Supporting success Economic growth in Cape Verde in the early 1990s

• Published in: Programme Aid and Development pp. 73 - 105
• Main Authors: White, Howard N., Dijkstra, A. Geske
• Format: Book Chapter
• Language: English
• Published: Routledge 2003
• Edition: 1
• Subjects: Development Performanc; Country's Independence; IMF Data; Swedish Aid; Colonial Elements; IMF Programme; Programme Aid; Cape Verdean; RRV; Swedish Programme Aid; Cape Verdean Economy; Humanitarian Aid; Public Sector Reform Programme; Bop Constraint; Domestic Debt; Enhance HIPC Initiative; SOE; USI; IMF Lending; ESAC; IMF Agreement; BCV; Adverse Incentive Effect; Bop Support; Programme Aid Funds
• ISBN: 9780415259880; 0415259886
• DOI: 10.4324/9780203770122-6

Cape Verde faces severe development constraints: poor natural resources, prolonged cycles of drought, 1 and small domestic markets. The scattered nature of the islands gives rise to costly communications and infrastructure. However, at US$1,010 per person in 1996, per capita income in Cape Verde is not low compared to the average for SSA of $490; 2 though this income is sustained by a very high level of remittances, 3 supplemented by high aid flows. In 1996 Cape Verde received over $300 per person in aid, which is one of the highest figures in the world and compares with the African average of $26 and that for low-income countries of only $8 (or $21 excluding China and India).