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Loftier Ambitions by David Lewis 20/08/2010
Unscathed by conflict or political instability, Cape Verde has quietly become a middle-income nation and looks set to be one of few in Africa to meet any of the Millennium Development Goals set for the measuring of progress in improving livelihoods. Yet it has loftier ambitions. In return for the special deals on economic and political cooperation with Europe, it increasingly plays a trouble-fixing role on the more unruly mainland some 400 kms away. It hopes to turn its location to its advantage by becoming a springboard for business in West Africa. And it thinks tourist numbers could soon match the countries population. "The fact that we don't have resources has made us creative" Fatima Fialho, Cape Verdes minister for tourism , industry and energy, told Reuters. "We are an economy in transformation -- moving from one of (aid) to one of production," she added, detailing plans for a service-based economy focusing on shipping and fisheries, providing a hub for technology and finance, and tourism. The Country is not without its challenges. The lack of rain means that over three quarters of its foods are imported. Cape Verdes response to the financial crisis has been to accelerate its public investment programme, known locally as the nations "Air Bag". This jas delivered on impressive upgrade of infrastructure, but also rising debt levels. Fitch rating in May said a Fiscal deficit of 12 percent of GDP in 2010 and 2011, and central government debt at 7 percent of GDP by the end of next year, should ensure long-term growth but will increase pressure for sound management.
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