Cape Verde - Poverty reduction strategy paper (PRSP) second preparation status report and joint assessment

The Strategy of Growth and Poverty Reduction is an integral part of a strategic planning process led by Cape Verde, whose foundations are: the Major Policies of the 2002-2005 Plan, and the 2002-2005 National Development Plan (PND). This report details the main activities that have been completed to date, identifies the remaining actions for completion, and notes that progress has been made in most of the areas previously identified by the staffs as needing additional work. Cape Verde has been recording satisfactory growth rates, and improved living conditions for its people, as reflected in the increase in per capita incomes, and improved social indicators. However, Cape Verde itself remains very vulnerable in many respects, given a sizable proportion of its population faces continuing poverty. But, given its strong ties with the public investment programs, the privatization process, fiscal policies, education, health, agriculture, environment and infrastructure, the Growth and Poverty Reduction Strategy provides a broad forum for dialogue, and consultation as a way to rally behind an objective-poverty reduction-within an emphatically, nationwide framework. The report reviews the three stages of the strategy (the third still in progress), whose current approach places the poverty alleviation strategy at the centerpiece of policies, designed to promote economic growth in close coordination with poverty reduction, by focusing on various levels, namely: a) general (governance and macroeconomic policy); b) sectoral, taking programmatic form and targeting the social sectors of education and health; and, c) regional and local, highlighting participation and enhancing the effectiveness of decentralized policies, aimed at poverty alleviation. The joint assessment recognizes the strategy provides a good description of the process, and that progress on the Poverty Reduction Strategy Paper (PRSP) has been substantial. The poverty analysis, which has been responsible for much of the delays, is well developed, and has been informed by the finalization of national income, and product accounts through 2000. Some sector strategies have been presented in greater detail. There is also a useful discussion of administrative capabilities on the basis of the recently completed general Public Expenditure Review (PER), that focused on education, health, and agriculture, and the Country Financial Accountability Assessment (CFAA). The remaining PRSP preparation process will focus on pulling together the final document, and on winning endorsement from the National Coordination Committee for the PRSP, the Council of Ministers, and domestic and external stakeholders.