Cape Verde

Cape Verde is seen as a model of democracy in Africa. The country has been a multi-party democracy since 1990, governments of different stripes have succeeded each other seamlessly, and political rivalry remains peaceful. The fundamental freedoms are recognised and guaranteed by law and observed in practice. The separation of powers, and in particularly the independence of the judiciary, is a fact of life. Civil society is increasingly assertive. Cape Verde is seen as being relatively free from corruption.

Despite its structural handicaps and vulnerability factors, Cape Verde has made steady progress since independence in 1975 and performed well in terms of human development and economic growth. Whether it will be able to progress further or even maintain the levels achieved is, however, uncertain. Cape Verde's economic vulnerability index remains very high, poverty and extreme poverty remain widespread (indeed, the disparities in society have widened), and the country's economic and social development remains very heavily dependent on the proper use of resources from international aid and of remittances from Cape Verdeans abroad.

The programmable resources (A envelope) of the NIP amount to EUR 51.0 million, EUR 1.1 million of which are accounted for by the PALOP governance initiatives.

In the light of the EU's development cooperation objectives and the analysis of Cape Verde's development situation, prospects and constraints, poverty reduction and good governance have been chosen as the main focal sector for the 10th EDF NIP; these are key areas in which the country has developed and endorsed strategy frameworks with the help of its partners. This focal area will absorb the sum of EUR 32.6 million, or 64% of the A envelope.

A second focal sector will cover measures in support of the development of the CV/EU Special Partnership, which will be covered by a CV/EU action plan.

A sum of EUR 11.5 million (22.5% of the A envelope) will be allocated for this second focal sector. The Special Partnership Action Plan, drawn up in November 2007, is based on the following: good governance, security/stability; regional integration; transformation and modernisation, notably technical and legislative convergence; the knowledge-based society; combating poverty, and development.

About 9.6% of the A envelope (EUR 4.9 million) will be earmarked for activities outside the focal sectors, EUR 3.8 million of which will be allocated to cross-cutting activities or those in support of implementation of the NIP; there will also be EUR 1.1 million for support for PALOP governance initiatives. A reserve of EUR 2 million (3.9% of the A envelope) has been set aside.

Support for the first focal sector will take the form of budget aid, which is particularly well suited to the implementing arrangements of the programmes concerned and for which the country, thanks in particular to the structural reforms backed by the EU and other donors, meets the required conditions in terms of reliability and transparent management of public finances. EDF financing for the second focal sector will take the form of budget aid or project aid (whichever is judged more appropriate when programmes are being appraised). Programmes outside the focal sectors will normally be implemented by means of project aid.