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COUNTRY EVALUATION

CAPE VERDE -

(2002-2004 e 2005-2007)

EXECUTIVE SUMMARY

Evaluators: Fernando Jorge Cardoso Jaime Lourenço Patrícia Magalhães Ferreira

IPAD

December 2007

The scope of this evaluation was the between Portugal and Cape Verde (PICs), Indicative Cooperation Programmes and the corresponding Annual Plans for

1 Cooperation (PACs), in the period 2002- manner, to the cooperation (including the 2004 and 2005-2007. Portuguese cooperation) priorities in general. Some ongoing actions should be In this timeline, Cape Verde has passed continued and reoriented, such as the through a development process that led to institutional capacity-building of the public its graduation from the list of sector (Finances, Plan, Justice, Defence, least developed countries, which recognised Security, ), education and the country positive developments and its training (support to the CV University, global management. These new realities and teachers training, professional training) and the international cooperation experience direct actions towards poverty alleviation point out the need to reinforce several areas (including civil society actions and the where will still be (or will Projects implemented by the Ministry of now be) important. Labour and Social Solidarity). Several aspects should be highlighted. As new activities or aspects to be reinforced, Firstly, regarding the cooperation’ results. It one can point out: providing direct budget is visible a contradiction between the aid and coordination/partnerships with other dispersed nature and the structured results cooperation actors. These actions are that Portuguese cooperation has had strategic, either for the reinforcement of the through the years, including the period capeverdian development capacities or for before this evaluation. It is rare to identify the gradual transformation of the Portuguese any island or sector where the Portuguese cooperation towards a more multilateral and cooperation (central, sectoral or non- untied cooperation. Finally, the ongoing governmental) has been absent. This changes in the country and the process of dispersion, while with discontinuous and integration in the economy also inconsequent features, was felt as a bridge requires the support to public-private between the colonial past and the present partnerships (between Portuguese ruled and leaded by the capeverdians; institutions and companies and with the Portugal has rapidly assimilated the new capeverdians), to the opening of new political reality, keeping the interest and the financial lines to infrastructures and the links in diverse areas – this is recognised by reinforcement of private sector investments the greater part of the actors and should be in employment-generation activities and noted in this evaluation. Nevertheless, the towards the increase in international structural results of the Portuguese competitiveness. cooperation (even if not structured in its elaboration) as been crucial in the financial Thirdly, an aspect concerning the sector – with the stability provided by the comprehensive nature of the Portuguese Exchange Rate Agreement and the financing cooperation in Cape Verde. The acquired of basic infrastructures – and in the support expertise, the reinforced links and more provided to education and institutional recent dynamics can promote the capacity-building of the public sector development of a more structured platform (including security and defence). In other for political dialogue between the two words, the cooperation between the two countries, about the main themes of the countries is perceived as very positive. international agenda, which will also allow to engage in a more strategic form of Secondly, some aspects regarding the cooperation. challenges for the future. The reality and the opportunities provided by the Cape Verde’s The following remarks correspond to the transition towards a middle development report’s table of contents and summarise country and by the special partnership with some of the issues addressed in the the point out to the evaluation. country’s priorities and, in an indirect

2 The Development and Cooperation International Cooperation in Cape Verde has Context had a fundamental role. In June 2007, the development partners gathered at the With a shortage in natural resources, Cape Transition Support Group to approve and Verde’s development depends to a large commit their support to the Strategy for extend of the social and political stability, of Cape Verde’s Graduation from the LDCs good governance aspects and of the List. Most donors have announced that the qualification and productivity of its labour change in the country’s statute will not imply force. a significant change in the aid amounts. The democratic regime is consolidated in the Cape Verde fulfils two of the three country, having held presidential, legislative graduation criteria established by the UN – and local elections since 1991, which have the and the led twice to the rotation of parties. Cape income per capita – but the vulnerability Verde is well placed to achieve the index /the third criteria) is still very high, Millennium Development Goals (MDGs) in even higher than some countries in conflict 2015; the national product have been rising or post-conflict situations. One of the main more than 5% in the last few years and the challenges is, therefore, to ensure a soft poverty rate will decrease to less than half of transition strategy, that can address some the 1990 rate in the next five years, if this aspects with potential negative impacts in its growth pattern is upheld. social and economic development.

Despite good development performance and Other important aspect is the recent gradual improvement in the business approval, by the , of a environment, Cape Verde is still largely Special Partnership Status with the EU, In depending on development assistance and this framework, Cape Verde will have access on the Diaspora (respectively to several financing instruments through its 13% and 15% of the GNP). If the country cooperation with the Ultra Peripheral wants to succeed in facing the challenges of Regions (, and the the graduation from 2008 onwards, the Canaries). weight of these elements in national income Only ten countries are represented at will have to decrease. In this sense, it will be Embassy level in , of which three are fundamental to carry on several actions EU members (Portugal, and ). towards the specialization and diversification Regarding the multilaterals, the most of the productive sector. Along with the relevant are the EU, the UN agencies ongoing investment in light industry, (UNDP, FAO, WHO, UNICEF, UNFPA and and transportation, one should also promote WFP) and the . the implementation of clusters that are very important in the future social and economic Since 2005, external aid to Cape Verde is development of the country, such as - being reoriented to direct budget support related activities and off-shores services (EU, AfDB, The Netherlands, Austria, Spain (banking, insurance, information and USA through the Millennium Challenge technologies). Account). In 2007, Cape Verde received some 26M⁄ of budget support, corresponding The medium-term Poverty Reduction to 7% of the state budget. The increase of this Strategy - Documento de Estratégia de aid modality, which is also used as a Crescimento e de Redução da Pobreza monitoring instrument for the DECRP, is (DECRP) – is the main framework (along positively regarded by the capeverdian with the Grand Options of the Plan) for the authorities that also ask Portugal to join. implementation of public policies for development, and a new document is now A second trend in ODA is the allocation of being prepared for the period 2008-2011. funds through decentralised cooperation (municipalities), either by budget support or

3 by capacity-building actions and direct necessary to engage in new aid modalities partnerships with the municipalities – Austria, (e.g. budget aid). France and the Netherlands have been Concerning the Portuguese cooperation implementing this modality. added value, there are some positive The context of Portuguese cooperation aspects: the historical ties and proximity deserves special attention in Cape Verde, between the two countries; the structured since it is one of the main donors. From 2005 results of the cooperation – although in onwards Cape Verde is the main recipient of many cases it was not conceived in an Portuguese ODA, representing 20,8% and integrated and structured manner – and the 22,4% of the Portuguese bilateral aid in 2005 fact that it has contributed to macroeconomic and 2006. The aid flows to this country have stability; the flexibility of the Portuguese been regularly increasing since 2002, with the cooperation in reorienting actions and exception of 2004 (due to the debt amounts according to the Capeverdian cancellation of the Angolan debt). The main needs and demands; the awareness of sector for aid allocation is still Education, shared responsibilities in implementing although decreasing since 2003; in projects and in the success/failure factors in comparison, there is an increase in aid to this implementation. infrastructures and economic services, The projects/programmes with higher particularly in transportation and stocking. execution rates are the ones in which there is a clear and detailed definition of the project fiches or plans of action, a regular Analysis of the evaluation’ questions: monitoring of the projects, the involvement of conclusions and lessons learned the Capeverdian counterpart in a close and The relevance and comprehensive nature of participative way in projects’ implementation Portuguese cooperation is widely recognised and also financial autonomy and/or and corroborated by facts, although there is management procedures that are suitable no specific strategy for the country, which and modern, to allow a greater flexibility and originated cooperation programmes that are rapidity in funds allocation. mainly lists of projects, without an integrated Some negative aspects can also be view in its basis. highlighted: inappropriate programming of Despite the projects’ profusion and several projects; inadequate management fragmentation, the cooperation priorities procedures; bureaucracy and disbursement remain mostly the same in the period 2002- delays; coordination difficulties due to 2006 and there is a continuity in the type of multiplicity of actors and channels – in cooperation that is pursued, which point out to Portugal and in Cape Verde -; the lack of a predictability of the programming in the synergies with other actors, namely the civil medium-term and in a pluriannual basis society and private sector. (contrarily to the annual logic of the PACs) The profusion of small projects is not The constant reorganisation of priority negative in itself, provided that it is ensured sectors and projects through the PACs the definition of a global framework to which reveals some inconsistencies, but one every single action can contribute, and also should also note an important qualitative if there is a balance with the elaboration of improvement from 2005 to 2007, namely clearer, well defined and harmonised with the transformation of disperse projects procedures. into more integrated programmes and the The visibility of the Portuguese cooperation’ reinforcement of monitoring and evaluation. actions is not proportional to the financial The PICs are implemented almost support and can be improved. exclusively by a project approach and it is

4 Human resources training and institutional is often a lack of continuity in the work capacity-building are some of the main developed through technical assistance and priorities for Cape Verde. The government’s short-term training courses. Some of the priorities are currently focused in Portuguese cooperation’ services/actors are professional training, technical education also not aware of what others are doing (e.g. and the development of higher education. bilateral actions versus multilateral contributions), which does not favour an The PADES –programme for support of integrated framework of action and secondary education – is an action of undermines the visibility of Portuguese significant scope, although it is difficult to cooperation (for instance the contributions identify the teachers’ contribution to increase towards United Nations projects in Cape the schools’ capacities. The Portuguese Verde). support to the Capeverdian University has structured results and is considered the most Regarding the contribution of social and relevant (in comparison to other donors), solidarity projects for poverty reduction, the indicating strong relevance, efficiency and actions implemented by the Portuguese sustainability. In the framework of technical Ministry of Labour and Social Solidarity are education, the Integrated Project for very much appreciated in Cape Verde, since Employment and Vocational Training has they contribute directly to improve the living very positive results, with good effects, of some of the most needed population. The impacts and sustainability. impact of these projects in communities is very positive, particularly in the most The actions of Portuguese cooperation in the vulnerable social groups. promotion of the are very timid beyond the education These projects have high execution rates programmes and it is done according to and are implemented in an integrated models that not correspond to the real manner. Their visibility at local level is more needs of Cape Verde. than proportional to the allocated funds. However, there are some concerns over the Regarding scholarships, the Portuguese sustainability of some of these actions in the support has been very positive in long-term. quantitative terms, Portugal being the main donor. The goal of improving human The participation and ownership by the resources capacities is, therefore, being Capeverdian institutions is much diversified achieved. In the future, the scholarships in the evaluated projects/programmes. policy should be reoriented to better match Several training and technical assistance the current needs of Cape Verde, namely by actions were defined in a fragmented increasing the post-graduate component. manner and with a short-term view, which Institutional capacity-building and state led to less positive results regarding reinforcement – including public sector ownership and sustainability (putting into use reform – are major priorities for Cape Verde. the acquired skills). Some of the training Portuguese Cooperation is better placed in courses were not planned in a way to human resources training, given the cultural provide local authorities will all the and linguistic ties, as well as the similarities necessary technical means to apply the in legal/institutional matrixes. theoretical knowledge in concrete actions with practical effects, therefore ensuring the The results in this are much diversified sustainability of these training actions. Short- according to sectors and projects. In term technical assistance actions should, general, there is not an integrated approach therefore, be part of integrated programmes, of institutional capacity development – either with a medium-long-term approach and by the capeverdian authorities or by the including several components, in order to Portuguese cooperation – in order to ensure maximise results and impacts. sustainability of results. In other words, there 5 In most cases, the procurement for projects characterised by a significant institutional of infrastructures’ construction/rehabilitation dispersion in the elaboration, implementation was implemented by the Capeverdian and financing of activities, which is authorities, which points out to the reinforced in the case of Cape Verde by the ownership of the process. The difficulties in important role of decentralised cooperation implementing some projects on architectural (between municipalities). patrimony were not related with ownership The lack of a well-defined framework for task issues. division between the coordinating institution In social and solidarity projects, local in Portugal (IPAD) and the sectoral participation and ownership are very ministries is very clear and has been significant. aggravated by the constant reshuffling within ministries and IPAD in the last few years. Regarding coordination and Many bilateral contacts were held between complementarity between donors, the ministries of the two countries without any Portuguese cooperation participates in the articulation with IPAD; the inclusion of existent coordination schemes (with the technical personnel from IPAD in sectoral exception of the budget support group) and missions to the field is still decided by the the Portuguese Embassy has been sectoral ministries. In this context, it is very promoting regular meeting with the EU important to strongly invest in coordination countries’ Ambassadors in Praia. mechanisms, in order to improve Intra-EU coordination is still incipient; there effectiveness. have been some meetings that allow some Political changes in Portugal and the information sharing but not an effective subsequent institutional reshuffling of coordination or complementarity efforts (that cooperation’ structures in the last few years can be the basis for a future division of have affected, jointly with budget constrains labour). At sectoral level, there are regular in this sector, the implementation and the technical meetings in the security sector with achievement of the Portuguese Cooperation’ other donors (Spain and France), which objectives. Within IPAD, some constrains in contributes to avoid duplications in police terms of articulation/coordination where also technical cooperation. identified. There are some problems of capacity and The Embassy’s capacity to perform all its coordination between the Capeverdian functions in an effective way is insufficient, structures that undermine their ability to take taking into account the human resources fully the leadership in aid coordination. available. Namely, day-to-day management Beyond the difficulties in inter-ministerial and administrative tasks represent a lot of coordination, there are also constrains in the time-spending, undermining the availability coordination of several services and to develop other functions in planning and at governance levels. strategic level. The evaluation concludes The vast majority of the Portuguese that programmes will also benefit from a cooperation’ projects is financed and reinforced and effective decision-making implemented by Portuguese actors, with capacity at field level (with the necessary very few examples of joint actions with other human resources), in relation to matching donors; Portuguese cooperation is not taking deadlines and necessities. This would allow advantage of synergies and opportunities of reinforcing qualitative monitoring of projects joint activities with other countries, such as and reducing the number of external Spain. missions. Regarding coordination and Some activities developed by the Embassy complementary between several actors of at field level have great local visibility and Portuguese cooperation, the aid policy is contribute to good image and positive

6 evaluation of the Portuguese cooperation actions with other donors (e.g. (either through the small projects fund or Spain) small projects financial line). These actions ° Join the group of direct budget have also a significant role in capacity- support; building of local civil-society organisations. ° Promote public-private partnerships; In general, funds allocated to Portuguese NGOs are incipient in the total amount of the ° Eliminate the annual PACs and cooperation and there is no strategy to define timetables, quantitative and promote the inclusion of these organisations qualitative indicators to monitor and in the Portuguese cooperation framework. evaluate the Portuguese Projects carried by these organisations and cooperation’ results; that are co-financed by IPAD are ° Improve administrative procedures, implemented in several years, which increase rapidity in disbursements contradicts the necessity to approve and decentralise to the cooperation financing in an annual basis. The two services in the field; analysed projects reveal very positive results. ° Promote the qualification and expertise of human resources in Support to Capeverdian civil society was IPAD, both at headquarters and field insufficient, given the relevance that these level; organisations have in the country and its significant role in poverty alleviation. ° Reinforce the Embassy’s capacity of decision-making, in order to Recommendations gradually transfer to the field: The evaluation presents some elaborating of the cooperation recommendations to IPAD, to the several programmes’ proposals; identifying actors of Portuguese cooperation and to the projects and a higher degree of Capeverdian authorities (see Chapter 4). autonomy in its management; Regarding Portuguese cooperation in carrying projects’ evaluations, etc; general, it should: ° Increase flexibility and rapidity in ° Internally elaborate a document on issuing visas to students and the Portuguese cooperation strategy officials, tacking advantage of the for Cape Verde, which can guide presence of a SEF focal point at field cooperation efforts and establish the level. Portuguese views, beyond the political negotiation of the PIC with the Capeverdian authorities; Regarding specific sectoral recommendations: ° Reinforce the participation of Portuguese and Capeverdian civil In Education/Human Resources training: society in the PICs’ implementation; invest in improving local capacities by training Capeverdian teachers; support ° Follow the new development phase higher education in the country; increase in Cape Verde, playing a significant post-graduate scholarships; continue role in the implementation of the supporting vocational training; elaborate a Special Partnership with the EU coherent strategy to support the Portuguese (Plan of Action); language, including the support to local ° Promote coordination and explore publication and distribution. the possibility of establishing In Institutional Capacity-Building: to continue partnerships and implementing joint developing capacities, by promoting participation and ownership of these

7 capacities by the Capeverdians (.e.g. in most vulnerable groups, also focusing in the health, reinforce local skills and gradual sustainability of these projects. infrastructures in order to decrease medical Concerning the definition of a Cluster of the evacuations); whenever possible, to include Portuguese cooperation in Cape Verde, the short-term activities in wider programmes evaluation concludes by the need to carry a that enfolds other elements (e.g. profound analysis and thinking on this issue, equipments, other technical assistance’ taking into account the comprehensiveness actions, etc); to invest in the Justice sector of the Portuguese cooperation and the small by promoting legislative capacity of the dimension/dispersion of the Capeverdian public sector in general. . In Solidarity and Social Services: to continue implementing support programmes to the

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