Challenges Facing Cabo Verde in Consolidating Strong Institutions

Cabo Verde is a country with great potential, but it faces several challenges that hinder its ability to consolidate strong institutions, promote a culture of results-based management, and further openness. In this article, we will explore these challenges and discuss the implications for the country’s development.

Limited Transparency: A Major Obstacle

One of the significant challenges facing Cabo Verde is limited transparency in government operations. The opinion of the Court of Auditors is not published, making it difficult for citizens to access information on mechanisms to improve doing business and access to credit.

Lack of accountability: Without transparent government operations, citizens are unable to hold their leaders accountable for their actions.
Inefficient decision-making: Limited transparency hinders the ability of citizens to participate in decision-making processes, leading to inefficient outcomes.

Supporting Transition: A Global Crisis

Cabo Verde graduated from LDC (Least Developed Countries) status during a global financial crisis, which made it challenging for the country to receive adequate support during this transition period. This lack of support has hindered the country’s ability to establish strong institutions and promote economic growth.

Insufficient resources: The absence of sufficient resources has limited the government’s ability to implement development projects and programs.
Dependence on external aid: Cabo Verde’s reliance on external aid has created vulnerabilities in its economy, making it susceptible to fluctuations in global financial markets.

Debt Sustainability: A Middle-Income Trap

The country’s classification as high risk of debt distress by the IMF and the need to find innovative ways of financing sustainable development while controlling debt sustainability have placed Cabo Verde in what is called a “middle-income trap.” This situation hinders the country’s ability to achieve economic growth and reduce poverty.

Debt burden: The country’s high debt burden limits its ability to invest in essential services such as education, healthcare, and infrastructure.
Inefficient allocation of resources: The need to service debt reduces the government’s capacity to allocate resources efficiently, hindering development efforts.

Human Development: Addressing Inequalities

Despite great strides in human development, Cabo Verde continues to face challenges, particularly with regards to inequalities for youth and women. Building capacities for innovation, intersectoral coordination, transparency, and addressing the pressure on state institutions are crucial to address these challenges.

Youth empowerment: Investing in education and training programs can help empower young people and reduce unemployment rates.
Women’s empowerment: Promoting gender equality through policies and programs can help women access economic opportunities and participate in decision-making processes.

Public Administration Reform: Institutional Capacity Building

Cabo Verde continues to face the need for public administration reform and institutional capacity building in an environment of ODA (Official Development Assistance) steep decline, fiscal constraints, and rising inequalities. This situation requires innovative solutions to build a more effective and efficient public sector.

Capacity building: Investing in training programs and capacity-building initiatives can help strengthen institutions and improve governance.
Institutional reform: Implementing institutional reforms can help reduce corruption and improve accountability within government agencies.

Sustainable Financing Strategy: Aligning with SDG Priorities

The Cabo Verde financing strategy must better link to SDG (Sustainable Development Goals) priorities, financing needs, and gaps. This requires a more integrated approach to development planning, which incorporates the needs of all stakeholders.

SDG alignment: Aligning the financing strategy with SDG priorities can help ensure that development efforts are focused on addressing critical challenges such as poverty reduction, climate change, and inequality.
Stakeholder engagement: Engaging with stakeholders, including civil society organizations, private sector entities, and community groups, can help identify financing needs and gaps.

Conclusion

Cabo Verde faces several challenges that hinder its ability to consolidate strong institutions, promote a culture of results-based management, and further openness. Addressing these challenges requires innovative solutions that prioritize human development, public administration reform, and sustainable financing strategies. By working together with all stakeholders, Cabo Verde can overcome these challenges and achieve its development goals.