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afrol News, 11 April - The Cape Verdean government has defined five areas of priority in its economic and financial policies for 2002-04. These include the promotion of good governance; support for private sector-led growth and the broadening of the productive base; the development of human capital; the promotion of a holistic approach to fighting poverty; and a balanced development of infrastructure across the territory of Cape Verde. The Cape Verdean Minister of Finance and Economic Planning, Carlos Augusto Duarte Burgo, presented these priorities in a letter to the International Monetary Fund (IMF). They have already been approved by the national parliament, he informs. Cape Verde has received substantial financial and technical aid from the Fund. - Following a period of strong economic growth and accelerated implementation of structural reforms, the macroeconomic situation deteriorated considerably and the reform agenda stalled in the run-up to the legislative and presidential elections in early 2001, Minister Burgo admits. Following the elections, however, his new government that had taken office "committed itself to a substantial tightening of financial policies during the second half of 2001, as well as an acceleration of structural reforms." The negative trends had been turned, Burgo outlines. Over the medium term, the government was to focus on "maintaining macroeconomic stabilisation and a policy environment that encourages a broad-based increase in economic growth and poverty reduction." While economic growth decelerated somewhat in 2001, partially reflecting an uneven rainy season and the deteriorating global environment after 11 September, real GDP growth was "expected to increase significantly over the medium term." Burgo assesses that this growth would be led by "strong private sector investment and improvements in basic infrastructure, which will boost tourism and the nascent export sector, and by a continued strong performance in the construction and services sectors." The plan foresaw an increase of the annual rate of economic growth from 3 percent in 2001 to 4˝-5 percent by 2004. The program also targeted a broad-based reduction in poverty, including, in particular, a sustained reduction in infant mortality rates and an increase in life expectancy. The Cape Verdean government was now developing a comprehensive poverty reduction strategy paper (PRSP), which it expected to complete in 2002-03 and was to be based on the "well-developed poverty reduction strategy" of 1997-2000. The government was committed to improving the delivery of social services, including specific policies aimed at increasing the poors' access to social services; containing the spread of HIV/AIDS; and strengthening food security programs. Earlier social programmes had been successful, as infant mortality rates fell from 74 per thousand in 1987 to 56 in 1997, while life expectancy increased from 64 years to 68 years over the same period. Education policy - a sector of priority for the government of Prime Minister José Maria Neves - was given special attention. Particular emphasis would be placed on ensuring "that qualified students in Cape Verde continue to have access to tertiary education," Burgo writes. Overseas scholarships were already a substantial budgetary expenditure, although somewhat reduced in 2001, and needed donor assistance to remain sustainable. - Transparency and good governance in public finances are important objectives of the government, Burgo assured. Further, the government was planning for "a fully independent central bank" that was to become effective by end-June this year.
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