroeconomic stability; GGPRSP II envisages maintaining a two-digit growth rate approximately 2 percentage points above the 2004-07 average. - A relatively prudent macroeconomic scenario was chosen given international uncertainty (e.g., fuel price increases). - Investment and supply-side projections: - Gross internal investment (gross fixed capital formation) average: 60,7% of the GNP (compared to 40% in 2004-2007); average nominal growth rate: 25.5%. - Private contribution to gross fixed capital formation: average 50.5% of GDP and 83.2% of the total; average growth rate: 27.6% in current terms. - Nominal levels: approx. CVEsc 94.3 billion (average) and approx. CVEsc 124,4 billion at end of period. - Public investment average: approx. 10.2% of GDP (16.8% of total); CVEsc 15,7 billion nominal, reaching CVEsc 20,4 billion in 2011. - Sectoral average annual growth rates (2008-11): - Agriculture, forestry and livestock: 4.5% - Fishing: 4.4% - Industry and energy: 7.7% - Construction: 17.8% - Trade: 8.07% - Hotels: 13.6% - Transport and communication: 7.7% - Banks and insurance: 5.4% ### Public Finances - Budget policy remains the main instrument under the exchange rate peg to the euro; emphasis on prioritizing public expenditures, evolving the primary current balance, and increased execution of public investment. - Revenue and expenditure projections and notes: - Total revenues in the period: around 31.7% of GNP, increasing to approx. CVEsc 55,7 billion at the end of the period. - Tax revenues: approx. 23.3% of GDP, reaching CVEsc 41,5 billion in 2001 (text retains "2001" as presented). - Donor contributions: approx. 5.6% of GNP, or 1.3 percentage points below the previous period average, totaling approx. CVEsc 6,2 billion in 2011. - Expenditures: approx. 33.3% of GDP, approx. CVEsc 58,2 billion at the end of the period. - Current expenditures average: approx. 19.3% of GDP; approx. 18.6% of GDP in 2011, or approx. CVEsc 32,4 billion nominal. - Investment expenditures: average of 112.5% of GDP (text as provided), 0.2 percentage points above 2004-07; average annual nominal growth rate projected: 10%. - Financing and debt: - Mobilization of external concessional resources remains indispensable for public investment financing. - Overall budget deficit including donations: average approx. 3% of GDP (declining in relative terms). - Domestic debt to stabilize at around 20% of GDP. - Total public debt to GDP ratio expected to decrease aided by GDP growth. ### Monetary Situation - Monetary objectives aligned with macroeconomic stability, price stability, credibility of exchange rate regime, and channeling internal finance toward private sector. - Money and reserves projections: - Broad money growth expected: approx 14% during the period, 1 percentage point above nominal GDP annual growth rate. - Money supply evolution: approx. CVEsc 111 billion in 2008 to CVEsc 167 billion in 2011. - Inflation target: approx. 3% during the period. - Cash holdings in foreign assets average: approx. CVEsc 50,4 billion; ascending to CVEsc 59,8 billion in 2011 (growth of 50.4% compared to start of period). - International reserves expressed as months of imports: average 3,4 months, with a maximum of 3,5 months in 2011. ### Balance of Payments - Despite an expected average annual surplus in the balance of services of approx. CVEsc 32,9 billion, the current account remains structurally in deficit: - Current account average annual deficit: approx. 8% of the GDP. - Exports and services: - Average growth rate in current terms of export of services: approx. 18.2%. - Export of services average in the period: CVEsc 68,1 billion. - Exports linked to tourism (total for period): yearly average approx. CVEsc 45,5 billion. - Exports associated to transport: CVEsc 15,7 billion. - Overall balance of payments: - Average surplus: approx. 2,9% of GDP. - Foreign exchange reserves: in average, approx. 3,4 months of imports of goods and services forecast for the following year. ### Key Economic Indicators (Table 13: Main Economic Indicators) - GDP (real growth rate): 2008: 7.8; 2009: 8.4; 2010: 10.2; 2011: 10.2 - Inflation: 2008: 3.0; 2009: 2.8; 2010: 3.3; 2011: 3.1 - Broad Money (growth rate): 2008: 12.6; 2009: 13.5; 2010: 16.1; 2011: 14 - Overall Budget Balance (CVE 10^9): 2008: -3,4; 2009: -2.0; 2010: -1,4; 2011: -2,5 - Overall Budget Balance (as % GDP): 2008: -2.7; 2009: -1.3; 2010: -0.8; 2011: -1.4 - [Additional line repeated in source—values provided as presented] - Overall Budget Balance (CVE 10^9): 2008: 9.4; 2009: 11.6; 2010: 15.3; 2011: 19.8 - Overall Budget Balance (as % GDP): 2008: 7.5; 2009: 8.3; 2010: 9.4; 2011: 10.9 - Public Investment (CVE 10^9): 2008: 11.8; 2009: 13.6; 2010: 17.7; 2011: 19.9 - Foreign Exchange reserve (months of imports): 2008: 3.2; 2009: 3.3; 2010: 3.4; 2011: 3.5 ### Other Economic Indicators (Table 14) - Nominal GDP (CVE 10^9): 2008: 129.6; 2009: 144.6; 2010: 160.7; 2011: 178.9 - Total Revenue (% GDP): 2008: 31.4; 2009: 31.7; 2010: 31.9; 2011: 31.7 - Tax Revenue (% GDP): 2008: 23.1; 2009: 23.3; 2010: 23.7; 2011: 23.3 - [Source repeats a line labeled "Total Revenue (% GDP)"—values provided as presented] - 2008: 34.1; 2009: 33.1; 2010: 32.7; 2011: 33.3 - Investment Expenditure (% GDP): 2008: 12.2; 2009: 12.1; 2010: 13; 2011: 12.5 - Weight of Credit Economy in Net Internal Credit (%): 2008: 72.4; 2009: 75.6; 2010: 76.7; 2011: 78.6 ### Horizontal Measures: Reducing Contextual Costs and Boosting Productivity - Focus areas: productivity and quality of services, private sector and entrepreneurship development, ICTs, fiscal policy to maximize competitiveness, and strengthened regulation. - Productivity and quality: - Human capital, technological innovation, and fiscal/regulatory policy are crucial. - Promote an Innovation Policy based on information technologies, Intellectual Property protection, and Quality Management with national standards and a National Quality System. - Constraints to address for productivity: - Dimension: facilitate creation of businesses sized for competition in tourism, construction, transport, telecommunications, energy, financial services. - Cost and access to production factors: maintain trend of lower interest rates and improve country risk profile; continue infrastructure modernization. - Contextual costs: modernize Public Administration (Justice, capacity building, simplification of procedures, computerization) and consolidate initiatives like Citizen’s Center and Business in a Day. - Quality Management Department responsibilities: prepare, register, and publish national standards; create/implement National Quality System; manage metrology, certification, and accreditation to promote "made in Cape Verde". ### Private Sector Promotion and Business Development - Private sector as primary driver of growth and job creation; government role focused on regulation and enabling conditions. - Main obstacles: difficult access to credit, small market size, limited training and entrepreneurship, need for technical assistance and modern management. - Planned measures: - Create Agency for Business Development and Innovation focusing on financing (lines of credit, leasing, factoring), training, business consulting, quality certification, incubators, privatization/PPP strategy, and dissemination of best practices. - Strengthen Growth and Competitiveness Fund with proceeds from privatization targeted at competitive sectors and SME technical assistance. - Implement “Competitive Cape Verde” Project to inform business community and society about structural policies and investment opportunities. - Establish institutional and incentive framework for leasing and risk capital operations, including tax incentives and simplification for inclusion in banking activity. - Transform Sociedade de Desenvolvimento Empresarial (SDE) into a financial or para-financial institution for PME project financing and strengthen links between Cabo Verde Investimentos (CI) and SDE. - Rationalize incentive policy and align with WTO principles. - Continue and complete privatization processes (including ENAPOR, CABAVE, TAVC, EMPROFAC) and prepare public companies for competitiveness. - Promote stock market activity by quoting shares earmarked for employees and small investors, and residual State participations where applicable. ### ICTs as a Competitiveness Element and New Opportunities - Leverage educated youth, telecommunications infrastructure, e-government experience, higher education initiatives, and relocation opportunities to develop an ICT industry. - Aim to make ICT a vector of specialization alongside Tourism, Fishing, Light Industry, and Transportation, and support establishment of an International Financial Market. - Action objectives: - Modernize and increase competitiveness of businesses. - Promote electronic business to overcome insularity and remoteness constraints. - Support private-sector emergence of world-network-integrated companies. - Adopt vertical public administration measures to promote business use of ICTs. - Build capacity and mobilize private sector to provide services for public modernization and social services. - Define an integrated intervention model addressing all critical success factors. ### Fiscal Policy to Maximize Competitiveness - Fiscal policy aims to reduce global tax burden while balancing tax levels, fiscal efficiency, public investment, and budget consolidation. - Strategic orientations for tax policy (2008-2001 as presented): - Dynamize business activity, especially SMEs. - Develop financial system for gradual integration into International Financial Market. - Dynamize national savings via capital market development. - Develop environmental and climate-change policies: (i) rationalize energy consumption; (ii) incentivize renewable energy; (iii) preserve and optimize natural resources. - Fiscal measures: - Fight fraud and tax evasion by: (i) improving taxpayer segmentation and risk analysis resources; (ii) targeting informal economy via strengthened Fiscal Inspection Directorate; (iii) developing external auditing. - Rationalize tax incentive system through a Tax Incentive Code aligned with GGPRSP II objectives. - Reduce tax burden on families across brackets with revisions for inflation; formulate policy for progressive reduction of Income Tax on Corporations (IUR-PC); simplify fiscal regime. - Improve fiscal equity by integrating legal and fiscal regulations into a coherent system. - Make fiscal system simpler and more transparent; adopt a New General Tax Law to improve taxpayer-administration relations. - Tax administration modernization (DGCI, NOSI, CFAA, SIGOF Project): - Revise DGCI site for better management and updated information. - Introduce notification management and process follow-up across Decentralized Finance Departments (Concelhias). - Reduce taxpayer and administration costs through mechanisms reducing in-person requirements. - Simplification and dematerialization of tax procedures via ICT. - Legislative provisions to review/introduce: - General Tax Code; Fiscal Procedure Code; Regulation of Costs and Fees; Stamp Duty Code; Tax Incentive Code; Tax Inspection Regulation. - Conclusion of new Fiscal Procedure Code, Judicial and Fiscal Execution Code, Personal Tax Code, and Corporate Tax Code. ### Improved Regulation - Strengthen national regulatory capacity to consolidate legal frameworks and regulate economic sectors. - Measures to improve regulation: - Training of highly qualified technicians. - Implement impact assessments of regulatory activity. - Develop information/communication initiatives to disseminate regulatory rationales. - Use forecasted privatization revenues to strengthen regulatory capacity. - Conclude technical regulation in fuel, electricity, and water subsectors; strengthen central administration capacity; consolidate Economic Regulatory Agency; foster a Center for Technology Transfer. - Regulatory framework highlights: - Existing legal instruments: Legal Regime for the Regulatory Agencies (Law no. 20/VI/2003) and Agency for Economic Regulation (DL n.º26/III/2003). - Regulatory entities: Banco de Cabo Verde, ARE, AAC, ANAC, ANSA, ARFA, and IMP (to be transformed into an agency). - ARFA and IMP are in installation phase; ARFA received over half a million dollars from the Growth and Competitiveness Project. - Absence of an effective competition authority; government plans to promote creation of a competition authority. - Regulation priority: guarantee universal supply of essential public goods and services with inclusion, sustainability, allocation efficiency, production efficiency, and equity. ### Promotion of Dynamic Sectors and Specialization - Services sector central to GDP and job creation, with tourism as main driver; need to improve specialization standards and diversify activities. - Tertiary sector and tourism: - Tourism remains the main economic driver; policies to respond to market changes and enhance international competitiveness. - Measures to improve accommodation quality and favor integrated higher-end projects: - Incentives for integrated projects combining real estate and tourism. - Regulatory frameworks for marinas and golf courses, linked to environmental standards. - Introduce competition in water and electricity production/distribution in tourist areas; define concession and distribution regulations. - Establish PPP contractual frameworks for special touristic zones and protection zones. - Diversify tourism products: agro-tourism and cultural tourism (music) alongside sun-and-beach tourism; coordinate with local authorities and environment agency. - Support domestic private investment in tourism via partnerships, gender-inclusive policies, professional training, leasing incentives, technical assistance, and specific credit lines to promote job-creating downstream and upstream activities. - Improve tourism promotion by granting greater autonomy to Cabo Verde Investimentos and outsourcing specialized services. ### Internationalization of Services and Sectoral Priorities - Highlighted service segments: transport, telecommunications, financial services, warehousing, cargo transshipment, fishing product marketing, international vessel registry, aviation services, ship repair, bunkering, and specialized labor supply. - Strategic pillars to transform Cape Verde into a center for international services: - Promote inter-modal exploitation of port/airport complexes; leverage facilities on Sal, Santiago, and S. Vicente; upgrade Praia and Palmeiras harbors and Praia airport. - Supply integrated international service packages linking port, ship repair, refrigerated warehousing, international registry, and passenger transport. - Relative specialization of service centers: Mindelo (maritime services + international airport), Sal (air services + Palmeiras harbor and tourism products), Praia (direct air links and harbor expansion). ### Financial System Modernization and Internationalization - Objectives: modern, dynamic, efficient financial sector to underpin national transformation. - Structural pillars and initiatives: - i. Promote competitiveness of the financial system by opening to other operators and facilitating access to long-term capital and international capital markets. - ii. Promote the Cape Verdean Financial Center: public-private partnerships for real estate and re-urbanization to house international institutions; expand telecommunication infrastructure; improve Cape Verde Stock Exchange; international promotion. - iii. Improve credit risk management via regulatory framework improvements, capacity building, and a “Credit Guarantee” program supported by international agencies. - iv. Improve SME access to financing via capacity-building, strengthened Competitiveness Fund, SDE restructuring, promotion of risk capital, and technical capacity strengthening for project development and supervision. ### Integrated Rural Development and “New Agriculture” - Focus on modernization, diversification, and integrated development of rural communities through catchment area improvement, infrastructure (rural electrification and roads), and services. - Goals: - Ensure sustainable conditions for producers. - Optimize integration of agricultural and non-agricultural activities using natural, human, and economic resources sustainably. - Complementary interventions: - Sustainable management of natural resources (water, land, biological resources). - Optimize agricultural products: conservation, transformation, marketing, and integrated income-generating rural activities. - Strengthen extension and R&D services; link research to extension; specialize services; analyze socio-economic dimensions; coordinate public-private-community services. - Establish favorable socio-economic and political environment via infrastructure, micro-credit, training, marketing, producer associations, and sectoral statistics. - Fight food insecurity and malnutrition: alert and rapid intervention systems, food security information systems, link public employment and labor-intensive fronts to short-term income and long-term rural development. - Sectoral recommendations: - Crop production: adapt systems to agro-ecological zones; mobilize and manage water resources; promote high-value irrigated production and micro-irrigation for market garden crops. - Animal production: integrate stock-farming within agro-silvo-pastoral systems; restructure farms in semi-arid/arid zones; promote complementarity in humid zones; diversify and optimize products for profitability. - Forestry: durable management through improved catchment areas, agro-forestry, participative perimeter management to improve soil/water conservation, fodder production, crop production, and energy availability; focus on forest fire prevention and ecosystem restoration. - Other income-generating rural activities: foster associations and micro/small enterprises in environmental protection, socio-cultural entertainment, community infrastructure management, credit associations, local crafts, processing/packaging/marketing, small-scale fishing, and agro-tourism. _Italic: Source — _cr08242 - 4.3 Pillar III – Competitiveness: Meeting the Challenges of Sustainable Development and Globalization (excerpt)_ ### 4.4 PILLAR IV – THE COUNTRY’S ECONOMIC ### 4.4 PILLAR IV – THE COUNTRY’S ECONOMIC INFRASTRUCTURIING ### Overview - Infrastructuring encompasses electricity, transport, telecommunications, water, sanitation and environment, impacting quality of life and economic activity. - Empirical studies reveal that an increase of infrastructures by 1% will result in a GDP increase of 1%. - Infrastructuring is a priority in the GGPRSP II, with investment emphasis on land use planning, economic infra-structure, decentralization and regional development policies to maximize local resources, promote complementarities and ensure integrated and harmonious development. - Economic growth and improvements in quality of life hinge on infrastructures that organize the national productive base and facilitate circulation of persons and goods. *World Bank Report on World Development 1994* ### 4.4.1 Land use planning #### 4.4.1.1 Policy instruments - Land use planning is essential for efficient and parsimonious territorial management, sustainable social and economic development, environmental defense and improved quality of life. - Following existing Lei de Bases do Ordenamento do Território e do Planeamento Urbanístico and Lei das Expropriações and municipal urban plan support, the following instruments shall be adopted: - Law on Land Use, - Law on Land Register and Law on the Mapping Production - Integration of the urban planning issue into the Municipal Environment Plans, as well as the GPS observations for the modernization of the National Geodesic Network and the calculation of the transformation coordinates for the production of the national cartography. - Setting-up of a National Land Register System allowing for a better understanding of the national territory and of the municipal territories, as well as the updating of the collectable revenues for the calculation of the IPU (Real Estate Tax), lending greater legal certainty to real estate transactions. - Regulation of the planning instruments already approved; - Preparation of the National Directive on Land Use Planning and Development, DNOTD, as an instrument of higher level hierarchically in the Planning and Development Plan, as foreseen in the new Basic Law on Regional and Urban Planning; - Preparation of Land Use Planning Summaries, EROT ́s, for Santiago, Santo Antão and Fogo, as instruments of the Land Use Planning Plans of regional scope, (more than one Municipality) which will produce urban guidelines for the Municipal Urban Plans; - Preparation of EROT for São Nicolau; - Creation of a Central Land Service and the installation of municipal land registry cells to set up an authentic National Land registry System; - Cartography production at national level (1:10.000 for the whole country and 1:2.000 for all urban centers); - Setting up of a Territorial-based Geographical Information System – SIT. - Land use planning will focus on special planning zones: urban and rural areas, catchment areas, special tourism zones, the coastal strip and industrial parks to optimize territory, fight poverty and promote sustainability, equity and social justice. #### 4.4.1.2 Regional development and territorial cohesion - Territorial cohesion should rest on a strategy for sustainable development optimizing regional resources through regional clusters (integrated tourism development zones, tourist reserve and protection zones, cultural products, biodiversity resources, protected areas). - Policy measures to be developed and implemented: - Adoption of a Regional Development Plan based on the diagnosis of needs for public or private investment as a contribution to the strengthening of territorial cohesion; - Compilation of prospective and analytical studies on the country’s social and economic development to support reference frameworks on public investment priorities at the regional level; - Strengthening of the country’s infrastructure to overcome regional asymmetries; - Distribution of drinking water, waste water treatment, and treatment of solid and industrial waste at regional level; - Optimization of the environment dimension; strengthening of the policy for the development of the rural economy as a tool to retain the population in those regions. #### 4.4.1.3 Environment and sustainable development - Durable development with environment quality should integrate economic, environmental and socio-cultural dimensions based on: - (i) protection and integrated management of natural resources; - (ii) fight against poverty; - (iii) adjustment of production methods and consumption patterns. - Strategic pillars for interventions: - a) Sustainable management of the natural resources; - b) Conservation and optimization of nature and the territory, protection of biodiversity and the landscape; - c) Strengthening of the integration of the environmental dimension in the sectorial and regional and local development policies; - d) Strengthening of environmental awareness and training. - e) Optimization of the human resources - Sectorial actions: - Strengthening integration of environmental dimension into sectorial policies through review of PANA II and pluriannual planning instruments; - Land use planning, including drafting different plans, installing a National Land Registry System and creating a Territorial Information System. - Special attention to implementation of United Nations conventions on the environment, particularly those related to Biological Biodiversity and the fight against desertification and the effects of draught and climate changes. #### 4.4.1.4 Urban rehabilitation and housing - Policies and interventions to address accelerated urban growth will target housing projects, urban rehabilitation, urban development, and urban quality management with strategic intervention areas: - Establishment of harmonized urban spaces emphasizing organization and rehabilitation of districts: street layout and paving, water and sanitation, coastline rehabilitation, squares and green areas, painting and coating of facades, public lighting and waste collection and treatment. - Focus urban policies on environmental sustainability for space, social and functional integration. - Treat management of the territory as a process of change, social cohesion and deepen mechanisms based on population participation in urban quality. - Respond to new demands in open areas, culture, recreation and leisure. - Urban rehabilitation attention to historic and high cultural/architectonic interest areas and critical recovery areas, particularly Degraded Housing areas in urban peripheries, providing habitable conditions, equipment and accessibility. #### 4.4.1.5 Basic Sanitation - Government strategy to improve life conditions and environment through: - Expansion and modernization of sewage system infrastructures: collection and treatment of discharges, collection, treatment and recycling of solid waste. - Establishment of new partnerships to implement modern units for treatment and management of waste, particularly in urban centers, to improve collection and disposal/treatment of solid waste at national and local levels. - Development of simpler access by the population to water and sanitation by modernizing infrastructure for drinking water distribution, waste water collection, and incentives for household connections to water and sewage grids. - Incentives to investment in modern systems of treatment and recycling waste water for integrated water resources management and increased water supply. - Technical and financial assistance from the National Action Plan for the Environment will be made available to Municipalities and Autonomous Services for sanitation systems management. #### 4.4.1.6 Migration - Development dynamics have generated intense population flows to main housing areas and islands with tourism construction booms, creating social problems from lack of reception conditions (housing, energy, water) and precarious employment. - Strategies and interventions: Internal mobility - Central and local government efforts to better recognize communities of origin of flows to define interventions and productive activities to stimulate populations, particularly youth, to remain by responding to basic needs. - Recognize that many poorer areas are located in protected areas capable of offering services and products that create jobs and income linked to rain crops, animal husbandry or forestry to preserve regional capital for future development programs and projects. - For islands with lower population density requiring workers, local and central governments in partnership with tourism operators will create actions in housing and professional training to provide social framework and minimum living standards. Immigration issue - Given socio-economic fragility, significant poverty and unemployment, precarious housing and the need to reconcile human dignity with internal stability, the government will establish an Inter-departmental Commission with mission and objectives to: - Recognize past and present immigration situation in Cape Verde, analyzing legal and environmental conditioning aspects; - Gather opinions of institutions, partners, social and economic actors, interest groups, specialists and prominent figures on national immigration policy; - Survey obligations agreed by the State of Cape Verde on international, regional and community plans and compile legislation on entry/residence of foreign nationals, contracting of foreign labor and management of immigration flows; - Formulate a final report offering reflections and recommendations and lead to preparation of: - Guidelines for a National Policy on Immigration. - Draft of framework legislation for the National Policy on Immigration. - Proposal of institutional framework for implementation, follow-up and evaluation of the definite policy measures. ### 4.4.2 Transport and communications - Transport is vital to specialization of the Cape Verdean economy in international services of excellence; infrastructure and modernization dynamics will be pursued and consolidated. #### 4.4.2.1 Air transport and airport services - Central interventions in civil aviation: - Strengthening ASA’s role as a regulatory and supervisory instance for national aviation activity; - Promoting continuous development of national systems of airports, air circulation and aviation communications; - Creating favorable conditions for a safe, regular, effective and economical air transportation service responsive to public expectations; - Promoting an environment of sound competition between national operators; - Promoting aviation safety with coordination of the National Safety Program for Civil Aviation; - Implementation of the National Airport System Plan; - Rehabilitating the runways in the different airports, particularly on Maio and S. Filipe; - Launching Phase II of the expansion of the passenger terminal at the Praia Airport; - Launching the expansion of the passenger terminal at AIAC; - Offering conditions for private activities in airport areas, including concessions for maintenance and technical assistance to civil aircraft; - Promoting Cape Verde as a platform for air transportation. - Completion of S. Pedro airport expansion project in S. Vicente will create minimal conditions to launch a new cycle of international operations, important for tourism development on that island and Santo Antão. #### 4.4.2.2 Maritime transport and port services - The modernization and expansion of the maritime and port sector are under way. *Source: _cr08242 - 4.4 PILLAR IV – THE COUNTRY’S ECONOMIC INFRASTRUCTURIING* ### introduction of the first units of horizontal transport opened a new age in inter-island maritime ### _cr08242 - introduction of the first units of horizontal transport opened a new age in inter-island maritime ### Maritime transport infrastructure projects - Transformation of S. Vicente’s Porto Grande into a maritime transport hub is progressing. - Modernization and expansion of the Praia Harbor includes three dimensions: - land - construction of road access to the harbor; - the extension of the pier and construction of the container park; - the offshore dimension, comprising the construction of the breakwater along the bay. - Expansion and modernization of the Palmeira Harbor, encompassing: - expansion of the pier; - construction of a container park; - bottom dredging to allow for handling of large vessels; - construction of an access road; - construction of administrative buildings, warehouses and maritime terminal; - renewal and expansion of the equipment yard. - Expansion of the harbor in Porto Novo. - Restructuring of the Sal Rei harbor. - Restructuring and expansion of the harbor in Vale de Cavaleiros. - Creating conditions for the construction of a new pier on Maio island. - Creating conditions for the development of a Master Plan providing the most adequate technical solutions for the restructuring and expansion of the piers. ### Maritime transport actions and capacity building - Restructuring and strengthening of nautical training, in all levels, to be coupled with the training provided in the fishing sector. - Increasing the number of marinas, fostering dynamism in the field of nautical sports activities. - Reintroducing dynamism in the merchant marine, attracting domestic and international investment rendering the domestic equipment an element of advantage, capable of maximizing the development of the Cape Verdean economy. - Promoting the construction and operation of the control system of coastal maritime traffic, modernization of a maritime rescue and safety system, maritime communications and a navigation support network, all of which will increase navigation as well as maritime safety. ### Inter-modality and port-airport integration - Special efforts dedicated to inter-modality in transport following the introduction of horizontal transport in the inter-island system. - Encourage domestic shipbuilders to acquire roll on-roll off vessels suitable for the existing type and volume of traffic. - Create conditions in all ports to install build ramps to enable roll on-roll off operations countrywide. - Objective to create fast links between the airport and port on all islands; concept implemented in the design selected for integration of the Praia Ring way/Praia Airport and in the expansion and modernization of the Praia Harbor. ### Transport and road services — objectives and ongoing works - Strategic goal: trigger population groups and zones with particular economic potential to develop important touristic projects, in complementarity with air and surface transport. - Major infrastructure objectives: - Maintenance to the existing road network, conducting rehabilitation work and implementing management and maintenance of the roads by levels of service. - Continuation of the program of improved access to the rural areas, to provide each island with a local road network ensuring quick and safe access to markets, services and to the main road network. - Providing each island with a main road network connecting administration centers, markets, ports and airports. - Modernization and extension of the national road network. - Implementation of an efficient, transparent and sustainable system of management of the main and local road network. - Institutional reinforcement: implementation of a planning and management system, consolidation of the Road Institute and rendering operational the Road Maintenance Fund. - Improving legislative and regulatory framework to increase road safety and regulation of the sector. - All structural work initiated or awarded on the islands of Santiago, Santo Antão, S. Nicolau e S. Vicente shall be concluded. - Continue program for structured roads on all islands, including the Fogo Ring way and the Praia-Tarrafal expressway. - Interventions for land transport directed to: - Establishment of an adequate legislative and regulatory framework. - Support to the private sector, particularly operators, to organize specific services arising from tourist activity. - Promotion of quality in urban and interurban transport, in cooperation with municipalities and operators. - Improvement of road safety and limitation of negative impact on the physical and social environment. ### Economic and financial sustainability of the transport sector - Ensuring economic and financial sustainability of transport is crucial to render transportation more effective in terms of cost and benefit. - Competitiveness to be facilitated through regulation allowing private businesses to enter and leave the market freely. - Increase in response capacity and supply to users entails stimulating competitiveness and fostering user participation through: - A. Intensification of the utilization of the competitive market structures in transport. - B. Increase of efficiency in the use, supply, financing and management of the transport infrastructures. - C. Promotion of a framework favoring competitiveness. - D. Development of the necessary capacities in terms of strategic planning and management of the System to complement the market. - Infrastructuring considered an excellent base to address qualitative needs of different economic and social sectors; conciliation of efforts and strengthening of sub-sectorial objectives is a key challenge. ### Telecommunications objectives - Improve options to the end consumer under a philosophy of market liberalization and full-fledged competition. - Most important objectives: - Implementing the sector’s liberalization pursuant to the “Telecommunications Policy Declaration”. - Reinforcing technical and economic regulation, namely through creation of the telecommunications regulatory agency. - Consolidating and reinforcing the institutional framework. - Introducing effective management of rare resources (spectrum, numbers, orbital space, top level domain CV, etc.). - Developing and introducing new services, namely VoIP. - Enabling the future transformation of Cape Verde into an international telecommunications transit center for the African region. ### Energy sector objectives, targets and reforms - Core objective: provide the country with a Modern and Efficient Energy System, ensuring supply of services necessary to development, growth and competitiveness, and improved quality of life. - Strategy objectives: - Greater comfort and better quality of life for the population. - Increased competitiveness of the domestic economy. - Security of supply and reduced external dependency. - Preservation of the environment. - Rural electrification. - System of support to the economically less favored groups with reference to connection to the grids. - Diversification of production set-up with entry of new operators (auto-production and independent production), new production technologies and diversification of fuels. - Clean option toward renewable energy and new technologies; upgrading and expansion of infrastructure to ensure greater access to energy and water services. - Quantitative penetration targets: - The participation of wind energy shall be increased to 25% of the rate of penetration of electro-wind energy into the grids. - Solar energy shall represent 22% of the energy balance by 2010. - Approval expected for measures to introduce environmental dimension and incentives for innovation in efficacy and energy rationalization. - Fuel sub sector restructuring: establishment of a new pricing mechanism as a relevant tool. - Programs, plans and projects aim to: - Create a strategic reserve mechanism to be triggered by the State in case of emergency or crisis. - A new and modern tariff mechanism and the establishment of a new formula for pricing of petroleum products. - Rationalization of the fuel reception, transport and distribution system via creation of a logistics entity and regulation of its operation. - Conclusion of legislation and regulation for the sector and operational consolidation of the independent regulatory agency. - Seawater desalination and recovery of waste water to be integrated in water resources planning to ensure access to drinking water and supply for modern farms. - Public-private partnerships (PPP) will be created to seek solutions for investment and operation of new industrial systems for production and recovery of water. ### Integrated water management — objectives and government actions - Objectives: - Sustainable exploitation of water and all other resources attached to it. - Upgrading living conditions of populations. - Introducing dynamism in economic activities. - Government action lines: - Compilation and implementation of a National Action Plan for the Integrated management of Water Resources. - Introduction of dynamism to public and private investment, promotion of business culture at different levels, and establishment of public/private partnerships for mobilization of resources for investments in modern water production systems for population supply and economic activities including agriculture. - Expansion of collection and storage infrastructures, including construction of new dams and large reservoirs within optimization and planning of catchment areas. - Reinforcement and modernization of infrastructures for drinking water distribution, collection of waste water and encouraging household connections to water and sewage grids in urban and rural areas. - Reinforcement of utilization of renewable energy sources for water mobilization/production. - Upgrading quality and control of water for public use and of treated waste water; encourage setting up of treatment and control units at national and local level and develop applicable legislation, regulation and standards. - Consolidation of sectorial legislative, institutional and regulatory reforms. *Source: _cr08242 - introduction of the first units of horizontal transport opened a new age in inter-island maritime — https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08242.pdf* ### 4.5 PILLAR V – Social Cohesion ### 4.5 PILLAR V – Social Cohesion ### Overview and objectives - Objective: deepen the concept of social solidarity through consensus by citizens and public and private institutions around compromises that shape daily economic activity for a society based on a strong sense of initiative, responsibility and society participation, in an environment of solid partnership between the State and the civil society. - GGPRSPII highlights: - Need to enhance means of strengthening social capital. - Propose a coherent and universal system of social security and social action adapted to the new economic and social reality. - Goal to reduce levels of poverty or exclusion, building a humane and solidary society, with no room for exclusion from institutional credit. - Introduce employment as a condition for social integration and better quality of life. - Place the gender dimension at the center of public policies to achieve equality between men and women. - Highlight the importance of ICTs in ensuring digital inclusion, against the risk of info-exclusion. - Emphasis on equal opportunities, equality of gender and of least favored groups to foster mobility and social cohesion. ### Strategic priorities and sector vectors - Reduction of the poverty and social exclusion levels: - Fight against poverty and safeguard of social and inter-generational cohesion. - Strengthening of the role of the social economy in the optic of reduction of poverty levels. - Sustainability of the social protection systems: - Strengthening the sustainability of the general social security scheme. - Strengthening the interconnection between the social protection system and active policies in the labor market. - Employment dynamics, quality of life at work and social integration: - Prevention and fight against unemployment; increasing employability. - Development of active employment policies. - Enhancing the role of small and medium enterprises in generation of wealth and employment. - Improvement of work conditions. - Reform of labor relations and of the social dialogue framework. - Strengthening gains in health: - Improvement of primary health care and promotion of public health. - Rationalization of the network of health units. - Coupling of continued care programs. - Gender equality: - Fostering a society based on effective equality in all essential domains. - Inclusive society: - Inclusive policies for the handicapped, risk groups and the less favored individuals. - Communities more engaged with the elderly population. ### 4.5.1 Substantial reduction of poverty — key actions - Continue implementation and deepening of the economic transformation strategy coupled with macroeconomic and social policies to increase productivity, generation of wealth and more equitable distribution. - Attract foreign investment to finance major investment projects in infrastructuring, reinforcement of business fabric and social projects to increase competitiveness, exports and job creation. - Prioritize incentives for initiatives in the informal economy and the solidary economy: - Promote credit associations for self-organization of communities in medical care, assistance for medication, funerals, schooling and professional training, assistance in event of loss of a job or family income. - Promote activities generating income for less favored strata: rural areas, fishing communities, women-headed households. - Regulate and standardize the micro-financial sector; provide credit concession and training to strengthen technical and professional capacity. - Develop partnerships between public and private sectors and civil society to promote SMEs and community development. - Couple and coordinate sectorial plans and programs (e.g., PNLP, GGPRSP) aimed at poorer individuals, groups, families and communities to optimize resources and synergies. ### 4.5.2 Improved work conditions and work relations — legal and institutional measures - Redefine labor policy to reflect country reality and prioritize adjustment of labor legislation and regulation to ILO conventions on workers’ safety and health. - Strengthen cooperation between employers and workers and/or their representatives. - Legal framework actions include: - Approval of a new Labor Code. - Regulation of all legislation in the field of Safety and Health at Work. - Implementation of specific training for capacity building of personnel in the area of Inspection. - Creation of conditions for the control of application of policies in safety and health at work. - Increase capacity in the sub-sector via technical and human resources, training and capacity-building for technicians, and awareness and involvement of social partners. ### 4.5.3 Improved Social Protection system — priorities - Intervention dimensions: - Redefinition of the public institutional framework for coordination and implementation of social protection policies. - Stepping-up decentralization of social protection policies. - Definition of regulatory and institutional framework for public-private partnerships in social protection. - Priorities in Basic Law on Social Protection and reform: - Upgrading of benefits and social coverage. - Effective integration of workers in public administration and banks into the social protection system as regular employees. - Extension of the number of beneficiaries in the solidarity network (Non-contributory scheme) to ensure universality. - Increase, diversification and upgrading of social benefits based on solidarity and social justice. - Improved management of pensions in the Non-contributory scheme. - Effective integration of housemaids in the social protection system. - Create National Center for Social Pensions for comprehensive national management of pensions. - Support programs to integrate vulnerable groups, including: - Orphans and other vulnerable children. - Handicapped persons. - Students in very poor families. - Women-headed households. - The elderly. - Integration and social insertion of returnees and other individuals in risk. - Psycho-social assistance to persons affected by HIV/AIDS. - Community development initiatives, including alternatives for care of children and other dependents of poor women working outside the home. - Infancy interventions focus on protecting children’s rights and consolidating legal and institutional reform, with three major areas: - Promotion and dissemination of the Children’s Rights. - Protection, Social Family Reinsertion; Socio-educational intervention for youth in conflict with the Law. - Promotion of co-responsibility of men in the family and dignification of all forms of family organization. ### 4.5.4 Introducing dynamics to employment — measures - Establish partnerships with businesses and private institutions to foster participation and develop offer nationwide: - Strengthen dialog and concertation with social partners on employment and training; involve them in management of public training centers and in planning, programming, implementation and evaluation of professional training programs. - Step up integration between professional training system and educational system to smooth transition from school to labor environment. - Offer incentives to job creation: concession of credit for small-scale projects; establishment and development of micro-enterprises and other income-generating activities based on cost-benefit criteria; implementation of local job initiatives. - Provide job services, municipalities and other non-profit local institutions with technical and financial support to develop and optimize job opportunities. - Produce and publish periodical statistics on employment/unemployment. - Disseminate information at national and local levels on new employment areas and conditions of employability. - Enhance support to mobility and flexibility and local job market functioning via reform of local job services (information, job placement, professional counseling, follow-up and intervention). - Introduce rationalization of legislation on specific employment policies. - Develop strategic concertation with social partners to promote employment. ### 4.5.5 Food security — vulnerability, availability and policy scenarios - Causes of global agricultural price rises identified: - Increased demand, insufficient supply and increased costs; reduction of grain oilseeds due to bio-fuels. - Improved living conditions leading to increased consumption. - Population growth. - Financial speculation and precautionary buying. - Cape Verde structural vulnerabilities: - More pronounced lack of rain. - Scarce resources of arable land. - Total energy dependence. - Over 80% of food consumption dependent on imports. - Elevated costs of production factors. - Availability and possible evolution of grain prices in the domestic market (as presented): - Rice: Including imports, coverage of needs guaranteed until mid-November 2008. A significant increase in prices may occur in June/July as a consequence of the increase in the international market. - Maize: Including imports, coverage of needs guaranteed until mid-November 2008. No price increases are forecasted. - Wheat: Including imports, coverage of needs guaranteed until mid-July 2008. Following price increases in the international market, prices in the domestic market may rise by approx. 10%. - ANSA negotiations with MOAVE indicate price stability in a first phase and then an increase of approx. 10% in a second phase. - Policy measures to mitigate impact of sharp increases in grain prices: - Tax and stabilization measures: - Exemption of Import Duty and VAT on Grain. - Realignment of prices for domestic products. - FESA – Fund for Stabilization and Food Security (may need restoration and adjustment of its functions). - Measures to improve efficiency of internal distribution system: - Reduction of inter-island transport costs. - Reduction of the cost of port services. - Measures to improve efficiency of the import system: - Upgrading of the grain supply system (Silos). - How can Import Prices be made more Competitive? - Seeking sustainable solutions to grain supply (medium/long-term). - Measures to optimize international community mobilization: - Strengthening of Food Aid, in Emergency situations. - Financial Stock for Food Security (SFSA). - New FAO’s Initiative on Soaring Food Prices (IFPA). - Strengthen ANSA’s regulatory capacity in: - Dissemination of information to interested economic operators. - Management of food aid, ensuring normal functioning of markets. - Guarantee access to basic food products of a minimum quality by the population. - Intervention capacity in definition of food policy from economic and regulatory standpoints. - Encourage dialogue and concertation with partners: - National Agency for Food Security. - Chambers of Commerce. - CIC – Grain Investment Company. - IGAE – Economic Activity General Inspectorate. - Consumer defense associations. - PNLP and NGOs to evaluate situation for less favored groups and propose measures. - The Port community. - Unions and employers’ associations. - FAO, for support and eventual emergency measures benefiting the poor. ### 4.5.6 Better health to all — strategic guidelines and objectives - Health sector role: ensure physical, mental and social well-being; requires investments in human, financial and material resources, organization and management. - Fundamental strategic guidelines: - Reorganizing the National Health Service. - Offering accessible health care encompassing all human dimensions, with focus on primary care. - Implementing the Strategic Plan for the Development of Human Resources. - Reviewing and adapting the structure network considering diversity and competences. - Objectives to ensure modernization and sustainability of the National Health Service (see PNS): - i) Increasing capacity of administrative and technical intervention at central and local levels. - ii) Enhancing technical and administrative performance of Health Centers. - iii) Creating health regions. - iv) Restructuring secondary care in central hospitals. - vii) Defining standards for the operation of the SNS. - viii) Designing a program for health care quality assurance. - Human resources: implement “Strategic Plan for the Development of Human Resources in the Health Sector 2005-2014”. - Promote redefinition of technical, administrative and support teams. - Medium- and long-term planning of initial, refresher and specialization training. - Modernization of procedures and tools for human resources management. - Promotion of professional career development as motivation and stability. - Network adaptation measures: - Compile a Health Chart to be periodically reviewed. - Implement a network of Health Centers in Praia and Mindelo. - Include private health units in surveys for the Health Chart. - Consolidate the network with investments in equipment and maintenance. ### 4.5.7 Youth and Development — programs and measures - Policy aim: provide youth with more and improved conditions for participation in social, political, economic and cultural life; optimize human capital with focus on youth’s active role. - a) Supporting entrepreneurial initiatives by youth: - Devise specific credit lines and tax incentives with public and private financial institutions to encourage creation of young micro, small and medium enterprises. - Provide non-refundable grants for assistance in formulation, implementation and management of investment projects. - Offer special tax incentives to encourage young entrepreneurs to train and establish businesses in their region of origin. - Incentivize Young Housing Credit and other youth programs to allow young people to buy homes, especially in outlying areas. - b) Vocational training and dignification of work: - Swift integration of youth into labor force via business management training and on-the-job training incentives for young employees and businesses. - Strengthen Insertion and Young Employment Program and integrate with national programs and international cooperation. - Create partnerships with employer organizations to recruit young workers, granting tax incentives to businesses employing young people. - Approve Law on Youth Patronage urgently to promote involvement in training and capacity-building. - c) Enhancing youth participation: - Promote Youth Associations as organizational models and spaces for comprehensive youth development. - Create Youth Association Support Fund to lend support and incentives to youth associations and groups. - Expand Cape Verdean Corps of Young Volunteers to cover all regions and enhance quality of intervention. - Install Youth Centers and Telecenters in all municipalities for meetings, initiatives, interchange, leisure, access to ICTs and training. - Continue Youth Hostels operation to foster mobility and youth job creation. - Organize municipal Summer Camps with increased youth participation. - Implement “Leisure and Sport on the Streets” program to provide leisure activities and meeting spaces. - Disseminate Youth Card program for improved mobility and exchange nationally and in the Diaspora. - d) Youth and culture: - Use Youth Centers, Telecenters and Youth Hostels to foster cultural promotion, production and innovation. - Create Cape Verdean Youth Festival to promote encounters of young talent in the country and Diaspora. - Create CCY/Cape Verde (Center for Creative Youth) in cooperation with CCY/United States for training programs in music, theater and plastic arts. ### 4.5.8 Gender and Development — main actions - Challenge: socio-cultural perceptions obstruct integration of gender dimension in policy design and implementation. - Focus on creating conditions for effective exercise of citizenship and eradication of violence and discrimination; protection of rights and promotion of political and economic participation of women. - Implement National Plan for Gender Equality and Equity, Plan to Fight VBG, and Municipal Plans for Gender Equality and Equity. - Recommended actions: - Insure effective introduction of gender perspective in sectorial policies, programs and projects, particularly training, poverty reduction, job creation and citizenship promotion. - Create and implement affirmative action mechanisms to increase women’s participation in legislative, judicial and local powers. - Ensure effective implementation and regulation of legal and judicial instruments in force. - Adopt mechanisms encouraging equal opportunities and greater participation of women in economic activities. - When structuring Casas de Direito and Casas do Cidadão, focus on domestic violence issues and reducing inequalities in access to services. - Strengthen partnerships with civil society organizations active in citizenship promotion, family, defense of women’s rights, community development and fight against poverty. ### Logic framework — selected indicators and exact figures (Base line / projections) - GENERAL OBJECTIVE (IMPACT) - Real GDP growth rate: 7.2 (2007); projections: 7,8 8,4 10,2 10,2. Entity: INE/MFAP. Periodicity: Yearly. - Inflation rate: 3,0 2,8 3,3 3,1. Entity: INE/MFAP. Periodicity: Yearly. - Foreign exchange reserves (CVE 10^9): 11.8 13.6 17.7 19.9. Entity: INE/MFAP. Periodicity: Yearly. - Foreign exchange reserves (months of imports): 3,2 3,3 3,4 3,5. Entity: INE/MFAP. Periodicity: Yearly. - Investment expenditure (% PIB): 12.2 12.1 13 12.5. Entity: INE/MFAP. Periodicity: Yearly. - Unemployment rate: 18 17 14 11.5 9,5. Entity: INE/IEFP. Periodicity: Semi-annually. Means of control: ISE. - Demographic growth rate: 1,86 1,87 1,88 1,89 1,9. Entity: INE. Periodicity: Yearly. Notes: Projections. - Life Expectancy: 72,6 72,8 73,1 73,3 73,4. Entity: INE. Periodicity: Yearly. Notes: Projections. - Net Migration: -1.384 -1.355 -1.327 -1.298 -1.252. Entity: INE. Periodicity: Yearly. Notes: Projections. - Infant Mortality Rate: 29,1 28,5 27,9 27,3 27. Entity: MS/INE. Periodicity: Yearly. Means of control: Statistics Yearbooks. - Infant mortality rate up to 6 weeks of birth: 3,6 3,5 3,5 3,4 3,4. Entity: MS/INE. Periodicity: Yearly. Means of control: Statistics Yearbooks. - Coverage ration in Pre-school education: 55,8% 56,3% 56,6% 57,0% 57,2%. Entity: MEES. Periodicity: Yearly. Means of control: Statistics Yearbooks. - Net enrollment rate Secondary school: 32,8%. Entity: MEES. Periodicity: Yearly. Means of control: Statistics Yearbooks. - Proportion of students enrolled in secondary school to continue technical education: 80,5% (base); projections: 84,0% 85,5% 87,0% 88,5%. Entity: MEES. Periodicity: Yearly. Means of control: Statistics yearbooks. - % Population with higher education (F/M): 2,8% 3,1% 3,2% 3,3% 3,4%. Entity: MEES. Periodicity: Yearly. Means of control: Statistics yearbooks. - EFFECTS (Specific objectives) — selected entries: - Total Population: 496.316 505.756 515.426 525.307 535.435. Entity: INE. Periodicity: Yearly. Notes: Projections. - Dependency rate: 0,76 0,74 0,72 0,71 0,69. Entity: INE. Periodicity: Yearly. Notes: Projections. - No. of protected areas (land and maritime): 47 47 47 47 47. Entity: MAA. Periodicity: Yearly. Means of control: SIA SSQA Reports MAA. - Tons of sand imported/produced: 47.000 50.000 65.000 80.000 100.000. Entity: Private Enterprises. Periodicity: Yearly. Means of control: Reports MAA Customs. - No. of data operational environmental data banks in the regions and central level: 1 4 4 5 7. Entities: MAA/Municipalities/MITM DGOTH. Periodicity: Yearly. Means of control: SIA SSQA Reports MAA and Sectorial. - No. of scientific research projects carried out: 0 0 3 5 7. Entity: UNI-CV. Periodicity: Yearly. Means of control: Report. - No. of sectors with permanent researchers: 3 3 3 4 5. Entity: UNI-CV. Periodicity: Yearly. Means of control: Report. - No. of active research centers: 2 2 3 4 4. Entity: UNI-CV. Periodicity: Yearly. Means of control: Report. - PILLAR – I – GOOD GOVERNANCE (selected indicators) - % of execution of Action Plan for Electronic Governance: 17% 20% 70% 100%. Entity: UCRE/NOSI. Periodicity: Yearly. Means of control: Report. - No. of public entities in the State network: 45% 60% 100%. Entity: UCRE/NOSI. Periodicity: Yearly. Means of control: Report. - No. of public entities utilizing SIGOF: 30% 40% 100%. Entity: UCRE/NOSI. Periodicity: Yearly. Means of control: Report. - No. of users registered in the Site Casa do Cidadão: - 30.000 70.000 150.000. *Source: _cr08242 - 4.5 PILLAR V – Social Cohesion* ### 230.000 Casa do ### 230.000 Casa do Cidadão Yearly Report ### Governance and Public Administration reforms - % of rationalized central structures with new organics: 15%; 20%; 70%; 100% - UCRE — % of National Directorates defined according to the new table for levels of direction: -, 50%, Implemented, 100%, Implemented - No. of Regional Units for Coordination of Decentralized Services in operation: -, Pilot project (Sª Antão and Sal), 100% Implemented - Reform objective: Enhanced services offered to users by the public administration at the central and municipal levels - % of sectorial departments with strategic planning: 20%, 100% - No. of models of human resources evaluation implemented: 1, -, 3, - - No. of brochures/publications on rights and duties of public servants: 6, -, 8, 8, 8 - Social Communication: Site created for this purpose - Number of Space/forum for debate on development issues at central and local level: 1, 3, 3, 3 (GMAPM/ DGCS; Quarterly; Finam report on forums carried out.) - No. of municipalities to apply a municipal information system: 15, 15, 22 (MDHOT; Yearly) ### Human Capital — Education, Sports, Employment, Culture - Net enrollment rate to technical education at secondary level: 5,3%; 5,4%; 5,5%; 5,6%; 5,7% (MEES; Yearly; Statistics Yearbooks) - % of students completing technical secondary education: 41,6%; 42,0%; 42,4%; 42,8%; 43,2% (MEES; Yearly) - % repetition in basic education: 12,9%; 12,4%; 12,0%; 11,6%; 10,0% (MEES; Yearly) - % repetition in secondary education: 19,8%; 19,5%; 19,0%; 18,5%; 18,0% (MEES; Yearly) - % drop-outs in basic education: 2,2%; 2,0%; 1,8%; 1,6%; 1,4% (MEES; Yearly) - % drop-outs in secondary education: 8,4%; 8,2%; 8,0%; 7,8%; 7,6% (MEES; Yearly) - Coefficient of variation of gross enrollment rate: 13%; 12%; 11%; 10%; 9% (MEES; Yearly) - No. of students benefiting from grants in Higher education in the country: 132; 322; 350; 400; 450 (MEES; Yearly) - Gross enrollment rate in Higher education: 7,0%; 8,5%; 9,3%; 10,0%; 10,5% (MEES; Yearly) - % of increase of available training and research and extension activities: 7; 17; 17; 17; 17 (UNI-CV; Yearly) - Installed capacity in terms of university infrastructures, equipment and scientific and technical-pedagogical resources: 50; 70; 75; 100; 120 (UNI-CV; Yearly) - Sports — No. of infrastructures created and in operation: -, 31, 29, 23, 19 (DGD; Yearly) - No. of infrastructures for professional education built or improved: 9, 1, 3, 2, 2 (MQE/IEFP; Yearly) - No. of jobs created: -, 10.800, 10.800, 10.800, 10.800 - No. of programs created and implemented: -, 10, 15, 15, 20 (MQE/IEFP; Yearly) - No. of Job Market Diagnosis and PT: -, 1, 1, 1, 1 (MQE/IEFP; Yearly) - No. of laws published: -, 1 (MQE/MECC; Yearly) - No. of inventories of micro-business opportunities carried out: -, 1, 1, 1, 1 (MQE/MECC/INE; Yearly) - No. of incubators for micro-and medium enterprises established: -, 1, -, -, - (MQE/IEFP/MECC; Yearly) - No. of micro enterprises: -, 1.600, 1.600, 1.600, 1.600 (MQE/MECC; Yearly) - No. of medium-size enterprises: -, 170, 170, 170, 170 - No. of large enterprises: -, 48, 48, 48, 48 - No. of micro enterprises assisted: -, 500, 600, 700, 800 (MQE/MECC; Yearly) - No. of sectors integrating the Cultural policy administration: 6, 6, 6, 6, 6 (MC; Yearly) - No. of sectors benefiting from the cultural policy: 11, 11, 11, 11, 11 (MC; Yearly) - No. of mechanisms applied in favor of cultural tourism promotion: 2, -, 2, -, - (MC; Yearly) ### Competitiveness — Agriculture, Fishing, Production - Permanente Irrigated Area (ha): 1.520; 1.620; 1.720; 1.820; 1.920 (MAA; Yearly) - Irrigated areas w/ micro irrigation (ha): 350; 520; 690; 860; 1.060 (MAA; Yearly) - Fruit Production (ton): 15.614; 16.420; 17.231; 18.047; 18.868 (MAA; Yearly) - Root Crop Production (ton): 24.512; 25.514; 26.557; 27.643; 28.774 (MAA; Yearly) - Vegetable Production (ton): 24.512; 25.514; 26.214; 26.214; 27.643 (MAA; Yearly) - Forest Areas (ha): 1.063; 1.063; 1.363; 1.663; 1.963 (MAA; Yearly) - Meat Production (ton): 6.325; 6.497; 6.720; 7.004; 7.361 (MAA; Yearly) - No. of transformation and conservation units: 5; 6; -; -; - (MAA; Yearly) - Wine Production evolution (ton): 75; 70; 90; 90; 90 (MAA; Yearly) - Catches (ton): 9.950; 10.463; 10.915; 11.426; 11.999 (DG Fisheries; Yearly) ### Infrastructuring — Transport, Energy, Water - % Roads in good conditions: 36.6%; 45.5%; 51.4%; 56.7%; 68.6% (MITM; Yearly; Report and inventory of road network) - Km of roads rehabilitated: 26 km; 43km; 31km; 124km; 141km (MITM (IE); Yearly) - Km of roads constructed: 29 km; 33.7km; 56km; 19km; 20km (MITM (IE); Yearly) - National Road Plan prepared and implemented: Management mechanisms implemented; Implementaion e IDR SIGIE; IDR e SIGIE operational (repeated across years) (MITM (IE); Yearly) - Electrification coverage rate (%): 70,5 (2005) (MECC; Yearly) - No. of electricity customers: 100.000 customers (MECC; Yearly) - Desalinated water production (guaranteed capacity) m3/day: 14.430 (2006); 28.860 (MECC; Yearly) - Power from wind energy (MW): 2,5 MW (2007); 15 MW (MECC; Yearly) - Share of solar energy (%): 2 (MECC; Yearly) ### Social Cohesion — Poverty, Social Protection, Vulnerable Groups - % Families headed by women below the poverty threshold: 11.214; 10663 (-5%); 9055,3 (-15%); 6791,4 (-25%); 4414,4 (-35%) (MTFS/PNLP; Yearly) - No. of women headed families enjoying micro-credit: 3818; 4009 (+5%); 4810 (+20%); 5532 (+30%); 7191,6 (+30%) (MTFS/PNLP; Yearly) - No. of Partner regional Commissions created and in operation: 5; 5; 8; 8; 8 (PNLP; Yearly) - No. of Local Programs against Poverty prepared, approved and executed: 5; 5; 8; 8; 8 (PNLP; Yearly) - No. of Mechanisms for harmonization of follow-up and evaluation of PLPR Programs in operation: 0; 2 (base de dados); 2; 2; 2 (PNLP; Yearly) - No. of social housing units built or rehabilitated under the PLPR Program: 332; 482; 618; 750; 750 (PNLP; Yearly) - No. of Inspection agents and social partners trained in the SHS/RP system: 17; 27; 27; 27; 27 (MTFS/IGT/DG; Yearly) - No. of IGT units created and in operation: 1; 1; 1; 1; 1 (MTFS/IGT/DG; Yearly) - % of IGT technicians/social partners trained for the application of the new Labor Code: 17%; 33%; 66%; 75%; 100% (MTFS/IGT/DG; Yearly) - No. of beneficiaries of social pensions: 21.361 (2007); 22.934; 23.934; 24.370; 24.434 (MTFS/CNPS; Yearly) - No. of students belonging to poor families receiving support: 220; 212; 215; 215; 230 (MTFS/DGSS; Yearly) - No. of OSC/Community associations supported: 15; 16; 20; 22; 25 (MTFS/DGSS; Yearly) - No. of day centers/foster homes supported: 5; 8; 8; 8; 7 (MTFS/DGSS; Yearly) - No. of institutions/associations intervening in the areas of handicapped persons supported: 7; 9; 11; 13 (MTFS/DGSS; Yearly) - No. of children in risk situation sheltered in specialized institutions: 520; 900; 950; 1.000; 1.050 (MTFS/ICCA; Yearly) - No. of complaints for violations of children’s rights received: 2.234; 3.128; 2.904; 2.680; 2.457 (MTFS/ICCA; Yearly) - No. of units created and in operation (social protection): 16; 17; 18; 19; 20 (MTFS/ICCA; Yearly) ### Cost and Financing of the Growth and Poverty Reduction Strategy (2008-2011) - Total cost for 2008-2011: CVEsc 82,394 million (747 million Euro) - Guaranteed financing: CVEsc 43.799 million (397 million Euro) — corresponds to the consolidated budget approved for 2008 and external financing guaranteed through cooperation agreements - Gap (forecasted financing needs for 2009-2011): CVEsc 38.595 million (350 million Euro) - Costs allocated by pillar (million CVE): - Horizontal issues (Gender, Youth, Demography, Environment, Research, Citizenship): Guaranteed 1.971; Gap 2.116 - Good Governance: Guaranteed 4.537; Gap 4.815 - Human Capital: Guaranteed 6.481; Gap 9.541 - Competitiveness: Guaranteed 3.576; Gap 2.629 - Infrastructuring: Guaranteed 25.485; Gap 15.594 - Social Cohesion: Guaranteed 1.750; Gap 3.899 - Total: Guaranteed 43.799; Gap 38.595 - Strategic focus of the Investment Program: (i) stimulate dynamic sectors with potential competitive advantages and employment generation; (ii) strengthen inter-sectorial links and implement horizontal policy measures; (iii) remove or gradually eliminate factors inhibiting competitiveness; (IV) implement policies, programs and instruments encouraging private investment and business development; (v) lower the unemployment rate and poverty levels. ### Financing sources and implementation considerations - The strategy may be financed by internal and external resources, including bilateral and multilateral aid to development. - Fulfillment of the strategy’s objectives depends on factors including the capacity to mobilize resources from the community of donors and Cape Verde’s conditions of eligibility to receive international aid. *Source: _cr08242 - 230.000 Casa do (PDF chapter/section).* ### 6.2 Internal financing ### 6.2 Internal financing ### Internal financing — reform impacts and scenarios - Current reforms to the tax system will lead to increased tax revenues, enhancing internal capacity to finance the poverty reduction strategy in its investment dimension. - There is an increasing internal disposition to direct resources from the State budget to investment. - Based on provisional revenue and expenditure estimates from the Medium Term Expenditure Framework 2009-2011, two scenarios are foreseen for internal financing while maintaining a stable primary balance (partially directed to debt repayment and partially to investments): - Scenario 1: co-financing with internal resources of up to 50% of the gap annually. - Scenario 2: investment of up to 60% (conditioned to a decrease of the current expenditures). ### External financing — modalities and partners - Financing by major development partners follows different models: - Budget Support: main objectives to augment the efficacy and efficiency of external aid and to harmonize processes and procedures; regulated by a Memorandum of Understanding (MoU) for Budget Support signed by Austria, ADB, the World Bank, The Netherlands, Spain, Portugal and the European Union (open to new partners). - Project Aid: continues to account for considerable weight in the State Budget. - Concessional loans. - Debt relief conditioned to the GGPRSP financing. - Food aid: some partners continue to prefer to lend support in the form of food aid. ### Budgeting — selected pillar and aggregate figures (2008–2011) - Pillar/sub‑total excerpts (external fin. / internal fin. / guaranteed gap as presented): - Horizontal issues sub-total: 828.778 / 144.994 / 361.256 (2008); 709.995 / 317.922 / 708.617 (2009); 317.922 / 697.517 (2010) — see table for full year-by-year breakdown. - Good Governance sub-total: 786.583 / 1.388.379 / 924.083 (2008); 1.508.762 / 718.952 / 1.674.973 (2009); 718.952 / 1.631.654 (2010). - Human Capital sub-total: 2.160.231 / 999.857 / 1.511.599 (2008); 3.052.785 / 1.151.855 / 3.641.602 (2009); 657.092 / 2.846.891 (2010). - Competitiveness sub-total: 1.650.953 / 614.984 / 667.532 (2008); 987.180 / 342.617 / 879.203 (2009); 299.722 / 762.750 (2010). - Infrastructuring sub-total: 6.575.662 / 1.333.567 / 6.748.949 (2008); 2.355.598 / 6.469.823 / 4.317.683 (2009); 4.356.747 / 8.921.000 (2010). - Social Cohesion sub-total: 467.496 / 629.547 / 280.572 (2008); 1.284.673 / 183.480 / 1.309.821 (2009); 189.382 / 1.304.017 (2010). - TOTAL (annual breakdown as presented): - 2008: 12.469.703 (external fin.), 5.111.328 (internal fin.), 10.493.991 (guaranteed gap). - 2009: 9.898.993 (external fin.), 9.184.649 (internal fin.), 12.531.899 (guaranteed gap). - 2010: 6.539.817 (external fin.), 16.163.829 (internal fin.). - Aggregate totals: - Total 2008-2011 (guaranteed / gap): 43.799.488 / 38.594.721 (presented as "Total 2008-2011 43.799.488 38.594.721"). ### Summary table highlights (consolidated pillar totals, 2008–2011) - Horizontal issues: 1.970.872 (guaranteed) / 2.116.129 (gap) — 2008-2011 totals as presented. - Good Governance: 4.536.949 (guaranteed) / 4.815.389 (gap). - Human Capital: 6.480.634 (guaranteed) / 9.541.278 (gap). - Competitiveness: 3.575.808 (guaranteed) / 2.629.133 (gap). - Infrastructuring: 25.484.748 (guaranteed) / 15.594.281 (gap). - Social Cohesion: 1.750.477 (guaranteed) / 3.898.511 (gap). - Total 2008-2011 (consolidated): 43.799.488 (guaranteed) / 38.594.721 (gap). ### Implementation, monitoring, and evaluation — pilot initiative - Context: graduation to "Middle Income Country" status, strategic partnership with the European Union, accession to the World Trade Organization (WTO), and development dynamics (e.g., double-digit growth rates and single-digit unemployment by 2011) require a development management strategy based on stringency, transparency, equity, and performance. - Monitoring and evaluation mechanism: attempts to implement M&E as part of the planning system. - Pilot project objective excerpt: - 1. To process the performance indicators established under the Poverty Reduction and Growth Strategy Paper (PRSP II). *Source: _cr08242 - 6.2 Internal financing* ### 2. To monitor a number of measurable indicators selected from the matrices adopted by the ### _cr08242 - 2. To monitor a number of measurable indicators selected from the matrices adopted by the ### Objectives and system features - To monitor a number of measurable indicators selected from the matrices adopted by the Directorate General of Planning/Technical Secretariat for Development Support (DGP/STAD), sectoral Analysis and Planning Offices (GEP) and Directorates General of Planning, Budget, and Solidarity (DGPOGs). - To conduct physical and financial monitoring of sector program execution beginning with some of the programs connected with the Ministry of Infrastructure and Transportation (MIT), the Ministry of Environment and Agriculture (MAA), the Ministry of Education and Human Resource Development (MEVRH), and the Ministry of Health (MS), in terms of the most important main activity and output indicators. - A system is being established with the following features: - Capability to meet the government's information requirements against the backdrop of the PRSP II progress report exercise, with quarterly or semiannual progress reviews; - Effectively operational; - Simple and easy to use; - Low-cost, relying on existing hardware and software when possible; - Appropriate for the national structures, and particularly for professionals and technical experts having monitoring responsibilities. ### Critical conditions for success - The proposed institutional framework must be operational as adopted; - Local professionals and technical experts must be recruited on the basis of precise terms of reference; - These personnel must participate in specialized, relevant short-term training activities to learn to use the information system; - Computer equipment must be procured according to precise specifications; - The sectoral DGP and DGPOGs must have access to information on financial execution of projects through the integrated budget management (SIGOF) system; - The sectoral DGP and DGPOGs must have access to information INE’s Official Statistics Database (BDEO) indicators through the SIGOF network; - Information must circulate between DGP and the various sectoral DGPOGs using the file transfer protocol installed in connection with the SIGOF. ### Pilot project expected results - Generation of a progress report on system implementation and on PRSP II implementation; - Database availability on functional program monitoring (BDMP) with DGP/STAD, including (i) PRSP performance indicators; and (ii) indicators on physical implementation and financial execution of priority projects under PRSP (II); - Strengthening of the National Statistics Institute (INE) Official Statistical Database; - Support for sectoral databases (BDS) with the four ministries, including sector performance data and indicators, as well as physical and financial indicators for priority sectoral projects; - Training for staff of the DGP/STAD and DGPOGs to use technical instruments and computerized information systems; - Availability of appropriate computer equipment to DGP/STAD and the DGPOGs. ### System architecture and roles - Implementation of an integrated, global monitoring and evaluation system will require staff, mechanisms, data, and resources, including central and regional/municipal dimensions. - INE and SIGOF will play a key role in managing the collection and processing of essential information for the INE, and for SIGOF, as an NTIC structure, in the technical organization and formatting of the data circulation within the system. - While the Ministry of Finance and Public Administration is responsible for managing PRSP II implementation, technical activities will be carried out in the sectors; sectoral systems must be federated and harmonized. - Players in the system and their functions: - Technical and coordination functions: - The Directorate-General of Planning (DGP) is technically responsible for preparing plans and various development frameworks and managing PRSP II implementation and coordination; DGP will require a permanent internal structure with appropriate status for monitoring and assessment. - The ministry DGPOGs are technically responsible for planning in their respective sectors and relevant monitoring and evaluation; each DGPOG should have a monitoring and evaluation representative responsible for feeding sectoral data and information into the system. - Consultative function: - An “Economic and Social Council,” including representatives from the public sector, local units of government, the private sector, and NGOs, should provide a forum for consultation on development priorities and progress in PRSP II implementation and ensure consistency with the Constitution of the Republic, the Government Plan, and Millennium Development Goals (MDGs). - Policy decisions: - Decisions and arbitrage occur at the following levels: (i) Department heads, (ii) ministerial cabinets and sectoral ministries; (iii) Minister of Finance and Public Administration; and (iv) the Council of Ministers. - The National Assembly will approve a final version of the development frameworks and the annual budget. ### Information and framework for statistical production and control - Monitoring and evaluation require reliable, complete, and timely information; information is a strategic resource and requires legal/institutional precautions. - Laws 15/V/96 and 93/V/99 define the conditions and rules for collection, processing, management, and dissemination of statistical data and information and establish the role of the National Statistics Institute (INE) and sector-level statistics agencies (OPES). - The National Statistics System encompasses all data collection and processing instruments and responsible institutions throughout Cape Verde. - Cape Verde's statistical production and reporting situation: - The INE collects data at the sector level and prepares national accounts and macroeconomic indicators; responsible for major operations such as demographic population and housing censuses, the International Survey for Disaster Reduction (ISDR), and QUIBB surveys to measure poverty. In February 2008, the INE developed and published a statistical data dissemination interface known as Statline. - Sectoral ministries collect administrative data through decentralized units and use them to produce aggregate national data; some ministries have an OPES responsible for sector data; some ministries implement sectoral information systems with support from the INE. - The Official Statistical Database prepared by the INE is on line through Statline and contains most of the data on economic and social development. - A reference table (QBS) is also available from Statline; - Published reports and official economic and social development data are available at the government's website. - Financial information system: - The Financial and Budget Information System (SIGOF) provides a common platform for all ministries and central government agencies to access budget and financial information. The General Budget Directorate (DGO) is responsible for the data and SIGOF for computer processing. - The SIGOF network can be used to process, classify, and disseminate information on the public sector and is now linked to all ministries and three out of approximately 10 municipios. - The state planning and financial administration system uses the Intranet (intra.minfin.gov.cv) to provide ministries with various reports and financial data, with appropriate access levels. - Public program implementation monitoring: - Each ministry has a list of projects in its sector with project title, starting year, ending year, sponsoring development partners, executing agency, and total project amount. Lists are grouped by strategic aim and revised annually. - As the system cannot be used for program monitoring, ministries do not have the option of monitoring from inputs to outputs or other program results. ### Results-based management and data requirements - PRSP II is prepared using a results-based management approach; causal logic is stringently used in situation analysis and in the preparation of strategies, operations, and activities, producing a logical framework with INPUTS → ACTIVITIES → PRODUCTS → EFFECTS → IMPACTS. - Information requirements for situation analysis and monitoring and evaluation include: - Inputs: Resources (Infrastructure, Human resources, Finance, Equipment, Technology, Policy, Time, Partners, Management, Training, Consulting, Logistics, Research). - Activities/Operations: Conferences, Facilities, Services (Access, Quality), Awareness, Knowledge, Attitudes, Capacities, Skills, Opinion, Behaviors, Practices, Decisions, Use of services. - Outputs/Products and Effects/Impacts: Quality of life — Human, Economic, Civic, Environmental; ODM; Poverty; Morbidity; Mortality; HIV prevalence; Education; Employment; Gender equality. - Data sources: Administrative and routine data, Basic Data Survey, monitoring and assessment reports, operational research; CAP surveys, oversight surveys, rapid assessments; RGPH and major surveys. - The monitoring and evaluation system is designed with inputs as the most essential factor in qualitative and quantitative functions; expected and real results are essential in the budget monitoring framework and execution levels cannot be assessed only at the budget level. ### Essential factors (summary) - (a) An integrated framework must be prepared for monitoring and evaluation of policies, strategies, programs, and projects, specifically in the areas of growth and poverty reduction, based on monitoring indicators and other standardized instruments; - (b) The roles and powers of the institutions in the system for monitoring and evaluation of PRSP implementation and their vertical and horizontal coordination must be clarified; - (c) Professionals and technical experts involved in the system for monitoring and evaluation of PRSP implementation must receive practical training to understand the structured approaches and simple, useful working tools; - (d) DGP/STAD requires qualified full-time professionals to implement and enhance the monitoring and evaluation system; - (e) Performance and impact indicators should be adopted and each should be supplemented with benchmark values and goals; - (f) DGP/STAD should have access to the INE's Official Statistical Database to enable STAD to prepare and disseminate an annual progress report on PRSP implementation, including changes in economic and social development indicators and the level to which the PRSP's goals have been met (results and impact indicators); - (g) The list of measures in the PRSP to eliminate program and project related factors should be revised while focusing on poverty reduction and growth measures; - (h) A list of programs, subprograms, and projects should be prepared for each strategic aim listed in the PRSP; - (i) Financial information with indicators of physical attributes, tasks, and goods/services related to public projects and programs should be included in the SIGOF; - (j) Data collection and processing instruments required to calculate monitoring and evaluation instruments should be improved. *Source: _cr08242 - 2. To monitor a number of measurable indicators selected from the matrices adopted by the* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2008/_cr08242.pdf_