In 1984, the drought reduced the harvest by 25% compared to the previous five years. According to Countryaah, the capital of Cape Verde is Praia. The current account deficit was $ 70 million and foreign debt reached $ 98 million. Still, the food distribution system and state efficiency prevented the country from being thrown into famine. Nevertheless, problems with malnutrition continue to exist in the population.
The lack of resources forced Cape Verde to depend on foreign aid from all sides. As a result, a number of projects in the “first development plan” collapsed.
In 1986, the “Second Development Plan” was launched, which focused on the development of the private sector – especially the informal sector – and in agriculture in the fight against desertification. The goal was, until 1990, to reclaim more than 5,000 hectares of land for agriculture and to introduce a comprehensive system for the administration and distribution of the country’s water reserves. During the first phase, more than 15,000 dikes have been built to collect rainwater and 23,101 hectares of forest have been planted.
Despite the miserable climatic conditions, a continued increase in agricultural productivity, which allows almost the entire population to be supplied with meat and vegetables, without having to depend on imports.
- Abbreviationfinder: What does CPV stand for in geography? Here, this 3 letter acronym refers to the country of Cape Verde.
The new government initiated a transition to market economy, privatized insurance companies, fisheries and banks. It was a demand from the international organizations on which the country was now largely dependent. Foreign aid now accounted for 46% of GDP, while another 15% came from the funds sent home by 700,000 of its foreigners abroad.
The Liberal government faced a 25% unemployment rate and declared itself willing to restructure the state. In the first months of 1993, the government declared that half of the 12,000 civil servants would be fired and prices would gradually be released.
The 1994 budget included cuts in public spending, but at the same time, public investment was to increase from $ 80 million in 1993 to 138 in 1994. The main areas of government investment were transport, telecommunications and rural development.
In January 1995, Prime Minister Carlos Veiga made important changes to his government to “facilitate the country’s transition to market economy”. One of the most important changes was the amalgamation of the ministries of finance, economy, tourism, industry and trade into a unified Ministry of Economic Coordination. Inflation stood at 6% in 1995 and the country’s economy continued to depend heavily on foreign aid – first and foremost from the EU.
Portuguese colony from the second half of the 15th century, it became an overseas province in 1951. The Partido Africano da Independência da Guiné e do Cabo Verde (PAIGC, 1956) which wanted to unify the two countries, in 1974 led C. towards the independence, which was proclaimed in 1975. Abandoned the unification project after the 1980 coup in Guinea Bissau, the PAICG (since 1981 PAICV, Partido Africano da Indêpendencia do Cabo Verde) remained at the helm of the country, obtaining moderate economic results, until the 1991 elections (after the establishment of multi-partyism in 1990), which were won by the centrist Movimento Para Democracia (MPD). In 1992 a new parliamentary constitution replaced the presidential one of 1980; various reforms were also introduced aimed at liberalizing the economy and reducing the country’s dependence on international aid. The political life of the country in the last twenty years has been characterized by the alternation of the PAICV and the MPD: in 2011 the PAICVPrime Minister JM Pereira Neves won the majority of seats, but the election to the presidency of JC Fonseca, supported by the MPD, in the September 2011 consultations forced the PAICV to cohabitate. The legislative consultations held in March 2016 instead brought the MPD back to power, which obtained an absolute majority and whose leader U. Correia e Silva assumed the office of premier, reconfirmed following the elections of April 2021, while in the month in October Fonseca received a second term in the first round of the presidential elections, obtaining 74% of the votes, and remaining in office until October 2021, when he was replaced by former premier JM Neves, elected in the first round with 51% of votes.