- Later this year, Cape Verde and the Maldives will be taken out of the definition group called "least developed countries" (LDCs) due to their "extraordinary development" during the last years. While this recognises Cape Verdean gains is also means less possibilities to receive foreign development aid for the two island states.
The UN's Economic and Social Council (ECOSOC) at the end of this year is to decide on the future status of Cape Verde and the Indian Ocean state of the Maldives. According to UN sources, the two countries then will stopped being defined as "least developed countries" but enter the group defined as "medium developed countries."
How a country is graded on this scale is crucial for its position when development programmes are designed. While the World Bank and the World Trade Organisation (WTO) accept positive discrimination in favour of LDCs, medium developed countries are expected to receive much less international aid. Since the late 1960s, the UN system has recognised LDCs as "the most vulnerable of the international community," thus operating several programmes to promote their economy.
Cape Verde for several years has been placed on the upper end of LDCs when they are ranged by social indicators. Life expectancy on the archipelago is now 70 years at birth; the double than that of several countries. 99 percent of Cape Verdean children are enrolled in primary school and over 80 percent of the population has access to health services. GDP per capita is among Africa's highest.
At the ongoing ECOSOC meeting, therefore, it was decided to review Cape Verde's and Maldives' status as least developed countries by the end of the year. A resolution was pass by 49 votes in favour and one against to make this review and to elaborate a strategy of a smooth transition to the two nations' new status. The possible negative effects of such a decision were thus recognised.
The representative of European Union at the ECOSOC meeting during the voting process praised the "extraordinary progress" made by the Cape Verde and the Maldives island states during the last few years.
For the Cape Verdean ambassador to the UN, Luis Fonseca, the news was a mixed blessing. While he said that his country had decided to accept the promotion of Cape Verde's status, he said the Praia government was concerned it would entail the loss of some of the advantages on which the country currently can count on.
- This decision will lead to that Cape Verde will lose some advantages, explained Mr Fonseca. This included "favourable conditions in terms of loans, benefits of technical assistance; all of which was called the privileges of this club to which, apparently, nobody wants to belong, but from where nobody wants to leave," Mr Fonseca stated.
According to the Cape Verdean ambassador to the UN, "with regards to Cape Verde, the government already has made the decision not to oppose to this reclassification. The objective now is to discuss and to try, together with the international community, to create a smooth transit to this group of medium developed countries."
Cape Verdean Prime Minister Jose Maria Neves already in February, during a political declaration at parliament announced the country's upcoming change of status. He told Cape Verdean politicians that, to avoid heavy consequences from this change, his government was to propose to negotiate this with the UN, with an aim of achieving a two-year to prepare for the change and thus entering a five to ten-year transition period.
- The government holds that while a possible redefinition of Cape Verde to the category of medium developed countries does not need to be over-dramatised, it is necessary that we all understand this as proof of a rightful recognition of our results following strong efforts from all parts of the national community, thus said Prime Minister Neves. While hailing the progress made in Cape Verde, he however also recognised that negotiations with the UN would be tough.
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