## _cr10367 ## Source details **Canonical URL:** [_cr10367](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10367.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10367.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10367.pdf.json) --- ### Introduction — Vision and purpose - Report produced in accordance with commitments under the budgetary assistance provided to Cape Verde and the memoranda of understanding signed; information obtained mainly from individual sectors and their evaluations. - Development vision: "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." - Noted achievements: democratic stability, good governance, high human development index, improved labor relations, social protection and poverty reduction, rapid increase in per capita income. - Transition context: exit from least developed country status, accession to WTO, signing of special partnership agreement with the European Union; no longer eligible for concessional foreign aid. - GPRSP II (2008–2011) second progress report focuses on achievements in 2009. ### Macroeconomic framework (2009 key indicators and outlook) - GDP growth rate around 4.5 percent (2009); 2000–2006 average: 5.4 percent (INE, 2006). - GPRSP II projected recoveries: 8.4 percent (2010) and 10.2 percent (2011) — actual projections well below those anticipated. - 2009 State budget projected 5 percent growth; estimates slightly below this. - Global GDP growth in 2009 averaged -0.8 percent. - External and price developments: - Trade deficit declined sharply in Q4 2009 (26.7 percent in same period of previous year). - Merchandise imports down 9.8 percent; exports up 18 percent in Q4 comparison. - Inflation rate in 2009 forecast at 1.4 percent (target in matrix: well below 2.8 percent). - Exports of goods and services shrank by around 11.9 percent in 2009; tourism income fell by around 17.6 percent. - Imports of goods and services declined by around 9 percent. - Foreign exchange reserves: 3.3 months for 2009; reserves shrank by 1.6 percent due to smaller external capital inflows. - Capital flows and incomes: - FDI contracted by about 40.4 percent year-on-year. - Migrant remittances declined slightly by 0.6 percent. - Per capita income reached US$2316. - Labor and social indicators: - Adult unemployment dropped to 18 percent in 2008; target for 2009 was 15 percent. - Total number of unemployed: 35,745; unemployment rate in 2008: 17.8 percent (2007 QUIBB: 21.7 percent). - Women: 51.6 percent of population; 46 percent of economically active population; head 46 percent of Cape Verdean families. - Male life expectancy: 72.3 years; female life expectancy: 76.1 years. - Human development index (HDI): 0.736 (baseline 2007: 0.722). - Infant mortality rate in 2009: 21.7 per 1,000 live births. - Public sector execution (2009): - Health budget executed: 98 percent (SIGOF), target: 80 percent. - Education budget executed: 82 percent, target: 80 percent. ### Public finance (2009 execution and debt) - Loan agreements and grants totaling around US$600 million improved capacity to mobilize funds from development partners. - Overall budget balance (provisional public accounts 2009): - 5.7 percent of GDP, almost 4.8 percentage points of GDP above the previous year. - Current balance surplus: 2,739 million CVE (about 61.8 percent lower than same period last year). - Primary balance: -9.1 percent of GDP (deteriorated from -5 percent of GDP previous year). - Total income (including food aid and grants): 25.7 percent of GDP, down by 4.2 percentage points (an 8.9 percent reduction in relative terms). - Tax revenue contraction: about 13.2 percent (direct taxes down 5.5 percent; indirect taxes down 16.3 percent). - Public expenditure grew by around 8 percent year-on-year: investment up about 9.6 percent; current expenditure up around 7 percent. - Current transfers up 8.9 percent; payroll up 8 percent; subsidies reduced by 9.4 percent; other expenses reduced by 0.7 percent. - Investment expenditure execution rate: around 85 percent. - Public expenditure in 2009: about 31.4 percent of GDP (up 0.6 percentage points). - Public debt 2009: 59.4 percent of GDP (below PSI ceiling of 70 percent; about 1.9 percent above 2008 share). - Total public debt grew by about 9.5 percent in relative terms. - External debt: 40.3 percent of GDP; domestic debt: 19.1 percent of GDP. - Domestic credit rose by about 10.5 percent year-on-year; credit to the economy expanded around 11.8 percent. - Lending to public sector grew about 5.5 percent; lending to central government expanded by 7.5 percent. - Money supply grew by 3.3 percent year-on-year, amounting to CVE 105,451.7 million in December. ### Pillar I — Good governance / Government reform - Strategic orientations: government reform, regulatory upgrade, modernization of administrative machinery, Strategic Program for the Information Society, Plan of Action for Electronic Government, rationalization and reduction of public expenditure. - Selected achievements (2009): - New Basic Law on Structures; Strategic Policies Center established. - Public administration HR tools reviewed (Basic Public Finance Law, PCCS, performance appraisal, review of management and special executive staff statute). - RE training plan approved; public-sector managers training course completed. - Citizens Center (Casa do Cidadão) strategic plan approved; ISO 9001 certification. - Public procurement reform and training completed. - Biometric passport (PEC) introduction at advanced stage; PEC to form part of SNIAC single database. - Decentralization/local government (2009): - Municipal Information System (SIM) set up and installed in 17 municipalities. - Framework Law on the Administrative Decentralization approved. - Law defining administrative categories of povoações, vilas and cidades passed. - Participatory budget pilot project initiated; recruitment of technical assistance and training underway. - Justice and security orientations: - Judiciary reform, judicial secretariats and Attorney General’s Office reform, court computerization, training of justice workers, strengthening fight against gender violence. ### Security (institutional development, crime prevention, borders) - Institutional and legislative developments (2009): - Institutional reorganization of the National Police (PN). - Laws approved: Law No. 50/VII/2009 (Private Security Activity); New Organic Law of MAI (not yet published); Law on Alcohol approved in general terms. - Decree Law for Special Regularization of Immigrants (not published); legal instrument for special regularization of Guinean migrants (not published). - Coordination and international cooperation: - Security included in preparatory work for Special Partnership with EU. - Joint exercises totaled 202 days (7,152 hours). - Strategic plan for domestic security approved with three priority programs. - Crime prevention/justice outcomes: - Proportion of cases investigated by judicial police and sent to Attorney General’s Office with purpose of formal prosecution: 66 percent in 2009 (target: 55 percent). - 26 specialized training events for 158 staff. - First tranche disbursed for equipment for joint teams in airports and ports; Praia team operating with PJ personnel. - Protecting rights / anti-corruption: - Report on fight against corruption produced with improvement plan for 2010. - Brigade for Investigation and Combating Criminality (BIC2) project completed (official document not published); operational staff to join over next three years. - Corruption cases by jurisdiction: Praia: 7 (Six pending, one with formal prosecution); São Vicente: 6 (all in investigation phase, 2000–2010); Sal: 2 (prosecuted and convicted). - Draft laws on financing of terrorism and state seizure of property finalized. - 11 legal advice centers (Casas do Direito) created in 2009. - Borders and documentation: - PASSE automatic exit and entry security process installed and operational in airports of Praia and Sal. - Prisons and reintegration (2009): - Prison inmates receiving vocational training: 248 (Praia, São Vicente, Fogo, Santa Catarina). - Prison inmates receiving literacy training: 158 (central and regional prisons). - New prison complex built and equipped in São Martinho, Praia. - 14 training actions for 463 prison guards. - Police training and HR (2009): - PN implemented about 40 actions covering about 478 personnel. - 238 new agents trained and incorporated (target 210); additional 60 currently in training. - Over 400 agents trained and incorporated into PN in last three years. - CCCD "Other transfers" budget line executed 100 percent (target > 95 percent). ### Employment, vocational training, health, youth and sport - Employment: - Government allocated CVE 1.0 billion in 2009 State budget for employment. - Average jobs created per year (2000–2008): 2,384. - Job creation was 3.5 times higher than creation of unemployment. - Employment center registrations in 2009: 962 people (318 more than previous year); jobs offered in 2009: 80. - Vocational training (2009 achievements): - Youth Apprenticeship Program; vocational training hubs; Hotel School (Praia); Vocational Training Center of Praia, Variante; Fogo/Brava centers. - Implementation of Integrated Employment and Vocational Training System. - First Job Subsidy (Professional practice) agreement signed; execution set to begin in 2010. - Health indicators (selected 2008/2009): - 93.7 percent of pregnant women used antenatal services in 2008 (baseline IDSR_2 2005: 13 percent; projection: 40 percent). - No ARV stockouts in treatment institutions. - 22 percent of private firms with 30+ employees investing in national HIV/AIDS strategic plan (90 out of 85) — above 10 percent target. - Under-fives mortality: 25.7 per thousand live births in 2007 (benchmark GPRSP II: 28.6); rose to 28.1 per thousand in 2008. - Deliveries attended by qualified professionals: 9,475 in 2008 (relative figures: 75.9 percent in 2005 and 74.6 percent in 2008; baseline 74.4 percent for 2007). - Malaria cases per 100,000: 4.0 in 2008 (predicted 4.5); tuberculosis incidence: 39.2 per 100,000 in 2008 (envisaged 56). - Contraceptive use: 29.0 percent of married/in-union women 15–49 used some method in 2008. - Epidemic response: - Dengue outbreak in last four months of 2009; national response immediate; economic/financial impact unknown. - Youth and sport (2009): - 15 youth centers operating; production of "Agenda Jovem" (print run 3000). - 216 young people trained in income-generating activities; 12 young mothers supported to set up businesses; specific numbers of beneficiaries by location provided. - Sports: municipal stadiums on all islands except Brava; National Stadium construction set to start February 2010. - Training scholarships provided in physiotherapy (2), physical education (3), law (2), social services (1), accounting and administration (1), economics (1). ### Pillar III — Competitiveness (agriculture, fisheries, tourism, services, private sector, trade, industry, regulation) - Agriculture (2009): - Total area organized: 52 ha (77.0 percent) in two catchment basins (projected 67.5 ha). - Global financial execution: 93% (Picos: 95%; Engenhos: 89%). - Water mobilization enables irrigation of total area: 146 ha, benefiting around 730 farmers and 3,650 family groups. - Fisheries: - Fisheries contribution to GDP average: 0.6 percent (2004–2007). - Fisheries employ about 5 percent of active population (sector matrix target: 12 percent per year). - 32 percent increase in fishery exports; 2 percent reduction in imports. - Fisheries Resource Management Plan for 2010 approved (B.O. I series No. 18 of May 4 2009). - Tourism: - PEDTCV2010-2013 approved December 2009. - Guests in hotel establishments: roughly 333,354 (6.5 percent increase on previous year); below 2009 forecast of 370,000. Sal received 57 percent of guests. - Services and ICT: - 20 ICT firms set up in 2009 (target 6). - Private sector reforms and Doing Business: - IUR corporate tax rate lowered from 30 percent to 25 percent; personal IUR lowered from 45 percent to 35 percent. - Property cadastre regime defined by Decree Law 29/2009. - Doing Business ranking: 147th in 2009 (target: 100); ranked fourth in region after Ghana, Nigeria, and Gambia. - Third Business Census (2008): 8,716 firms. - Trade and customs: - New Customs Code approved (Law 46/VII/2009, B.O. No. 46). - Industry: - 51 new industrial units set up in 2009 (Santiago 35, São Vicente 6, others across islands). - Jobs created in 2009: 880 (down from 1,230 in 2008). - Industry sector contribution to GDP: 12.6 percent (2007). - Regulation: - Plan for technical and regulatory convergence presented; Competition Authority created. ### Pillar IV — Economic infrastructure (roads, ports, airports, land management, water/sanitation, energy) - Roads and transport (2001–2009): - 252.7 km of roads built/refurbished (96 percent asphalt, 4 percent concrete). - MCC-financed package: about 54 km of main roads constructed. - Road maintenance tax (TSMR) collected CVE 229 million since January 2009. - Ports and maritime: - Major port infrastructure program underway; expected completion in 2012. - Container scanners obtained for Porto Grande de São Vicente, port of Praia, and port of Palmeira. - Airports (2009 works): - Boa Vista upgraded with private financing to receive international flights. - São Vicente remodeling; Boa Vista parking expansion tender; Maio terminal expansion completed; VIP lounge at Praia built. - Land management and cadastre (2009): - New basic law on land management, Law on Soil and Expropriations, Law on Cartography, and Framework Law on the Cadastre passed. - One Municipal Master Plan (PDM) approved and published in 2009; 15 PDMs being prepared; expected 59 percent of municipalities to have begun preparing land management tools by late 2009. - Water and sanitation: - Integrated water resource management plan prepared in 2009; CNAG reviewing for approval. - National baseline: percentage of families connected to public network: 46.9 percent. - Proportion of family connections in Praia, S. Vicente, Boavista and Sal expected to increase to 51 percent (from 49.5 percent in 2008). - About 3.3 million m3 used mainly for irrigation. - Electra production and distribution coverage in some islands: average coverage rate of 56 percent reported for specific zones. - Desalination works: Pedra Badejo completed May 2009; studies for Calheta due completion Q1 2010. - Sewerage: Praia family sewerage coverage to rise to 19 percent in 2009 (from 18 percent in 2008); Mindelo sewerage network benefits 56 percent of population. - Energy: - Electra in worrying liquidity condition; government assuming most investments. - Coverage: Electra data indicate 87 percent coverage period 2000–2009 (target in sector matrix: average national coverage of 90 percent in 2009 — not achieved). - Islands with 100 percent coverage in 2009: São Vicente, São Nicolau, Boavista, Sal and Brava. - Renewable energy penetration minimal at 3 percent (target 25 percent with projects in pipeline). - Production capacity (MW): 73.9 (baseline) to projections 77.6 and 98 (DGEnergia); technical/nontechnical losses as % of MGW production: 30, 28, 26.13 (Electra Planning Department). - Electra debt service coverage ratio indicators: 0.3, 0.75, 0.7 (ARE / MECC). ### Pillar V — Social cohesion (poverty, social protection, housing) - Poverty: - Human Poverty Index (HPI): 15.8 percent (2006). - Housing deficit: 82,000 homes. - PNLP priorities: income-generating activities; water and sanitation; education and vocational training; institutional support; low-income housing. - Social protection and work: - Inspection visits in 2009: 869 visits; apprehension of 600 illegal fixed-term contracts. - Social security coverage: inclusion of 16,093 central government users and 1,323 local public administration regime; 24 percent of active resident population covered by this regime. - Contributory regime increases: contributors from 3852 to 4045; persons insured from 61,751 to 69,216; beneficiaries from 141,548 to 146,000. - Noncontributory social pension recipients: 22,946 (virtually meets target of 23,000 set for 2009). - Social pension value: CVE 4,500 (November 2009); government target CVE 5,000 before 2011. - Social housing (2009): - Social Housing Fund (FHIS) created. - Strategic plan "Casa Para Todos" programs (2009): - Habitar Cabo Verde: build about 8,000 homes by 2013. - Programitas: build about 1,000 new housing units in rural areas. - Reabilitar: rehabilitate informal neighborhoods. - Number of vulnerable persons accommodated or benefiting from rehabilitation: reported figures 628 and target 700. ### Crosscutting issues — Gender and Environment - Gender (2009 indicators): - Literacy index: 73 percent for women and 87 percent for men (2007). - Enrolment rate higher for girls than boys in basic and secondary education. - HIV/AIDS prevalence: 0.8 (IDSR II, INE). - Masculinity ratio of HIV/AIDS prevalence: 1.13. - Proportion of women members of parliament: rose from 11 percent to 21 percent (2003–2008). - Gender-Adjusted Development Index: 0.749 (INE, 2006). - Environment (2009 execution and indicators): - Annual report on environmental policy execution for 2009 approved by CAN; degree of execution: 100 percent. - SSQA environmental quality monitoring system developed; first report tracked 31 of 76 indicators. - Protected areas: total of 47 land and marine areas in sector matrix. - Water access (QUIBB 2007): 89.5 percent use a drinking water source (urban 98.6 percent; rural 75.8 percent). - Between 2007 and 2009: more than 1,365 household water connections and 656 sewerage connections. - Solid waste collection services cover about 85 percent of municipalities; seven confined disposal sites and five improvised municipal waste tips in operation. - Illegal sand extraction: 83 percent of sand consumption was legal in 2009 (target 65 percent). ### Research, monitoring & evaluation; management information systems - Strategic orientation: develop endogenous research and innovation capacity; Law No. 35/VII/2009 (Statistics Law) published; QUIBB 2007 data on Statline. - Agricultural/fisheries research: - INIDA and INDP continued species trials, pest/disease monitoring, aquaculture research, and rural development activities linked to Strategic Plan for Agriculture for 2014. - Disaster risk reduction and meteorology: - Procurement of Cluster and PCS equipment; INTRNET network installation; maritime meteorology project underway; installation of 6 AWS and 1 AWS for island observations; new radio/sonar station installed. - Monitoring and evaluation (M&A) system: - Central office in National Planning Department (Ministry of Finance) and DGPOG; SIGOF access expanded to sector bodies and other institutions. - SIGOF participants include Office of the President, Supreme Court, Auditor General Department, National Electoral Commission, Office of the Prime Minister. - 2010: targeted training to implement the information system and enhance ownership by national structures. - Key reported indicators (selected annex figures): - Amount outstanding on overdue government loans (%): 60 38 31. - Amount outstanding on overdue Electra debts with suppliers (%): 100 100. - % of government budget units with access to SIGOF: 80% 90% 91.2. - Number of inspections performed by the IGF: 39 64. - Number of staff trained in M&A: 8 12 31. - % of projects/programs with measured output and/or outcome indicators in M&A database: 0 100% (with output indicators). - Law No. 35/VII/2009 (Statistics Law) and % of QUIBB data in Statline: 40% 100% Completed. ### Conclusions and next stages - Overall progress in implementing GPRSP II in 2009 considered positive; sectors largely fulfilled objectives despite delays in data submission and missed deadlines. - Priorities and next stages: - Implement realistic public administration modernization program; strengthen and consolidate institutions; deepen democracy; approve/implement charter on incumbents of political posts for accountability. - Implement plan to strengthen State authority and promote citizenship; hold forum on citizenship and participation. - Continue decentralization, municipal capacity building, and participatory budgeting pilots; finalize legal/regulatory frameworks for municipalities. - Address Electra’s financial/organizational challenges and increase renewable energy penetration (target 25 percent). - Expand social protection coverage, address housing deficit of 82,000 homes via "Casa Para Todos" and complementary programs. - Strengthen monitoring and evaluation, harmonize GPRSP data with GAO, and operationalize SIGOF-based M&A system. *Source: _cr10367* ### 0. Introduction ### 0. Introduction ### Overview and purpose - Report produced in accordance with commitments under the budgetary assistance provided to Cape Verde and the memoranda of understanding that have been signed. - Information obtained mainly from individual sectors and their evaluations — sector-level studies undertaken in conjunction with the sectors themselves, to monitor implementation of the actions specified in the budget support framework. ### Context and development vision - Country faces severe structural constraints and persistent restrictions, with potential impediments to growth that include energy, transport, and geographic factors. - Cape Verde pursues a "bold vision of development founded on a strong and dynamic productive system." - Turning the vision into reality requires human resource development based on technology and culture, embedded in balanced regional development, solidarity, social justice, democracy, and environmental awareness. - Achievements noted: democratic stability, good governance, a high human development index, improved labor relations, social protection and poverty reduction, and a rapid increase in per capita income. - Good governance and growing credibility of the State and its institutions are strategic resources for development, partnerships, and mobilizing resources. - Country entering a new phase of development (transition from least developed country status, accession to the World Trade Organization (WTO) and signing a special partnership agreement with the European Union), with the consequence that it is no longer eligible for concessional foreign aid. - Ongoing Transformation Strategy closely linked to consolidation of democracy based on sound institutions; democratic strengthening presupposes consolidation of good governance. *The growth and poverty reduction strategy paper (GPRSP) is a planning tool that articulates sector development policies and strategies. This second progress report on execution of the second strategy document (GPRSP II 2008-2011) focuses on achievements in 2009.* --- ### 1. Revisiting the vision and strategic pillars - GPRSP 2008-2011 objective: "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 strategic objectives: - Transformation of the government based on public administration reform and strengthening of municipal governments. - Improvement of quality of life, creation of participation spaces, affirmation of nation status and gains for democracy. - A modern, competitive economy targeting unemployment below 10 percent and achieving double-digit GDP growth rates. - The knowledge society for innovation, skills, and employment; new information technologies to upgrade human resources. - Strengthening capacities to manage national development, institutional capacity building for monitoring and evaluation. - Social solidarity aimed at poverty reduction. - Five strategic pillars to implement objectives: 1. Good governance/government reform (transparent regulatory function in public administration). 2. Human capital (modernize education and technical-vocational training, improve health services, promote culture, youth and sports). 3. Competitiveness (underpinned by macroeconomic stability). 4. Economic and social infrastructure (promoting regional development and territorial cohesion). 5. Social cohesion (improvements in work conditions, social protection, more dynamic employment, food security). --- ### 2. Macroeconomic framework Strategic orientations: - Strong and sustained growth founded on macroeconomic stability, to create wealth and employment, leading to poverty reduction and social inclusion. - A competitive economy based on skilled human resources, productivity, quality, and innovation. Key 2009 estimates and macroeconomic indicators (Ministry of Finance): - GDP growth rate around 4.5 percent, slightly below the 2000-2006 average of 5.4 percent (INE, 2006). - Projections suggest recoveries in 2010 and 2011 at rates well below those anticipated in the GPRSP II (8.4 percent and 10.2 percent, respectively). - 2009 State budget projected 5 percent growth; estimates are slightly below this. - Global GDP growth in 2009 averaged -0.8 percent. - Domestic demand strengthened due to supportive budgetary measures and a reprogrammed 2009 State budget with an economic stimulus package. External and price developments: - Chronic trade deficit declined sharply in Q4 2009 (26.7 percent in the same period of the previous year) caused by a 9.8 percent reduction in merchandise imports and an 18 percent expansion of exports, accompanied by a slowdown in national economic activity. - Inflation rate in 2009 forecast at 1.4 percent; target in the matrix for 2009 was well below 2.8 percent. - Exports of goods and services shrank by around 11.9 percent in 2009; tourism income fell by around 17.6 percent. Imports of goods and services declined by around 9 percent. - Foreign exchange reserves measured in import months: 3.3 months for 2009, shrank by 1.6 percent due to smaller external capital inflows. Capital flows and incomes: - Foreign direct investment (FDI) contracted sharply, by about 40.4 percent, compared to the previous year’s level. - Migrant remittances declined slightly by 0.6 percent; remittances remain important though impact declined owing to growth in tourism earnings. - Per capita income reached US$2316. Labor and social indicators: - Adult unemployment dropped to 18 percent in 2008; target of 15 percent was set for 2009. - Steps being taken to help women heads of family (the group worst affected by unemployment) to find jobs. - Demographic growth rate forecast for 2007 (2007 Household Survey - QUIBB) was below 2 percent per year. - Women account for 51.6 percent of the total population and 46 percent of the economically active population, and head 46 percent of Cape Verdean families. - Male life expectancy at birth: 72.3 years. - Female life expectancy at birth: 76.1 years. - Human development index (HDI): 0.736, compared to the 0.722 baseline for 2007. - Infant mortality rate in 2009: 21.7 per 1,000 live births. - Child mortality in the first six years of life has remained stable over the last three years. Public sector execution (health and education): - Health budget executed: 98 percent (SIGOF budget software), compared to the target of 80 percent set in the GPRSP II framework. - Education budget executed: 82 percent, compared to the 80 percent set in the GPRSP II framework. --- ### 2.1 Public Finance Budget execution and public accounts: - Signing of loan agreements and grants totaling around US$600 million improved capacity to mobilize funds from development partners. - Budgetary execution deconcentrated for sectors/ministries; SIGOF automates accounting and stores execution data in a single database. - The budget execution manual was produced. - Provisional execution of public accounts for 2009 shows an overall budget balance of - 5.7 percent of GDP, almost 4.8 percentage points of GDP above the previous year’s figure. - Current balance displays a surplus of 2,739 million Cape Verdean escudos (CVE), about 61.8 percent lower than in the same period last year. - Primary balance was -9.1 percent of GDP, deteriorating from -5 percent of GDP in the same period last year. - Total income (including food aid and grants) amounted to 25.7 percent of GDP, down by 4.2 percentage points on the previous year’s figure (an 8.9 percent reduction in relative terms). - Tax revenue contraction about 13.2 percent: direct taxes declined by 5.5 percent and indirect taxes declined by 16.3 percent, partly due to tax burden reduction measures in 2009 and international crisis impacts. - Public expenditure grew by around 8 percent year-on-year: investment expenditure up about 9.6 percent; current expenditure up around 7 percent. Components: current transfers up 8.9 percent; payroll expenses up 8 percent; subsidies reduced by 9.4 percent; other expenses reduced by 0.7 percent. - Investment expenditure execution rate around 85 percent. - Public expenditure in 2009 about 31.4 percent of GDP, up by 0.6 percentage points of GDP compared to the previous year. Public debt and monetary sector: - Public debt in 2009 equivalent to 59.4 percent of GDP, below the PSI ceiling of 70 percent, and about 1.9 percent above its GDP share in 2008. - Total public debt grew by about 9.5 percent in relative terms. - External debt: 40.3 percent of GDP. - Domestic debt: 19.1 percent of GDP. - Domestic credit trended upwards by about 10.5 percent compared to the same period in 2008, based mainly on expansion of credit to the economy of around 11.8 percent. - Lending to the public sector grew by about 5.5 percent; lending to central government expanded by 7.5 percent. - Money supply grew by 3.3 percent year-on-year, amounting to CVE 105,451.7 million in December. --- ### 3. The strategic pillars — selected developments 3.1.1 Pillar I — Good governance/Government reform - Good governance highlighted as crucial for consolidating success, irreversibility of achievements, and credibility of State and institutions. - Strategic orientations include government reform, upgrading regulatory function, modernization of administrative machinery, Strategic Program for the Information Society, Plan of Action for Electronic Government, rationalization and reduction of public expenditure, and adoption of instruments to steer public policies in public administration reform. Selected achievements and initiatives: - Rationalization of structures supported by new Basic Law on Structures, establishment of the Strategic Policies Center, and improvement of human resource training. - Report on financial and institutional impact (2006–2010) and prospects for rationalization of public administration being prepared. - Public administration human resource management tools (Basic Public Finance Law, PCCS, performance appraisal, review of management and special executive staff statute in 2009) were reviewed and completed. - Professional development of public administration human resources concluded; Council of Ministers approved the RE training plan; public-sector managers training course completed. - Launch of the multiuse service; approval by the Council of Ministers of the strategic plan for expanding the Citizens Center (Casa do Cidadão) and ISO 9001 certification thereof. - Reform and regulation of public procurement completed, with human resource training in 2009. - Reform agenda publicized across several islands in 2009. - Introduction of biometric passport (PEC) at an advanced stage but not completed in 2009; PEC will form part of the National Identification and Civil Authentication System (SNIAC) using a single database to issue identification and travel documents. - Modern public administration management criteria being applied; publications on rights of civil servants and performance appraisal tools produced. - Despite gains, public administration continues to face constraints that hinder rapid modernization and higher efficiency. 3.1.3 Decentralization and local government Strategic orientations: - Consolidation and deepening of local power and capacity building of human resources. - Consolidation of municipal autonomy. - Modernization of municipal administration. - Promotion of municipal solidarity and consolidation of the rule of law. 2009 activities and outcomes: - Creation of a network of partners (ANMCV, Uni_CV, IEFP, UCRE) to design and implement a technical training plan for municipalities in administrative, financial, capital, and human resource planning and management. - Provision of technical assistance to municipalities and improved DGAL–municipality partnerships; further training in financial management and municipal law. - Dissemination of proposed review of municipal statutes in Praia, Fogo, São Nicolau, Santo Antão, and São Vicente; new version in Parliament for final approval to strengthen municipal competencies, inspection and control, and participation in administrative and urban planning decisions. - A version of the study on decentralization and strengthening of governance produced and published in Praia to inform policy measures for municipal modernization and social cohesion. - Framework Law on the Administrative Decentralization approved, defining legal and methodological guidelines for decentralization, sharing jurisdictions and competencies, and transfer of necessary resources. - Law defining administrative categories of small population centers (povoações) and procedures for promotion to towns (vilas) and cities (cidades) passed, detailing criteria and responsibilities of municipalities and government. - International forum on local governance and territorial development held in Praia with international presenters. - Municipal Information System (SIM) set up and installed in 17 municipalities, improving communications with central government and municipal fiscal and financial management. - Law governing lending to municipalities regulated; final regulation proposal exists (December 2009). - Participatory budget project in phase of recruiting technical assistance, training/awareness-raising among municipal authorities and civil society in pilot municipalities, and design of a dedicated website, with work set to continue in 2010. 3.1.4 Justice and security in national territory — Justice strategic orientations - Reform of judiciary organization. - Implementation of reform of Judicial Secretariats and the Attorney General’s Office. - Continued upgrading of existing judicial resources. - Adoption of a consistent policy for continuous upgrading and training of justice workers in processes and new technology areas. - Development and finalization of court computerization. - Strengthening fight against gender violence to speed legal response and provide statistical breakdowns on gender-based crimes. - Promotion of access to the law in the aspect of legal information. *Source: _cr10367 - 0. Introduction* ### 2. Security ### 2. Security ### Institutional development and legislation - Improvement of the training and specialization of the various police forces in the National Police. - Development of a system for coordinating those police forces with a view to dismantling organized criminal networks and strengthening national security. - Achievements in 2009: - Institutional reorganization of the National Police (PN). - Internal dissemination of projects on the staff charter, disciplinary regulation, remuneration charter, and regulation of national police identification criteria. - Legal instruments approved in 2009: - Law Defining the Legal Regime Governing Private Security Activity in Cape Verde (Law No. 50/VII/2009). - The New Organic Law of MAI (not yet published). - The Law on Alcohol, approved by Parliament in general terms. - The Decree Law providing for the Special Regularization of Immigrants (not published). - The legal instrument for special regularization of Guinean migrants (not published). ### National and international coordination - Security incorporated in December 2009 during preparatory work for the Special Partnership with the European Union and to mitigate consequences of organized cross-border crime and trafficking in narcotics, hallucinatory drugs, and people. - A joint sector monitoring framework was prepared for the sector; implementation will be coordinated between ministries but the matrix needs clarifications as recognized by partners. - Institutional strengthening and coordination indicator being materialized by implementing legal measures and joint exercises and operations with the judicial police and national police force. - Training and inspection actions continued in partnership with Portugal, Spain, France, the United Kingdom, and the United States pursuant to signed programs and agreements. - Joint exercises totaled 202 days, equivalent to 7,152 hours. - The strategic plan for domestic security was approved; it includes three priority programs targeting: - violence, criminality, maintenance of security, tranquility and public order, and territorial security. - Basic instruments of the PSS were prepared: - the framework collective security program; - a general framework establishing criteria for presenting projects for financing; - the local security contract model. - Consensus on need for dialogue, consensus and operational coordination mechanism. - The Operational Security Coordination Team (ECOS), created by CM Resolution No. 6/2005 of February 28, continues to function. ### Prevention and combating crime - Proportion of cases investigated by the judicial police and sent to the Attorney General’s Office for the purpose of formal prosecution was 66 percent in 2009, compared to a target of 55 percent. - (Footnote: Calculated by dividing the total number of cases resulting in a formal charge by the total number of processes sent to the Attorney General’s Office.) - 26 specialized training events were held for 158 staff, which exceeds the target set. - The first tranche of disbursement for purchasing equipment to set up joint teams in airports and ports was released in 2009. - The Praia team operates with personnel from the PJ, with elements from the National Police still to be incorporated. ### Protecting citizens' rights and anti-corruption - Protection mechanisms strengthened with operation of legal advice bureaus (Casas de Direito). - 11 CDs projected to operate in 2009, X operating. - A report on the fight against corruption and criminality was produced and presented together with an improvement plan for 2010. - Project creating and making operational the Brigade for Investigation and Combating Criminality (BIC2) was completed; the official document was not published. - Operational staff received training to gradually join this new unit over the next three years. - Corruption cases and processes investigated by the Public Prosecution Department of the Republic: - Praia jurisdiction: 7 (Six cases pending and one case with formal prosecution). - São Vicente jurisdiction: 6 (Six cases existing from 2000 to 2010, all of which in the investigation phase). - Sal jurisdiction: 2 (Prosecuted and convicted). - Draft laws to combat the financing of terrorism and on state seizure of property were finalized and are ready to be sent to the National Assembly. - A total of 11 legal advice centers (Casas do Direito) were created in 2009. ### Borders and travel document/security systems - Reform and modernization of the country’s borders continued in 2009. - The automatic exit and entries security process (the PASSE system) was installed and put into operation in the airports of Praia and Sal. ### Prison and Social Reintegration Services (selected 2009 results) - Number of prison inmates receiving vocational training: 248 in the prisons of Praia, São Vicente, Fogo, and Santa Catarina. - Training included: carpentry and masonry, hairdressing; prevention of drug abuse and HIV/AIDS; electricity; introduction to information technology; leather arts; garment making level 1. - Number of prison inmates receiving literacy training: 158 (first, second, and third phase adult literacy training) in the central prisons of Praia and São Vicente, and the regional prisons of Fogo and Santa Catarina. - Of the two prison establishments still to be built, equipped and implemented, a new prison complex was built and equipped in the central prison of São Martinho in Praia. - Number of agents participating in specialized training for prison guards in the central and regional prisons (training actions described below). - Prison service training actions undertaken: - 14 training actions for 463 prison guards in areas ranging from initial training to legal and ethical training and human rights. ### Police training and human resources (2009) - The PN implemented about 40 actions across various specialization areas, covering about 478 personnel. Areas included air and maritime borders, prevention of clandestine immigration, piloting and maintenance of vessels, criminal investigation, courses for promotion to unit chiefs, work practice for officers with directorship and department chief functions, criminal fires, initial pedagogic training for trainers, police intervention techniques. - The fight against drugs emphasized prevention, treatment, social reintegration, and suppression. - 238 new agents were trained and incorporated, compared to the 210 previously envisaged. - Another 60 agents are currently in training. - Over 400 agents trained and incorporated into the national police force in the last three years. - A process was initiated to create a database of information from the SOS drugs line, support groups, grassroots community organizations, NGOs, and individuals working in prevention, treatment, and apprehension of drug addicts. - In 2009, the "Other transfers" line in the budget of the Commission to Coordinate the Fight against Drugs (CCCD) was 100 percent executed, compared to the established target for 2009 of > 95 percent. ### Migrations, emigration, and immigration (strategic orientations and actions) - Strategic orientations: - Improve knowledge of communities of origin of migratory flows and define measures and productive activities to encourage populations to stay. - Recognize past and present of the immigration situation in Cape Verde, analyzing legal provisions and internal/external environment. - Obtain opinions on national immigration policy from institutions, partners, economic and social forces, interest groups, specialists and personalities. - Survey obligations assumed by the State of Cape Verde at international, regional, and community level, and compile all current legislation relating to entry and stay of foreign citizens, hiring of foreign labor, and management of immigrant flows. - Emigration: - It is estimated that the annual average rate of emigration will drop to 1 percent in the period 2005-2010, compared to the 1.5 percent levels recorded in 1990-1995, 1995-2000, and 2000-2005 (UNPF, 2009). - Immigration: - In June 2009, an interministerial commission was set up to propose bases for immigration policy aimed at: (1) combating clandestine immigration and employment of illegal labor; (2) effective management of migratory flows; and (3) effective and harmonious integration of migrants into Cape Verdean society. - Recent figures show the immigrant population increased by about 20 percent between 1991 and 2005; trend expected to reach a level of 12,035 in 2010. - Figures on residency authorizations from the DEF (2008) show main countries of origin: Guinea-Bissau 19.8 percent, Portugal 13.8 percent, China 13.7 percent, Nigeria 11.5 percent, Senegal 11.3 percent. - The Centre for Research Development on Migrations, Globalization, and Poverty (DRC 2007) shows 76 percent of immigrants in Cape Verde come from Portuguese-speaking (PALOP) countries. - Actions undertaken by the interministerial commission: - Survey of legislation on immigration. - Diagnostic assessment of the functioning of public institutions that work on migration issues. - Preparation of projects and financing proposals (resource mobilization). - Mobilization and financing to produce the study "Imigração em CV" [Immigration in Cape Verde], forming the basis for national immigration policy. - Mobilization of technical assistance under the MIEUX initiative of the International Centre for Migration Policy Development (ICMPD), to formulate the national strategy on migration, to be completed in July 2010. - Development of the studies: "The migratory profile" of the International Organization for Migration (IOM); and "Identification of Cape Verde’s needs in terms of asylum and migration" of the ICMPD, an initiative by the Netherlands. - Under the Partnership for Mobility declaration signed between the European Union and Cape Verde, activities were undertaken to manage migratory flows, promote legal immigration, combat irregular immigration, promote training, encourage monetary and skill transfers, promote circular migration and return, and reduce the impact of emigration of highly skilled individuals. ### Next stages and governance challenges - Priorities for the next five years: - Implementation of a realistic public administration modernization program that is consistent and coherent, at the service of citizens and firms, and promotes democracy, economic development, and modernity. - Strengthening and consolidation of institutions, deepening of democracy, and forging broad consensus on subjects of major interest. - Approval and implementation of the charter on the incumbents of political posts to make them properly accountable for the management of public affairs. - Implementing the plan to strengthen State authority and promote citizenship; holding the forum on strengthening of citizenship and participation. *Source: _cr10367 - 2. Security* ### 46.1 percent women) and the total number of unemployed was 35,745. The unemployment ### Employment, Vocational Training, Health, Youth and Sport (excerpt) ### Employment and unemployment - Total number of unemployed was 35,745. - Unemployment rate in 2008 was 17.8 percent, an improvement on the 2007 QUIBB figure of 21.7 percent, but still very high in relation to the development dynamic desired for the country. - Employment was defined as a key development policy objective, involving the coordination of all policies targeting the creation of productive employment. - Government actions: - Allocated a total of CVE 1.0 billion in the 2009 State budget. - Continued to implement its national employment policy. - Latest results: - An average of 2,384 jobs were created per year between 2000 and 2008. - Job creation was 3.5 times higher than the creation of unemployment. ### Vocational training for employment and social inclusion - Institutional and programmatic developments: - Strengthening of institutional capacity in local training centers, restructuring of the IEFP, assignment of responsibilities to coordinate training actions, monitoring and evaluation, integrated planning, reactivation of the Employment and Vocational Training Support Fund, and joint coordination of the sector with partners. - Creation of the National Qualification System Coordination Unit and the Professional and Vocational Guidance Unit. - Establishment of four training units in secondary schools. - Achievements in 2009: - Youth Apprenticeship Program - Promotion and development of training actions in the vocational training hubs - Vocational training and technical education - professional component - Support for the National Employment and Vocational Training Program - Professional Practices Program - Citizens Soldier Program - Training of trainers - Execution of the Strategic Vocational Training Plan - Hotel School (Praia) - Vocational Training Center of Praia, Variante; and Fogo/Brava - Implementation of the Integrated Employment and Vocational Training System - First job subsidy — Professional practice: - Active employment measure mainly targeting young people with vocational training. - Agreement signed between the National Employment and Vocational Training Support Program (PAPNEF) and the IEFP to finance the implementation of the First Job Subsidy project. - Execution set to begin in 2010. ### Employment centers and observatory plans - Employment center statistics and issues: - Statistics produced by Employment Centers show a significant increase in the number of job-seekers, although its performance and mode of operation need to be reassessed. - In 2009, there were a total of 962 people registered, 318 more than in the previous year. - The total number of jobs offered in 2009 was 80. - The heaviest demand for employment was recorded in the employment centers of Mindelo and Praia. - Observatory initiatives: - Plan to create a Social Development Observatory within the Ministry of Labor, Family, and Social Solidarity. - Decision to set up an Employment and Vocational Training Observatory to collate and analyze data on employment and vocational training. - In December 2009, a large meeting was held in Praia to publicize the employment and professional training observatory. - Stages to be overcome: - Ongoing challenge to link/articulate education with the vocational training system and adapt it to the business reality and the labor market. - General vocational skills deficit remains a decisive factor for poverty, particularly in rural areas. ### Health — strategic orientations and indicators - Strategic orientations: - Reorganization of the National Health Service. - Provision of health care that is accessible and encompasses all dimensions of the human being, capable of monitoring illness or risk episodes, implying organization of services, particularly for primary care. - Implementation of the strategic human resource development plan. - Review and adapt the network of structures in their diversity of type and competencies. - Selected performance indicators and findings: - 93.7 percent of pregnant women used antenatal services and benefited from the counseling and pregnancy test in 2008, far above the baseline of 13 percent (IDSR_2 - 2005) and the 40 percent projection contained in the official documents. - No healthcare institution offering antiretroviral treatment suffered a stockout of antiretroviral drugs. - 22 percent of private firms with 30 or more employees (90 out of 85) are investing in activities to support the national HIV/AIDS strategic plan 2006-2010 according to the CCS-AIDS, above the 10 percent level envisaged. - Under-fives mortality rate: 25.7 per thousand live births in 2007 (benchmark GPRSP II: 28.6 per thousand); rose to 28.1 per thousand in 2008. - Number of deliveries attended by qualified professionals in health structures rose from 8,773 to 9,475 between 2005 and 2008; relative figures were 75.9 percent (2005) and 74.6 percent (2008); baseline of 74.4 percent set for 2007 was slightly exceeded in 2008. - Number of reported cases of malaria per 100,000 inhabitants in 2008 was 4.0, compared to 4.5 predicted for that year. - Incidence of tuberculosis per 100,000 inhabitants in 2008 was 39.2, compared to 56 envisaged in GPRSP II for that year; trend downwards since 2003 when 65 cases were registered. - 29.0 percent of women between 15 and 49 years of age, who are married or living in de facto union, used some method of contraception in 2008. - Epidemic response and preparedness: - Dengue fever outbreak in the last four months of 2009 required robust action and received strong international support; raised need for improvement in phytosanitary situation, especially in the city of Praia. - National health service responded immediately; Cape Verde publicized its dengue fever experience in major world forums and held a conference on the subject in the country. - Economic and financial impact of the dengue fever epidemic in Cape Verde in terms of tourism and public health remains unknown. - New indicator added to the sector performance matrix relating to efforts to combat the larva stage of the mosquito vector of malaria, incorporated in the strategic plan for pre-elimination of malaria. ### Health and sport — youth participation, capacity building, and sports development - Strategic orientations for youth and sport: - Improvement of conditions for participation by young people in the country’s social, political, economic, and cultural life. - Deepening and strengthening of policies to upgrade human capital, prioritizing the role of youth in development opportunities. - Youth centers, telecenters and services in 2009: - 15 youth centers operating, along with several telecenters promoting integrated development of adolescents and young people, particularly in reproductive health and economic and social participation. - Production of educational material (e.g. “Agenda Jovem” with a print run of 3000 copies). - Training of young people and associative and community leaders on sexual and reproductive health, HIV/AIDS, drugs, methodologies in health education; counseling for young people; associativism and volunteer action. - Computer equipment obtained for four offices to support income-generating activities; school, vocational, and professional guidance, and evaluation of projects. - Training equipment obtained to equip the reproductive health clinical assistance service in a number of localities. - Strategic plan for youth and the operational plan have not yet been updated. - Participation and income-generating activities: - 13 training events on income-generating activities (e.g. garment making, cooking) in various concelhos. - Offices opened to support income-generating activities, school, vocational, and professional orientation, and project evaluation in youth centers of Calheta de São Miguel, São Salvador do Mundo, São Filipe, Ribeira Brava de São Nicolau. - Support provided to young mothers through income-generating activities in entrepreneurship and development of business and accounting plans. - Two mobile centers obtained for the islands of Santo Antão and inland Santiago to decentralize activities. - Inauguration of the youth center on the island of Maio. - Joint activities in 2009 with health delegations, ICCA, Directorate General of the Environment, CCCD, Cape Verdean Solidarity Federation, and others. - Offices in youth centers of São Vicente, Praia, and Santa Cruz are working full-time; others operate with outside technical support. - As a results indicator: 216 young people from several concelhos, mainly mothers, were trained in income-generating activities and entrepreneurship; 12 young mothers obtained support to set up their own business; 20 young mothers from São Domingos, 20 from São Vicente, and 15 from Ribeira Brava on São Nicolau benefited from training courses. - Communication Program being implemented to disseminate and raise awareness of activities related to youth; inauguration and functioning of Pousadas de Juventude and the Cartão Jovem program. - Sports sector achievements and capacity building in 2009: - Basic law on the sport system was reviewed and is being circulated among national partners. - Process for producing the national sports card was set in motion but will only be initiated in January 2010. - All statutory contributions to international organizations to which Cape Verde is affiliated were brought up to date, except for the Supreme Council for Sports in Africa (CSDA). - In cooperation with local councils, schools and private entities, a number of sports infrastructures were refurbished, upgraded, or given significant improvements for users. - Today all the islands, except for Brava, have a municipal stadium with synthetic grass. - Construction of the National Stadium is set to start in February 2010. - Funding provided to purchase materials and equipment for the Sports Medicine Centre of Praia; the Portuguese government offered a variety of sports materials for sports initiation schools, together with a package of books and magazines. - Training and scholarships: - Training of young trainers in handball and basketball for sports initiation schools from the Sports Regions of North and South Santiago and the MEES delegation in Praia. - Trainer training event held in Mindelo (October 2009) for physical education teachers and trainers in various sports. - Sports agents and DGD officials received study scholarships for higher training in the country in physiotherapy (2) and physical education (3); law (2); social services (1); accounting and administration (1); and economics (1), in partnership with higher education institutions. - Training session held for handball referees in Brava (trainees from Fogo also participated); Santo Antão held training sessions for referees and trainers in handball and another on “Planning for a sporting season” for sports agents. *Source: Excerpt from IMF staff report PDF content unit provided.* ### 3.3 Pillar III – Competitiveness ### 3.3 Pillar III – Competitiveness ### Strategic orientations and overview - Promotion of dynamic sectors of the economy and improvement of the standard of specialization of the economy. - Strategic orientations: - Development of competitiveness in the tourism sector - Support for national private investment - Internationalization of services and their competitiveness - Modernization and internationalization of the financial system - Integrated development of the rural world - Government focus: optimizing key factors of global competitiveness tied to transparency of government operations, promotion and protection of private investment, property, freedom and civil rights, prevalence of the law, and the right to personal security. - Competitiveness foundation: good governance and macroeconomic stability. ### 3.3.1 Agriculture - Medium-term goal: develop an integrated agro-forestry-grazing system with intensive and diversified operations, and add value to domestic agricultural products. - Territorial management: management of river basins as a territorial management unit involving associations, private individuals, State and non-State institutions; infrastructure, agroforestry interventions, and permanent measures are basic policy orientation. - Project monitoring: projects for organization and upgrading of the Picos and Engenhos water catchment basins were evaluated, at mid-term, by an external entity. - Soil conservation and area organized: - Total area organized: 52 ha (77.0 percent) in the two catchment basins, compared to a projection of 67.5 ha. - Global financial execution: 93% - Picos catchment basin: 95% - Engenhos catchment basin: 89% - Water infrastructure and capacity: - Drilling, bore-hole equipment and pumping tests undertaken in two catchment basins. - Five reservoirs built; will attain full capacity in 2009. - Two supplementary reservoirs under construction with capacities of 2,000 and 2,500 m3 in the Engenhos catchment basin, with remaining funds from the loan. - Construction infrastructures mobilized 5,252 m3 of water per day. - Water captured in reservoirs and levies remains for seven months after the rainy season (October to April); wells provide running water. - Quantity of water mobilized enables irrigation of a total area of 146 ha, encompassing around 730 farmers and benefiting 3,650 family groups. - Forestry subsector 2009 actions: - Creation of new forestry areas - Organization and maintenance of forest boundaries - Undertaking of a national forestry inventory - Protection of natural resources on the island of Fogo phase II-extension - Capacity building in awareness raising, prevention, management, and combat of forest fires (TCP/CVI/3101 -D) - Project preparation and financing: - DGASP prepared projects ―Sustained management of forestry areas in Cape Verde‖ and ―Jatropha curcas in Cape Verde – Island of Fogo‖ to start execution in 2010. - Project documents produced for conservation of Atlantic Phoenix and environmental recovery of characteristic landscape of Boa Vista and submitted for external financing. - Studies scheduled: Ribeira Grande water catchment basin (Santo Antão) financed by BADEA sinking fund; catchment basins of Sorno, Fajã de Água and Ferreiros (Brava) funded by the European Union. - Projects to be prepared include: - Integrated torrential correction levies in the Ribeira Brava high traffic basin - Torrential correction levies in the catchment basins on São Vicente - Agricultural development of the island of Boavista - Submit the Calhau project for financing ### 3.3.2 Fisheries - Medium-term objective: increase fisheries contribution to GDP (average 0.6 percent between 2004 and 2007). - Employment: fisheries employ about 5 percent of the active population (target in sector matrix for GPRSP horizon: 12 percent per year). - 2009 sector actions: - Actions to combat illegal fishing - Start of implementation of the satellite vessel control system (VMS) - Preparation of the plan for the management of fishery resources and review of the ZEE inspection plan - Continuation of organization of fishing communities into associations and continued management training - Modernization of cold store infrastructures - Construction of the official laboratory of fishery products scheduled for 2010 (to increase health security) - Maintenance of transfer of fish catches in ports - Updating information on fishery stocks (shrimp and crab) - Preparation of two projects to evaluate the water shrimp and crab stocks in Santa Luzia and S. Vicente - Campaigns to raise public awareness of the need to conserve and protect marine turtles; inspection of beaches involving fishing communities, public and private institutions and organized civil society - Performance and accomplishments: - Execution of the intersector environmental plan for fisheries has performed well. - Approval of the Fisheries Resource Management Plan for 2010 (B.O. I series No. 18 of May 4 2009) - Launch of the compilation ―Fishery legislation of Cape Verde‖ second volume - Signing of agreements with CETMAR to strengthen inspection and monitoring of fishery activities in the exclusive economic zone - 32 percent increase in fishery exports, and 2 percent reduction of imports thereof - Increased production of ice in existing units and creation of new units ### 3.3.3 Tourism - Medium-term objective: improve efficiency of tourism promotion and quality of products and services; strategy is wide-ranging, sustainable, and with greater local content. - Sector strategic plan: PEDTCV2010-2013 approved in December 2009 in the Council of Ministers and is being disseminated. - Environmental emphasis: plan considers the environment as an asset, defends promotion of ecotourism (particularly in natural parks and protected areas), and prioritizes minimization of potential environmental impact from tourist activities. - Institutional and legal developments: - Tourism legislation undergoing review; expected approval end of 2010. - Sector now has a Director-General, providing new dynamic. - Visitor statistics: - Roughly 333,354 guests entered hotel establishments, representing a 6.5 percent increase on the previous year’s figure. - Indicator below 2009 forecast (370,000) in GPRSP II framework; shortfall possibly due to the international crisis. - Sal received 57 percent of total guests. ### 3.3.4 Services - Competitiveness of services provided through the 11 international financial agencies operating in the country improved, exceeding the 2011 target and achieved before 2009. - Commercial register: total of 20 information and communication technology (ICT) firms set up in 2009, mostly in Praia, working in fixed-line, wireless, and satellite telecommunications. - Target for 2009 (6) ICT firms was comfortably surpassed. ### 3.3.5 Private Sector - Medium-term objective: empower the private sector as the leader of economic development. - Authorities align with Doing Business data recommending improvement in the business climate and consolidation of the private sector’s role for growth and employment. - Administrative improvements: entry into force of the citizens bureau (Casa do Cidadão) in Praia and the mobile citizens bureau in North Santiago. - Achievements for doing business: - Reduction, alteration and elimination of several processes and procedures for starting up businesses and doing business, resulting in gains in number of transactions, costs and time. - Fiscal changes: - Corporate income tax (IUR) rate lowered from 30 percent to 25 percent. - Personal IUR rate lowered from 45 percent to 35 percent. - Computerization of the fiscal register including assignment of a taxpayer identification number (NIF). - Publication of tax information guides online and in the Yellow Pages. - Contractualization of the payment of tax debts. - Process of closure, suspension, and bankruptcy of businesses has specific guidelines in the ―Guidelines on business closure procedures‖ and will be included in the same automatic system for setting up firms. - Property and investor protection: - Property cadastre regime defined by Decree Law 29/2009 (BO No. 33 of August 17) came into force. - Ad valorem system altered to reduce costs of notary and registration procedures (Decree Law 70/2009, BO No. 49 of December 30). - Pilot exercise on island of Sal for integrated simplified 48 hour property registration (Linha Azul/ Casa Pronta). - Proposal to join the International Centre for the Settlement of Investment Disputes (ICSID) was put forward and will be presented to the Council of Ministers and National Assembly. - Doing Business ranking: - Cape Verde is 147th in the World Bank’s 2009 ―Doing Business‖ ranking; ranked fourth in the region following Ghana, Nigeria, and Gambia. - Performance below 2009 target (100); partly justified by adoption of a new evaluation methodology; no backsliding in public sector reforms. - Future needs: - Additional measures needed for setting up businesses, hiring workers, obtaining credit, protecting investors, external trade, and business closure. - Improvement needed in innovation and labor force capacity building; better access to financing for firms. - Emphasis on building institutional quality, creativity, and entrepreneurship to compete globally. ### 3.3.6 Trade - Strategic orientations: upgrade national production to meet population needs and integrate Cape Verde into the world economy. - Business environment improvements in 2009: - Entry into force of various legal provisions regulating trade. - Legislation on prevention and suppression of money laundering, economic crimes and crimes against public health; control of security and quality of food products and animal feed; marketing prices for oil products; consumer protection; and regime for approving commercial establishments. - Customs and international trade: - Parliament authorized government to approve the new Customs Code (Law 46/VII/2009, B.O. No. 46), which includes issues regulated by the Customs Organic Charter, the Customs Disputes Law and legal amendments. - Customs Code governed by parameters including ECOWAS agreements on circulation of goods, the treaty forming the WTO, and multilateral agreements party to Cape Verde (without prejudice to Protocol of Cape Verde’s Accession to the WTO). ### 3.3.7 Industry - Aim: develop an industrial sector integrated into human development policy and respectful of the environment; environmental protection is a key concern. - Industrial base and activity: - 51 new industrial units set up in 2009 as part of a rising annual trend; five more than in 2008. - Geographic distribution: Santiago (35), São Vicente (6), and units in Sal, Santo Antão, Boavista, Fogo and Maio. - Jobs created in 2009: 880 new jobs (down from 1,230 in 2008). - Jobs concentrated in civil construction, public works, and manufacture and sale of construction materials. - Sector contribution to GDP: 12.6 percent of GDP in 2007 (latest available data). - Environmental safeguards and regulation: - Measures: governing construction of new industrial parks, review of the ecological tax, development of plan of action for sand extraction. - Permits for firms producing inert materials require presentation of an environmental impact study. - Agreement for supply of sand to domestic market with Central de Britagem Cabo Verde, SA (CBCV) in force since February 2006 is not being complied with and will soon be revoked; alternative possibilities for supplying domestic market including exemptions for sand importing firms are under consideration. - Business structure and constraints: - Trade is most dynamic segment by number of enterprises, employment, and business volume across firm sizes. - Small and medium-sized firms: about 90 percent of enterprises and generate roughly 39 percent of all jobs. - Large firms: about 10 percent of enterprises but account for about 69 percent of business volume and over half (61 percent) of employment. - Access to finance is the main difficulty for small and medium-sized firms. - Inadequate skill level of workforce is the greatest obstacle for larger firms. - Third Business Census of 2008 (INE) recorded 8,716 firms. ### 3.3.8 Regulation - Regulatory developments and initiatives: - Presentation of the plan for technical and regulatory convergence as part of the special partnership with the European Union. - Approval of the benchmark plan to strengthen regulation and inspection. - Launch of the process for reviewing the statutes of agencies of regulation and general inspection of economic activities. - Creation of the Competition Authority. - Planned enforcement improvements: - Government intends to institute strengthened and coordinated inspection of firms by institutions such as the DGCI, IGAE, and DGT. *Source: _cr10367 - 3.3 Pillar III – Competitiveness* ### 3.4 Pillar IV – Economic Infrastructure ### 3.4 Pillar IV – Economic Infrastructure ### Strategic objective (overview) - The public investment program aims to eliminate the greatest infrastructure constraints to economic development and increase the economy’s long-term potential growth. - Medium-term objectives vary by sub-sector but focus on guaranteeing circulation of goods and people in safety, improving land management and the cadastre, expanding and modernizing water and sanitation infrastructure, and expanding production capacity and renewable energy penetration in the power sector. ### 3.4.1 Infrastructures and transport and communication — Findings and ongoing works - Road infrastructure (2001–2009): - 252.7 km of roads were built and refurbished, 96 percent of which were paved with asphalt and 4 percent with concrete. - MCC-financed package completed: about 54 km of main roads constructed. - Tarrafal - Praia Branca - Ribeira Prata highway was built. - Improvements to 26 km of the Ribeira Brava – Tarrafal highway on the island of São Nicolau; exceptional rainfall between August 24 and September 27, 2009 caused major damage in Vila da Ribeira Brava and its access roads. - Two variants of the Praia – S. Domingos highway were finished, as well as the road network in Praia. - Various road works in several concelhos, in particular Anel do Fogo (high investment). - Road maintenance financing: - Road maintenance tax (TSMR) began to be charged in January 2009; Autonomous Road Maintenance Fund has collected CVE 229 million. - Inter-island sea links and concessions: - Inter-island sea links operated by private firms under freedom to set up business and free market access. - MITT introduced service concession contracts on routes including Praia/Fogo/Brava, Praia/Maio/Praia, Praia/São Nicolau/São Vicente, and Praia/Sal Rei/Palmeira to provide minimum services supporting cohesion and equity. - Aviation and maritime projects: - Construction of the air traffic control center began and is expected to be concluded by mid-2010. - Maritime signaling project prepared; terms of reference and bidding documents discussed for modernization of maritime navigation systems and linkage to control centers. - Terms of reference and bidding documents prepared for coastal management study; tender to be launched shortly. - First phase of the VTS system: equipment in country awaiting assembly; implementation shortly. - Ports: - Major port infrastructure program execution under way; expected completion in 2012. - Modernization and expansion of the port of Praia: building a cargo terminal in Achada Grande, constructing an access road, refurbishing No. 2 pier; tender for second phase launched; construction begun of support building for port of Praia. - Expansion works begun at port of Palmeira; good progress due to mobility of equipment. - Expansion works at Porto Novo, and modernization works at Porto de Sal Rei and Porto de Vale dos Cavaleiros on Fogo and Porto de Furna on Brava are in the bidding and bid analysis phase. - Container scanners obtained for Porto Grande de São Vicente, port of Praia, and port of Palmeira on the island of Sal. - Process of obtaining a patrol vessel for inspection of ports and Cape Verde’s exclusive economic zone is ongoing. - Airports and private participation: - Private enterprise participated in financing upgrading Boa Vista airport to receive international flights. - 2009 airport works: - Remodeling, adaptation, and adjustments in São Vicente airport. - Tender launched for expansion of parking area at Boa Vista airport. - Expansion of Maio airport terminal completed. - Construction of a VIP lounge at Praia airport. - Communications sector strategic objectives: - Review of the costs model; review of pricing on rented circuits and interconnection services; introduction of new operators in broadband radio; review of the concession contract; laying of another undersea cable. - Communication access statistics (INE, 2006): - 67 percent of family units have a fixed/mobile telephone. - 70 percent have radio. - 62 percent have television. - Telephone density was 15 per 100 inhabitants in 2005. ### 3.4.2 Land Management — Strategic orientations and progress - Strategic orientations: - Implementation of land management tools such as the Basic Law on Land Management and Urban Development Planning and the Expropriations Law. - Support for municipalities in preparing individual urban development plans. - Medium-term objective: improve land management and the cadastre. - Institutional coordination: success depends on articulation among Directorate-General of Land Management and Urban Development (DGOTH), Cabo Verde Investimentos, and municipal councils. - Planning and PDMs/PDUs progress in 2009: - A Municipal Master Plan (PDM) was approved and published in the Official Bulletin in 2009; another 15 PDMs are currently being prepared. - Status of specific PDMs: - PDM for Porto Novo is about to be approved. - PDM for Brava is in characterization and diagnostic phase. - PDM for Mosteiros is in analysis of the plan proposal. - PDM for Paúl is in public consultation phase. - PDMs of São Filipe and Santa Catarina on Fogo are being drafted. - In 2009 municipal development plans continued: nine PDMs; seven urban development plans (PDUs) in Santiago. - São Domingos and Sal have land management plans approved and published. - By late 2009, expected that 59 percent of the country’s municipalities will have begun to prepare their land management tools. - Regional schemes (EROTs): - Public consultation concluded for EROTs of Santiago, Santo Antão, and Fogo as foreseen in the Basic Law on Land Management. - São Nicolau EROT is in analysis and presentation of characterization, diagnostic, and scenario development. - A summary report was produced to improve EROT territorial model proposals. - Legal framework enacted: - A new basic law on land management was passed. - The Law on Soil and Expropriations, the Law on Cartography, and a Framework Law on the Cadastre were all passed. - DGOTH activities: - Technical assistance in urban development for municipalities (e.g., Tarrafal on São Nicolau). - DGOTH served on juries for tenders to produce strategic tourism development plans for Boa Vista and Maio, Integrated Tourism Development Zones (ZDTIs) of Chaves, Morro de Areia and Santa Mónica, and the Tourism Management Plan (POT) of north and south Vila do Maio (SDTIBM). - Complementary program activities: - Support for preparation of territorial management master plans (PMOTs) with Association of Municipalities of Santiago. - Preparation of land management plans and urban development planning. - Vocational training. - Refurbishment and modernization of the National Geodesic Network; creation of a Territorial Information System. - National Geodesic Network refurbishment results: - Construction/refurbishment of geodesic frameworks: - Brava: 11 nodes refurbished, including Monte Gratão and Monte Gâmbia. - Fogo: 15 nodes refurbished, including Monte Grande in Mosteiros (CMM team responsible for completion). - Santiago: rehabilitation partially implemented; refurbishment in São Nicolau and Sal. - Greater density of geodesic network in main urban centers enables cadastre, sanitation, and road and port infrastructure to link to National Geodesic Network, facilitating implementation of planned geographic information system. ### 3.4.3 Water Resource Management – Water and Sanitation — Strategic objectives and sector performance - Strategic objectives: - Expansion and modernization of basic sanitation infrastructures (effluent collection/treatment, solid waste collection/treatment/recycling). - Establish new partnerships for modern waste treatment and management units. - Better access to water and sanitation by strengthening and modernizing drinking water distribution, wastewater collection, and promoting household connections. - Incentives for investing in modern wastewater treatment and recycling to increase water availability. - Medium-term objective: improve access for families to public supply system by expanding public network to poor neighborhoods. - Integrated plan of action on water resource management prepared in 2009; under analysis by the National Water Council (CNAG) for approval. - Plan indicates water availability indicators predict major scarcity of water per capita in the future under all scenarios analyzed (normal rainfall or drought). - Scarcity is well below the 1,000 m3 per year per inhabitant recommended by international standards. - Quality of water for public supply is a key concern. - Institutional issues: - Disparities between islands, between concelhos, and between rural and urban zones; lack of leadership coordination particularly in sanitation hinders assignment of execution/management/maintenance responsibilities and policy formation. - Access and production statistics and targets: - Proportion of family connections to public piped drinking water network expected to increase to 51 percent, from 49.5 percent achieved in 2008, in concelhos of Praia, S. Vicente, Boavista and Sal. - About 3.3 million m3 was used mainly for irrigation purposes (no 2009 target quantified; no baseline for 2008). - Electra production and distribution coverage in islands of São Vicente, Sal, Boavista and concelho of Praia report an average coverage rate of 56 percent. - National baseline: percentage of families connected to public network is 46.9 percent. - Reservoirs: process of preparing draft project, terms of reference and launch of tender to recruit firms to construct three reservoirs in Santiago has begun. - Institutional/regulatory development: - Wide variety of institutions operating drinking water market led to establishment of Economic Regulation Agency (ARE) to regulate/control provision of services, set fees, and inspect quality. - Water and sanitation infrastructure activities in 2009: - Continuation of actions to capture surface run-off water for irrigation and supply of communities through boreholes and cisterns. - Feasibility study concluded for water and sanitation project of Assomada in Santa Catarina. - Extension of water supply and wastewater drainage system and collection of solid wastes in Mindelo ongoing. - Integrated solid waste management project in Santiago: approved by municipalities; municipal regulations on solid waste, hygiene, and urban cleaning published; Santiago Intermunicipal Solid Waste Corporation created. - Studies underway on production of desalinated water in Calheta (should be completed in first quarter of 2010). - Works for production of desalinated water in Pedra Badejo completed in May 2009. - Wastewater drainage works begun in Calheta and Mindelo; storage and drainage of wastewater in city of Praia begun. - Wastewater treatment and sewerage coverage: - For 2009, proportion of families connected to public sewerage system in city of Praia should rise to 19 percent from 18 percent in 2008. - Urban Mindelo: sewerage network benefits 56 percent of population; wastewaters treated in WWTS of Ribeira de Vinha and recycled into irrigated agriculture. - Tarrafal de Santiago: sewerage network exists but households not connected and small WWTS is nonoperational. - Santa Cruz de Santiago, Pedra Badejo and Santa Maria recently built a wastewater treatment station. - WWTSs in projection phase in municipalities of Santa Catarina and Porto Novo. - Persistent sanitation challenges: - Septic tank is the system most commonly used to evacuate wastewaters in Cape Verde. - In rural area, most of the population do not have evacuation systems. - Public toilets existing in various centers are little used by the population. - Introduction of dry ventilated latrines in rural area has not produced promising results; viability is doubtful and impact limited; cultural barriers appear to limit uptake. - Sectoral challenge: - Serve poor population groups in outskirts of main towns and scattered rural areas; challenge has economic/financial, technological, and managerial dimensions and must be addressed within broader policies to reduce social exclusion (social housing, health, education, employment, environmental quality). - Attempts to cost attainment of MDGs, particularly for water and sanitation, have failed; costing would have helped realistically determine sector investment needs. ### 3.4.4 Energy — Strategic orientations and performance indicators - Strategic orientations: - Increased competition and better regulation and supervision of the sector. - Expansion of production capacity. - Greater penetration of renewable energies. - Implementation of energy conservation and efficiency measures. - Institutional capacity strengthening. - Investment in innovation and adoption of more efficient technologies. - Increase in electricity coverage to 100 percent. - Increase in penetration of renewable energy sources. - Sector institutional and financial condition: - Electra (national electricity production and distribution company) is in a worrying situation; liquidity shortage means government is taking responsibility for most investments. - Resolution of Electra’s financial and organizational situation is crucial and could be addressed by the National Energy Strategy. - Coverage and renewable penetration: - Sector matrix highlights rising coverage rate compared to 2007 baseline, including: average national coverage of 90 percent in 2009, which was not achieved. - More recent data from Electra indicate an 87 percent coverage rate for the period 2000-2009, in terms of coverage of domestic customers or the number of families. - Islands with 100 percent coverage in 2009: São Vicente, São Nicolau, Boavista, Sal and Brava. - Projections for 2011 and 2012 show island of Maio and concelhos of Praia, São Domingos and Santa Catarina should attain 100 percent coverage in 2011. - Production of renewable energy (wind and solar) and incorporation into distribution network was minimal at 3 percent; target is to reach 25 percent as a result of projects in the pipeline. *Source: _cr10367 - 3.4 Pillar IV – Economic Infrastructure* ### 3.5 Pillar V - Social Cohesion ### 3.5 Pillar V - Social Cohesion ### Social cohesion — overview - Social cohesion is identified as essential for building a more integrating and balanced society and for mitigating poverty. - Inequalities affect children, the elderly, the disabled, women heads of family, and young people the most. ### 3.5.1 Poverty - Cape Verde’s Human Poverty Index (HPI) was calculated at 15.8 percent in 2006 by the National Institute of Statistics. - The National Poverty Reduction Program (PNLP) recommends actions targeting poverty reduction, increasing solidarity, and equal opportunities. - Priority intervention areas: - Income-generating activities; - Water supply and sanitation; - Education and vocational training; - Institutional support; and - Low-income housing. - Target groups: low-income women (particularly women heads of family), unemployed youth, and families living below the poverty line. - New PNLP approach priorities: - Social integration/development of employability of individuals and families; - Results-driven management in the poorest communities; - Co-responsibility by involving everyone in poverty reduction and social cohesion. ### 3.5.2 Work / Social Protection - Strategic orientations: - Redefinition of the public institutional framework for coordination and implementation of social protection policies; - Deepening decentralization of social protection policies; - Definition of a regulatory and institutional framework of public-private partnership in the social protection area; - Consolidation of legal and institutional reform on childhood and adolescence. - Studies and publications undertaken: - “Trabalho Infantil” [Child labor]; - “Plano de Prevenção e Combate ao Trabalho Infantil” [Plan to prevent and combat child labor]; - “Vulnerabilidade das crianças face à graduação de Cabo Verde a país de rendimento médio” [Vulnerability of children as Cape Verde becomes a middle-income country]; - “Estratégia de Desenvolvimento de microempresas rurais” [Development strategy for rural microenterprises]; - “Guias Educativos sobre Trabalho Infantil” [Educational guidelines on child labor]; - “Abuso e Exploração Sexual de Crianças” [Sexual abuse and exploitation of children]. - Workplace conditions and social dialogue (2009): - Capacity-building prioritized prevention of workplace hazards. - 869 inspection visits were made, resulting in the apprehension of 600 illegal fixed-term contracts. - Prevention actions prioritized mediation/conciliation, settlement of disputes, promotion of social dialogue, and decent jobs. - The Social Concertation Council was active, including initiatives for a viability study to implement the minimum wage. - Partnerships: - Agreement with the adult education and training department (DGAEA) to encourage people to return to education; - Protocol with the PNLP, central and local public authorities and with CITI-Habitat for refurbishment of housing, vocational training and promotion of income-generating activities. - Social security / coverage figures: - Inclusion of 16,093 users from central government and 1,323 from the local public administration regime. - Currently, 24 percent of the active resident population are covered by this regime. - Contributory regime increases: - Contributors ... from 3852 to 4045; - Persons insured ... from 61,751 to 69,216; and - Beneficiaries ... from 141,548 to 146,000. - Noncontributory regime: - National Social Pensions Center (CNPS) was created to provide integrated management of social pensions financed by the State and by the Mutualista Fund. - Number of social pension recipients has grown to 22,946, which virtually satisfies the target of 23,000 set for 2009. - In 2009, a total of 1,922 individuals were entitled to the social pension (basic pension: 1508; social disability pension: 241; and social survivor pension: 32). - The growth rate of the population covered is 1.3 percent. - The value of the social pension in the noncontributory regime is CVE 4,500 (November 2009); government target was CVE 5,000 before 2011. - Payment is made through post offices. - Proposals to redesign the social pension information system to better identify the pensioner profile and link with INPS and Directorate General of Social Security Contributions and Taxes. - Legislation and child protection: - Laws published on own-account workers, domestic service workers, workplace accidents and professional illnesses, and regulatory laws on CVI, patient evacuation and protection during periods of illness. - Actions in Protection of the Rights of the Child and Adolescent in 2009 included promotion, dissemination, solidarity and awareness-raising campaigns, education on rights, protection, support, partnership, institutional development, social reintegration and poverty reduction. - Ratified the Hague Convention (on international adoption), produced a second version of the Child and Adolescent Charter (ECA), and published the Convention of the Rights of the Child. - The charter of the Institute of Childhood and Adolescents is being reviewed. - Specific help provided to needy students, families, and the sick (evacuated); social promotion services assisted families affected by rains. ### 3.5.3 Social housing - Strategic orientations: - Creation of humanized urban spaces with priority for the organization and upgrading of neighborhoods; - Targeting urban development policy on environmental sustainability for spatial, social, and functional integration; - Land management as a process of change, social cohesion, and deeper public participation in urban development quality; - Response to demands for free spaces, culture, recreation and leisure; - Recovery and upgrading, particularly in degraded housing areas in neighborhoods on the outskirts of cities. - Medium-term objective: improve housing conditions for the poorest citizens. - Housing deficit: - There is a housing deficit of 82,000 homes, affecting all income levels but with major impact on lower-income population segments excluded from the formal housing market. - Government actions and institutions: - Several social housing programs are executing, addressing socioeconomic inclusion, poverty reduction, environmental impacts, and partnerships. - Legislative package of proposed laws and decrees is being processed. - Social Housing Fund (FHIS) created to centralize and manage resources to execute housing policies targeting deprived families and groups with specific support needs (e.g. young people, the lower middle class, women heads of family). - Strategic plan (2009) “Casa Para Todos” [A house for all] programs: - Habitar Cabo Verde – aims to reduce the housing deficit qualitatively and quantitatively by 2013, building about 8,000 homes; - Programitas – aims to build about 1,000 new housing units in rural areas to reduce the quantitative deficit in the rural sector; - Reabilitar – aims to improve quality of life in informal neighborhoods through rehabilitation and infrastructure programs. - Operation Hope (“Operação Esperança”) targeted improving living conditions among the least privileged groups. - Partnership protocol with PNLP to rehabilitate housing and promote income-generating activities; no data available on actions undertaken. - Support provided for social promotion services to assist families coping with disasters caused by the rains, particularly in São Nicolau. - Next stage: - Implement a new generation of active social policies and expand partnerships nationally and internationally; - Expand coverage of social protection to encompass informal workers, rural workers, and fishery workers currently outside the system; - Test and introduce alternative construction methods; - Adopt a holistic approach and consistent plan of action. ### 4. Crosscutting issues #### 4.1 Gender - Strategic orientations: - Mainstream gender in sector policies, programs and projects; - Create and implement affirmative action mechanisms to increase women’s participation in legislature, judiciary, and local authorities; - Enforce juridical-legal provisions and regulations to ensure their protective benefits; - Adopt mechanisms promoting equal opportunities and greater participation by women in economic activities; - Strengthen partnerships with civil society organizations promoting citizenship, family defense, women’s rights, community development and poverty reduction. - 2009 actions strengthened conditions for exercise of citizenship, gradual elimination of violence and discrimination, rights protection, and women’s political and economic participation via the National Plan on Gender Equality and Equity and the Plan to Combat Gender Violence. - Progress and indicators: - Literacy index: 73 percent for women and 87 percent for men in 2007; - Enrolment rate in both basic and secondary education is higher for girls than for boys. - Prevalence of HIV/AIDS is 0.8 (IDSR II, INE). - Masculinity ratio of HIV/AIDS prevalence is 1.13. - Proportion of women members of parliament rose from 11 percent to 21 percent between 2003 and 2008. - This is the second government in the world with the same number of women and men ministers. - Gender-Adjusted Development Index is 0.749 (INE, 2006). - Media and gender: - Media still does not effectively promote good practices in gender relations and often projects an image of women as victims. - Services: - Legal Advice Bureaus and Citizen Bureaus give special attention to domestic violence issues and reducing inequalities in access to services. #### 4.2 Environment - Strategic orientations: - Promotion of development with environmental quality; - Protection and integrated management of natural resources essential for economic development; - Poverty reduction; - Adaptation of modes of production and consumption. - Medium-term objective: satisfactorily implement the government’s environmental policy, balanced management of water resources and biodiversity. - Execution (2009): - Implementation of municipal, sector, and central environmental plans. - Annual report on execution of environmental policy for 2009 was approved by the National Environment Council (CAN); degree of execution is 100 percent. - Financing obtained for review of the National Action Plan on the Environment (PANA II); review process to end in 2010. - Environmental quality monitoring system (SSQA) developed in 2009. - First report on the state of environmental quality completed, tracking 31 of the 76 indicators proposed. - A system for financial control of investments in the environment to be completed in 2010. - A proposal for a matrix to evaluate sector performance was finalized and accepted for budgetary support period 2009-2011; changes made to indicators, including protected areas (total of 47 land and marine areas) and species management plans. - Reformulation of the Ecological Levy (taxa ecológica) to conform to WTO regulations stalled in Parliament over distribution of proceeds between the Environmental Fund and Municipal Environmental Programs. - Water and sanitation (QUIBB 2007 data and 2009 actions): - Proportion of the population that uses a drinking water source is 89.5 percent in 2007, 98.6 percent in the urban area and 75.8 percent in rural zones. - In 2007, just 40.8 percent of Cape Verdean families reported evacuating wastewater through a septic tank and a sewerage system. - Between 2007 and 2009, more than 1,365 household water connections were made, and 656 connections to sewerage networks. - Wastewater treatment and reservoirs: - Late 2009: WWTSs launched in Mindelo and Praia; WWTSs completed in Tarrafal and Santa Cruz in Santiago and Santa Maria on Sal. - Tarrafal WWTS will benefit 250 families, and the second 20,000 people. - Mindelo WWTS expanded to facilitate increase in treated volume in 2013. - Polião reservoir captured and distributed water to irrigate over 60 ha of land; decision to construct another 11 reservoirs (five in Santiago, three in Santo Antão, one in São Nicolau, one in Maio and one in Boa Vista). - It is estimated that 652,700 ha of agricultural land nationwide is being operated with the droplet irrigation system. - Solid waste and landfills: - Solid waste collection services cover about 85 percent of the country’s municipalities; no separation and treatment yet. - Seven confined waste disposal sites operate (São Vicente, Sal, Tarrafal and Ribeira Brava in SN, Santa Catarina and São Miguel in ST and Porto Novo) and five improvised municipal waste tips (Praia, Paúl, Tarrafal de ST, São Filipe and Maio). - Sanitary landfill of Sal is being implemented; studies/projects for controlled landfill on Santo Antão; incineration unit set up in São Filipe on Fogo. - Illegal sand extraction and enforcement: - Training increased for national police officers involved in inspection actions. - Illegal sand consumption declining; in 2009, 83 percent of sand consumption was legal. - This performance is better than the target of 65 percent of sand consumed with legal origin established for 2009. - Little progress on plan of action for sand extraction, except for a survey of potential for producing inert materials on different islands. - Biodiversity management (2009 actions): - Publication in the Official Gazette (B.O.) of management plans for the Serra Malagueta and Monte Gordo natural parks; Fogo natural park plan prepared but not approved; management plans for Baía da Murdeira and Ilha de Santa Luzia and neighboring islets in final formulation. - National Plan for Conservation of Marine Turtles published and execution began; National Plan for Bird Conservation published in January 2009. - Species inventories carried out for angiosperm plants threatened with extinction on Santiago, Fogo, São Nicolau, Santo Antão and São Vicente; bird species inventory on Santiago, Boavista, Fogo and Ilhéu Raso. - 1,402 saplings from three native endemic plant species reproduced in nurseries for recovery of high altitude habitats; 3,000 endemic medicinal plants reproduced in nurseries. - Germoplasm bank maintained with seeds from 25 plant species. - Inventory of use of endemic plant species shows use mostly as forage (52 percent in Santiago, 29.7 percent in São Nicolau, and 37 percent on Fogo). - Monitoring and data updating on terrestrial fauna species threatened with extinction: Cane Warbler (Tchota de Cana), Purple Heron, Bar-tailed Lark (Calhandra), and Cape Verde Shearwater (Cagarra). - Specific counts and monitoring: 103 individuals of Bar-tailed Lark on Ilhéu Raso; 8,000 nests of Cape Verde Shearwater counted on Ilhéu Raso (result of awareness and supervision campaign in October 2008); monitoring of five Osprey nests, 120 pairs of albatross and 30 individuals of Bulwer’s Petrel on Ilhéu Raso. - Marine resources and inspections: - Promotion of sustainable fishing via implementation of the Fishery Resources Management Plan and preparation of studies on mediation of management measures. - Conservation and protection of marine turtles improved via protection activities enabling increased percentage of turtles escaping after laying eggs and fewer captures. - Threats to marine turtles: extraction of sand, night-time lighting of beaches and occupation of the coastal area. - Environmental inspections and audits increased; three cases brought for violations of projects requiring environmental impact assessments (EIAs) that did not comply with law. - EIA indicator results: 71 environmental impact assessments evaluated — 36 approved (50 percent), 26 exempted from the EIA process, and nine rejected for failing to comply with current legislation. - Decentralized execution and financing: - Environmental projects executed on a decentralized basis through municipal environmental plans, often financed by municipalities via program contracts with the government. - Autonomous Municipal Development Fund created as a legal instrument to finance municipal investment programs and projects not yet operational. - In February 2009, program contracts began to be signed with municipalities to implement environmental projects chosen by the PANA II monitoring committee (CGS-PANA II). *Source: _cr10367 - 3.5 Pillar V - Social Cohesion* ### 4.3 Investigation/research for development ### 4.3 Investigation/research for development ### Strategic orientation - Create conditions for development of endogenous capacity for research and innovation. - As part of modernization, new statutes were approved for the INE, the Law on Statistics was published in the B.O., and QUIBB 2007 data were put on Statline. - Results of research in fisheries, agriculture, education, culture, housing infrastructure, etc., will be used as inputs for sector development policies and strategies. ### Agricultural and fishery research - National Institute of Agricultural Research and Development (INIDA): - Research areas: selection, multiplication, and protection of plant species; control of animal health; support for fishery development. - 2009: continued trials for the selection and introduction of species and varieties adapted to Cape Verdean conditions; monitored and tracked pests and diseases affecting the main irrigated crops and animals, and monitored their impact. - Rural development activities formed part of the Strategic Plan for Agriculture for 2014 and included modernization through new techniques, technologies, and methods of production and protection (greenhouses, species and varieties adapted to edafo-climatic conditions) and upgrading of agricultural products. - National Institute of Fishery Development (INDP): - Conducted aquaculture management research and feasibility studies on alternatives to small-scale fishing in the close season. - Biodiversity monitoring: - 2008 and 2009: continued monitoring of the fauna and flora of the islands of São Nicolau, Santiago, and Santo Antão. ### Disaster risk reduction and meteorological/geophysical monitoring - Activities and procurements undertaken to reduce natural or human-made disaster risks: - Procurement of equipment (Cluster and PCS) for the recovery and adaptation of the global climate monitoring system. - Installation of the INTRNET network to make operational models for production of meteorological forecasting products and dissemination of meteorological products to protect lives and property. - The maritime meteorology project is underway. - Installation of 6 automatic weather stations (AWS) and one AWS to guarantee the functioning and use of classic and automatic meteorological stations and altitude observations on all islands. - Installation of a new radio/sonar station. - Configuration of the data transmission network for geophysical monitoring. ### Culture and construction research - Culture: research activities undertaken leading to the publication of various cultural works. - Construction: introduction of "Prémio Incentivos à Investigação e Inovação em Tipologias e Tecnologias de Construção" [Award incentives for research and innovation in construction typologies and technologies] to incentivize research into new typologies and methodologies to reduce costs and improve building quality and access to housing. ### Monitoring and evaluation mechanisms - A system is being set up to provide real-time data for the annual status report on PRGS execution or another established time period. - System development principles: simplicity, facility of use, and affordable costs. - Institutional framework established: - Central office in the National Planning Department of the Ministry of Finance (with minimum staffing) and in most ministries/sectors (Directorate–General of Planning, Budget, and Management - DGPOG); agents in the concelhos and islands. - The S&A has its information system in the INE and SIGOF. - 2009: access for sector bodies to information on budgetary execution was expanded and deconcentrated, particularly regarding authorization and settlement in SIGOF, enabling automatic recording and storage of execution (operational) data in SIGOF databases. - SIGOF participants beyond ministries include the Office of the President of the Republic, the Supreme Court, the Auditor General Department, the National Electoral Commission, and the Office of the Prime Minister. - 2010: short specific training actions programmed to implement the information system (crucial for the S&A mechanism), targeting ownership by national structures, particularly middle management and technical staff responsible for monitoring, which should begin in 2010. ### Key statistics and indicators reported in the Annex (selected) - Amount outstanding on overdue government loans (%): 60 38 31 (DGT report MFAP). - Amount outstanding on overdue Electra debts with suppliers (%): 100 100 (To be confirmed with Electra). - MTFF presented to Parliament as part of the Budget Law: Yes Yes Prepared (MFAP/ Strategic Studies Department). - Number of sectors with MTFF: 2 4 12 (General Budget Directorate MFAP). - % of government budget units with access to SIGOF: 80% 90% 91.2 (DNOCP report MFAP). - Number of inspections performed by the IGF: 39 64 (2009 IGF report). - Number of inspections in FSA and municipalities: 14 44 (2009 IGF report). - Number of training sessions: 5 11 (2009 IGF report). - Latest government accounts verified: 2005; target: 2006 and 2007 government accounts verified. - % non-performance, contracts awarded directly: n/a n/a 10 0 (ARAP). - % of complaints dealt with in accordance with new regulations and published: 0 0 50 100 (ARAP/UGA). - Average time to process procurements (months): 10 10 10 (Activities report 2009). - No. of staff trained in M&A: 8 12 31 (PASRP I report third-quarter). - % of projects and programs with measured output and/or outcome indicators in the M&A database: 0 100% (With output indicators). - Law No. 35/VII/2009 BO No. 9 of March 2 (Statistics Law). - % of QUIBB data in Statline: 40% 100% Completed INE site (INE/NOSI). ### Conclusion - Overall progress in implementing PGRS in 2009 is considered positive; results reflect a collective effort to fulfill objectives and targets. - Various sectors contributed positively during preparation and monitoring of the PGRS; however, delays in submitting data and missed deadlines imposed constraints on work development. - PGRS data needs harmonization with those of the GAO. - Evaluation: progress is positive and, overall, sectors have fulfilled objectives and implementation of the GPRSP, resulting in effective implementation of the poverty reduction and growth strategy in Cape Verde. *Content unit: _cr10367 - 4.3 Investigation/research for development* ### Conclusion of survey ### Conclusion of survey on tourist spending ### Public administration reform and decentralization - Modernization of the State: Rationalization of government structures to make public administration more cost effective. - Five ministries restructured as reflected in the 2009 State budget (Completed). - Continued implementation of restructuring recommendations (2009–2011). - Research functions in three institutions transferred to the University of Cape Verde. - UCRE / DGPOG posts effectively staffed: 10 25 (BO No. 36 series I 9/10/08). - Decentralization: Municipal management capacity strengthening. - At least 14 municipalities connected to the SIM and training their staff (17 municipalities have SIM). - 17 municipalities connected to the municipal information system (SIM). - 22 municipalities connected to the SIM. - Number of municipalities that prepare accounts on time: 3 9 14 (Final MDHOT report 2009; NOSI-DGAL). - Reform of public administration: Promote merit-based public administration and increase possibilities for internal and external mobility. - Approval of the Decree on Mobility by the Council of Ministers (Completed). - Approval of the new posts, careers, and salaries plan (PCCS) by the Council of Ministers; implementation of PCCS underway. - Staff turnover in leadership posts (not mobility) (%) reported as n/a n/a -5 -10 (UCRE). ### Security and justice sector - General progress of the sector security matrix: 60% of indicators achieved (2009–2011). - % of cases investigated by the judicial police and sent to court with charges brought: - 54.6 (base), 55.0 (2009), 65.68 (2011) (PJ report Jan-Dec 2009). - Financial Investigation Unit (UIF): - Creation and implementation: Creation of the UIF; appointment of senior staff of the UIF (Completed). - Internal regulation for the UIF has been prepared; manual on distribution of work and internal procedures completed. ### Human capital (Pillar 2) - Primary education: Improve quality. - Reduce the number of untrained teachers. - % of primary school teachers with pedagogic training: 82 84 86.5 (Annual report GEP / Ministry of Education). - Strengthening of pedagogic monitoring; review program for each cycle. - Secondary education: Improve efficiency. - Secondary school dropout rate (%): 8.2 8.1 8.0 (Annual report GEP / Ministry of Education). - Strengthening of pedagogic monitoring; review program for each cycle. - Technical education: Improve access; coordinate the program with vocational training. - % of third cycle secondary school students going on to technical education: 13.8 13.9 14.3 (Annual report GEP / Ministry of Education). - Vocational education and training (EFP): Upgrade labor skills to satisfy market demand. - Number of sector studies completed: 0 2 3 (1- Employment market study; 2- Vocational training charter; 3- Vocational training glossary). - Implementation rate (%) of annual plans of Employment Center in Mindelo and Praia: n/a >60 90 (Report on IEFP and Employment center activities). - % of FAF funds used for EFP: 0 >20 100.0 (Protocols signed; Minutes of CA FEFP; Financial execution report). - Proposed restructuring of the IEFP approved in the Council of Ministers; ministerial decision to reactivate and improve the Training Support Fund (FAF) (Completed). - Contracts with suppliers signed for up €600,000 to be financed from the Vocational Training Financing Fund. ### Competitiveness (Pillar 3) - International trade: - New Customs Code in compliance with WTO principles approved in the Council of Ministers. - Investment Code reviewed in accordance with principles defined by the WTO in draft. - New draft law on intellectual property. - Openness to trade (imports + exports of goods and services, credit + debit)/as a percentage of GDP: 107 107 (Information lacking) (Ministry of Economy, Growth and Competitiveness). - Tourism: - Master plan approved by Council of Ministers (Completed). - New revised legislation approved for the tourism sector; starting point for all indicators of local content. - Number of EHTCV training events: 0 5 (School still being built; Strategic plan approved by Council of Ministers in December 2009). - Cape Verdean School of Hotel Management and Tourism (EHTCV) operating; Tourism satellite accounts implemented. - Financial sector: - IFRS accounting standards applied to banks and insurance companies. - Asset-weighted average capital adequacy ratio (Basel 1) of whole system in %: 9.9 (includes onshore banks only) ≥10 (Solvency of the banking system 10%). - BO No. 7 of 16/02/09 and BO No. 41 of 2/11/09 (BCV report). - Closure of offshore banks that do not comply with legislation (2 offshore banks closed). - Legal framework of banking supervision revised to give greater authority to the BCV. - Taxation and business climate: - Draft law on tax incentives approved by the Council of Ministers; Law passed by Parliament. - Percentage of taxes: 30 25 25 (BO No. 48 29/Dec/08). - Citizens Advice Bureau (Casa do Cidadão) operational. - No. of firms created through the Citizens Advice Bureau per year: 600 630 780 (MREDN; Citizens Advice Bureau). ### Infrastructure (Pillar 4) - Land management: - Cadastre Law passed and task force appointed to make it operational. - Development plans (EROTs) for all islands concluded and approved by the Government: Number of EROTs concluded /4: 0 3 (Approved) 3 in the process of approval (DGOT report MDHOT/DGHOT and municipal councils). - No. of PDMs / 22: 0 11 1 approved (15 in preparation) (DGOT report). - Water and sanitation: - Rate of family connections to the public piped drinking water supply network in the concelhos of Praia, Mindelo, Boavista, and Sal: 49.5 51 56 (Ministry of Infrastructure and Transport, INGRH, CAN). - Additional m3 per day (desalinization capacity): 0 0 (Electra and ARE). - % of families connected to the public sanitation system: 18 19 19 (Ministry of Infrastructure and Transport, Ministry of the Environment). - Environmental management (PANA II): - Implementation of PANA II: Evaluation by the CNA — Positive evaluation by the CNA (2009–2011). - Average of good governance criteria (sector matrix): Average of at least 60% Average of at least 60% (Achieved 68.75%) (Evaluation by budget support partners during joint missions). - Average of environmental management criteria (sector budget support matrix): Average of at least 60% Average of at least 60% (Achieved 66.5%). - Energy: - Formulate medium-term sector development strategy, including institutional evolution of Electra (achieved 66.5%). - Electra debt service coverage ratio: 0.3 0.75 0.7 (ARE / MECC). - Technical and nontechnical losses as % of MGW production: 30 28 26.13 (Electra Planning Department). - Production capacity in MW: 73.9 77.6 98 (Information from DGEnergia). - % of renewable energy: 3 3 3 (Awaiting information from DGEnergia). ### Social cohesion (Pillar 5) - Target social actions: Pilot program; qualitative survey and plan of action; evaluation of the performance of targeting systems. - Number of people receiving social pensions: 22,500 22,900 22,946 (Activities report 2009; MTS). - Updating of the poverty map: Map updated with QUIBB 2007; Map updated with the 2010 Census (training and surveys). - Support for priority sectors: Education and Health. - Education budget execution rate - investment with own funds: 78% >80% 82% (SIGOF; General Planning Department (MF)). - Health budget execution rate - investment with own funds: 70.0% >75% 98% (SIGOF DGP). - Protect vulnerable people: Provide housing. - Creation of the Social Housing Promotion Fund; provide financial resources to the fund (2009–2011). - Number of vulnerable persons accommodated or benefiting from rehabilitation of their homes: 628 700 (Report data need to be reviewed; Ministry of Housing, IFH Municipalities SHP fund). - Provide access to basic legal advice: - Creation and rehabilitation of broad-coverage legal centers. - Number of legal centers operating: 7 11 11 (Report by Legal Advice Bureau (Casa Direito); Ministry of Justice / PIU). - Number of advisory services per legal center: 150 >200 276 (Report by Legal Advice Bureau (Casa Direito)). ### Acronyms and institutional abbreviations used in the report - ARE – Agência de Regulação Económica - ARAP – Agência Reguladora de Aquisições Públicas - CIAP- Comissão Independente para Aquisições Públicas - CNA – Conselho Nacional do Ambiente - ELECTRA- Companhia de Electricidade e Água - MECC – Ministério da Economia Crescimento e Competitividade - NOSI- Núcleo Operacional da Sociedade de Informação - PCCS – Plano de Cargos Carreiras e Salários - RBM – Monitorização com Base nos Resultados - SP – Protecção Social - TdC – Tribunal de Contas - TSF – Fundo de Apoio à Formação - TVET- Formação e Ensino Técnico e Profissional - UGA- Unidade de Gestão de Aquisições - UCRE- Unidade de Coordenação para a Reforma do Estado *Source: _cr10367 - Conclusion of survey* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2010/_cr10367.pdf_