NATIONAL ASSESSMENTS OF THE BARBADOS PROGRAMME OF by odu47975

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									NATIONAL ASSESSMENTS OF THE BARBADOS PROGRAMME OF
                ACTION + 10 REVIEW




                  CAPE VERDE




                 Praia, January 2004
Table of Contents

Introduction                                                                 2
1. Socio Economic Context: Key Characteristics, Challenges And Responses .    3
Impacts of globalisation                                                      4
Trade and exports                                                             5
Finances and investments                                                      6
Urbanization                                                                  8
Crime and drug trafficking                                                    9
Unemployment                                                                  9
HIV/SIDA                                                                     10
Water and sanitation                                                         11
2. National Framework for Sustainable Development                            14
3. National Progress Made and Problems encountered in the implementation     15
of BPOA
3.1 - Sector Areas                                                           15
3.1.1 – Climate Change and Sea-Level Rise                                    16
3.1.2 – Natural and Environmental Disasters                                  21
3.1.3 – Coastal and Marine Resources                                         26
3.1.4 – Land Resources, including terrestrial biodiversity                   29
3.1.5 – Energy                                                               25
3.1.6 – Management of Wastes & Provision of Water and sanitation services    36
3.1.7 – Tourism                                                              38
3.1.8 – Trade                                                                39
3.2 – Crosscut Sectors                                                       41
3.2.1 – Financing and Investments                                            41
3.2.2 – Institutional Capacity and Coordination                              47
3.2.3 – Regional Cooperation                                                 48
3.2.4 – Human Resources Development                                          50
4. TRADE, INVESTMENTS AND INSTITUTIONAL CAPACITY BUILDING                    61
5. Millennium Development Goals and SD in SIDS                               64
5.1 – Poverty Eradication                                                    64
5.2 – Education and reduction pf child mortality                             65
5.3 – Gender equality and empowerment of women                               67
5.4 – HIV/SIDA, Malaria and other diseases                                   68
5.5 – Environmental Sustainability                                           70
5.6 – Partnership for Development                                            73
6 – Special Needs                                                            75




                                             1
Acronyms and Abbreviations

ACP         Africa Caribbean and Pacific
AGECABO     Caboverdean Public Works Agency
AGOA        African Growth and Opportunity Act
AIA         Environmental Impact Assessment
APD         Public Development Aid
BM / IDA    World Bank
BPOA        Barbados Programme of Action
CdP         Conference of Parts
CDP         Committee for Policy Development
CEDEAO      Economic Community of West African States
CILSS       Inter-State Committee on the Fight Against Drought in Sahel
CQNUMC      United Nations Convention on Climate Changes
DGA         Directorate General for the Environment
EBI         Integrated Basic Education
ENPA-MC     National Strategy and Plan of Action on Climate Changes
FAIMO       High-Intensive Labour Force
FED         European Development Fund
FMI         International Monetary Fund
GEE         Greenhouse Gases
GEF         Global Environment Fund
GPS         Global Positioning System
ICCAT       International Commission for the Conservation of Atlantic Tuna
IDSR        Demographic and Health Survey
IMG         Institute of Meteorology and Geophysics
INDP        National Institute for Fisheries Development
INE         National Statistic s Institute
IRA         Acute Respiratory Infections
IST         Sexually Transmitted Infections
IST         Higher Institute of Technology
IVA         Value Added Tax
IVE         Economic Development Index
LEC         Laboratory of Civil Engineering
MAAP        Ministry of Environment, Agriculture and Fisheries
NEPAD       New Partnership for African Development
ONG         Non Governmental Organizations
PAFN        National Forestation Plan of Action
PAFT        Tropical Forestation Plan of Action
PANA        National Environment Programme of Action
PANLCD      National Programme of Action on Desertification
PAV         Widespread Vaccination Programme
PDZC        Coastal Zone Master Plan
PIB         Gross Domestic Product
PMA         Least Developed Countries
PND         National Development Plan
PNLP        National Poverty Reduction Programme
PNUD        United Nations Development Programme
PRSP        Poverty Reduction Strategy Paper
SEPA        Executive Secretariat for the Environment



                                              2
SIA    Environment Information System
SIDS   Small Island Developing States
SISA   Food Security Information System
SNPC   National Civil Protection System
TCMF   Consolidated Units of Financial Mobilization
UE     European Union
ZEE    Exclusive Economic Zone




                                         3
     NATIONAL ASSESSMENTS OF THE BARBADOS PROGRAMME OF ACTION
                             + 10 REVIEW


                                      CAPE VERDE

0 - Introduçtion


The First International Conference on the Sustainable Development of Small Island
Developing States (SIDS) was held in 1994 in Barbados. With the adoption of the Barbados
Program of Action, Small Island Developing States began guiding their development process
based on the program objectives.
Now, ten years after the adoption of the BPOA, time has come to review the paths followed
and objectives achieved and identify the roads to follow with view to achieving the
Millennium Goals.
This report intends to provide the answers to these questions and also show the achievements
made by Cabo Verde during the ten years of the Barbados Programme of Action.
This report is based on information and data collected from different Government services
and existing publication on the issues addressed herein.
Following the Template guidelines presented, the document contains six thematic chapters, as
follows:
   1- The socio-economic context, describing Cabo Verde’s geographic and population
      characteristics and the changes occurred in the past years in areas such as trade,
      finances, employment, fight against HIV/AIDS and the impact of globalisation;
   2- The National Framework for Sustainable Development, in which e tried to
      indicate the basis that served as support for implementing the country’s development
      policies;
   3- The Progresses Made and Problems Encountered in Implementing the BPOA.
      This chapter presents the results achieved and constraints encountered, namely in the
      areas of environment, energy, tourism, trade, finances and human resources
      development;
   4- Trade, Investment and Institutional Capacity Building, which addresses the
      important issues of these aggregates, as well as the crucial issue of building
      endogenous capacity to sustain the country’s development;
   5- The Millennium Goals and the Sustainable Development of SIDS. This chapter
      presents the results achieved and the medium term objectives namely for poverty
      eradication, education, child mortality reduction, gender equity, HIV/AIDS and
      malaria, environment sustainability and partnerships for development;
   6- The last section of the document – Special Needs , was used for a summary
      presentation of the country’s financing needs in order to meet the major short and
      medium term challenges that will categorically allow to rapidly proceed and advance
      toward sustainable development.




                                             4
1. SOCIO ECONOMIC CONTEXT

Key Characteristics :


CABO VERDE is an island state comprising 10 islands (Santo Antão, São Vicente, Santa
Luzia – uninhabited – São Nicolau, Sal, Boavista, Maio, Santiago, Fogo and Brava) and 13
islets, about 450 Km off the West African coast, near Senegal. The islands are of volcanic
origin, relatively small in size, geographically dispersed and are located in zone of high
meteorological aridness. Three of the inhabited islands are relatively flat, while the remaining
islands are very mountainous. All together, the islands occupy a total of 4.033 Km2 in
surface.

The coastline is relatively large in size, with about 2.000 Km, filled with white and black
sand beaches.

The climate is sub-tropic arid and is characterized by a short rainy season, from July to
October, and torrential precipitations very irregularly distributed both in space and in time.
The average rainfall is about 225 mm. The average rainfall has shown a reducing trend since
the sixties in the last century, with negative reflexes not only on agriculture exploitation
conditions but also on the water supply. On the other hand, the climate is favourable for
developing outdoor activities and the sunshine and beaches are exploited as tourism products.

Like other sahelean countries, Cabo Verde has also suffered from the catastrophic effects of
drought, only in a more aggravated manner. This climate particularity characterized by
extremely insufficient and irregular rainfall, combined with the small land size and highly
propensity to soil erosion, is the main cause of the structural weakness of the agriculture
sector.

The country is characterized by lack of natural resources and has an economic exclusive zone
about 700.000 km2 in extension.


According to the results from the 2000 Census, the resident population was at the time
434.625 inhabitants. Demographic projections indicate that the current population is of
458.748 inhabitants in 2003, where 55.9% live in the urban areas. The population growth rate
in nineties was 2.4%, higher than in the previous decade (2.2%), in spite the reduction in the
fertility rate from 5.8 to 4 children per woman, from 1990 to 2000. In 2000, the average
population density was of about 107.8 inhabitants per Km2.

The male index tends toward b  alance between genders, going from 85 men for every 100
women in 1980 to 90 in 1990, and 94 in 2000 (2000 Census).

The Caboverdean population is very young: 68.7% of the country’s population is under 30
years of age and only 8.6% is over 60 years.

The main economic activities are in the primary sector, which still employees a substantial
portion of the active labour force; the tertiary sector (in particular trade) is very dynamic and
a strong contributor to the formation of the GDP.




                                               5
The high annual average population growth rate (2.4% during the period 1990-2000) places
the country with serious development problems and challenges and may cause deterioration
of the living conditions of the of the more vulnerable population.

Cabo Verde’s main development problem in the social sphere is the persistence of poverty,
namely among women, in a context of imbalanced space distribution, tending to aggravation
in the urban centres, resulting from the strong demographic pressure on available resources.


Thus it shouldn’t come as a surprise that the fight against poverty, namely the eradication of
extreme poverty, employment generation, alleviation of demographic pressure on natural
resources, infrastructures and improvement of access to basic social services should
constitute major national development challenges.

Principle Changes

Impact of globalisation

The increasing globalisation of the world economy is seen as an opportunity of access to new
markets, facilitation of transfer of technologies and a means to increase productivity.

For small countries, such as Cabo Verde, that need to import about eighty to ninety percent of
their consumption, globalisation can also mean losses of opportunity, above all, when
international circumstances are less favourable. It can also represent a threat due the imported
inflation.

Cabo Verde’s vulnerability profile clearly shows that the country’s economy is still strongly
dependent on two external factors: public development aid, which finances more than 80% of
public investments and represents about 12% of the GDP, and emigrant remittances that, in
turn, reached 12 to 14% of the GDP and represents three times the exports of goods and about
two and a half times tourism revenues.

Therefore, we conclude that PDA and emigrant remittances are the main sources of supply to
the country’s foreign reserves.

This situation illustrates the fact that, in spite the considerable advances made and that
translated namely in the GDP growth, the economy is still powered from the exterior, and is
still far from reaching the platform of sustainability. Both aid and remittances present a
declining and unstable profile, above all, with the end of the cold war and the opening up of
eastern European countries, while the national economy is not yet capable of generating
alternative resources.

As the country does not have a basis of natural and primary resources in which to base its
development, it presents strong environmental fragility that brings about serious concerns as
to the durability of development, particularly in regard to agriculture and tourism
development; development is hopelessly dependent on the country’s capacity to participate in
the world economy.

Thus, the medium and long-term development strategy underlines the need to overcome the
major challenges of unemployment, poverty and economic dependency, namely on PDA, and


                                               6
bet on tourism and in exporting light industries and on the transformation and exploitation of
locational comparative advantages in order to build a base of international services industries.

The loss of the facilities of preferential and differentiated access to international markets,
which may result from its graduation, (withdrawal from the LDS group) would deprive the
country of the fundamental levers for its positive insertion into the global market that is
highly competitive and very uncertain for LDC and small countries, and would also bring
additional obstacles to the materialization of the intended development strategy.

In short, in spite the considerable advances made, the country still depends on external
resources and has not yet realized the structural changes that will allow it to reach the
platform of sustainability that will assure the irreversibility of conquests made and strong
dynamic and self -sustained growth.

Trade and Exports

Internal trade is characterized by a strong dynamics in the private sector, both formal and
informal, in the purchase and reselling of all types of goods, with special emphasis on
essential food products. It is a source of income, of employment and occupation generation,
namely for the disadvantaged population endowed with very little resources. The sector is
also characterized by an unleashed and oftentimes unruly competition.

Considering that production is highly unstable and deficitary and the country produces only
between 10 and 15% of the food products it consumes, trade imports and food aid (grants) are
responsible for covering the rest of its needs. Commercial imports are guaranteed by private
operators, who have the responsibility of supplying the market accordingly.

Foreign trade is presently characterized by the State’s withdrawal as direct economic
operator. It is also characterized by the smallness of the market, by internal competition
amongst national importers and foreign competitors established in the country as foreign
investors, and by the little diversification in terms of the goods import market.

If the needs in terms of basic essential goods are assured at about 80 to 85% by imports, the
needs in terms of goods and heavy equipment and petroleum by-products is 100% assured by
imports.

Exports usually cover about 4.5% of imports, illustrating the weakness of the commercial
balance. Exports of goods represent only 10% of total exports and are mainly concentrated on
one sole product (apparel and shoe -wear).

The traditional export of bananas, which in the past was the main export product, came to a
full halt, a victim of the loss of its competitiveness in the international markets, while the
exports of fish products, subject to an embargo, lowered in 80% in the past years.

Services, which represented the essential part of exports (about 90%), are concentrated in
more than 70% on tourism and air transportation. This tertiarization of the economy, although
a natural evolution for a country with the characteristics of Cabo Verde, aggravated by the
concentration, increases the economy’s vulnerability in light of external factors, as was
clearly demonstrated by the events of September 11 that caused considerable decline in
tourism and transportation revenues almost all around the world.



                                               7
Nevertheless, the country’s strategy is to make exports grow at an average of 12% during the
next 3-4 years, hoping to accelerate to 15% from 2005 on; and the tourism sector should
function as the engine of the dynamics of external demand.

In the meantime, approved are the projects that in the next two years will bring increased
investments to the sector. Considering the time it will take to build the infrastructures
foreseen, the effects of such investments on exports will be more perceptible as of 2005.

At the institutional level, the State assumed the role as regulator and inspection entity, and
thus created ANSA, the entity that will guarantee the existence of security stocks and
functions as a market observatory and monitor of price evolution.

At the international level, the Government’s outlines are regional integration, monitoring of
multilateral activities and openness to new partnerships in international trade. In this context,
some important measures have been taken, namely:

   -   Delivery of the Memorandum on Foreign Trade Regime in Cabo Verde to the World
       Trade Organization,
   -   Signing of the AGOA Agreement, and
   -   Joining Canada’s New Initiatives.

At the domestic level, ongoing is the review of a legislative package that will favour trade
competition and regulation.

Finances and Investments

The national financial market is experiencing the heavy burden of the banking-monetary
sector; it is little diversified and has few financial instruments available. It still shows some
deficiencies deriving from the low development level of payment systems, information
systems and low competition level among operators.
Considerable advances were made in the last years in the national financial system. These
advances and the perspectives that are opening up for the development of the financial system
imply increasing the central bank’s supervisory capacity, particularly in the prudential and
regulating component in order to promote system stability, competition and efficiency of
operations.
The global administration modernization strategy (already conceived) gives priority to
actions aimed at greater liberalization and furthering of the financial sector. Thus, it favours
the promotion of Para-banking entities, namely, risk capital and credit recovery corporations.
These entities will complement commercial bank activities namely through the development
of market bonds (public, private bonds and shares) which in turn may contribute to attract
savings from non-residents.
Among others, the policies to be followed seek to:
   -   Consolidate financial institutions established and in the phase of establishing,
       particularly non-monetary institutions;
   -   Increase the systems banking activities, namely by consolidating the Inter-banking
       Society and System of payments, Tele-compensation, Integrated Compensation and


                                               8
       international Credit Cards;
   -   Develop the inter-banking monetary market;
   -   Increment financial intermediation and develop capital market so as to increase
       financing and application alternatives, targeting companies and families respectively;
   -   Promote effective functioning of the Risk Centre; and
   -   Develop micro-credit systems as a way to contribute to sustained poverty reduction.

However, macroeconomic management has been giving privilege to allocating financial
resources in favour of the State, compressing private sector initiatives. This situation has
originated unsustainable indebting, to the point that since 1997 stabilization of public
finances and internal debt resolution are considered the two main objectives of
macroeconomic stabilization.

To this end, the State signed a Stand-by Agreement with the IMF to Support the Policy for
Internal Debt Resolution. The process for Internal Debt Resolution implied the establishment
of a Fund, “Trust Fund”, whose capital was supposed to be equivalent to the estimated value
of internal debt, that is, 180 million dollars. The State was supposed to contribute with 80
million dollars (privatisation revenues) and bilateral and multilateral partners with the
remaining 100 million dollars. Along with the Trust Fund revenues, consolidated units of
financial mobilization were supposed to be issued, and gradually replace the Treasury Bonds
held by national agents.

Due to various reasons, this process was not fully implemented, and thus the Re-launching of
the Trust Fund and of the process for converting internal debt constitute one of the main
priority axis of current Government’s actions.

The Government’s actions regarding this issue should continue to aim at achieving even
greater efficiency, in benefit of continued improvement in public revenues in an environment
of justice, transparency and equity. In this case, the hope is for improvements in public
revenues due both to efforts made to strengthen capacities and fiscal management as well as
to the introduction of the value added tax (VAT), scheduled for January 2004. This fiscal
reform will have the double advantage of simplifying the system, replacing the five taxing
modalities, and of providing the country with a modern fiscal system, used in most countries,
and which will allow improving the criteria for production cost comparison and for
calculating competitiveness.

Investments are being made at a quite satisfactory pace but are still far from meeting the
country’s needs. Public investments, financed in 80 to 85% by grants and external loans, have
been mainly concentrated on transportation (road, airports and ports), basic sanitation and
school infrastructures.

The private sector has been giving privilege to investments in tourism development related
sectors.

The current policy is to put dynamics in the promotion of investments in the tourism sectors,
through strategies that incorporate private investments in public infrastructures and that
decentralize to business oriented institutions the tasks of promoting investment and the public



                                              9
private interface (establishment of Development Partnerships responsible for tourism
development).

Urban Planning

As referred above, Cabo Verde is characterized by the youthfulness of its young population
(68.7% of the population is under 30 years of age), by a relatively high average annual
growth rate (2.4% during the 1990-2000 period) and by the increasingly imbalanced
geographic distribution among the nine inhabited islands.

This imbalance is the result of the strong internal migrant flow directed to the urban centres,
namely to the cities of Praia (an average flow of about 3.500 people/year between 1990 and
2000) and Mindelo (1.700 people/year) and to the island of Sal (whose population doubled in
ten years).

This migration, under the form of rural exodus, results in an accentuated urbanization process
in almost all islands, with all its implications in terms of housing, sanitation, access to
drinking water and other basic social services. Thus, according to the 2000 Census, more than
half (58%) of the urban population disposes of its wastewater in their surroundings or out in
the nature, while only 38% have access to running water.

Land occupation and occupation density varies largely from one island to the other. The most
densely populated islands are S. Vicente and Santiago, while Boavista has the least
population density.

All this circulation requires a territory management and urban planning process, in its various
aspects. Unfortunately this process has not been accompanying the populations’ urbanization
speed.

Of the various planning instruments foreseen in the base law for territory management and
urban planning only the municipal plans, that is, municipal territory management plans
(PMOT) or urban planning, were prepared. Thus missing are the national territory
management prints, ENOT and the regional territory management prints – EROT.

In urban planning, regarding its urban infrastructure component, we should highlight the
recent emerging of private real estates, among which IFH – Real Estate, Holding and
Housing – SA, of only public capital.

These real estates are playing and important role in the sense that the y buy urban land lots to
build urban infrastructures and later places the infrastructured land lots in the market.

In this sense, several actions have or are been conducted, with highlight to:

   -   Legal Framework – legislative package including Land Use Laws and Expropriation
       Laws;
   -   Preparation of Urban Plans (the Municipal Master plan, Urban Development Plan and
       Detailed Plan);
   -   Preparation of some studies and specific urban plans;
   -   Preparation of 5 urban plans plus 3 more that were suspended due to budget
       cons traints;


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   -   Preparation by the Praia Municipal Authorities of the Municipality’s Structural Print;
   -   Preparation, by IFH, of plans for Tarrafal and São Miguel and begin the plan for the
       island of Sal.

Crime and Drug Trafficking

                           f
The deficient functioning o the investigation and crime combat system is one of the aspects
that’s been of concern to the Cabo-verdean society, in a context where crime reveals to be
increasingly more organized and, in certain cases, trans-national.

In this sense, and without neglecting the combat of small crimes or what is nowadays called
incivilities, it is important to underline that relevant measure have been taken to strengthen
the human and material means as well as the coordination of the different entities and
services responsible for the combat on crime.

In this specific aspect, there is added concern with the spreading and insufficient control of
drug consumption and traffic, given the negative impact it brings to internal security, to social
stability, to the health of youths and to the country’s stability and good image.


Important measures are also been taken namely to strengthen the activities of the Judiciary
Police, one of the main institutions in crime and drug traffic combat. In spite advances made
in terms of criminal investigation, the Judiciary Police is far from having the necessary
investigative means and capabilities required by the situation. There are basic essential means
that should be allocated so that the Corporation may fully accomplish its role, avoid ing the
impunity of delinquents and restoring the confidence and tranquillity to citizens.

It should be referred that, already back in 1995, a Inter-ministerial Commission was set up to
coordinate drug combat (Coordination Commission on Drug Combat), and one of its priority
tasks was to prepare in 1998 the National Drug Combat Programme. The Programme
constitutes a disciplinary and integrated approach to drug combat and establishes the
objectives, activities and expected results of reducing drug demand and supply.

On the other hand, at the international level, Cabo Verde promoted back in 1993 the adoption
of laws punishing drug traffic and abuse, and the country’s adherence to all International
United Nations Conventions on the issue.

Unemployment

In light of the structural imbalances of the employment market (long-term unemployed
individuals, unemployed youths without qualifications, inadequate training structures to meet
the needs, etc.) the GDP growth registered has not caused the unemployment rate to decline
in a structured and sustained manner.
Data from the 2000 Census indicate a 17.3% unemployment rate in Cabo Verde, the same
year when GDP growth rate estimates were of 6%. Unemployment rate is higher in the urban
centres compared to rural areas.


Amongst the causes of unemployment in the islands is the active populations’ low level of



                                               11
qualification; the insufficient adequacy of available labour force by professional training
structures in light of market needs; the productive tissue’s low structural transformation
capacity; private sector debility; the low productivity and outdated technological resources in
the primary sector; the modest participation of industry and energy in the GDP.
However, it is possible to significantly reduce unemployment namely through:
   -   The combination of a set of measures aimed at creating and maintaining an adequate
       macroeconomic framework;
   -   Making the labour market flexible;
   -   Specific actions favouring increased competition, focusing on measures with
       macroeconomic reflex;
   -   Improving the quality of public investment together with reduced interest rates;
   -   Qualification and specialization of the human capital; and
   -   Expansion and furthering of the productive basis.


   In this area, employment policy should have the objective of reducing unemployment rate
   in an accentuated manner to economic, social and financially bearable levels, that is, the
   maximum limit for unemployment rate established in the National Development Plan is
   14% of the active population in 2005.


HIV/AIDS
In Cabo Verde, sexually transmitted infections (STI) represent one of the major causes of
morbidity among adults and youths of both sexes. The progression of AIDS began slowly in
the period 1987-1994 but then accelerated in the last five years. The degree of infections is
still lower than in other sub-region countries. The main vulnerability and risk factors for
AIDS are low socio-economic and schooling level of greater part of the population, the
conflict of values that affect behaviour, high-risk sexual practices (multiple partners and sex
without protection), low perception of the risk of HIV/AIDS infection and the persistence of
erratic notions on STI.

Thus, from 1987 to December 31 2002, 1.060 people were registered as infected with HIV.
Of these, 98 contracted the disease, which gives a prevalence rate of 43.5 per one hundred
thousand inhabitants, against the 12.6 per 100 thousand in 1995.

The main form of transmission is through sexual intercourse, which is responsible for more
than 90% of cases. Mother-child transmission is responsible for 4.6% of the total number of
diagnosed cases (36/775).

In the year 2000, 3.3% of HIV positives detected were drug users. The Sotavento group of
islands - Leeward Islands, (Santiago and Fogo in particular) are the most affected, with 81.1%
of cases. S.Vicente, in the Barlavento group of islands – Windward islands- also has a
significant number of cases. There is a progressive increase of cases in rural areas, among the
female and youth populations.
According to the type of virus, from the beginning of the epidemic registries show 464 cases
of HIV2 positives, 257 HIV1 positives and 18 cases of HIV1+2.



                                              12
Men are the most affected, the ratio M/W is of 1.13 (399/353) and the most affected age
group is between 25 to 44 years, with 62.8%. Of the AIDS cases, 51% was aged between 30
and 44 years.
However, results from the Demographic and Reproductive Health Survey (DRS/98) reveal a
high index of knowledge about AIDS (97%) as well as the persistence of behaviours of risk
with a low-level of use of condoms (28.5%).
The most vulnerable groups and the groups at greater risk are:
   -   Individuals involved in prostitution (male and female) and the sexually promiscuous;
   -   Youths, above all in urban areas; groups with low socio-economic and schooling
       level, namely women;
   -   Individuals in situation of frequent mobility;
   -   Street children and children in the street;
   -   Alcohol and other drug consumers, toxic dependents or not;
   -   Detainees; and
   -   Health professionals and midwives.
It could be that data on HIV/AIDS prevalence are being underestimated due to several
weaknesses that have to do with the lack of material and reagents/reactors, the technical
screening and transfusion security capacity that are limited to central hospitals and the lack of
quality control in laboratories.
In order to assure greater equilibrium between the country’s demographic growth and
economic development with reflex in the progressive and sustainable improvement of the
populations living conditions thus reducing the impact of the pandemic, a set of policies
oriented toward creating the basic conditions to allow establishing the necessary balance
referred above are being carried out.


Water and Sanitation
Drinking water is a natural resource that’s scarce in Cabo Verde, a fact that imposes the need
to valorise available resources and to resort to technologies for the desalination of brine water
or seawater as alternative sources.

The main water sources utilized for consumption in the country are boreholes, springs and
wells, and desalinated seawater.

In spite the progresses registered in water supply during the post-independence period, the
level of services and coverage are far from meeting the needs; a significant fraction of the
population still does not have access to regular supplies. In rural areas the situation is more
deficitary yet due to the dispersion of communities and the difficulties in accessing many of
them.

The sanitation sector is characterized by great needs. Above all, needs in the availability of
water and infrastructures.

According to the 2000 Census, in terms of the means of distribution of drinking water, in
decreasing order we have the following:


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   -   Public distribution centres or public fountains, with about 194.630 inhabitants, that is,
       44.7% of the population;
   -   Distribution networks, with about 107.833 inhabitants that is, 24,8% of the
       population;
   -   Unsafe means of supply, such as small streams, wells and the direct resort to the water
       sources without any intermediary adduction or distribution infrastructure, with 95.660
       inhabitants that is, 22,0% of the population;
   -   Water tanks or trucks, with 36.959 inhabitants that is, 8,5% of the population.

The water distribution systems for human consumption are quite precarious due to the clear
prevalence of the public water distribution centres used by the poorer segment of the
population, where one is subject to huge waiting lines, to water prices that are relatively
higher than the piped water system and walking significant distances during several hours.

Still according to the 2000 Census, the current situation of sanitation nationwide in terms of
excreta disposal, drainage and treatment of waste waters is very precarious:

   -   About 61% of the country’s population does not have access to the minimum and
       appropriate services for excreta disposal, and resort to the outdoors, to “nature”, to
       satisfy their physiological needs;
   -   only 39% of the population has a bathroom with water closets, and these are
       concentrated in the urban areas,
   -   only 9% of the population has access to public sewage mains;
   -   about 15% of inhabitants use septic sewages as means of disposal and final
       destination of domestic effluents.

Wastewater collection and treatment is currently carried out only in the country’s two main
urban centres, Praia and Mindelo.




                                              14
Cabo Verde: Some socio-economic indicators

 CABO VERDE                                 INDICATORS   ANO         SOURCE
 Total Resident Population                  434.812      2000        INE,2000 CENSUS
 Urban Population (%)                       53,92        2000        INE
 Rural Population (%)                       46,08        2000        INE
 GDP per capita ($US)                       1.281,4      2000        INE/FMI/DGP
 GNP per capita ($US)                       1.252,9      2000        INE/DGP
 Number of households                       93.975       2000        INE; 2000 Census
 Foreign debt ($US, million)                301,3        2000        BCV
 Economic growth rate (%)                   7,3          2000        INE/FMI/DGP
 Weight of Agriculture, Animal              9            1997        INE
 Breeding, Forestry and Fisheries on t he
 GDP (%)
 Weight of processing Industry,             16.2         1997        INE
 Electricity and Construction on GDP
 (%)
 Weight of Services on GDP (%)              65.8         1997        INE
 Poor Population (%)                        36           2001        INE/IDRF
 Unemployment rate (%)                      17,3         2000        INE
 Economic Vulnerability Index (EVI)         57           2000        CNUCED
 Inflation Rate (CPI) (%)                   1,9          2001        INE
 Population Growth Rate (%)                 2,4          1990-2000   INE
 Illiteracy Rate (%)                        25,2         2000        INE, 2000 Census
 Gross schooling rate at Basic              111,4        2000        INE
 Education (EBI)
 Gross birth rate (per 1000)                29,3         2000        INE; 2000 Census
 Synthetic fertility Index (SFI)            4,0          1995-98     INE, DRS, 1998
 Gross Reproduction Rate (GRR)              1,96         2000        INE
 Child mortality rate (per 1.000)           23,1         2000        MS/INE
 Life expectancy (years)                    70,8         2000        INE, 2000 Census
 Doctor/inhabitant Ratio                    ´1/2441      2000        MH
 Nurse/Inhabitant Ratio                     ´1/1435      2000        MH
 Inhabitants/Bed                            626                      INE/MH




                                               15
2. THE NATIONAL FRAMEWORK FOR SUSTAINABLE DEVELOPMENT

Since the 1980s, Cabo Verde has been guiding its development policy based on medium term
National Developments Pla n (4-5 years).

Thus, within these guidelines, and after the Barbados Conference, in 1997 the Government
presented the 1997 – 2000 Main Options of the Plan, with the slogan of “Dynamic Insertion
in the World Economic System – An Option for Self -sustained Economic and Social
Development”.

This option was developed in about 32 strategic programs with sector characteristics, of
which we highlight the following due to their connections with the sustainability of
development:

   -   Improve the Information System for Development, whose main objective consisted in
       taking utmost advantage of Information and Communication Technologies and
       facilitate access to information;
   -   Privatisation and Strategic Management of State-owned Enterprises, in which the
       objectives consisted in increasing the economy’s global efficiency and reducing the
       State’s presence as direct economic agent;
   -   Market Development and Exports Promotion, whose main objective consisted in
       creating the necessary conditions for the Country’s insertion in the world economy,
       through sustained exports growth;
   -   Territory Management and Urban Planning. The objectives of this program consisted
       in promoting harmonious and balanced socio -economic development of regions and
       provide Municipalities with capacity to prepare and implement Urban Plans;
   -   Development of the Energy Sector, with the objective of reducing the external
       dependence and guarantee supply;
   -   Basic Sanitation, with the objective of increasing the population coverage per
       drinking water distribution networks and improving the access to sewage and draining
       systems; and
   -   Environment, whose objective consisted in improving the country’s environment
       conditions. The Ministry of Environment was created to implement this objective.

                                     f
As you will see in items #3 and #4 o the report, many of these objectives were achieved,
regardless the enormous precariousness in terms of both financial and human resources. But
much more still needs to be done in order to achieve a sustainable development that will
bring benefits to all population segments, above all to the most vulnerable and needy
segments.

Thus, in continuing the public policies, the current Government presented the 2002 – 2005
Main Development Options. The present strategy toward a sustainable development
comprises the following axis:

   -   Promote good governance as a development factor, by strengthening the State and
       intensifying Democracy and strengthening citizenship;
   -   Promote private initiatives, competitiveness and growth; expand the productive basis;
   -   Develop human capital and guide education/training to priority areas of development;
   -   Promote a global social development policy, while combating poverty and
       strengthening cohesion and solidarity;


                                            16
   -   Develop basic and economic infrastructures and promote territory management for a
       balanced development;

These axis / options were detailed in about 36 programs, with their careful insertion in
accordance with the nature of the options; that is, giving utmost value to the meaning /sense
of the program without harm to its sectoral nature. This approach highlights the economic
business sectors, infrastructures and transportation sectors, the justice and crime combat
sector, the environment, energy and the fight against poverty.

3. PROGRESSES MADE AND PROBLEMS ENCOUNTERED IN THE IMP LEMENTATION
OF BPOA.

3.1 Sector areas: Progresses made and problems encountered.

The scarceness of exploitable natural resources and the fragility of the ecosystem are well
known. Also well known is that environmental problems result from deficient manag      ement of
natural resources, soil, water, vegetation, and human capital and there are clear evidence of an
accelerated erosion of these resources in rural, urban and suburban areas, resulting also in
climate changes. This problem originated in a liberalized consumption economy, where social
and economic changes have not yet been made.

If we continue to explore exclusively the underground resources, the national environmental
situation points to a chronic deficiency in resources. The mobilization of surface resources, the
re-utilization of used water and desalinated seawater, despite their high costs, emerges as an
immediate alternative solution that is capable of reducing the pressure on the exploitation of
underground water.

The status quo of different components of biodiversity (“Primary Red List of Cape Verde”,
1996) is alarming. More than 26% of angiosperm plants, more than 40% of bryophytes, more
than 65% of pteridophytes, more than 29% of licheans , more than 47% of birds, 25% of land
reptiles, 64% of coleopterons, more than 57% of arachnids and more than 50% of land molluscs
are endangered.

It is precisely this unbalanced relationship of hundreds of years between man and the
environment and the existing scarcity that have determined the need for more constant
restitution, protection, conservation and environmental management with the natural capacity of
regenerating the ecosystem because, without protection of the environment, it is impossible to
attain sustainable development.

The solution to environmental problems should be equated in the different sector policies,
through elements such as enforced legislation and respective regulations, the introduction of
clean technology, recycling, the enforcement of environmental criteria on decisions about
investments geared towards making the different economic activities compatible. The
government has been looking, although with limited results, for the adoption of legislative
measures and the development of some actions of information and training targeting the local
populations.

Cape Verde ratified the International Conventions on the Desertification, Conservation of
Biodiversity and Climate Changes (as well as other pertinent instruments in the area of
environmental protection) and is committed to the UN to develop political, technical and


                                             17
financial conditions to preserve the environment of natural resources. As a follow -up to its
engagement, the country elaborated a group of important management and political instruments.

The National Environment Plan of Action (PANA) has, in summary, the big challenges of
sustainability in terms of environmental development and defines strategic policies for
management of natural Resources as an important issue of economic and social sustainable
development, and gives emphasis to these political integration and strategy on national, regional
and municipal development plans. It also develops the means to execute the Program of Action
highlighting the Environmental Impact Assessment (AIA), the System of Eco-management, and
the National Environment Information System and the review and execution controlling
mechanisms.

Many of the instruments of execution are dependent on external financing and/or specialized
technical assistance for its effectiveness given the scant internal resources.

3.1.1 Changing climate and the rising ocean tides.

Many of the potentials of the sea are under -utilised and unexplored as renewable sources of
energy and development of maritime aquaculture. The fishing exploration still is not diversified
and catches are lower than their potential; tourism is actually in expansion; and maritime
transportation is inadequate; and the production of drinking water and salt is expanding.

The country is located on an important Atlantic maritime route, but because it is dependent on
fuel imports, the risks associated with chemical pollution by hydro     -carbonates are real,
representing a threat to the environment. This situation demands an open environmental policy
such as those seen at international levels.

The conf licts of exploration and utilization of the sea are more frequent in fishing. Artisanal
fishing and commercial fishing compete for the same resources and register bad practices
highlighted by young catches and the use of explosives, in spite the restrictions and regulations
of the Fishing Law of 1987.

Agro-climate analysis show that the duration of the rainy season is diminishing, which brings on
more episodes of drought and hinder agriculture production on dry-land and irrigated cultures.

Agricultural production on the coastal areas has been affected by soil’s saltiness (derived from
the excessive exploration of the water beds, fed by frequent water stress) and penetration of salt
water on the irrigation points where hydro-geologic and maritime conditions are permitted, given
the extraction of inert on the beaches, dunes and streams, and probably, given the elevated sea
level provoked by global climate changes.

Moreover, climate changes could also have grave consequences on the adaptability of land and
maritime animals thus affecting their exploitation.

The population’s loss of means of subsistence makes it poorer and could generate crisis
(economic and social) given the intensification of desertification provoked by human pressure
against scarce resourc es, employment crisis and food insecurity.

Consequentially, according to a critical diagnostics, one of the priorities of action should be the
optimisation of economic activities that are developed (fishing, tourism, maritime transportation,


                                              18
production of water and salt), the promotion of aquaculture development and taking advantage of
energy (Waves, tides, and thermal gradients). Another priority is geared towards preservation,
vigilance and anticipation of risks against the pollution and bad fishing practices.



The UN Convention on Climate Changes was approved by the National Assembly through
resolution Nº 72/IV/94 on October 20. After its ratification on March 20 1995, Cape Verde
                                                                         P)
committed to set up a National Commission the Conference of the Parts (Cd and prepare the
National Strategy and Action Plan for its execution.

Prior to the preparation of the first National Communication to the Conference of Parts and
National Strategies and Action Plan on Climate Changes (ENPA-MC) 25 sector studies were
conducted with emphasis on the first inventory on Gas emissions with “greenhouse effect”
(GEE) for Cape Verde (year base 1995).


According to the inventory made, Cape Verde emitted during 1995 a total of 330.901 tons
equivalent to CO2(ton. E-CO2). Of this total, about 74.1% corresponds to CO2, meaning
245.103 tons. The inventory also estimates a capture of approximately 79.49 kton of CO2 on
forest ecosystems.

Likewise, it is important to refer to the studies on Vulnerability Analysis on
Desertification/Deforestation...” and the “Vulnerability and Adapting of Agriculture to the
Impact of Climate Changes”.

The Convention on Climate Changes brought about the emergence of relevant national projects,
some, with trans -sector features. Below are some important initiatives:

a) ENPA-MC

This is a medium run instrument (10 years) and an important landmark to the Convention’s
application. The strategy was made, evaluated and disseminated between 1999 and 2000. It was
geared towards adapting the country to climate changes and minimizing the emission of gas with
green house effect on the atmosphere.

Beyond setting up general and specific objectives, the ENPA-MC identified a group of
challenges for Cabo Verde:

   -   The intensification of proper environmental practices, including the use of clean
       environmental technologies to invert the development tendencies of the whole
       environment system;
   -   The reinforcement of education and training for all involved in environmental processes;
   -   The introduction of scientific investigation ana lysis system;
   -   A better legislative system; and
   -   Creation of new, continuous and systematic follow - up mechanisms, as well as
       permanent vigilance.

b) Environment vulnerability management



                                            19
On environment protection and natural resources and the national development plan -PND 2002-
2005 – contemplates the “ Environment Vulnerability Management” as a sub- program off
Environment Protection and Preservation chapter having as the objective to decrease the
emission of total pollutants (CO 2, CH4 e N2O) in 60%.

This sub-program is multi-sector and has goals which refer specifically to the energy sector
including the mobilisation and broad usage of renewed energy particularly wind and solar.

c) Monitoring pollution levels

In the 2002-2005 NDP, the sub-program “Monitoring pollution levels” organised a network on
national climate vigilance to monitor, investigate, and define the Climate behaviour. The
established climate parameters, through the vigilance network, are available for maritime, water
and agriculture purposes.

d) Management of the shoreline vulnerability.

The shoreline is relatively large and demanded for different purposes. Because of this, the
occupation of theses areas is vast, and most of times used for tourism investments, housing
and port infrastruc tures. This investment disregards the vulnerability of coastlines areas and
other natural phenomenon not studied yet such as climate changes.

There is a large group of people in the agriculture sector on coastline areas, and also there is a
decreasing in productivity in these areas. There are indications of over-exploration of
underground water in coastline areas through deposits of solid and water waste; and increasing
salt in the water endangering food security, and in the medium term, tourist activity.

This impact will influence the economic planning and will determine the recognition based on
concrete strategies facing the country’s vulnerability. The uncertain food situation will show the
vulnerability of a large number of people mainly due to the insufficient national production that
doesn’t meet consumption needs.

d.1 The preventive measures facing the probable climate changes includes some of the major
government programs for the agriculture sector and is related to the sustainable management of
natural resources , namely water, soil, and biological resources.

On the national level, it is necessary to inform and sensitise the population on climate changes
that may occur; on the vulnerability of the agriculture system; and the impacts of adopting
measures to be implemented in the agriculture and other sectors.

The government articulates between food security, the environment and poverty on the macro-
economic context through various actions, namely:

       -Actions favourable to increase production and national resources conservation;
       -Actions to increase the exploration of agricultural products and services;
       -Preparation a National Nutrition Plan, which can guarantee that each citizen has enough
       food, is in good nutritional and health condition;
       -The sub-regional plan relating to the Convention on Climate Changes and the Kyoto
       Protocol.



                                              20
e) The execution of the National Energy and Environment Plan, in conjunction with the
execution of concrete projects of maintenance of climate change effects, will bring a
substantially better quality of life to the population, particularly women and children.

The first communication of Climate Changes in Cabo Verde was made in Dec. 1999 and
presented in 2001, during the Conference of Parts (CdP6) at Den Haag, Holland, and was
published in Dec. 1999.

Based on the national communication and according to critical diagnostics, gas emissions with
the greenhouse effect are significant. The report points, in essence, to what should be done,
identifies possible areas of project preparation, and advances some recommendations on
technological transfers, institutional strengthening, and the sharing of experiences and the
strengthening of renewable resources. The role of the key constraints relating to the
convention’s objectives is presented in brief form.

Transportation and electricity production are the major pollution contributors. Even though the
mechanisms to control the emissions of pollutants are in place (expressed in the Environment
Law) it hasn’t functioned as intended.

The institutional capability to increase people’s awareness towards EGE and the consequences of
climate changes and the weak financial capacity of the country are strong constraints to the
execution of the Convention.

International cooperation will have to push in some form the capacity and the transfer of
technologies to facilitate the exchange of experiences with national research institutions,
particularly with respect to mitigation of impacts of climate change on production activities.

With respect to the progress attained and the problems with adaptation encountered relating to
the adverse effects of climate changes, the increasing ocean level and climate variations, the
works conducted under the U.N. Convention on Climate Changes point to good air q      uality in
Cape Verde during most of the year. The accelerated growth in the number of vehicles in urban
areas could cause well-localised problems in the medium term.

Renewable energy, such as wind-power, is an option to produce electricity, as is the intr oduction
of solar energy to the network, which also deserves merit. One of the rare measures in recent
years was the ban on the import of leaded gasoline.

As for adapting measures for a durable management of agriculture, given its vulnerability to
climate changes, it is important to remember that coast areas of the flatter islands are vulnerable
too. All the islands are vulnerable to fuel spills on their coastlines.

Protection walls in tourism resorts have been damaged and roads have been destroyed; bays and
ports that provide shelter such as the Bay of Santa Maria and Calheta are in danger, as are all the
tourism infrastructures of the village and beach of Santa Maria. Docking activities and shelter for
non-industrial fishing are put in danger by the inc rease of the seawater level. In Boavista, the
ecosystems formed by dunes, deserts, low rocky grounds are susceptible to disappearing under
these conditions.




                                              21
Industrial enterprises, such as the brewery near Praia Negra, salty soils and the intrusion of
seawater are frequent on some islands. The advance of seawater in the island of Maio is
damaging the local economy.

The population of Furna, in the island of Brava, and its infrastructures and head offices of
important institutions are fragile and vulnerable in light of a rising seawater level.

In the meantime, because of weak industrial activity, the major risks of pollution are located in
the connected sea activities, such as hydrocarbon spillage by national and international shipping
crews, port activities and dry docks. The fact is that the country’s ports are not equipped with
waste collection or treatment plants for wastewaters and trash and there is no contingency plan
or trained personnel or proper equipment.

Efforts have been made towards the surveillance (air and sea) of the vast exclusive economic
zone and, while it is a positive step, it is not sufficient. However, regional and international
cooperation has been helping to fill some gaps.

Through time, the agriculture and practices have shown in creased capacity to adapt, but at great
expenses and restrictions for the production becoming insufficient to satisfy the growing
demand.

The adjustments introduced in agriculture due to actual or projected changes on the climate
should be about choices of production systems that adapt to bio-climate conditions and the
fragile environmental equilibrium.

The introduction of new cultures or dry-land agricultural techniques have been made with some
success and failures and are well introduced on the actual production systems which combines
agricultural and animal breeding.

In spite the reassessment of agro-climatic zones and attempts at re-managing agriculture, through
restrictions/bans on cultivation in zones of limited potentials on soil and water and inclining
slopes (>15%9) and unfavourable climate conditions, the stimulus to utilize resistant and short-
cycle azote and organic material varieties have been confronted with cultural resistance from
farmers.

This does not contribute to a more durable renewed vegetation and consequent soil protection by
reducing the transportation of solids nor does it favour the recharging of underground waterbeds.

Difficulties with financial programming, institutional incapacity and low public awareness have
impeded achievements at various levels, namely in the acquisition of clean technology, that is
energy efficient and environment friendly; the construction of dams, biologic barricades, small
dikes, etc., particularly in coastline areas to protect cultivated land from the degradation caused
by extreme precipitation and rough seas.

Actions on the issue recommend resorting to financial and technical assistance from developed
countries for the transition to clean and efficient technologies; and the development of an
integrated management for the watersheds using the upstream/downstream strategy to control
erosion, which will increase retention of humidity and dry-land productivity.




                                              22
The capitation and storage of the excess draining surface water from the rain and its future
utilization in agriculture and animal breeding activities, e.g. to compensate irrigation and animal
drinking water is an activity little developed in spite the local technical expertise and experience
on the issue.

Any measures to adapt to climate change s should take into account the transfer of technologies
and rational water utilization for irrigation thus valorising water resources with the purpose of
establishing water management strategies.

The potential to increase irrigation capacity in the country is limited by the amount of available
underground water and, consequently, depends on the efforts to control erosion and the
recharging of the aquifers. Such strategy would require investments in irrigation infrastructures
and management of watersheds.

The introduction of the “drip -by-drip” irrigation system is widely accepted and sought by
farmers. Both producers and consumers have registered not only financial gains but gains in
economizing water and in the continuity in the supply of food produces. Forecasts indicate a
production of 140% of national demands in farm produces by 2005 (Irrigation Master Plan,
1997).

The works for variety selection, genetic improvements and dissemination have been successful.
The objects of these researches are species and varieties that tolerate drought, high temperatures
and certain plagues and diseases.

The utilization of the integrated mechanism to combat plagues and diseases has FAO’s technical
and financial support, is ongoing and has registered considerable success.

In the energy sector it is fundamental to promote regional and local projects such as aeolic parks
or other renewable energy projects and a protection center against oil spills in the EEZ. This
process requires strong national institutional reinforcement targeting development promotion and
guarantee of sustainability.

National capacity in investigating climate changes and its impact on primary sector activities is
low and no one programme has been implemented on the issue. However, ongoing different
projects and programmes in agriculture contribute to alleviate the effects of climatic changes.

Adaptive research is relevant particularly with regard to the adapting of climate, agriculture,
breeding and forest numeric models so as to obtain credible estimates from base studies on
climate changes.

Public information on climate changes, its impact and adapting measures in the different
domains with view to intelligent decision-making is a very important measure that should be
considered.

3.1.2 Environmental and Natural disasters

How are risks being managed and what is the degree of preparation to face disasters in the
country?




                                              23
Located in a geographic zone of high meteorological and atmospheric instability, originator of
tornados and cyclones in other latitudes, with frequent very dry hazes during short periods in the
year, as well as seismic activities - though frequent and of low magnitude in some islands – and
subject to other vulnerability factors, the country needs a tool to forecast and mitigate crisis .

It is imperative to overcome concerns over mere food security to cover for civil protection and
defence of natural resources and man-built assets.

The different Governments have given particular importance to mitigating natural or anthrop
crises and had pursued the objectives of protecting the sea, coastlines, soil, water and biologic
diversity and even the national cultural. But the State is determined in preparing studies on
territory organizational administrative models and the decentralization of power.

From the list of relevant projects on the issue, indicated are specific programs for managing
coastline areas and for protecting the biodiversity and genetic resources. These programs have
been designed and are underway. Monitoring of environment changes, prevention of
catastrophes, production of basic instruments in pertinent legislative and regulating domains and
others such as municipal capacity building in order to formulate sustainable management
policies for natural resources are some of the programmed activities.

At the parliament there has been consistent concern over the environment issue. The parliament
has adopted several government initiatives on the issue. Thus, and in regard to management of
catastrophes, the parliament adopted Resolution number 74/IV/94 of 24 October on the Basilea
Convention on the Control of Trans-border Activities of Dangerous Residuals and their
Elimination, ratified it in 1995.

National defence and people security are pacific and consensual issues, remaining now is the
adoption of adequate measures of policies targeting the materialization of national design for
Civil Protection and for Defence and Security of people and goods.

A national civil protection system (NCPS), directly responsible for implementing the civil
protection policy, has been in place and functioning since April 1999, in the framework of risk
management.

The main concern is to guarantee the integrity and safeguard of human lives, natural and man-
built assets and the environment. To this end, it is necessary to increase the promptness and alert
level of the Civil Protection System, a situation that can be achieved with adequate specialization
and training of operatives and budget allocations.

The first steps have been taken to organize a civil protection communications system and install
in Santiago (all municipalities) a VHF-FM radio network.

Thanks to the different development partners, the NCPS has been able to capacity build its staff
(training in country and abroad) and minimally equip itself with rescue means and materials for
emergency situations.

The legislation on civil protection - Base Law and respective regulations – has been adopted,
which will facilitate the installation of civil protection in the whole national territory.




                                              24
Important achievements made are related to the preparation of a National Emergency Plan and
the support to Municipalities in formulating their municipal Plans.

The Geo-science department at ISE, the LEC, at the Ministry of Infrastructures and
Transportation, together with the NCPS and other public and private entities manage the project
“Geo-physic Surveillance Network for the Volcano in the Island of Fogo”, whose objective is to
operate a set of tools and equipment installed in the islands of Fogo and Brava.

Surveillance infrastructures for the volcano of Fogo were reinforced with the assembly of a
seismographic station in the forest zone of Calheta, Island of Maio, and in Patim, island of Fogo,
and the transfer of the present station of Monte Losna to a deep lava tunnel.

The volcano is regularly surveyed through the project “Geo-deistic vigilance of the Volcano of
Fogo” by the Global Positioning System (GPS) to detect possible deformations in the earth crust.
Works are coordinated by the Institute of Scientific and Tropical Investigation of Portugal. From
1998 to 2001, five (5) observation campaigns have been conducted.

The project “Temporary Seismologic Instrument of the Islands of Cabo Verde” is coordinated by
the University of Bristol with the participation of the Higher Institute of Technology (HIT), the
Tokyo Institute of Technology and the Metrological and Geophysics Institute (IMG) and the
Civil Engineering Laboratory (LEC).

The temporary seismology network was installed in 2002 and should function for two years.
Seismographic stations were installed in the islands of Sal, São Vicente, and Porto Grande in
Santo Antão, with collaboration from IMG. The LEC participated in the installation of
equipment in Maio and Fogo.

                                 r
In spite the good quality of thei human resources, the Armed Forces and Civil Protection
experience huge difficulties and cannot provide efficient response to the society in adverse
situations.

There are several studies conducted on the country’s vulnerability at different levels such as
Cabo Verde’s graduation from the least developed groups of countries, food security and the
climatic changes and their implications on different activities and human settlements.

Although the country does not have a solid natural Resources base, neither a significant
market to support its development, it presents a positive social development and a positive
human capital indicator, thanks to the help provided by public development aid– PDA – and
emigrant remittances.

Meanwhile, this economic growth did not result in significant structural changes in the country’s
economic specialization.

PDA financed more than 80% of public investments during 1997-2001, and in 2000, it
represented about 12% of GDP. Emigrant remittances were about 12% to 14% of GDP. PDA
and the remittances are the major source for the country’s foreign reserve. However, both PDA
and emigrants remittances are volatile and show a declining trend in the medium and long term.

Between 1994 and 2000 exports covered just 4,5% of imports. Goods exports are just 10% of
total exports and are focused mainly in apparel and shoe-wear.


                                             25
Consequently, economic vulnerability profile confirms that the country’s economy is deeply
influenced from the exterior and is far from generating alternative resources and reaching
sustainability.

The Committee for Policy Development (CPD) classifies Cape Verde among countries with the
highest economic vulnerability index – EVI – (7th among 65 low-income countries). This index
is even lower than other countries in a conflict or post-conflict situation.

Cape Verde’s development is hopelessly dependent on its capability to participate in the world’s
economy. Given this, the strategy for medium and long-term development has to resolve
unemployment issues, poverty and economic dependency, namely from the PDA, through
tourism development and exporting light industries, and the transformation and exploitation of
comparative advantages to build an international service-based industry.

In addition to good governance, democracy, and social stability, the development strategy also
recognizes the fundamental importance of strengthening competitiveness and consequently the
determining importance of building human capital and the country’s infrastructure, two factors
closely connected to PDA.

The environment fragility places serious concerns over the sustainability of development already
reached, particularly with regard to agriculture and tourism. The climate vulnerability is a
constant risk factor to rural populations, erosion of soils and desertification, and is at the basis of
long droughts and loss of population subsistence. The strong dependence of food production on
the climate is a big factor of vulnerability for families, areas and individuals and is regularly the
cause of social emergencies in rural areas.

Morever, Cape Verde is in a region under the influence of extremely negative factors (organized
crime, narco-traffic, money laundry), and an area of the African Continent with big democracy
deficit and where peace is precarious. Under these circumstances, the country has strong
vulnerabilities.

Even so, Cape Verde has been able to manage and maintain a good level of development in an
environment of domestic political and social stability. Good governance is a positive factor of
development and for strengthening democracy and citizenship. It stimulates the citizen to
embrace and exercise his/her rights, and be better prepared and with disposition to contribute and
allow the government to better respond to the aspirations of the people.

The growth of 1990’s resulted from big investment efforts (equivalent to 40% of GDP), with
public investment in the lead, and of enormous efforts in social areas namely in education, health
and poverty reduction. But public investment financing continued being very dependent on
foreign aid. There is growing tension on the sustainability of the education and health systems to
ensure human resource development that allows this small island economy to profit from the
forces of globalisation.

Private investment is, in essence, foreign, in particular in privatisation and tourism industry
development. National private investment is concentrated in the construction sector, namely of
housing, and mostly financed by emigrant transfers.




                                                26
The country does not maintain significant control over this financial flux. Given this reality,
Cape Verde is placed in a position of great vulnerability in relation to a group of risks
associated with this means of financing; risks that can be assimilated from external shocks.
Foreign aid shows a declining trend during the last decade, which is a worrisome situation.

In sum, in spite the slight progress obtained, the country is still dependent on foreign resources
and has not yet accomplished enough structural changes to reach a sustainability level that can
assure irreversibility of conquests made and a strong self-sustained dynamic growth.

Early Alert System – national progress made and/or constraints

                                                    ew
The new geo-strategic situation in the world, the n types of conflict that are increasing in
today’s world, some with different characteristics and complex undertones (which endangered
the internal security in some countries) makes the Armed Forces the primary mean of defence
and national security.

The prevention and management of circumstantial crisis is, in Cape Verde, a generalized multi-
sector concern extensive to territory defence and security, to the circulation of people and goods,
the scientific community, and so on.

It is necessary to constantly follow the evolution of the national situation to assure prompt
intervention and trigger immediate humanitarian and emergency actions. The national system of
information and communication has to function properly to assure civil protection.

Short and medium term planning efforts to resolve or mitigate consequences resulting from
timely crises should also capacity build the populations to immediately respond appropriately
and help the country out of the situation.

Traditionally, to mitigate the effects of crisis, the government opens High Intensity Labour-Force
(FAIMO), whose economic and social efficiency is questionable.

Food security is obtained by foreseeing the food crisis through alert and prevention systems,
which should help analyse the vulnerability of families and areas in relation to circumstantial
risks in a way to focus and maximize the global impact of interventions and minimize the effects
of structural difficulties.

An operational alert mechanism means, in fact, to have the capacity to face the diversity of crisis
and follow suit, to assess and anticipate crisis and cripple or minimize their effects, particularly
among the needy populations. An efficient mechanism allows perfecting planning and assures a
minimum supply to peripherical markets.

The connection and coherence between strategies for crises prevention or timely management of
catastrophes and the construction of structured and sustained food security should be guaranteed.

                                                         f
These mechanisms will be implemented on the basis o a medium term national food security
program and in the light of the fight against poverty and it will allow strengthening the capacity
of individuals, families and related areas to confront external shocks with a greater probabilities
of success.

Expectations from the evolution of the action plan are:


                                               27
   -   An information system on food security (ISFS) that’s restructured, decentralized and
       effective;
   -   Rapid and pertinent alarm systems decentralized, reinforced or installed, and that allow to
       (successfully) manage food crisis;
   -   Strengthening of decentralization and population and community participation in the
       planning, execution and control of public works projects for employment, aimed at
       FAIMO reconversion is achieved and food assistance projects are improved;
   -   The potentialization of the role of international cooperation in reinforcing mobilization of
       strategic partnerships in the field of food security.

The early warning and information systems on food security should be supported on the markets
and assure wide broadcast of relevant information on these risks, vulnerability, and existing
devices. Complementarities among the systems should be sought and achieved.

Under the circumstances in the country, the establishment of financial and resource mobilizing
capacity to face the crisis situation and natural calamities in the productive sector is a desired
solution (Risk insurance; agricultural and fishing credit campaigns).

Taking advantage of the big FAIMO projects (namely in the area FSC, forestation and roads)
such as education and training centres as well as reserving part of the available funding for
training related micro-credits is a possible solution.

On the other hand, the articulation of food assistance projects with activities in i) education, ii)
promotion of citizenship, iii) professional capacity-building aimed at generating productive
works and iv) management of entrepreneurial micro    -initiatives have been efficient in promoting
the development of economic alternatives for the communities, especially when in association
with the micro-credit initiatives.

Management of disasters at the sub-regional and regional levels.

In the sub-region, CILSS, through its Food Security Regional Programme and Action Plan,
provides precise regional guidelines that served as basis to formulate the national food security
programme.

3.1.3 Coastal and marine resources, including coastal and marine biodiversity resources.

A United Nations Convention on Biological Diversity was ratified by the National Assembly
through Resolution No. 73/IV/94 of Oct. 20. It was ratified on March 29, 1995. In a similar
fashion, the Convention on the Law of the Sea was ratified through by Law no. 17/III/87 of Aug.
3 approved by the National Assembly.

The International Convention Protocol for the Constitution of the International Fund for
Compensation of Losses due to Hydrocarbon Pollution was signed by Cabo Verde and the text
was approved through Resolution no. 14/IV/96 of June 26 by the National Assembly.

The sea has always constituted an important means of subsistence (employment and food) for the
majority of the population concentrated in the coastal zones. Despite vast extension of the
Exclusive Economic Zone (EEZ), the oceans of Cape Verde exhibit production levels inferior to



                                              28
other neighbouring African countries but present an important diversity of marine species and,
globally, the fishing resources are superior to the actual catches.

The exploitation of resources and of the ecosystems has not been the most rational possible, and
there are indications that species are being over captured.

The coastline is relatively huge and an important from the biologically and of microclimate point
of view. However, there are indications of over fishing in the subterranean waters in the coastal
areas through non-controlled disposal of solid and water wastes, and increasing saltiness of the
water as a consequence of out-of-control sand extraction on the beaches where the hydro-
geological and maritime conditions allow. The coastline has been highly stressed by sand
extraction and the extraction of rocks for construction and ornamental decoration, by search for
land destined for urban and suburban constructions. Tourist activity can, in the medium term,
represent an enormous pressure on the coastline reef.

The negative consequences and degradation to the environment and landscape are visible and are
reaching irreversible dimensions in a lot of beaches. The populations engaged in this activity are
from the lower-income levels, unemployed and females head of households. On some islands,
such as Santaigo and Fogo, various beaches do not exist anymore because of uncontrolled sand
extractions.

Insufficient planning and management of soil usage, due to the lack of territory management, is
generally seen as the principle cause of the constraints.

Therefore, agro-food production on coastal areas has been affected by over-fishing, soil saltiness
and the intrusion of salt water in irrigation areas, probably because of higher tides due to global
climate c hanges.

A listing of relevant national, sub-regional and regional projects with sustained use, management
and conservation of coastal and maritime resources is pertinent.

1. Legislation. In effect is legislation on the protection of the above -mentioned species.
   Regarding the tuna, recommendations from the International Commission for the
   Conservation of Atlantic Tuna (ICCAT) were incorporated in the national judicial regime.

Legislative measures have already been taken relative to extraction of sand from beaches,
(approved by Law Decree No. 2/2002) and alternative mechanisms have been established to
meet construction needs. In the meantime, the implementation of these measures has been
problematic.

The country signed and is obliged to execute the Code of Conduct for responsible fishing, as an
international commitment.

2. In 1996, with help from the Project “Natura”(details below), an exhaustive survey on the
   characteristics of the country’s ecosystems was carried out. It was determined that certain
   species should be studied first as priority, and critical areas were later identified and
   constitutionally protected as a network of natural spaces.

3. Experimental fishing campaigns.



                                              29
The campaigns are regularly organized by the National Institute for Fishing Development
(INDP) and counts on help from the international cooperation and maritime research institutions.
The objective is to identify new marine species with and without commercial value belonging to
                                                         e
the ecosystem in order to diversify fishing and mitigat the pressure on commercial species
traditionally over fished.

4. In the domain of Management of Maritime resources (in general), we highlight some of the
   ongoing actions:

 - the definition of a policy on the exploitation of durable fishing resources, namely through
   annual and multi-year management plans;
- the strengthening of vigilance and defence of these resources particularly focused on most
   fragile species;
- the definition of quality norms and certification of sea products and their application;
- the institutional development of INDP (fishing resources managing entity); and
- the review and adequacy of all existing legislation.

Surveillance of the EEZ is conducted by Maritime and Coastal Guards. The difficulties
encountered have been mitigated by regional collaboration and support from regional institutions
and bilateral cooperation.

5. Cabo Verde Project Natura 2000 (for the islands of Sal, Boavista and Maio)

This project (funded by the European Union from 1999 to March 2001), planned and managed
territory and natural resources in Cabo Verde. It is, in essence, a project dedicated to
environmental conservation that produced a strategy for conservation and sustained utilization of
existing biodiversity on the islands’ coastlines and a plan of action and integrated development
of the islands of Sal, Boavista and Maio. In addition, Natura 2000 characterized and categorised
the islands’ coastlines and developed projects to protect green lobster, marine turtles and
environment vigilance.

6. Creation of the Cabo Verde biosphere reserve. (Boavista, Sal and Maio)

The idea to create a biosphere reserve was born due to the characteristics of these islands in
terms of the abundance of biological marine diversity on their coasts, the laying of turtle eggs on
the beaches (Boavista in particular), the bird species on the surrounding islets and lagoons. The
establishment of a network of reserves is done simultaneously with the development of
alternative income generating activities.

The purpose of the project is to preserve the landscapes, ecosystems, and the diversity of species
and to guarantee sustainable economic development from an ecological and socio -cultural view.

7. Management of Ecosystems with community participation

The project “Integrated participatory ecosystem management in and around protected areas” is
funded by GEF and other financing entities and has UNDP as executing agency. The objective is
to preserve the biological diversity with world value through the creation of a system of
protected areas in a representative sample of six critical ecosystems that are unique and located
in Cabo Verde.



                                              30
The plan will be executed per phases in 7 years and aims to stop and revert the degrading
situation of soil and water resources in and around protected areas, and also will guarantee the
participation of local communities, NGOs, and other interested parties.

At the land biodiversity level, main biotypes and planning and management instruments are
already known.

8. Management of the Coastal Zones of Cabo Verde.

The project was executed from 1995-2000. It defined a policy of coastal maritime utilization and
defined the areas of implementation of activities, for example, the extraction of sand and the
expansion of ports. Thus, it prepared a study on the management of coastal zones in Cabo Verde,
an Atlas on the Nature of Coast and Coastal Occupation, the photographic recognition (volume
1), a characterization of the coastal processes and live resources (volume 2), the Master Plan of
the Coastal Zone (PDZC) and impleme nted a database for coastal zone focusing on the beaches.
(Volume 3)

Bad fishing practices, mainly the capturing of juveniles and the use of explosives, still occur,
even with the restrictions expressed in the regulations of the 1987 Fishing Law.

Different approaches and instruments have been used to help eliminate destructive fishing
practices and establish protected areas.

The National Assembly, through its deputies, has been questioning and urging the government to
take an environmental stand. Subjects such as “The systematic use of explosives on the coastal
areas (particularly in Santo Antão) in artisanal fishing and its implications on the maritime
environment” and “Protection of Territorial Waters” have been debated in parliament.

The results produced by the project Natura, particularly with respect to marine turtle
conservation (Boavista island), were considered excellent. In the meantime, it was too ambitious
for its life cycle and the research environment and national scientific level, and didn’t have
adequate institutional backing.

Information, training, and awareness.

This is a trans -sector domain in which objects are geared towards availability and access to data
on the environment by different social segments, to allow for timely decision-making. Equally
important is the awareness, training and education of the public -at-large on the issues of climate
changes and the need for increased societal awareness on the dangers resulting from climate
changes. Awareness campaigns have permitted the establishment of fruitful dialogue with the
municipalities and local communities and also with national partners at the central level.

The positive evolution of the environmental culture such as the consequences of activities
relating to environmental education, such as awareness/information/training, is a welcomed
conquest.




                                              31
3.1.4 Land resources, including terrestrial biodiversity.

The exploration of land resources and the ecosystems has not been the most rational as the
degradation processed was gradual and reached levels of extinction or destruction of species that
prompted the introduction and or replacement of species since the beginning of colonization.

The bad usage of soil, generally poor in mineral resources, organic matter, and in general not
adequate for agricultural activities, is an important indicator of the bad management of these
resources on the Cabo Verde Islands. Over-grazing is a common practice and the construction and
exploration of coastal zones, and other areas subjected to flooding, are destroying the ecosystem,
making food production unfeasible.

Some principal causes for these exploitations are the poverty situation of the population and
man-made pressure on the ecosystem, the lack of knowledge among the people on the use and
sustainable management of the environment, the lack of compliance with the law and order and
lack of articulation between plans and programnes underway.

The policies followed since independence until 1990 concerning resources preservation focused
on soil, mainly in rural areas. Environmental preservation was limited to actions, under the
umbrella of projects, focused on soil and water conservation, on tree planting, and in agricultural
development. The goal was to bring justice to rural world, legislate on water utilization, and fight
erosion and desertification and create a fund for the execution of agricultural reforms.

Current policies point to the development of systematic measures of environmental preservation,
favouring the participation of the communities and equity in the distribution of income.

The actions of replanting trees did not work because of poor climate conditions.

Cabo Verde is characterized as a fragile and vulnerable country and continuously subject to
accelerated resource degradatio n processes, namely soil, water, and sea.

Cape Verde signed the Convention on the fight against Desertification on October 14, 1994 and
ratified it on March 8, 1995. To implement the Convention, the country prepared its National
Program of Action on against Desertification (NAPFD), which dedicates especial attention to
management of natural resources and water resources in particular, to better the quality of life of
the population and improve environmental information.

A major part of the population of Cape Verde lives (since 2000) in urban centres. Urbanization
was stimulated by rural exodus and inter -island migration. Illegal and clandestine constructions
proliferate in all suburban areas with grave problems in sanitation and in the supply of water and
energy. Given the intensity and profile of rainfalls, there are heightened risks of flooding and
destruction of homes and property constructed in the riverbeds. In this infrastructure and
development process that also includes industrial and transportation activities various types of
pressure are placed on the land, namely, loss of biodiversity, increased erosion, soil
contamination, and increased solid waste production.

The deficiency of interior water resources is the most important environmental issue in Cabo
Verde. Despite the recharging of waterbeds during the rainy season, the quantity of available
underground water has been gradually reduced creating a hydrologic imbalance, which in the
long term will have grave consequences.


                                              32
Actual exploration of water resources has been markedly insufficient for the various purposes it
is destined to, namely for the domestic consumption in rural and urban areas, sanitation,
agriculture and industry and civil construction.

In the rural zones, fertile soils, destin ed for agriculture, have been gradually utilized for
construction and integrated in urban areas. In the urban areas as in rural areas, the valorisation of
agricultural and marginal neighbouring land is a strong incentive for urban and developments
projects.

National Project/Programme:

1. Nature Conservation and Biodiversity

As a sub-program of the 2002-2005 NDP, conservation aims at managing genetic resources in an
integrated manner, while preserving endangered species. The actions developed include the
setting up of a National System for Protected Areas and the relevant management plans for a
better conservation of the country’s biologic diversity; organizing training of managers for the
protected areas, and preparing a National Plan framework for eco-tourism in the system of
Protected Areas and the development of mechanisms that favour the participation of local
communities in managing these protected areas.

Likewise, the (re)introduction of vegetation species in coastal areas and saltwater land,
identification of turtles’ spawn areas (shores and beaches) and preparation and implementation
of management plans for its conservation and protection are the goals to be achieved.

2. National Strategy and Plan of Action on Biodiversity

These are the instruments of coordination, monitoring and evaluation for all actions in the field
of the sustainable conservation and utilization of the biologic diversity. A participative,
integrated and multi-sector approach is advised when executing the activities identified in the
plan of action.

3. The national Forest Plan of Action (NFPA) was prepared in 1994 and is part of a broader
plan, the Tropical Forest Plan of Action (TFPA). The TFPA was designed taking into account
the master axis of the II NDP, which defined three major objectives for a 15-year period. The
TFPA adopted, as the guiding principle of its actions, the involvement of the populations that use
forest resources as means of subsistence, the planning and execution by nationals and the multi-
sector approach.

TFPA objectives:

   -   Reverse the desertification process and improve the populations’ living conditions;
   -   Restore the ecologic heritage by building and maintaining a vegetation coverage and
       adopting soil conservation techniques; and
   -   Exploit natural resources in a rational and sustainable manner and contribute to meet the
       needs of the populations in terms of firewood, pasture and timber.

4. Program of Action on the Fight Against Desertification




                                               33
With the global objective of reducing (combating) and alleviating the drought effects with view
to a sustainable development, in 1995, Cabo Verde began the preparatory works for the National
Plan for the Fight Against Desertification (NPA).

Thanks to external funding, the base project to support the implementation of the Convention on
the Fight against Desertification carried out various actions in the following areas:

   -   Strengthening awareness, information and communication (in municipalities);
   -   Support capacity building of experiences in the area of the fight against desertification;
   -   Promote and support (concrete) pilot actions in the fight against desertification;
   -   Institutional support in formulating monitoring policies and in assessing the search for
       alternative funding;
   -   Create Municipal Commissions; prepare of an assessment paper for each Municipality
       and later prepare the programmes on the fight against desertification for each
       Municipality; and
   -   Conducted workshops to approve the 17 municipal programmes;

5. Project “Creation of a National Network of Protected Areas in Ca Verde”

To support the conservation and durable management of resources, the project stimulates
reproduction of endemic vegetation species in live cultures for transplant. The project intends to
                                                                      m
harmonize human needs with the imperative of conservation by i proving the capacities in
information, awareness and training and by supporting income-generating activities in the areas
of art-craft, processing of agriculture products and animal breeding.


6. Other actions (Education, Training, Awareness and Information)

These actions have been targeting environment education and integrated basic education is the
priority target. Pertinent environmental material has been introduced in the curricula of the basic
education system. Training actions targeting the animators working in the pilot areas of forest
perimeters within the communities.

Relevant information on erosion and desertification are still being disseminated through news
bulletins, manuals, etc. Here, we highlight the publication of the first Red Book in Cabo Verde,
which calls attention to the need to improve the situation of various vegetation and animal
species and of non-living resources, and the first White Book on the Environment Situation in
Cabo Verde, in addition to numerous awareness and dissemination activities on the content of
the different environment conventions signed by Cabo Verde.

The efforts of several public institutions to establish Environment Information Systems are
acknowledged considering the dispersion of environmental data amongst the different
departments and the need to collect, treat and disseminate existing information.

In the framework of the NPA, a prototype Desertification Information System (ISD) was
developed for the island of Santiago. This is an experience that should be extended to other
islands. Deserving of recognition are the workshops conducted on environment information
systems that debated two base studies on the issue and the creation of a web page on
environment in Cabo Verde.



                                              34
In terms of legislation, Law no. 48/V/98 was published on April 6, 1998 in order to create a
framework for Forest activities and protect trees and forests.

Below are some relevant information based on the country’s first communiqué at a
conference of parts to the Convention on the Fight Against Desertification:

The Ministry of Agriculture does not yet have the necessary capacities and resources to carry out
the task alone. This fact led the Government of Cabo Verde to resort to international solidarity
for the appropriate technical support in environmental planning and financial support for the
implementation of projects identified in the plans of action.

The institution responsible for the environment within the Ministry of Agriculture (SEPA)
has a vast mandate. The search for partnership s with NGOs and local authorities is a practical
resource for expanding SEPA’s capacity to mobilize means and resources and provide the
technical assistance required to the civil society and ONGs.

In spite all the legislative efforts and some timid regula ting initiatives that followed, the main
problem yet to solve is still the respect and compliance of the laws.

Regardless the works that led to the approval of a national fund for the fight against
desertification and the preparation of the relevant Legislative Decree that would create the
National Fund Against Desertification (1996) it has not been possible to make the fund
functional.

Between 1985 and 1998 various actions were conducted to catalogue biologic resources, as well
as timely information, training and awareness sections targeting the civil society on the
preservation of the biologic diversity by the then Ministries of Agriculture, Food and
Environment and of Tourism, Transportation and Sea. The scientific activities conducted
reached their highest point with the publication of the First Red List on vegetation and animal
species in Cabo Verde. However, the lack of material and human means as well as the lack of
engagement from the local communities contributed for these actions not to have effective
impact.

To aggravate this constraint is the fact that local communities still exercise strong pressure on
endangered species, basically due to lack of information and training and scarce alternative
resources.

In spite the training, awareness and others actions realized, there are still prevailing constraints
that have been pointed out as causes for the loss of biodiversity and destruction of ecosystems,
such as:

   -   Human pressure and poverty;
   -   Populations’ lack of knowledge on the sustainable utilization and management of
       biologic resources;
   -   Poor application/enforcement of existing laws;
   -   Insufficiency of functional protected areas;
   -   Lack of capacity in the technical departments/services to direct and manage biodiversity;
       and
   -   Lack of coordination between existing plans and programmes.



                                                35
The National Biodiversity Strategy and Plan of Action (10 years) is an important management
tool for the environment management and protection of natural resources. The plan’s
implementation is participated and extended to public and private institutions, non-governmental
organizations and local communities.

But the material and human means for its effective implementation were not made available
in a timely manner by the public departments where the conservation programmes were
centralized. Thus, during the nineties, conservation programmes – few in number – could not
count on the effective engagement of local communities.

The weak planning capacity in the environment sector is due to the inexistence of a database
on species and other components of the ecosystems and/or due to a deficit in coordination
among the dispersed initiatives in the field. Therefore, efforts are being made to introduce an
information system for the environment.

This occurs when, in accordance with existing laws, the municipality has the responsibility of
promoting vegetation coverage and providing protective measures on the conservation of soil
and water resources. Aside from some exceptions, the municipalities are not duly capacitated
to deal with environmental and other issues. The decentralization of services and tasks and
their municipalization, undoubtedly necessary, is done rapidly in a framework of existing
institutional fragility among municipalities.

Given the multiplicity of demands on the fragile municipal structures by the various sector
programmes (poverty, desertification, biodiversity protection, etc.), which oftentimes pursue
similar objectives and use similar solutions, or even act upon the same priority areas – where
the possibilities of overlapping are real - there is the need to create a single structure to
coordinate and establish partnership agreements.

The process for establishing partnerships revealed to be slow and, it seems, was not resumed in
the manner foreseen in the paper setting the parameters for partnership building that was
submitted and approved by the municipalities.

The need to standardize the base cartography is another constraint that various sectors and
initiatives are experiencing. Here, we highlight the requirements of the census processes,
creation of information systems, setting up of early alert mechanisms, territory management,
notary and registration services, etc.

Vigilance and quarantine at the entry sites for vegetation and animal species in the country are
functions of utmost importance that have to do with management of risks for the integrity of the
food productive system, the biodiversity and even for public health. With the adoption of a
policy externally-oriented and considering the list of fiscal, customs and other incentives, this
vigilance needs to be reinforced in terms of material, financial and humans means, and its
outlines should be endowed with better institutional and legal frameworks.

Although they do not have a common legislative framework, NGOs are very much active at
the local and regional levels and have performed commendable works in favour of
environmental defence and protection. This dynamics hides the various weaknesses, specially
the financial and human capital fragilities.




                                              36
3.1.5 Energy

The country depends heavily on petroleum by-products and internal demand has been strong
and growing. The same goes for the demand for lumber, firewood, coal and biomass. These
latter forms of energy sources are national products.

Although the energy sector is considered of strategic importance for national economic
development and Cabo Verde is a country of sunshine and wind, well-known energy and
tourism resources, the exploitation of these resources as sources for electricity generation is
still incipient and most of the electricity produced comes from the combustion of fossil fuel.

The exploitation of renewable energy gained expression as of 1995. The Ministry of Agriculture
introduced the production and assembly of wind-pumps and the construction of improved
firewood stoves and coordinated the installation of photovoltaic solar water pumps in rural areas.
Today, other state services, private companies and individuals have installed photovoltaic panels
and produce air pumps.

The integr ation of environment projects and sub-programs, namely on the fight against
desertification, recovery of maritime ecosystems, the plan of action on biologic diversity as well
as the promotion of renewable energies, with the perspective to durably reduce poverty, should
be guaranteed with efficacy.

The 2002-2012 National Environment Plan of Action (NEPA 2), well into preparation, should
contribute toward a better integration of the poverty issue within environmental programmes and
their articulation with poverty alleviation strategies and programmes and the development of
alternative energy sources.

In the energy component, the NEPA aims specifically to:
a) Promote the efficient and effective utilization of natural resources, with emphasis on energy,
    water , soil, sea and the biodiversity components in general;
b) Promote the adoption of more efficient and less polluting technologies for the utilization of
    natural resources;
c) Promote the participation and engagement of the population in the sustainable ut ilization of
    natural resources and environment conservation;

Considering the need to define a national energy policy and to substantiate national decisions on
energy, under preparation is a “National Strategic Plan”, whose provisional draft will be
apprec iated in July this year.

Alongside the commercial energy sector there is a non-commercial system composed by a
substantial population mass in rural and suburban areas that seeks and collects firewood, biomass
and agriculture and industrial by-products for energy purposes, thus placing enormous pressure
on both resources and environment.

Most industrial plants in Cabo Verde are consumers of electricity, given that electric energy
is the production basis for desalinated water. The value of petroleum by-products imports for
the internal market represents more than 12% of Cabo Verde’s total imports. Thus the burden
and invoice on energy imports is considerable.


                                              37
Several stakeholders work in the energy sector side by side a commercial system for energy
supply and demand in the petrol sector dominated by the oil companies Shell (affiliated to
Shell International) and Enacol (national), and for the production and distribution of electric
energy there is a private company, ELECTRA, in addition to various operators/self-
producing, including hotels. The non-commercial system is composed by individuals who
collect and use firewood, coal and other materials.

This dispersion has its costs; it does not allow obtaining a scale economy and weakens the
institutional framework. The existing technical capacity for electricity production is
considerable and, thus, technical assistance has been on a timely basis.

Relevant studies for the sector were conducted with external support among which the World
Bank, UNDP (UNEP) and the bilateral cooperation. Some of these studies are Strategies for
Domestic Energy and Policies (1990) and Strategies for Energy and Environment in Cabo Verde
– 1996.

3.1.6 Waste Management and Water Supply and Sanitation Services

The demographic and industrial growth, migrations and changes in consumption patterns along
with the lack of information/training on the environment and lack of technical and human means
have caused the accumulation of solid waste in the past 10 years.

The country’s overall situation in terms of infrastructures for collection and treatment of
wastewater and solid waste is deficitary. Therefore, in spite advances acheved in the water
supply sector, the development of infrastructure plans for the main and secondary centres is a
must. The service level and the population’s sanitation coverage level are still far from adequate.

In spite the projects underway and in the pipeline for water supply and wastewater collection for
treatment and re -utilization, a significant portion of the population still has no direct access to
drinking water and does not have adequate sanitation systems (in Praia, the biggest population
centre and capital city, about 60% of households do not have access to any type of basic
sanitation).

The treatment of solid urban waste is in a primary phase, waiting for new and innovative
solutions, while a global solution is been sought for the trash problem. Industrial wastes do not
constitute yet a serious environmental problem, as the country’s industrialization level is still
low. A significant quantity of used oil is thrown directly on the soil and in places not so
adequate, thus compromising public sites and creating a serious environmental problem.

The sanitation sector needs to have its own National Sanitation Plan capable of filling in gaps -
institutional and legal, organizational and management gaps, the mobilization of resources for
huge investments in infrastructures, education and awareness among others.

According to Law no. 134/IV/95, the management of solid waste and sewage is the
responsibility of the municipalities. The environmental imbalance caused by the urban waste in
the municipality of Praia, particularly in the capital city, originates from the inadequate existing
systems given the increased quantity and nature of waste produced. In general, the
municipalities’ capacity in terms of basic sanitation is deficient.



                                              38
According to the First White Book on the Situation of Environment in Cabo Verde, aggravating
indicators report to:

       -   Uncontrolled disposal of solid waste (wild garbage dumps);
       -   Waste burns in residential and other areas that produce uncomfortable odours and
           degradation of public health conditions; and
       -   Aggravated environmental pollution, with possible contamination of underground
           waterbeds.

Insufficient drinking water and environment sanitation infrastructures and the lack of
information/training (along with other negative factors) focusing on the most vulnerable groups
have brought on serious health risks, leading to epidemic situations and deaths from as the
cholera epidemic that affected the country in 1995.

In spite recent advances made, it should be recognized that there are still many persisting and
related constraints: the sustainable planning and utilization of soils; and integrated environmental
infrastructures (water, sanitation, sewage system and solid waste management).

The supply of sanitation services and water supply is precarious. Only ¼ of the population has
running water, 54% of houses do not have toilet facilities, water closets or latrines and 45% of
households resort to water from the public distribution centres. For seventy-two percent (72%) of
family members the main means of defecation and/or waste disposal is in their houses’
surroundings areas and outdoors. This problem is more accentuated in rural and peripherical areas
around urban centres that are usually occupied by migrants from the rural areas, who are usually
the most affected.

The sub-program “Wastewater Collection and Treatment” in the 2002-2005 NDP proposes the
development of wastewater collection and treatment systems in the primary and secondary urban
centres thus improving the present coverage rate (>50% in primary urban centres; >40% in
secondary centres) and public health and helping to reduce environmental problems.

Energy, Water and Sanitation Program: the goal is to modernize the sanitation, energy and water
sectors, in view of ELECTRA’s privatisation. Sanitation refers to urban centres.

The Government has been defining the necessary legal framework and regulating mechanisms
necessary to protect, control, materialise and oversight the impact of industrial and other
activities in the country. As an example, we refer to regulatory-Decree No. 1472000 that aims at
the conservation and protection particularly of natural spaces of biologic interest as well as areas
of tourism interest.

In this sense, a wide range of activities have been identified that could have sensitive negative
effects on the environment.

In terms of legislation, an ecologic tax has been introduced on the CIF value of imported goods
in non-biodegradable packages. These revenues will revert in favour of basic sanitation,
according to Law No. 128/IV/95, dated 27 June.




                                              39
3.1.7 Tourism

The tourism sector has major development potentials and has been gaining considerable weight
in the Cabo Verde economy. Tourism is a factor for the country’s insertion in the international
circuit but the mass tourism component may bring harmful consequences to the ecosystems if
local infrastructure s and basic sanitation do not accompany its growth.

In 11995 and 1996, the sector received important foreign investments and its contribution to the
national economy reached about 2.2%of the GDP. In 1999, this contribution increased to 3.65%,
and forecasts are that I may reach 3.9% in the year 2000.

Tourism development should be synchronized with the strategies for the environment sector. The
valorization of the tourism product (maritime ecosystems, renewable energies, waste treatment,
natural green areas, etc.) resulting from the implementation of the environmental policy and
development policies for the tourism industry should preserve and safeguard the respect for
environment preservation.

The strategic guidance is to diversify the offer, articulate sector development with the
remaining economic sectors namely the transportation, infrastructures, and agriculture and
fisheries sectors and respect the country’s environmental conditions and limitations.

The main relevant national projects underway or unde r preparation for the tourism sector are:

In spite the presence of strong constraints (accommodation; human resources; air travel
connections; drinking water and energy supply and sanitation level), considerable improvements
have been made in air and road transportation and telecommunications, for example. These
improvements have sparked rapid growth in the tourism industry and the diversification of
tourism products, by taking advantage of Mother Nature (landscapes, micro-climates, volcanoes,
shorelines), natural resources (biodiversity) and the insertion of cultural resources.

Unfortunately, the tourism activities underway have been limited to the offers of sun and
beaches, and the diversity and quality of services have been relegated to second level. Ongoing
actions seek to modernize the sector and diversify the supply/offer. Thus, ongoing projects
pursue to diversify tourism activity and give priority to the development of rural tourism.

The projects under development respond to the needs of strategic planning and elevation of the
overall level among the sector professionals. Under preparation are:

           a) The National Strategic Development Plan for tourism; and the Integrated
              Development Plan for the Islands of Boa Vista, Maio and Sal;
           b) Establishment of a national school for hotel activities and tourism to train
              professionals for the sector;
           c) Diversification of tourism products, specially rural and mountain tourism;

Community initiatives, when they do exist, are modest. Community participation in sustained
tourism related activities have emerged in the framework of different environment conservation
projects and programs. One of the actions foreseen in the sub-program “Nature Conservation and
Biodiversity”, included in the 2002-2005 NDP, is the preparation of a National framework Plan
for eco-tourism in group of fixed Protected Areas and the development of mechanisms that
favour local community participation in managing these areas.


                                             40
Consequently, the project for the establishment of a Network of protected areas has been
promoting rural tourism while at the same time promoting the protection of species and local
eco-systems developed by the project.


In this sense, parliamentarians are frequently voicing their concerns to the Government over
sanitation and environmental protection issues (solid and water wastes in particular and the
pressure on the scarce water and energy resources), resulting from tourism development. More
specifically, these concerns have to do with the high deficit of coverage in terms of draining
systems and used   -water treatment systems, the weakness of the municipalities’ solid waste
collection and treatment systems as well as the sector’s institutional weakness.

Concrete sanitation programs designed for the city of Praia, Mindelo and othe r municipalities
like Tarrafal, Boavista and Sal are important for tourism development and, above all, for
improving the living conditions of the populations and the realization of the citizens’ right to a
balanced environment as safeguarded in the Constitution of the Republic.

3.1.8-Trade
Trade
Cabo Verde’s bid to specialize the commerce and service sectors is justified by the sectors’
contribution to the GDP and economic growth, contribution to employment generation and
the country’s geo -strategic location. In turn, exports revenues of services and goods cover
less than 25% of imports. Tourism development, the creation of export-market oriented free
zones, the establishment of companies and transhipment services are some of the areas of
specialization.

Foreign Trade
In the past years, foreign trade evolved progressively and there have been substantial changes
in exports products. Apparel and shoe -wear are now the main exports products in detriment
of agriculture and fishing products. The establishment of free zones and the investments
made in light industries contributed to the increase in exports registered as of 1996.

The coverage rate of exports is still low. In 1994, it represented 2,4% and after a slight
acceleration in 1996 and 1997 (5.4 and 6%, respectively) it stagnated at around 4 – 4.5%.

Although the value of exports tripled, the trade balance is still largely deficitary. Imports
grew at an average rate of 7.56% while exports grew 14.5% between 1994 and 2001.

Exports at current prices represent 2% of the GDP, while imports represent 45%.

In theory, there are probabilities of increasing exports but the international competition and
the cost of production factors constitute serious limitations and are the main threats.




                                             41
Foreign Trade Evolution                                                                    Thousand Escudos

                   1994         1995         1996         1997         1998         1999         2000         2001

National exports          408          687      1 046        1 295        1 016        1 170        1 261       1 201

Re-exportations       1 644        1 707        1 997        4 104        1 456        2 418        1 544       1 626

Imports              17 113       19 394       19 355       21 763       22 597       26 915       27 519      30 519

Trade balance       -16 705      -18 707      -18 309      -20 468       21 581      -25 745      -26 258      -29 318

Coverage rate             2,4          3,5          5,4          6,0          4,5          4,3          4,6          4

Source: INE

Foreign trade per economic zones

In terms of imports, European countries (among which Portugal stands out with 48.1% and
45.8% in 2000 and 2001, of the total) are still the main trade partners (with 78.3% in 2000
and 77.3% in 2001 of total imports). The percentage of imports from African countries were
of 2% and 2.2% for 2000 and 2001, respectively; 10.8% and 11.8% from Asia and 1.4% and
1.8% from the rest of the world respectively in 2000 and 2001. Commercial exchanges with
Africa tend to increase but they still occupy a marginal position in the overall context. Trade
relations are still predominantly of informal character. Trade relations with the Asian
continent tended to increase in the past years and their penetration in the market is visible.

The main economic zones that receive exports are still European countries, with 80.3% in
2001 against the 85.2 in 2000. Portugal absorbed 79.1% of the total exports in 2001; there is a
tendency for increase in exports to the US, which went from 0.5% in 1999 to 17.7% in 2001;
Africa received 1.7% and the rest of the world 0.2%.

Exports development continues to be confronted with constraints related to the exiguity of the
productive base, the high transportation costs and irregularity.

Foreign Trade

The domestic market is characterized by its small dimension and fragmentation, and the low
purchasing power. The main factors influencing its functioning are: the fact that the country
is made up of islands, the deficient functioning of the transportation and communication
systems and distribution circuit, with emphasis on the informal and traditional circuits, used
above all for agriculture and fishing products.

Trade liberalization, disruption of public reserves, the increase in bulk sellers, the emergence
of new promoting entities in the sector, namely the Chambers of Commerce, the transfer of
retail licensing authority to the Municipalities, all this introduced new dynamics in the
domestic trade.

Such a policy contributed to diversify the supply markets, improve their quality, and intensify
competition. The pricing system in effect results essentially from market functioning
mechanisms.




                                                           42
The national capacity to satisfy demands is reduced. With the liquidation of the Public
Supply Company, it is the private sector that takes the leading role in the commercial imports
of food products.

The establishment of regulating, regulatory, and supervision mechanisms as well as the
deficiency of the transportation system are still the major constraints.

Informal Trade
The development of the informal sector occurred in an explosive manner during the past
years. The high unemployment rate that affects to greater extent the female population,
namely in urban centres, and the imperative need to seek a means of subsistence should be at
the basis of this rapid and increasing development. Market features and entries and the profile
of new external operators in the field, namely from Asian origin, the characteristics and
quality of products as well as the populations purchasing capacity favour such a development.
As a matter of fact, it is a typical situation of a developing country that is going through the
embryonic phase of private initiative and market economy development, as well as fast
demographic growth, in search of a sustainable and balanced development policy.

The informal sector contributes to minimize unemployment problems and is characterized by
dynamics and competitiveness. There are difficulties in monitoring the sector and in creating
the infrastructure and other conditions necessary for its functionality, which end up
constituting disturbing elements in the organization and regulation of the sector, above all in
urban centres.
Services
Services have a representative role in the development policy and in the tertiarization of the
economy. Its participation in the GDP is estimated at about 66%. Among the most dynamic
sectors are the public services, transportation and communications, which stand out and have
a fundamental role in exports and in balancing the Balance of Payments.

Services are an essential axis of Cabo Verde’s development that requires added attention due
to its role as the engine for both the economic and social component. Its development
requires effective investments in sectors such as transportations, whose financing depends on
foreign aid and the development of tourism infrastructures.

As they are sectors that should favour the insertion into the international economy, their
sustained growth and modernization constitute major challenges.

3.2-CROSSCUT SECTORS

3.2.1 Financing and investments

Cabo Verde is a country extremely dependent on the exterior and on Public Development Aid
and emigrant remittances, which have a major impact on the macroeconomic balance (foreign
accounts and income). Cabo Verde, as a small island nation, will need public aid to face up to
its vulnerabilities, its territory dispersion, small-size domestic market, and long periods of
drought. Therefore, one of the possible alternatives in order to overcome its vulnerability and
consolidate its market and economy structures is the creation of a sustainable basis for the
economy and the society.


                                              43
Emigrant remittances constitute the major source of external resources to the country, with
about 19% of the GDP between 1994 and 1996, and 13% between 1997 and 2001. With
exception made to 1997, there is a growing trend in remittances.

Development must be characterized and divided into two distinctive periods:

A first period that dates back to the post-independence period, characterized by the need for
its affirmation, for building the economic and social infrastructures, for the conservation and
fight against desertification and drought.

These aspects are still present and add on to the need to modernize the economy; to develop
information systems; to diversify the sectors and areas of activity to consolidate exports and
create a productive base; to strengthen private sector; to train and qualify its human
resources; to strengthening institutions and create capacities to promote and regulate
economic activities.

Cabo Verde’s dynamic insertion into the world economic system in the context of
globalisation still requires strong support from its partners so as to be able to build a
productive base, which is still incipient, as an important step in the process.

The difficulties in accessing capital markets find a relative compensation in public
development aid.

Aid p capita reached 306 dollars and 312 dollars 1, in 1995 and 1998, respectively, and 316
      er
dollars in 1999, and contributed to finance the reforms and development.

Public sector

Financing and investments in the public sector come basically from public deve lopment aid.
However, from the nineties, aid maintained a constant; exception made to some oscillations
due to strong external pressures, natural catastrophes and conflicts.

On the other hand, in the beginning of the 90s, the development model based on the recycling
of foreign aid revealed to be little efficient.

The economic and social reforms program adopted received supported through various
modalities. Through multiyear programs and agreements, bilateral partners and the UE, above
all, adopted a flexible and provisional characteristic in the utilization of PDA under the form
of budget aid, aid to the balance of payments.

Between 1996 and 2000, public development aid situated, on average, at about 73 million
dollars a year. The table below presents the evolution of aid throughout the period. The
adoption of a development policy based on the private sector revealed the need for new
investments in the sectors of energy, water supply, sanitation, training and qualification of
human resources and infrastructures with resort to loans, which resulted in increased public
debt.

1
    WB estimates


                                              44
The issue of domestic public debt, estimated at 180 million dollars, constitutes one of the
major constraints in the macroeconomic framework, which led the government to resort to
the support of the international community and the establishment of the Trust Fund in 1998.
Thus, a considerable portion of the aid mobilized in the years that followed should have been
channelled to feed the Fund in conformity with the commitments made during the roundtable
meeting.
Internal debt

To finance the costs of the economy, the Government resorted to national and international
banks. If, at the international level, indebtment is not yet an issue, internal public debt is
today one of the major problems for financial management.

Public domestic debt increased considerably. The stock was placed at 15 707.5 million
escudos in July 2000, against the 10 941.6 in December 1999, safeguarding the fact that in
1994 the stock of the debt was situated at 11 655.5 million escudos. In regard to the GDP, the
domestic debt was around 18.4% of the GDP in 1999.

The cabo-verdean public debt is one of the main hindrances of public expenditures and that
                                                                         e
led the government to opt for instruments and mechanisms aimed at its r solution in the
short-medium term.

Among other arrangements made is the convergence of macroeconomic management
indicators with the Maastrich criteria (budget deficit around 3% of the GDP, domestic debt at
60%) and the exchange cooperation agreement.

The Stand-by agreement signed between the IMF and the Government of Cabo Verde in 1998
served to strengthen the economic and social reform programs and had as the main objective
the resolution of the public debt issue. The agreement is based on the following: non-
accumulation of new domestic and exchange arrears, the strict control of State loans: control
of domestic and external assets.

The Trust Fund was to receive 44% of the total amount from the Government, through
privatisation revenues, and 56% from the international cooperation and its main objective
was to eliminate the domestic debt.
The economic stagnation registered in the beginning of the nineties began to revert with the
recommencement of public investments at a very high level and the promotion and attraction
of direct foreign investments.

However, at the end of 1995, the economy started to give signs of recession, a consequence
of the high domestic public debt, imbalance in the external accounts and budget deficit.

Cabo Verde’s development/growth is financed in 70-90% by public development aid. The
definition of the priority development sectors, the adoption of a policy for the dynamic
insertion of the country in the world economy and the development of a market economy led
to a reorientation and channelling of external financing.

Thus the sectors of human resources, economic infrastructures, institutional development,
environment, and the service sector begin to conquer ground in detriment of sectors such as



                                             45
agriculture, which during the eighties managed to absorb a considerable portion of external
financing.

The stagnation of grants to development projects indicates a trend for reduction in aids and,
consequently, a slowdown in the cycle of investments and the signals of strong external
dependence are increasingly more visible.

Loans from international financial institutions are becoming increasingly more necessary and
requested due to the reduction in the Grant component.

Foreign debt

The accumulated foreign debt that in 1994 was of 148 million dollars rose to 336.4 in 2001.
In turn, the contracted debt went from 369.5 million dollars in 1994 to 602.7 million dollars
in 2001. If in the near past foreign debt had not been reason for concern, currently it stars to
give signs of worry. The reduction in aid grants and the option for loans, although under
concession terms, doubled Cabo Verde’s effective debt in 5 years. The debt service reaches
3.3% of the GDP.

The World Bank has been one of the country’s main development partners, followed by he
European Union and countries like the Netherlands, Luxemburg among others.
Food aid, which also constituted a strong source for public employment generation, is now
converted, by some partners, into new forms of aid, namely aid to the balance of payments
and aid to structural reforms. In fact, the food aid provided is also an aid to development and
assumes an important role in the fight against poverty.

Cabo Verde’s socio -economic performance has contributed as a factor to inhibit the
attribution of foreign aid and is the justification presented to withdraw the country from the
group of LDC (Least Developed Countries).

The foreign aid provided to Cabo Verde is indispensable and crucial for maintaining the
populations’ living standards and the economic growth pace, considering that the country has
not yet built a sold basis for its self-sustainment and is still very dependent and fragile, thus,
very much vulnerable to external chocks.

The nineteen-nineties were marked by a rapid change in the origin of aid. In comparison to
bilateral aid, aid from multilateral sources increased throughout the period reaching 35% in
1999.

Disbursements for project financing increased considerably.

This trend to increase aid under the form of loans, in relation to grants, shows that, in light of
the need to finance major development projects and the stagnation or reduction trend in aid,
Cabo Verde has benefited from concession loans from the main international financial
institutions that is a member of and the World Bank stands out as one of the main project
financing entities (between 70 and 80% of the total loans).

Private sector investment promotion




                                               46
As of 1992, with the economic liberalization process, the private sector began conquering the
main position as economic agent. Privatisation and the restructuring of strategic companies,
as the one in the area of electricity and water, telecommunications, light industries, and the
fostering of other sectors considered strategic in development process, such as tourism,
transportations, fisheries and others, began attracting both national and foreign private
investors. Thus, from 1996 the dynamics of direct foreign investments was determinant in
maintaining and in guaranteeing the development process, as the public sector had started
showing sings of its weaknesses. The impact and effects were observed in the exports
structures, in employment generation, in the development of sectors such as tourism,
financial and light industries.

Thus, as of 1994, the year of the conference and adoption of the Barbados program, several
national initiatives were conducted toward the promotion of sustainable development. The
preparation of the development plans as an instrument for guidelines and of development
policy, and the round table meetings with partnership with UNDP and the WB, have achieved
satisfactory results.

The problems registered throughout the years are linked to the thematic dispersion and sector
intervention of projects in light of the human and financial resources, deficient coordination
system among institutions, and slowness in the decision-making process.

The Government’s priority areas and which received international support are among others:

Table 3: Priority Areas and Main Partners

  Programs                     Main Financing Entities          Begin
                                                                Date
  Reformulating the fiscal     Government, Portugal             1992
  system and improving the
  budget management
  Development of irrigated     China, Japan
  agriculture
  Consolidation         and    WB/IDA/Luxemburg/Portugal,       1995
  modernization of the         Germany, WFP, UNICEF
  education system
  Environment protection       Holland/Japan,    Austria,
  and conservation             USA/UNDP/Germany
  Promotion             and    WB/IDA/Luxemburg/UE,       1992
  strengthening of basic       UNDP/FENU, UNICEF
  sanitation, water and
  energy
  Development       of   the   WB/IDA                           1993
  transportation system        ADB/FAD/Switzerland
  Development       of   the   WB                               1999
  energy sector
  Private sector promotion     WB/IDA                           1992
  and consolidation
  Public      administration   WB/Portugal                      1994
  reform and modernization
  Food security                FAO


                                              47
  Poverty reduction         WB, ADB/FIDA                        1995
  Structuring of the health Luxemburg/WHO/UNICEF
  system

The imbalance between current expenditures and investments, the stagnation of public
development aid, the zero budget growth policy, the non-resorting to internal credit for
budget financing relegates public investments to a secondary level, in spite the notorious need
for investments in many sectors of the economy.
On the other hand, working costs deriving from the implementation of many programmes and
projects are not taken into account.


3.2.2 Institutional c apacity and coordination

Strengthening the institutional capacity and coordination has been one of the main concerns
of development policy sustained by both public and private sectors.
The issue of good governance and transparency are key elements of inst itutions and of
institutional capacity and the actions developed in the framework of the administration
reform and modernization goes in the sense that a greater optimisation of available resources
and the strengthening of institutional capacity.

A set of measures were adopted within the public, central and local administration namely
through the implementation of training programs and equipment supply, benefiting various
fields in public management, principally:

   -   The planning system that now has the role of directing and defining medium-long
       term development strategies and policies, macroeconomic prevision, management of
       economic and social development programs,
   -   The national statistics system - The National Statistic Institute was created to take
       charge of collection, processing and technical coordination, establishment,
       inquiry/selection and dissemination of statistic data, and the National Statistics
       Council, responsible for defining the guidelines of national statistics activities,
       priorities, approval of concepts, terminologies and coordination instruments,
   -   Decentralization and strengthening local power – the transference of a set o
       competencies to local governments in the areas of social promotion, local finances
       and its own capacity-building,
   -   The financial sector– The fiscal system and the State’s financial management,
   -   One of the main programs developed was the fiscal reform, which consisted in the
       revision of the legislation, introduction of income tax with benefits for the system,
       expansion of the tax basis (to employees who were tax exempted). Soon the valued
       added tax will become effective. The customs system underwent simplification of
       customs clearance procedures,
   -   At the level of budget management, several instruments were created, namely the
       development of information systems, the budgetary framework legislation, a new
       public accounting plan, public debt bonds were introduced in the market, as well as
       Treasury bonds and new payments mechanisms,
   -   The financial system – the transformations that occurred in the system as of 1993,
       liberalization and diversification, were crucial for the emergence of commercial banks
       and for the autonomy of the Central Bank. Even the Central Bank performed the role


                                                 48
                                                              s
       of both central bank and commercial bank. The reforms al o embraced the insurance
       and social security sectors.

Nevertheless, the system still faces major problems that have to do with: Staff training;
organizational culture.

Coordination at the micro level is conducted by the sectors, as technical bodies tha t integrate
the study and planning cabinets and administration directorates. Overall coordination is
carried out at the level of the international cooperation and the planning system as bodies that
outline the main development guidelines.

The fragmentation of the system into small executing entities, the existence of numerous
activities and projects, the absence and lack of qualified human resources, the need to
establish an organizational structure adequate for coordination are still the main constraints.

The administration is still affected by a strong bureaucracy and slowness, thus revealing itself
as low performing and little efficient.

The coordination capacity for national, regional and internationals level actions has been
deficient.

3.2.3. Regional cooperation

Cooperation and international and regional integration constitute the forms of partnership for
development and market expansion and trade relations. It is an imperative need, above all, for
small poor countries such as Cabo Verde.
Cabo Verde’s integration in the ECOWAS

At the sub-regional level, Cabo Verde in integrated in the Economic Community of West
African States (ECOWAS) but this integration has been made difficult by various factors.
Commercial trade between the member countries is insignificant.

Given its island condition and the exiguity of the market, Cabo Verde has had a role of little
relevance in exporting to the member countries, not exceeding 2% of total exports. The same
average goes for imports.

At the organization level, the review of the Treaty, as an guiding instrument in the
establishment of trade relations; the signing of the free trade agreement and the adoption of
important measures such as tuning of the customs fees, the creation of the sub-regional
chamber for compensation payments between countries are significant advances made toward
liberalizing trade and for economic integration.

At the bilateral level, some agreements were signed between Cabo Verde and Guinea -Bissau
and Guinea Conakry. Recently, cooperation missions between Cabo Verde and Senegal have
resulted in the signing of some protocols.

The establishment of the International Cabo Verde Trade Fair as a measure that could foster
commercial trade with the Africa region, has not yet had the expected leve l of participation;




                                              49
in the same manner that the participation of Cabo Verde in fairs and other commercial events
in the region has had little expression.

Nevertheless, the informal sector has been the main propeller of commercial trade between
the member countries.

Regional integration, as function of a certain degree of economic development and social
stability, presumes the existence of regional groups for market expansion, the mobilization of
external aid and financing, but individual problems and cons traints of individual member
countries have prevailed over regional objectives.

The complexity and heterogeneity of the system of payments and the circulation of capitals,
the absence of regular maritime connections, the precariousness of the transportation and
communication systems, the lack of dissemination of the region’s potentials, and the non-
fulfilment of different protocols signed constitute the main blockades for community
integration. Other constraints such as political crisis and internal conflicts have made the
consolidation and functioning of the Community very difficult.

The combination of efforts to attract operators from the countries members of the
Organization becomes pertinent.

Some commercial agreements were established with member countries in the field of air
transportation but their implementation has met with many obstacles.

Cabo Verde’s integration in the CILSS

Through this organization, a set of efforts and initiatives has been developed. The
formulation of perspectives through the Sahel 21 programme and the overall programmes
constitute one of the important marks in the life of this organization that comprises 9
countries in the region affected by drought. This institution, established in 1973 by the
Sahelean States affected by drought, as a regional framework for cooperation and solidarity,
saw its role strengthened within the strategic thinking process as an instrument of regional
cooperation and integration.

With support from its partners, CILSS has contributed to the mobilization of public aid to
finance national and regional programs I favor of its member states in the field of food
security, renewable energies, regional trade, training in related sectors, population and
demographic research.

Cabo Verde’s integration in the CPLP and PALOP.

CPLP is regional block of countries from different sub-regions that share the same cultural-
historic ties and is recognized internationally. This group, which integrates countries like
Brazil, Portugal, Angola, Mozambique, Guinea -B issau and S. Tomé e Príncipe and East
Timor, develops, in partnership, projects with support from external entities and partners,
namely the European Union, in the framework of the IV EDF (V Lome Convention), UNDP
and the Swiss Cooperation.




                                             50
Cabo Verde maintains relations with Portugal in all domains. In the commercial field,
Portugal is still the main exporting and import market. The major foreign investments
implemented are from Portugal.

Cabo Verde has benefited considerably from the technical cooperation with Portugal, where a
considerable number of qualified professionals are trained.

In regard to the exchange policy, one should note the exchange cooperation agreement signed
between Cabo Verde and Portugal. However, the Cabo-verdean escudo was depreciate d in
relation to the dollar at the end of the year, on average, 102.7 escudos/dollar.

With Brazil, Cabo Verde maintains technical cooperation relations and this country is
currently the main host-country for Caboverdean students who wish to get their higher
education studies. Commercial trade has intensified. However, informal trade still holds
primacy. The regularity of air and maritime transportation are the main obstacles to the
development of further commercial trade with this country.

Efforts to attract companies from Brazil country have been developed constantly and the
areas of interest begin to emerge. Such examples are the oil sector, training, etc.

The Community of Portuguese Speaking Countries (CPLP) was created with the objective of:

       -Establishing political-diplomatic     articulation   among    member     countries   in
       international relations issues;

       - Cooperation, particularly, in the cultural, social, economic, juridical and scientific
       fields;

       -Implementation of projects aimed at promoting and disseminating the Portuguese
       language.

Economic and other relations under the framework of the established ACP/EU, in the Lome
Convention, include the preferential access of ACP products to the European market. The
constraints verified have rendered difficult to take advantage of these facilities. The embargo
imposed on fish products and the weak agriculture production constituted the main obstacles.

The establishment of free-zone enterprises gave new impetus to exports. Apparel and shoe-
wear are now the main p   roducts directed toward the European and American markets. In
1992, they represented 92% of exports in goods. However, as soon as the requirements of the
European market are fulfilled exports of fish products will resume.

We underline that this is the main import and exporting market with 77.3% and 80.3% of the
total, respectively.

In the framework of AGOA (African Growth and Opportunity Act), the new US initiative for
trade development with sub-Saharan African countries, new opportunities emerge for the
commercial sector.




                                              51
On the other hand, Cabo Verde has developed intense trade relations with a group of islands
called Macaronesia (group of Atlantic islands). The geographic proximity and the easy
penetration into the groups market have contributed to increment relations and exchanges.

3.2.4 Human resources development

Considered the main resource of a country deprived of natural resources, a vast range of
actions have been implemented targeting training, capacity-building and qualification of
human resources and their well-being.

Data from the Census show a resident population of 434 625 inhabitants, of which 53.9% live
in urban areas and 46.1% in rural areas.

Population density reached 109.1/inhab./km2 in 2000, against the 85.7 in 1990. In the main
population centres, Santiago and S. Vicente, the population density is of 296 and 237
inhab./km2, respectively. Population density in Praia alone went from 317 inhab/km2 to
393.9 in 2000.

Projections show the residing population evolving from 450 489 in 2002, to 475 948 in 2005
to 523 103 in 2010.

According to UNPD reports, the development index went from 0.423 in the beginning of the
decade to 0.715 in 2000, placing Cabo Verde in the fourth position in sub-Saharan Africa and
in the hundredth position wor ldwide. The table below presents the main indicators that
contribute to define the human development profile.

Human development profile in Cabo Verde
Life expectancy Adult       literacy Gross schooling Real GDP per Human
at birth (years) rate (%)            rate            capita (US$) Development
                                                                  Index
70,8             75                117               1 263            0,715
Source, Report on Human Development, UNDP 2002-2005

With the school age population accounting for one third of the total population, the education
sector has been seeking to improve education quality, at va rious levels, under the sign of
human and social development. The fundamental objective is the integral / full development
of the human being according to humanistic principles and the improvement of labour force
in accordance with labour market requirements.

Preschool education faces many problems with adequate infrastructures, training of
teachers, territory distribution and economic situation of families that oftentimes limit the
children attending this school level.
The universal access to 6 years of compulsory education, along with social programs,
contributed to reduce the failures and dropouts. The gross schooling rate in basic education
has reached 117% in the school year 2000/2001, while the net rate was of 96%. The rate of
students that repeat the year reached 12%.

In school year 1997/98, the average annual growth rate at the EBI was of 4.1% and 4.9% for
teachers; the percentage of qualified teachers increased from 54.9% In 1993/94 to 56.4% in


                                             52
1997/98 and to 70% in 2000/2001. The ratio student teacher went to 28. The rate of
attendance by the female population is the same as for the male population in the EBI.
The first years of the reform were accompanied by large increase in the number of students
and by the pressure on resources (the number of students went from 69 823 in 1990/01 to 90
640 in 2000/01) 2.
The main concerns have to do with the qualification of teachers and their distribution to the
different municipalities in the country, with quality education, using didactic material,
adequate curricula, the solving of return to illiteracy in rural areas, school failures and the rate
of dropouts among the needy groups.

In the secondary level, the number of effective students, following the EBI effect,
quadruplicated during the period, going from 9 586 to 43 384. Demand is registered above all
in the main population centres and with the perspective of making this education level
compulsory demand tends to be even greater.
The expansion of secondary education as a result of the implementation of universal basic
education unleashed an unprecedented process of generalization and pressure on resources.
The need for immediate responses oftentimes led to lower quality services due to the use,
again, of double and triple class shifts in some municipalities, the lack of infrastructures,
reverting of classrooms destined for basic education, all this in spite the unprecedented efforts
to build education facilities in the different municipalities, which revealed to be insufficient
above all in the main urban centres. Funding is another issue that is raised with much
seriousness.

To extend compulsory education to 8 years is a final decision taken, bearing in mind the
                         th
universal access in the 7 and 8th grades. The gross schooling rate rose to 65% and the net
rate to 54% in 2000/2001. At the secondary level, the annual growth rate in 1997/98 was
28.6% against the 8.7% in 1993/94. The student/teacher ratio went from 24.8 in 1993/94 to
23 in 1997/98; this at the national level, because in the urban centres the situation registers
much more pressure.

Higher education is still a project that needs to be materialized.

The main constraints facing higher education are financial sustainability and definition of
priorities.
The State has been the main financing entity for the education system. The financing system,
through banking institutions, and the retro      -fed education fund through scholarship
reimbursements did not bring the expected results. The assumption by the State to finance
higher education in foreign countries b   rought on unbearable burden to the State budget,
questioning the capacity of the system’s continuity and financial balance.

The reduction of the number of students being hosted in foreign universities (and the
scholarship financing) in third countries, forced the State to assume the training costs, by
creating financing mechanisms using the banking system that revealed as inefficient.




2
    INE, PND 2002-2005


                                                53
Although the University of Cape Verde was formally created in 1997, the existing education
establishments are not integrated into a university and each one is governed by its own
statutes. As a consequence of the lack of internal offers for post -secondary education,
students who finish secondary education look for alternatives among foreign institutions with
scholarship support. On the other hand, there is lack of articulation between the courses
chosen and labour-market needs.

Private education was recently established in the country with the Institute Jean Piaget, which
offers courses in different areas of humanities and sciences. The Institute currently has 570
students, and is in the phase of expansion to respond to the increasing demand. The institute’s
supply and diversification capacity outlines a framework where higher education supply
tends to be assumed by the private sector.3 Also in São Vicente another institute, the Higher
Institute Isidoro Graça, was recently installed providing training in the filed of humanities.

The higher education network currently comprises the Higher Education Institute (ISE), The
Agriculture Training Centre (INIDA), the Higher Institute of Engineering and Maritime
Science (ISECMAR), the Higher Institute of Economics and Business (ISCEE), the Jean
Piaget University and Isidoro Graça Higher Institute.

The greatest challenges in orde r to consolidate and expand higher education in Cabo Verde
have to do with: (i) financial sustainability (with co-participation by the beneficiaries); (ii) to
adapt choices of courses offered to the country’s development needs; (iii) specialization of
trainers; (iv) research applied to the country’s development needs; and (v) develop distant-
learning in order to increase training capacity and reduce costs.

During school year 2000/2001, there were a total of 2 202 students enrolled in higher
education institutions both in country and in third countries, being 640 in local institutions,
that is about 31.7% of the total.

Professional training has not being able structured itself to respond to the social demands and
the economy’s great needs in terms of qualified labour force. In spite the isolated projects and
actions conducted for professional training, learning and youth occupation, there are still
organizational indefinitions and gaps that do not allow us to properly speak of a true
professional training system.

The recent adoption of a legislative package with the aim to give professional training the
necessary framework is a first step toward the implementation of the professional training
system and its articulation with other education sub-systems, with companies and other
training institutions.

There are several institutions that provide professional training courses tailored to satisfy
demands but without the necessary articulation among themselves.

The need for coordination between these institutions and their training activities as well as the
need for definition of policies, execution and evaluations in the sector led to the creation of
the Employment and Professional Training Institute in 1994. In this same year, the National


3
    C.f. Cabo Verde. Review of Education Public Expenditures, 2000.


                                                       54
Employment Board was also installed comprising representatives of the government,
employers and workers.

The Employment Support Fund was created with the objective of financing training and
professional insertion projects and programmes, supporting micro      -enterprises and small
income generating initiatives. During the 1997-2001, 77 short-term training projects were
approved and benefited 1334 trainees. However, the sector still faces a persisting and
important challenge that is self-sustainable funding for training and the decent ralization of
funding to peripheric islands.


Technical training integrated in the secondary education is not significant, neither in terms
of supply (only 4 secondary schools, with a number of students representing only 4% of the
total) or in terms of demand. In terms of demand, the prevailing expectation is that secondary
education is seen as a transition phase to higher education, which devaluates technical
education. Complementary professionalised training (FCP), foreseen in the Base Law of the
education system, is supposed to assure complementary training at the end of each cycle of
technical training, providing a certified professional qualification. However, these trainings
have not been significant.

 The sector’s main constraints are the sustainability of mechanisms for professional training
and micro-credit promotion and financing, which reveal to be inconsistent, and the low basic
training level of a significant portion of the active population.

Adult education and literacy

Illiteracy receded c onsiderably in the past years, going from 37% in 1990 to 25% in 2000.

Illiteracy rate is unequally divided throughout the country. Some regions and municipalities
present illiteracy rates much higher than the average, going up to 40% in some cases.

On the other had, “illiteracy is associated to women’s greater propensity to poverty (32% of
adult women are illiterate and also represent greater portion of poverty in the rural areas 34%
of illiterates against the 11.1% in the urban areas. 4

                n
The reduction i the illiteracy rate in the past 20 years was to great extent due to the State’s
financial efforts than due to the participation of private companies, one of the main
beneficiaries of the qualification of workers. Given the gradual reduction of resources made
available by international cooperation, the key issue for literacy and adult education has to do
with involvement and commitment of private employers in the struggle against illiteracy.

The main challenges are: a) substantial reduction of illiteracy rate among the age group 15-49
years, namely amongst women and in the rural areas; b) to increase the adult’s qualification
level by resorting to distant learning as a strategy to increase the target population and reduce
training costs; c) life-long profe ssional training to improve the professional insertion of
adults.



4
    C.f. Dada from the 2000 Census. Also see Report on theReview of Education Public Expenditures, 2000.


                                                       55
Between 1994 and 2001, about 6000 youths attended basic professional training courses
through the implementation of income generating micro-projects. Of these, more than two-
thirds were women.

A public reading network and mobile libraries targeting mostly rural communities were set
up as support to the literacy process. All municipalities have autonomous adult education
units.

The main problems have to do with the resurfacing of illiteracy among the target group ages
15-49 years (considering the dropout rate in the basic education system) in rural areas.

According to the 2000 Census, the country’s population ages 15 and over with an economic
activity and employed was of 141 725, of which 3 868 were temporarily absent. Thus, of the
total employed population, according their economic activity and occupation, 1 454 were
employees with higher education degrees in the Public Administration, directors and staff
members working in enterprises; 6 209 people performed activities in the group classified as
“experts, intellectual and scientific professions” and 6 176 people were in the intermediary
level.

In the economic activities, the highest number of employees are the unqualified workers with
37 939; farmers and qualified agriculture and fisheries workers with 30 007 employees;
craftsmen and similar arts with 23 786; vendors and service personnel with 18 515 people.

The populations’ overall qualification level is low and there is great concentration in the
urban centres. The incentives established with view to fix this population in other urban
centres were not applied. In 2000, the Public Administration employed 14 000 people.

The education system, which is essential in order to meet these challenges, is still confronted
with various constraints that, in turn, are aggravated by the existing institutional fragilities.
They are constraints of financial, material and human order as well as constraints with the
geographic distribution criteria and the low participation of the society, etc.

The private sector still does not have a business community capable of bidding on the
economy’s diversification and development.

        Table 5: Resident Population with 4 or more years of schooling
      Training level                                               Total
      Total Population                                                   434 812
      Population with 4 or more years of EBI (%)                            55,6
      Population with 4 or more years of secondary level (%)                18,6
      Population with 4 or more years with associate degree (%)               0,5
      Population of 4 years with higher education courses (%)                 1,1
      Illiteracy rate among population with 15 or more years of           25,2%
      age (%)
      Enrollments in universities and other education institutions         2 202
      Secondary level                                                     44 748
      Basic level                                                         90 640
      Middle level                                                           577
        Source: INE, 2000 Census



                                               56
Health services

The development strategy for the health sector is based on the fundamental principles of
equity in the provision of health care and access to services adopted at international
conferences. The overall objectives consist in improving the population’s access to health
care, increase the efficiency level of services rendered and reduce child and mother mortality
rate. Satisfactory results were achieved during the last two decades in several areas such as
child vaccination, the fight against diarrhoeal illnesses, including the eradication of some
diseases, the increase in infrastructures and health professionals, while reducing the
inhabitant/doctor ratio that in 1995 was of 1/2675 and lowered to 1/2441. The ratio
nurse/inhabitants went from 1/1807 to 1/1435.

Life expectancy at birth is estimated at 70.8 years, being 66.4 years for men and 73.4 years
for women.

The fertility rate lowered, going from 5 children/woman to 4children/woman.


Infant mortality rate was estimated at 45.1/1000 and 33.4/1000 in 2000. Under five-child
mortality rate lowered from 59.8 per thousand in 1995 to 28.2 /1000 in 2000.

The main causes are infectious and parasite diseases, respiratory illnesses and prenatal
complications.

The vaccine coverage rate for children under 1 year of age was 69.1% in 1995 and increased
to 55.1% in 2000.

Overall mortality rate, at 7.9 in 1993, reached 9.1 over a thousand in 1995 due to the cholera
epidemic registered during the period 1994/96 and evolved to 6.6 in 1999.

Mother mortality rate was 34.7/100 000 in 1999. The mother mortality rate registered in 2000
was 76.1/100 000, a rate much higher than the average rate for the past years. The number of
child-deliveries assisted by health professionals went from 49% in 1993 to 54% in 1998.

The main causes of death among the population in general are the persisting diseases of the
circulatory system and cerebral vascular system. These were only surpassed by infectious and
parasitic diseases in 1997, during a cholera outbreak.

From 1991 to 1995, death caused by infectious and parasitic diseases were much higher than
deaths by causes; but from 1996 to 2000 there is a clear regression.

Tuberculosis is still a public health issue and its incidence is observed in the past years by its
interaction with HIV. In 1995, TB prevalence was of 5.9/10.000 inhabitants, and rose to 6.8
in 2000.

                                                                                        -
The AIDS prevalence rate in 1998 was 28.4/100 000 inhabitants and there is an estimated 1
2.5% HIV prevalence with tendency to increase, with predomination of the HIV2.

The evacuation of the sick to Portugal, due to the lack of means in the country, has very high
costs for the health system. The main causes of the evacuations are neo-palsies, traumatisms,


                                               57
cardio-vascular diseases, congenital malformation, and renal insufficiency. The number of
people evacuated went from 237 in 1995 to 240 in 2000.

These results are a consequence of the improved access level and service quality in the public
health and reproductive health care and the population’s improved living hygiene conditions.
However, there are differentiated variations on the levels of under-1 child mortality, being
highest in the urban centres than in rural areas. This fact is due to the bad living conditions
and sanitary infrastructures registered above all in surrounding neighbourhoods.
Nutrition is influenced by the cultural eating habits, deficient hygienic conditions, lack of
water and financial resources. Therefore, one may conclude that the sanitary situation is
closely linked to the sanitation and water supply, to poverty and schooling level.

The percentage of the population with piped water was of 24.8% in 2000, while 70% had
access to a drinking water supply system. However, the population with access to sanitary
services went to 54.5% in 2000. The accelerated urbanization (54% in 2000 against 44% in
1990) registered in the nineties was not accompanied by the necessary construction of social
equipment and infrastructures. In the City of Praia, only 8% of the population is connected to
the sewage system and 24% have septic sewage units. About two-thirds of the population
does not have access to sanitary equipment. The basic sanitation project, under execution,
with the objective of expanding the public system network is not yet functional.
Waste collection and treatment using containers and trucks improved significantly but is still
not enough to meet the real demands.

A set of problems still persist regarding nutrition, diarrhoeal diseases, acute respiratory
infections that are still the main causes of mortality, AIDS and other transmitted diseases,
lack of infrastructures, etc. The provision of primary health care, above all in the capital city,
is considered inadequate.

The fast-growing population rate leads to a set of problems that aggravate the already fragile
and difficult living conditions.

Among other problems, poverty stands out as it affects about 30% of the population, followed
by environmental degradation and the pressure and degradation of natural and other
resources, the insufficient response capacity of sectors like infrastructures and education,
water supply and sanitation, health, spontaneous emergence of urban agglomerates,
increasing unemployment rate, in addition to the already known endogenous constraints.
Unemployment and poverty are priorities, considering their reflex on all social and economic
activities, such as food security, health, education, and environment. I sum, in improving the
living conditions and improving the economic development process. Unemployment rates are
still high in the main urban centres – Santiago, S.Vicente, Sal and Fogo. These islands are
also the ones with the highest demographic growth rates. They have strong attraction on
labour force due to the concentration of the economic activities in the urban centres that, in
turn, result in a set of problems (exception made to Fogo). The impact of the different reform,
promotion and private investment programs has not yet produced the expected results, that is,
increased job positions.

The new alternatives to this situation should be directed to the specialization of labour force
for the market, diversification of the sectors of the economy, expansion of the productive



                                               58
base, through coherent policies that should always take into account that unemployment is a
relevant social and economic indicator.

The socio-economic path followed in the last years has been satisfactory. However, it is
marked by some imbalances and fragilities that put at risk the results achieved. The increased
current expenditures and internal debt, the persistence of high unemployment rates and
poverty are still factors of concern.

With a GDP per capita estimated at 1330 dollars in 1999 and 1263 dollars in 2000 and ranked
amongst the countries with a medium level of human development index, the country’s
situation becomes a complex one in light of the international organizations’ foreign aid
policies.



New Information and Communication Technologies

The perspectives for economic development require a profile and a high cultural level of the
human resources at the service of sustained development.

New information technologies gained considerable pace both in development and utilization.
New technologies are occupying a fundamental role in bringing communities closer together,
in terms of information and training, and investigation.

In the field of telecommunications, telephone density per each 1000 inhabitants went from 6
in 1994 to 14.2 in 2002. In April 2000, the number of Internet subscribers amounted to 1 913
and there were about a dozen cyber-cafés.

At the level of the Central Administration, Internet and intranet services were installed,
connecting government services and diplomatic missions abroad.

On average, about 3 000 computers are imported annually. However, the penetration level of
the new technologies is still low. The utilization rate by institutions and individuals is of
0.015 computers per inhabitant.

The use of new information technologies in the education system is still at an embryonic
phase.

Poverty reduction program

The truth is that the population’s living standards did improve in the past years. Nevertheless,
a significant portion of the population is still very vulnerable and, as such, subject to many
risks. Its survival depends on foreign aid and seasonal public works. The poverty situation
affects above all single-mothers, unemployed and unqualified individuals, and the rural
populations.

Poverty and unemployment continue to constitute a social hazard that affects a significant
portion of the Cabo-verdean population. Unemployment is most evident among the young
population. According to data from the migration and employment observatory,
unemployment rate was 24.2% in the fourth quarter of 1999, among which 26.9% were
women and 21.9% men.


                                              59
Of these, 42.5% of male unemployed and 27.6% of female unemployed were to contract
termination; 6.3% and 2.3% respectively of male and female unemployed were due to
shutdown of enterprises, and 2.5% and 1.1% of unemployed male and female, respectively,
were due to the privatisation or restructuring of state owned enterprises.

According to the Human Development Report, human poverty index in 2000 was 20.8%. In
the area of sanitation considerable advances were made but are still insufficient to satisfy the
needs of the population and of tourism development. In 1995, the water supply coverage rate
was 42%. In 2001, this coverage rate went up to 54% and then to about 82% in 2002.

Poverty affects mostly the rural population and women head of households. It affects 46% of
the rural population a nd 17.2% of the urban population.

Given the country’s reduced area of arable land, its structural deficit in terms of the
production of food products and prolonged droughts, food security depends largely on
commercial imports or food aid that for the needy population strata has a fundamental role
for their subsistence.

In the housing sector, construction projects implemented throughout the past years in all
country’s municipalities considerably reduced the waiting list.

In the area of economic and social infrastructures the poverty reduction program financed by
the WB has a strong component for the construction of infrastructures.
The intervention of wide diversity of both government and non-government entities in
activities targeting vulnerable groups needs better coordination in order to able to assess the
social and economic impacts of their actions.

In the framework of decentralization and local or regional development, local governments
may play an essential role for, as authorities for local development, they should have in-depth
knowledge of the local reality and of the population’s needs and priorities. In turn, the
Government, as the guarantor of the country’s balanced and harmonious development,
through the formulation of national development policies may, in articulation with local
governments, find common priority areas of intervention that reflect the interests of the
population and of development. To this end, it is necessary for them to strengthen their
management capacities.

This decentralization should go beyond traditional decentralization. The promotion of
decentralized cooperation leads to new forms of partnerships between union organizations,
NGOs, economic operators and the public powers.




                                              60
4. TRADE, INVESTMENTS AND INSTITUTIONAL CAPACITY BUILDING


The development of Cape Verde is dependent on its capacity to participate in the world
economy.

National accounts show that the GDP structure is dominated by the tertiary sector, namely
trade, civil construction and public administration services. The services sector is critical for
Cape Verde’s economy, in particular for the tourism industry and related activities. Cape
Verde’s bet to specialize the commerce and service sectors is supported by the national
accounts and is reinforced by the country’s geo-strategic location. The development of
tourism, the creation of free-trade zones (1998) and the establishment of export-oriented
companies, and transhipment services are some of the areas of specialization to be explored.

Trade

The internal consumption of essential goods and the (energy and equipment) supply to
national industries cannot be guaranteed by national production.

In order to satisfy the needs in imports, the country counts on resources generated from
revenues from the service rendering and tourism, from foreign investments promotion in
export oriented productive activities and private and public transfers, including emigrant
remittances.

Internal trade is characterized by a strong dynamics in the private sector, both formal and
informal, in the purchase and reselling of all types of goods, with special emphasis on
essential food products.

If on one hand the needs in terms of basic essential goods are assured at about 80 to 85% by
imports, on the other hand the needs in terms of goods and heavy equipment and petroleum
by-products are 100% assured through imports.

Exports usually cover for about 4.5% of imports, illustrating the weakness of the trade
balance. Exports of goods represent only 10% of total exports and are mainly concentrated on
apparel and shoe-wear, given the prevailing embargo imposed on fishing products.

Services represent the essential part of exports (about 90%) and more than 70% are
concentrated in tourism and air transportation.

The trade and financial liberalization policy, the unaffectedness of public reserves, the
increase of bulk importers, the dynamics of the sectors’ promoting entities (Chambers of
Commerce) and the transfer of retail trade licensing to Municipal Authorities brought new
dynamics and contributed to diversify the supply markets, improve supply quality and
intensify competition in the domestic market. The pricing system is mixed and results
basically from market functioning mechanisms and also from the maximum price regime for
some products and the fixed price regime for fuels.

The main components of the Government’s trade policy at the domestic level includes market
regulation and regulating mechanisms, modernization and capacity building of the trade
sector.


                                               61
It is necessary to establish efficient regulation, regulatory and inspection mechanisms. The
competition regulating policy is based on economic and technical gains and on product
diversification. Independent market regulating agencies to regulate the situations of
monopolies and issues related to product price, quality and quantity emerged following the
privatizations.

There are difficulties in monitoring and creating infrastructure and other conditions for the
functioning of the informal sector, whose dynamics and competition capabilities are well
known.

Legal dispositions have been published on price regimes, on the defense of competition,
imports liberalization, the definition of juridical regimen for the trade sector and the profile
for importers of essential food products, and consumer protection. These legal instruments
are in the phase of being regulated. On the other hand, a series of legal instruments should be
revised or prepared regarding imports made by emigrants, including quality control and
consumer protection.

In the context of market economy, it is essential to promote economic and social policies that
allow assuring adequate supply of food products and facilitate the populations’ economic and
physical access to basic essential food products. This situation reveals the reciprocal
responsibilities of both the State and the Private Sector in implementing the social objectives,
requires efficient market regulation and mitigation of the social impact of ongoing reforms.

The concerns regarding environmental defense led to the creation of an ecology tax applied to
imported products in non-biodegradable packages. Domestic production of non-
biodegradable material is non-existent in the country but applicable legislative measures are
already in place to deal with possible future cases. The country has a sanitary and phyto-
sanitary control system in place at the entry sites and has signed trade, sanitary and phyto-
sanitary Protocols with some neighboring countries establishing the list of authorized
products for trade transactions. The main motivations behind the creation of such a control
system is the safeguarding of national production, public health and environment.

The development and diversification of foreign trade is conditioned by the weak productive
basis, the high cost of production factors, international competition, insufficient economic
infrastructures and the own limitations of the national business community operating in the
field.

The main components of the foreign trade policy is the country’s adhering to the World
Trade Organization – WTO – process is ongoing, and the activation and participation at
different international negotiating fora: WTO, UNTACD, ICC, ACP/EU, PALOP, etc. Cape
Verde believes that joining the WTO will stimulate and accelerate exports growth.

Foreign trade is presently characterized by the State’s complete absence as direct economic
operator. It is also characterized by the smallness of the market, little diversification in terms
of the import markets for goods and an increasing comp   etition.

At the international level, some important measures have been taken, namely the delivery of
the Memorandum on Cape Verde’s Foreign Trade Regime to the World Trade Organization,
the signing of the AGOA Agreement and adherence to Canada’s New Initiatives.


                                               62
Investments

The new investment policy aims at promoting and encouraging a fair and transparent
business environment for both national and foreign private investors, and is applicable to any
sector of activity. One of the objectives is to stimulate the dynamic of the private sector in the
country’s development process. However, it anticipates and safeguards possible threats to
national security, to the environment and to public health.

Foreign direct investments (DFI) evolved favorably between 1994 (43 million dollars) and
1999 (260 million dollars). In the past years, the efforts to attract direct private investments
have been successful both in terms of the quantity and the quality of investments. The private
sector has been privileging investments in sectors related to tourism development. In 2002,
investments in tourism industries and exporting light industries augmented significantly. In
effect, the current policy is aimed at giving dynamics to investment promotion in the tourism
and tourism related areas.

Public investments are financed in 80 to 85% through grants and external loans and have
been mainly concentrated on transportation (road, airports and ports), basic sanitation and
                                                              atisfactory pace but are still
school infrastructures. These investments are being made at a s
far from meeting the country’s needs.

Regardless the considerable advances made in the last years, the national financial market is
experiencing the heavy burden from the banking monetary sector; it is little diversified and
has few financial instruments available. It still shows some deficiencies deriving from the low
development level of payment systems, information systems and low competition among
operators.

The global administration modernization strategy (already prepared) gives priority to actions
aimed at greater liberalization and furthering of the financial sector. Thus, it favors the
promotion of para-banking entities, namely, risk capital and credit recovery ventures.


The liberalization of exchange operations aroused the opportunity for restructuring the
national exchange policy. In 1998, Cape Verde signed an Exchange Cooperation Agreement
with Portugal, which establishes a fixed parity between the Capeverdean and the Portuguese
escudos and, in turn, extensive to the Euro, the European Union currency. Under the terms of
the agreement, Cape Verde places itself at the disposition of adopting macroeconomic
guidelines that safeguard the fixed parity.
The fixed parity between the Cape Verde escudo and the Euro will very much likely
minimize the negative effects of the Dollar’s exchange rate fluctuations. In all, the policies
and measures adopted aim at stimulating investments that are very much necessary for Cape
Verde’s development.




                                               63
5. MILLENNIUM DEVELOPMENT GOALS AND SD IN SIDS

Based on objectives established throughout several thematic conferences held in the 90s, in
September 2000 about 190 member states of the United Nations Organization adopted the so  -
called Millennium Development Goals (MDG), which consist in achieving the following
goals by the year 2015:

1 – Reduce Extreme Poverty and Hunger,
2 – Assure Basic Education for All,
3 – Promote Equity between Genders and the Self-determination of Women,
4 – Reduce under-5 Child Mortality,
5 – Improve Maternal Health,
6 – Combat HIV/AIDS, Malaria and other diseases,
7 – Assure a Durable Environment, and
8 – Implement a World Partnership for Development.

For the Small Island Developing States (SIDS) the Millennium Goals fit the objectives of the
Plan of Action of the 1994 Barbados Conference on Sustainable Development.

Outlined below are the various efforts and initiatives developed by the State of Cabo Verde,
throughout these years, following the Barbados Conference, as well as the perspectives for
achieving the Millennium Goals and Sustainable Development.


5.1 Poverty Eradication

According to data from the 188/1989 Survey on Household Expenditures, about 30% of the
then residing population was considered poor. Currently, according to preliminary results
from the 2001/2002 Survey on Household Expenditures and Income, about 29% of
households in Cabo Verde are poor, which in absolute terms, and based on demographic
perspectives from the National Statistics Institute, represents160.000 people.

Considering that poverty is, in Cabo Verde and in the world likewise, an important
phenomenon to take into account, and that it contributes to the Country’s development, the
successive Governments have been engaged in concrete development programs on the fight
against poverty.

Thus, as of the second half of the 90s, a National Poverty Alleviation Program was adopted
with the overall objective to promote durable poverty reduction in the country and, more
specifically, promote the integration of poor groups and communities in the national
development process, improve the social indicators of the poor and strengthen institutional
capacity at the central, municipal and local levels to formulate, coordinate and establish
policies and activities on the fight against poverty.

The NPAP’s priority target groups are women, above all, women head of households; the
unemployed, namely unemployed youths; the so -called vulnerable groups; and workers of
high intensity public labour force – FAIMO.

The NPAP was budgeted at around 7.484.800.000$00, equivalent to about 74 million USD.



                                            64
Although living conditions did register improvements in the last decade (for example, about
half of families have access to electricity – 72% in urban areas and 21% in rural areas, 2 out
of every 3 households use gas to prepare their meals, 2 out of every 3 households have a
radio, 40% of households have a television set, one-third have a refrigerator, and 7 in every
100 cabo-verdeans have a car), under a process of national planning, the government, with
support especially from the World Bank, since 2001, has been developing a Poverty
Reduction Strategy Paper (PRSP) whose intermediary version was presented in January 2002.

The poverty reduction policy is put into perspective in logic of sustained and long-term
economic, social and human development, sustained on the following:

   -   Promotion of economic growth, through a broadened internal productive base and
       export promotion,
   -   Improved living conditions,
   -   Capacity building of the poor, so that they themselves may be the engines of positive
       changes to leave poverty. In this aspect, special attention is given to policies for
       micro-financing and capacity building for employment and self-employment. It is in
       this logic that is included the reverting of FAIMO, which is oriented by vectors that
       include the withdrawal of the State and local governments from the execution of
       public works, private sector participation and the diversification of activities and their
       integration aimed at local development, through, namely, the support of a public
       works execution agency, AGECABO (Cabo -verdean Agency for Public Works).

The short-term perspective is to conclude the final version of the PRSP, using a participatory
approach, based on a consultation process that includes workshops and forums at both the
national and regional levels. The participation of the poor population strata will be through a
light-qualitative survey, to allow defining poverty reduction strategies and objectives that are
in with the reality and that will contribute to the effective improvement of the living
conditions of the poor.

In parallel, at a more private level, incentives programs will be developed to improve the
living conditions, namely in the area of social and economic housing promoted by the
Institute of Housing and Real Estate Development (IFH) whose objective is to provide the
younger population with access to adequate housing.

In the field of rural development, community programs are being developed with the farmers’
associations, through the exe cution of rural engineering and forestation works, with support
from the US Cooperation, through the PL 480, community-based programs conducted with
farmers’ associations by executing rural engineering and forestation works.

All these actions are ultimately aimed at reducing poverty among the more needy strata of the
population and serve as the lever for the country’s sustainable development.

5.2 Education and Reduction of Child Mortality

Education has always been one of the priority areas of developme nt in Cabo Verde; right
after independence it was elected as a priority sector for investments. In the last round of
consultations with the development partners, education was presented as one of the five
priority programs.



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Following the same logic, the strategic objectives for education have as reference the 2000
Dakar Agenda on Education for All and the Millennium Declaration on Education, which
place education at the centre of strategic attentions essentially aimed at improving the access
and quality of school learning, in respect to the principles of equity and gender.


The net schooling rate was about 96% in 2000, while the gross schooling rate reached
117.1% in the same year. On the other hand, the repetition rate in 1999 was 11.2% and the
dropout rate 3.3%. In 2000, both the ratio for student – grade and student – teacher was 28,
while the ratio student – classroom was of 51.

The Government Program for the VI legislature (2001-2005) as well as the Main Options of
the National Development Plan (2002-2005) include as strategic objectives to be followed the
achieving of education for all, the promotion of equity and improvement of preschool
functioning so as to create the conditions for its progressive generalization, Improve the
quality of Basic Education, Adequate the Secondary Education resources to the development
requirements and combat illiteracy and promote adult education / training.

These objectives will be materialized namely through the expansion and consolidation of
school coverage; priority to education quality focusing efforts on the learning processes and
results; correction of disparities in the access to compulsory education, giving priority to
peripherical regions and least favoured communities; and through the redefinition of the
objectives and strategies for adult education, which in turn will be supported by:


   -   Construction and preventive maintenance for school, specially in areas in most need;
   -   Renovation of teacher training activities;
   -   Strengthen school libraries by providing pedagogic kits;
   -   Adequate new pedagogic management and coordination models to school
       functioning;
   -   Adapt some existing schools as well as new ones to children with special education
       requirements.
   -   Strengthen the coverage of cultural circles in the 1st phase of literacy and adult
       education and consolidate the 2nd and 3rd phased, with priority to the group age of 15
       to 49 years giving special emphasis to females;
   -   Promotion of continuous training of animators through distant-learning and regulating
       the animation activity;
   -   Articulation with NGOs, Civic Associations, Municipal Authorities Churches and
       other partners aimed at social and community development;
   -   Strengthen the role of mobile libraries; and
   -   Integrate the literacy and adult education component into income generating activities
       in the perspective of the fight against poverty.


To finance the Education for All National Plan, the Government of Cabo Verde will count on
the support of about 6 million Euros, financed by the Netherlands through the World Bank,
for a 3-year period.




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The health policy is based on the basic principles of equity in the provision of health care and
access to services and on the prioritization of geographic and socially disadvantaged areas.
                                          e
It also pursues the strategies and prioriti s defined worldwide and supported by Cabo Verde,
namely the “Health for All Strategy”, the “World Summit on Children” Declaration and Plan
of Action, the “International Conference on Nutrition”, the “ World Conference on
Population”, and the “Internationa l Conference on Social Development”.

In global terms, this strategy has produced results, mainly with regard to reducing infant
mortality. In 1995, infant mortality rate was of 45.1%, having dropped to 42.2% in 1997, to
30.6% in 1998, to 29.1% in 1999 and to 23.1% in 2000. In turn, mortality rate in children
under 5 years reduced from 59.8% in 1995 to 55.5% in 1997, to 38.1% in 1998, to 36.6% in
1999 and to 28.2% in 2000.

This was achieved above all thanks to the development of the following actions:

   -   A Broad Vaccination Program.
   -   A National Nutrition Program. With view to promoting exclusive breastfeeding, the
       « Child Friendly Hospital Initiative » was introduced in the Regional Hospitals of
       Ribeira Grande and Santa Catarina. IEC activities were intensifie d through the
       production of a leaflet for mothers and other audio-visual materials, training for health
       professionals and young promoters and campaigns commemorating the theme.
       Likewise, other actions were conducted, such as:
           o Publication of a Commercial Code on Breast milk Substitutes;
           o Salt iodisation, with a national workshop held to disseminated the results
             from a study on micro-nutrients deficiency and the preparation of a Plan to
             combat Iodine deficiency in three fronts: the feasibility study on salt
             iodisation, a workshop for salt producers and the project for the production
             iodised salt.
           o Vitamin A enriched food.
The country’s current health program expects to reach the following goals on infant mortality
reduction by 2005:

   -   Reduce pre-natal mortality rate by 20%.
   -   Reduce infant mortality rate to 20%.
   -   Reduce maternal mortality rate to 43%.
   -   Reduce under -5 mortality rate to 28%.

Based above all on the strengthening of competent structures at the Health Ministry for
planning the PAV needs, in purchasing and distributing vaccines and vaccination material t
health structures, as well as the inter-sector collaboration to assure the production and
exclusive commercialisation of iodised salt, commercialisation of breast milk substitutes,
consolidation or implementation of the Child Friendly Hospital Initiative at different health
structures and, in capacity building health promoters with IEC actions on vaccines, diarrhoea,
IRA and nutrition.




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5.3 Gender and Empowerment of Women

Gender policy and women empowerment in Cabo Verde is guided based of the guidelines
from International Conferences on Women’s Rights (Nairobi, 1989), on Human Rights
(Vienna, 1993), Population and Development (Cairo, 1994), Social Development
(Copenhagen, 1995) and on Women (Beijing, 1995), all presented under the form of a
National Plan of Action for the Promotion of Women.

From the plan’s evaluation (1996-2000), it was clear that there were significant progresses
made in different areas. In education, for example, the access rate for boys and girls to
different education levels is as follows:

      -   Basic Integrated Education: 51.3% Boys and 48.7% Girls,
      -   Secondary Education: 49.6% Boys and 50.4 Girls,
      -   Ensino Médio: 58.1% Boys and 41.9 % Girls,
      -   Higher Education: 67.0% Boys and 33.0% Girls.

In employment distribution by sex, it is noted that within the Public administration women
make up for 49.1% of civil servants, though they are placed in the lower-salary categories.

The participation of women in politics is also obvious in the Cabo-verdean society. Both in
1995 and in 2000, women represented around 11% of all Parliament Deputies. If in 1991,
women represented only 6% among member of the Government, in 1996 this portion grew to
12% and in 2002 they represented about 30% of the members of Government. The evolution
of women’s participation in the bodies of Local Government is also visible; they even
doubled they presence from one legislature to another, going from 8% in 1995 to 16% in
2000.

The current National Plan for Gender Equality and Equity (2001-2006) has as main objective
the presentation to competent entities of proposals for measures aimed at the full
empowerment of women through respect for gender equality and equity.

Among others, the plan proposes to:
  - Increase literacy rate among women,
  - Increase the access of women and girls to all education levels,
  - Increase professional training for women and girls,
  - Combat all forms of violence and discrimination against women,
  - Strengthen legal mechanisms on family protection,
  - Increase women participation in decision-making bodies and power structures.


5.4       HIV/AIDS, Malaria and other diseases

The first cases of HIV/AIDS were registered in Cabo Verde in 1986. In 1997, according to
available data at the time, HIV prevalence in the Cabo-verdean population was estimated at
between 1.5% and 2%. According to available data, based on model techniques, about 3000
people aged 15 to 55 years are infected with HIV.




                                              68
Available data from the Ministry of Health Epidemiological Department, based on declared
cases of HIV notified by the Hospitals between 1994 and 2000, show that cases of AIDS is
rapidly increasing in the country.

Aware of this world pandemic called AIDS, still in the 80s, the Government of Cabo Verde
prepared, within the Health Ministry, a National AIDS Program directed by three
professionals.

Having noted, namely through the experience of other countries, that the HIV/AIDS epidemic
in countries with programs exclusively attributed to the health sector continued to spread in
spite the efforts made, the Government of Cabo Verde prepared a multi-sector national
strategy for HIV/AIDS – the 202-2006 National Strategic Plan for Combating AIDS with the
objective of reducing the spread of HIV/AIDS in the Country. The strategic development
process counted on the participation of the central government, municipalities, NGOs,
UNAIDS and other international donors. This strategy is broad and multi-sector, covering a
great spectrum of prevention, cares and support interventions. For its implementation, it
envisages the participation of different stakeholders, including the central Government,
municipalities, NGOs, private sector and donors. At the central level the Plan is coordinated
by a “Coordination Committee to Combat AIDS (CCS-SIDA)” that depends directly on the
Office of the Prime Minister and is presided by the Prime Minister himself, with the
Secretary of State for Youth as vice-President.

The target group is the whole population of Cabo Verde, with greater focus on groups with
highest risk of infection or of spreading the virus, such as those already infected with
HIV/AIDS, youths, street children, pregnant women, seamen, sex professionals, migrants,
road workers and other long-distant constructions workers, businessmen, fishermen,
militaries and pr isoners.

With the implementation of the Strategic Plan, it is expected to:
1 – Reduce the number of new HIV/AIDS cases, by reducing the HIV transmission rate by:
    - Changing the risk behaviour related to HIV infection,
    - Improved access to condoms,
    - Reducing the rate of sexually transmitted diseases, and
    - Reducing the number of mother to child infections;

2 – Increase the productive life of AIDS bearers by:
    - Improved intervention and treatment of opportunistic infections, namely tuberculosis,
    - Availability of nutritional supplements to bearers of HIV/AIDS;

3 – Improve diagnosis, treatment and care to HIV/AIDS infected by:
    - Expanding counselling services and voluntary tests to all municipalities and
       communities,
    - Dissemination of standard-protocols and training for health care providers on the
       clinical treatment of sexually transmitted diseases and opportunistic infections related
       to HIV/AIDS,
    - Improving planning, acquisition and distribution of diagnostic kits and essential
       drugs, including retroviral, if necessa ry;

4 – Improve the capacity of communities, families and individuals to prevent or face
HIV/AIDS impact through community based activities; and


                                              69
5 – Improve the economic situation of orphans and families affected by HIV.

The total cost of the Nationa l Strategy Plan is estimated at about US$20 million, and already
the amount of US$9 million have been secured by IDA.

With regard to Malaria, the hypo-endemic situation is of low -transmission, with cases being
registered only sporadically. However, due to the existence of positive “live cultures” in
surroundings close to residences, the presence of immigrants coming from areas with high
endemic levels and the deficient housing and environmental sanitation conditions, an
important strategy was set up to combat malaria, through the dissemination of messages in
the mass media, production and diffusion of audio-visual material.

Still in this regard, various specific capacity building actions were carried out in the areas of
epidemiological vigilance and laboratory services, targeting mainly doctors, nurses hygiene
and epidemiological professionals, laboratory professionals and basic sanitation agents.


5.5    Environment

In Cabo Verde, the development and implementation of environmental policies registered
two distinctive phases: one of conservation (until 1990) and the other of production.
However, for a certain period of time, in terms of sustainable development, these policies did
not bring the benefits that one would expect.

The situation is normalizing with Cabo Verde joining and ratifying international treaties and
agreement and with their integration in the national juridical framework, namely those
resulting in the Code of Conduct for Responsible Fishing, the Convention on Biologic
Diversity, the Convention on Climatic Changes, among others.

Presently, the vision of environmental policies has evolved, and environmental preservation
measures are considered in a systematic, crosscut and participatory manner and are also
intended to be equitable. In 1995, the process for environmental protection was
institutionalised. The Ministry of Agriculture became the Ministry of Environment,
Agriculture and Fisheries (MAAP), including a Directorate General for the Environment
(DGE), responsible for the coordination of environmental policies, with the following tasks:

1- Participation in preparing the Plans, Programs and Projects for environmental and natural
resources activities, among which:
    - Prepare the National Program of Action for the Fight Against Desertification and
        implement other actions in the framework of CCD;
    - Prepare the Strategy and Plan of Action on Biodiversity and implement other actions
        in the framework of the Convention. This includes strategies and actions to be
        implemented within the next 10 years and that are basically aimed at resolving the
        major problems in the field of biodiversity, and alternative income generation
        activities should assume an important role in minimizing the pressure on indigenous
        fauna and flora in Cabo Verde;
    - Prepare the Strategy and National Plan of Action on Climatic Changes and implement
        other actions in the framework of the UN Convention on Climatic Changes. The
        works conducted in the framework of this Convention indicate a relatively good air


                                               70
       quality in Cabo Verde dur ing greater part of the year. The implementation of actions
       foreseen in the National Plan of Action on Climatic Changes will allow to address the
       issue of air pollution in an appropriate manner;
   -   Prepare and implement the National Forestation Program of Action;
   -   Prepare the Plan on Territory Management, as well as execute the existing territory
       management plans for the islands of Boa Vista, Maio and Sal;
   -   Strengthen the Legislative Framework.

2. Foster the development of alternative development technologie s with low polluting
features

3. Create and manage at nationwide level the environmental quality vigilance system.

Since the mid nineties, all intervening actions related to the environment sector have been
based on a National Environment Plan of Action (NEPA)

The first National Environment Plan Action (NEPA I) was prepared in 1994 and the
positive balance assessed is that, with the NEPA I) important measures and projects are
underway, with emphasis to the creation of a national network for protected areas, the
promotion of Integrated Production and Protection, the National Plan of the Fight Against
Desertification and reforestation programs, the implementation of a national environment
information system, the revision and update on legislation on the water and land
utilization, among others. On the other hand, cabo-verdeans today are well aware and
conscience of environmental problems.

After eight years, it justifies the need to review this instrument, as foreseen, with view to
strengthening the links between the objectives, the policies, the intervening strategies and
actions, assimilating the horizontalness of environmental problems and seeking a higher level
of complementarities among actions and taking advantages of existing synergies. This review
is also justified by the need to strengthen the structuring role of territory management in the
distribution of people and activities, as well as in definition of infrastructures and
identification of sensitive or conditioned areas.

Thus, the 2002-2012 NEPA II is at an advanced stage of preparation, with the financial
support from the Netherlands.

The overall objective of the NEPA, as a plan on environmental policies, is to define the
strategic guidelines for utilization of natural resources, as well as its effects on the sustainable
management of economic activities, so that economic and social development may be
sustainable and, therefore, achieved within the limits allowed by natural dynamics and
behaviours.

NEPA’s intention is to project the country’s future development in a way as to assure the
maximum satisfaction of the needs of the present generation, without compromising the
needs of future generations.
In specific terms, NEPA aims at:
    - Promoting the efficient and effective utilization of natural resources, with emphasis
       on energy, water, soil, sea and the biodiversities components in general;
    - Maximize development potentials by guide-lining the functions and utilization of
       resources;


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   -   Promoting the adoption of more efficient and less polluting technologies for the
       utilization of natural resources;
   -   Promoting the populations’ participation and engagement in the sustainable utilization
       of natural resources and environment conservation;
   -   Assure a sustainable management of the biodiversity;
   -   As a political instrument of guidelines, contribute to the populations’ food security.

These objectives are to be achieved through concrete actions, namely in the priority areas
below:
   - Increase water availability, through an integrated and sustainable management of
       water resources, as established in the National Vision for Water;
   - Basic sanitation, including collection, treatment and appropriate elimination of solid
       waste – both organic and inorganic – and of domestic and industrial effluents;
   - Sustainable manageme nt of the biodiversity, including the preservation of
       ecosystems;
   - Territory management, including management of urban and rural areas, coastlines and
       water basins.

5.6 Partnership for Development

Cabo Verde has always sought to develop a partnership of dialogue and cooperation with its
development partners, and throughout these years, has conducted several consultations /
round tables to present the results achieved and future objectives. The last consultation
meeting with development partners took place on April 29 and 30, 2003, in the city of Praia.


It is based on these partnerships that all major public investments were developed in the
Country, namely the construction of airports, ports, roads, school and hospital infrastructures,
basic sanitation infrastructures, etc., with the main partners being regional and international
financial institutions, the European Union, some friend countries and the agencies of the
United Nations System. About 80 to 85% of public investments realized every year in the
framework of the Overall State Budget are financed through resources from these institutions
and countries, which alone is evidence of the high level partnerships developed with the
exterior and, on the other hand, also shows the country’s high level of d ependence on Public
Development Aid as well as the country’s increasing need to develop more external
partnerships.


These partnerships are established at various levels, both bilateral and multilateral, depending
on the area of intervention and establishe d objectives. In the past years, various actions were
develop with view to strengthening and consolidating the economic development process,
among which we highlight the following:
   1- With view to reduce the internal public debt, in 1998, a Trust Fund was established
      with the concurrence from all development partners. The Fund should have amounted
      to 180 million American Dollars, of which 80 million were to be supported through
      privatisation revenues, and the remaining 100 million through donors’ contributions.
      Due to several constraints, it was not possible to feed the fund in the originally
      proposed amount and, consequently, it was not possible to overcome the country’s
      internal debt problem. New efforts are now being developed, along with development
      partners, to conclude the process.


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2- In the framework of a macroeconomic stabilization and structural adjustment program
   and the strengthening of public finances, the Government of Cabo Verde and its
   partners agreed on assessing the public finances management, through a Country
   Financial Accountability Assessment – CFAA, and a Public Expenditures Review,
   both globally as well as in some sectors, such as the Education, Health and
   Agriculture and Fisheries sectors. This policy is principally supported by the World
   Bank, the European Union, the International Monetary Fund and the Netherlands.

3- With view to obtaining a strategic poverty reduction instrument / paper, Cabo Verde
   has been developing a close partnership with the IMF and the WB with regard to the
   PRSP, which in the medium term will facilitate achieving the millennium objectives.
   As referred in 4.1 above, the intention is to conclude the final version of the PRSP
   through a participatory approach and always in articulation with the WB and IMF (an
   intermediary version was delivered in January 2002).

4- At another level, and with a more commercial characteristic, the Government of Cabo
   Verde has adhered to the “African Growth and Opportunity Act – AGOA”, an
   initiative sponsored by the American Government, for the free access of African
   products to the US market, as well as to the New Initiative sponsored by the
   Government of Canada, on the same issue.

5- Another enormous effort being developed by the Government of Cabo Verde at the
   commercial level is the country’s adherence to the World Trade Organization, which
   will strengthen the country’s commercial capabilities and opportunities. The country’s
   joining the WTO is scheduled for this year still.

                                                                        as
6- At the regional / continental level, the Government of Cabo Verde h had an active
   participation, at all levels of the development process of NEPA, a new partnership for
   Africa’s development, whose main objective is to combat the delay registered in the
   development of African countries, through major investments in regional and sub-
   regional projects. The established goals will give impetus to the continent’s
   development, thus facilitating the achievement of the Millennium Development
   Goals.




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5. SPECIAL NEEDS

As a small island country, made up of a group of islands, deprived of any type of relevant
natural resources, Cabo Verde faces uncountable difficulties in its development process, that
has always been supported by the international community.

In this perspective, Cabo Verde has always combined the efforts to strengthen national
capacities and capabilities to exercise prospective, strategic planning and economic
management functions with efforts of systematic articulation with the development partners,
in a framework of general roundtable exercises, both thematic and sectored, always organized
with support from the UNDP.

The roundtable sessions provided room for profound dialogue on politics but also made it
possible to give sequence and install resource mobilization processes in order to respond to
the financing nee ds of such and such sectors of activity and constitute useful mechanisms that
mobilize partners and national and international economic operators who together, and with
transparency and in the spirit of solidarity, discuss the concerns of ones and others. Likewise,
these roundtables stimulated other cooperation mechanisms, namely the regular and ad hoc
meetings that the Government organizes with its bilateral and multilateral partners.

At the last consultation meeting with the partners, in April last year, where the priority
strategic axis for development for the coming years were presented, it became obvious that,
aside from strengthening human resources, one of the country’s major needs is financial, and
                                                                 -5
is estimated at about four hundred million dollars for the next 4 years.

This financial need should serve to cover the existing financing gap in areas elected as
priority for a sustained development. That is:
   -   Macroeconomic stabilization and domestic debt,

   -   Infrastructures and Territory Management,

   -   Education and Valorisation of Human Resources,

   -   Public Administration Reform and Modernization, and

   -   Environment

These priorities interpolate the State, the private sector and the civil society on the need to
create the capacities and mobilize specific competences in order to respond, by executing
concrete programs, to the criteria of efficacy and efficiency that are so dear to development
but always very delicate to achieve more so in the context of Small Island Developing States.

To make this capacity emerge is one of the major challenges that lay ahead for Cabo Verde.




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