Policy Coherence For Development Manual - Cape Verde

POLICY COHERENCE FOR DEVELOPMENT MANUAL CAPE VERDE

Study promoted by Instituto Marqu锚s de Valle Fl么r and Platform of NGOs of Cape Verde February 2015

CREDITS Title: Policy Coherence for Development Manual: Cape Verde Publication: Institute Marquês de Valle Flôr and Platform of NGOs of Cape Verde Author: Patrícia Magalhães Ferreira Funding: European Union and Camões – Institute for Cooperation and Language Date: February 2015 Note: The original version of this document is in Portuguese. Translation to English by Marta Rocha.

This publication was produced with the support of the European Union. The contents of this publication are the sole responsability of the author and in no way can be taken as an expression of the European Union’s positions.

“(‌) the problem of decentralisation, i.e., the increasing approximation of decision-making bodies to communities; the problem of environmental protection; the problem of community participation in political decision-making processes, and its participation in budgets; the fundamental choices that the country has, through referendums, for example; but above all through the growing affirmation of what we call civil society. Efforts should be made so that more and more citizens can have the necessary instruments to influence political power, producing flows of ideas and proposals, for the State and the political parties themselves, ensuring at all times the very democratic nature of the Stateâ€?

Interview of Jorge Carlos Fonseca, President of the Republic, to Expresso das Ilhas, January 14, 2015

TABLE OF CONTENTS

INTRODUCTION ........................................................................................................................ 7

Part I - PCD as a concept and instrument for Development ..................................................... 10 1.1.

PCD as a principle, approach and instrument ........................................................... 10

1.2.

PCD in the international context and in the Global Development Agenda ................ 13

1.3. PCD as an European commitment ................................................................................ 17 1.3.1 PCD in the European Union ..................................................................................... 17 1.3.2. PCD in European countries..................................................................................... 20

Part II – PCD in Cape Verde ..................................................................................................... 26 2.1 PCD in Africa.................................................................................................................. 26 2.2. Development challenges in Cape Verde and the relevance of PCD ................................ 29 2.3. Cooperation policies and PCD instruments of Cape Verde external partners: opportunities for the participation of civil society ............................................................... 35 2.3.1. European and external dependence ...................................................................... 35 2.3.2. Development Assistance ........................................................................................ 36 2.3.3. Donors’ PCD mechanisms and opportunities for the Cape Verdean civil society ..... 41 2.4. Coherence of public policies and the participation of Cape Verdean civil society .......... 47

CONCLUSIONS AND RECOMMENDATIONS .............................................................................. 59

BIBLIOGRAPHY ........................................................................................................................ 66 Interviews/Meetings in Cape Verde: ....................................................................................... 70

LIST OF TABLES AND FIGURES

Figure 1: Bottlenecks for PCD Figure 2: The evolution of the PCD concept: international milestones Figure 3: Transformation and growth drivers Figure 4: Aid and major donors in Cape Verde Figure 5: Budget Support disbursements Figure 6: Development Partners’ Actions by Sector (July 2013) Figure 7: PCD in the national context Figure 8: Comprehensive and multisectoral vision of dam construction

Table 1: PCD promotion instruments in OECD Table 2: An example of good practice: The Global Approach to Development - Sweden

Box 1. The implementation of the Post-2015 Agenda: Challenges at national and sub-national levels, from a PCD perspective Box 2. Indicators (selected) of Development in Cape Verde Box 3. Good practices to enhance: Renewable Energy Box 4. The PRGSP III as an instrument to foster PCD Box 5. An example to consider: DAMS - Coherence or Incoherence?

ACRONYMS

ACP

Africa, Caribbean and the Pacific

NAMCV

National Association of Municipalities of Cape Verde

ODA

Official Development Assistance

BCV

Bank of Cape Verde

ECOWAS

Economic Community of West African States

PCD

Policy Coherence for Development

PRGSP

Poverty Reduction and Growth Strategy Paper

BSG

Budget Support Group

FDI

Foreign Direct Investment

MEHTP

Ministry for Environment, Housing and Territorial Planning

APRM

African Peer Review Mechanism

MFA

Ministry for Foreign Affairs

OECD

Organisation for Economic Cooperation and Development

MDG

Millennium Development Goals

SDG

Sustainable Development Goals

WTO

World Trade Organisation

NGO

Non-Governmental Organisation

UN

United Nations

CSO

Civil Society Organisation

CAP

Common Agricultural Policy (EU)

PALOP

Portuguese-Speaking African Countries

CFP

Common Fisheries Policy

DC

Developing Countries

GDP

Gross Domestic Product

LDC

Least Developed Country

UNDP

United Nations Development Programme

MIC

Middle Income Country

GNI

Gross National Income

OR

Outermost Regions

EEAS

European Union External Action Service

ICT

Information and Communication Technologies

AU

African Union

EU

European Union

UNECA

United Nations Economic Commission for Africa

EEZ

Exclusive Economic Zone

INTRODUCTION

Scope and Objectives of the Study

Based on two basic findings - first the alienation of the Cape Verdean population regarding political dialogue and development issues and on the other hand the monitoring deficit of development policies of the various donors in Cape Verde - the project "Policy Coherence for Development (PCD) - the challenge for an active citizenship in Cape Verde" focuses on the introduction, promotion, analysis and implementation of PCD as an instrument for monitoring the donors’ results and as a liaison mechanism between citizens and the political power, in order to achieve a more integrated and comprehensive development.

It is in this context that fits the preparation of this study, which aims to analyse the impact of various policies in development, identifying incoherences and good practices in order to contribute to the definition, monitoring and evaluation of Policy Coherence for Development in the Cape Verdean context. It is intended, in particular, to verify interactions between national policies, EU policies and other donors, in order to analyse its content, the donor country's decision-making process, the role of the various levels of governance in Cape Verde and of several stakeholders (public actors, parliamentarians, civil society). The ultimate goal is to contribute to capacity development and mobilisation of the Cape Verdean civil society for an enhanced monitoring of Official Development Assistance (ODA) and its impact on local development, through Policy Coherence for Development.

Methodology The methodology for the preparation of this study was based on three fundamental principles: •

The participation of various stakeholders, by collecting the opinions/perceptions of diverse actors (national and international present in the country), also to ensure the usefulness of this output to the relevant parties.

•

The knowledge and research on the central topic (PCD), as thorough as possible in the limited timeframe; this included the various aspects of this instrument, the difficulties and potentialities of its implementation, the most relevant sectoral areas in the Cape Verdean context and the various donor policies. The aim is to go further in identifying the constrains and the development potential of this instrument, based on a collection of in-depth information and concrete evidence which can feed the decision-making process.

•

The independence of analysis, since the documentation and information gathered is diverse and encompasses several perspectives on the same subject. The perception of each party is thus valued, without preconceived approaches or previously taken positions, ensuring transparency and independence of research.

The methodology was developed in three phases: −

Desk Review / Document analysis. Gathering and analysis of information about the project (project design document, the activities reports, studies and other 7

outputs or materials produced); on Policy Coherence for Development, either in general or with particular focus on existing reports and studies on Cape Verde and on other countries that already have experience with the PCD tool, in particular the main external partners of the country; specific documentation on sectoral areas, such as Fisheries, Agriculture and Environment, from a PCD's perspective. −

Interviews and meetings in Cape Verde. This phase included preparatory work (with the establishment of the list of key actors, national and international, to conduct interviews with, contacts with the support of the Platform of NGOs of Cape Verde to schedule these meetings, and the development of a semi-directed interview for implementation on the ground, to ensure comparable, complete and diversified data collection), followed by the conduction of individual interviews with a diverse range of stakeholders including representatives of international partners (mainly European), ministries, parliamentarians and representatives of civil society. Some written questionnaires were also carried out, to include responses from entities outside of Cidade da Praia or other entities to which personal interviews were not possible to conduct. The list of organisations interviewed is attached.

−

The drafting of the study, including an analysis of the data collected either by primary source (meetings and interviews) or secondary sources (documentary sources), according to a triangulation methodology of empirical analysis and reflection components.

Due to the comprehensive nature of the central theme of the study and the objectives thereof, the methodology of analysis focuses primarily on the levels Macro and Meso (international and national), with no place to a detailed analysis on the Micro level (namely municipal, local and community).

Limitations The main limitation encountered is linked to the nature and content of the theme, since PCD is, at first, a complex concept, difficult to understand and to apply.

The analysis could have dispersed a multitude of approaches and target groups, which would generate a fragmentation of little relevance and usefulness to the end result, which is to be clear, objective, concise and focused. This is because Policy Coherence for Development consists of "layers" that overlap, adding great complexity - for example, the coherence at the level of the international instruments, coherence among donors and between countries, coherence between the formal/ rhetoric level and the practical implementation of this instrument, coherence between international partners and the Cape Verdean government, coherence among the various levels of governance in Cape Verde, coherence between sectoral policies in the country, coherence between governmental actors and non-governmental organisations, and so on. The in-depth analysis of most of these "layers" consumes time and resources that are not available. This study is thus inevitably a partial analysis of reality, since it only focuses on some aspects of PCD, from a viewpoint they may be relevant for understanding this concept and its implementation in Cape Verde, by various actors.

Another difficulty has to do with the identification of good practices. Evidence of incoherences are always much clearer and visible than the positive examples, because the existence of "coherence" is usually not highlighted. Policy impact assessments are still scarce and knowledge inputs given by PCD are also rare or little known. Furthermore, the policy impact in 8

other sectors is much more clear and objective to assess (e.g. the environmental impact) than in the development area.

There is no single valid approach to PCD, i.e., the systems and tools implemented in this area vary widely depending on the local context, the actor who implements the system, or the sectoral policy that is being addressed. The study focuses therefore on identifying some examples and areas of action that may be relevant to the ultimate goal, which is to contribute to the capacity development and mobilisation of the Cape Verdean civil society for an enhanced monitoring of development.

Structure In addition to the Introduction and Conclusions/ Recommendations, the manual is structured into two main parts.

Part I is devoted to Policy Coherence for Development (PCD) as a concept and tool, as it has been used to promote development on a global scale. It is divided into three chapters: a chapter that explains the evolution of the theoretical approach of the concept and its practical implementation; one second chapter on PCD at the international level, in particular by analysing its potential within the Post 2015 Global Development Agenda; and a third chapter focused on PCD in the European Union, briefly analysing how PCD is applied within the European Union policies and also in the national context of the EU Member States.

Part II addresses PCD in its implementation in Cape Verde. In this context, a brief reference is made to the instruments that can promote PCD in Africa, at a continental level (first chapter).

Then, the development challenges in Cape Verde and the relevance of PCD in the current national context are reviewed (second chapter). The third chapter is dedicated to development cooperation policies and PCD instruments of Cape Verde’s external partners, analysing the external and European dependence of the archipelago, the trends of development assistance in Cape Verde, and the existing donors’ mechanisms which can foster PCD and provide opportunities for the participation of the Cape Verdean civil society. Finally, the coherence of national public policies and the participation of Cape Verdean civil society within this context are briefly addressed.

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Part I - PCD as a concept and instrument for Development

1.1. PCD as a principle, approach and instrument Policy Coherence for Development (PCD) is based on the recognition that several sectoral policies - such as agriculture, trade, security and defence, climate change or migration - have a profound impact on the development goals.

This means that all development efforts, the fight against poverty and improving the living conditions of the populations may be in vain if they are hampered or counteracted by other policies with harmful effects. In this sense, the PCD principle argues that the various sectoral should actively contribute to the goals of fighting poverty and promoting development or at least should not undermine these objectives.

This applies to various levels of governance, namely:

On a global level It is now recognised that the benefits of globalisation are unevenly distributed and that new patterns of consumption, production and use of available resources of the planet are required. The fact that the global architectures for trade, finance and environment are currently incoherent in many of its dimensions does not contribute to a just and equitable exploitation of these benefits.

Global policies that are development-friendly and fairer to developing countries could generate considerable gains for global development. Take the example of trade policy: protectionist barriers to trade continue to distort the rules of the World Trade Organisation (WTO); it is estimated that trade barriers cost Africa about USD 500 billion each year, which is about ten times the amount of aid allocated to the continent. Although trade and development are not always fully compatible, they can be more coherent through various measures. In particular, trade liberalisation must respect the social and environmental conditions established, for example, the rules of the International Labour Organisation (ILO) and these references should be included in the WTO agreements, to avoid social and environmental dumping.

The same can be analysed in relation to global policies on climate change, on international security, on illicit financial flows, on agriculture, biofuels and energy, among others. In a globalised and interdependent world, the composition of the global governance system, the participation in global-reach forums and the policies therein defined are fundamental to influence development outcomes.

On the relations between developed and developing countries While aid flows are targeted at promoting development, they are not enough to end poverty and generate growth, as these efforts can be enhanced or annulled by other sectoral interests. An example of an incoherent policy, in this case, is a donor granting aid to support the strengthening of the agricultural sector in a developing country, while simultaneously there are barriers in place to the export of that country’s agricultural

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products, and/ or local farmers have to compete with heavily subsidised agricultural production in the donor country.

Within Development, donors will be increasingly evaluated not only for aid, but mainly for their wider contribution to that goal1, which implies a review of its policies and agreements celebrated in matters as diverse as fisheries, migration, environment, energy, among others. This aspect will be further developed in the next chapter, with regard to European policies.

On the local/ national level Promoting coherence between public policies should be, first and foremost, a national responsibility. However, for countries and their governments, poverty reduction is one among many other goals - such as improving safety, increasing national competitiveness, etc. - that may be considered priorities. The balance between the interests of various interest groups, domestic and external, is not always simple or easy to achieve.

Within countries, public policies may be guided by other interests that undermine Development objectives; there might be clearly inconsistent actions that turn out to have important costs and negative impacts on the communities’ livelihoods. The various sectoral policies at the national level should therefore be assessed on a perspective of having contributed - or not - for the development of the country and its people.

This is even more relevant in countries where international development assistance programmes are in place, as policy makers have the added responsibility of negotiating agreements and approve donor programmes that effectively contribute to national development and that do not have negative impacts on the aid beneficiaries. Moreover, national policies should be consistent with the commitments made by each country at international level.

PCD can thus be an approach that helps integrate the various dimensions of sustainable development - economic, social, environmental - at all stages of the policy-making process, either at the national, regional or international levels.

As defined by the OECD, coherence is a cycle that encompasses 3 levels: (i)

Definition of objectives and political commitments;

(ii)

Implementation through coordination and institutional mechanisms and systematic identification of incoherences;

(iii)

Monitoring and analysis of the impact that various policies have in Development, through follow-up, information and communication.

This means that countries should take steps to improve coherence in each of these pillars.

Under the political commitment, legislative policies or the design of development strategies that actively promote PCD are included. With regard to coordination mechanisms, some examples include the creation of interministerial groups and technical-political forums, funding mechanisms that combine multiple sectors, or the establishment of a network of PCD focal points in various sectors. Regarding the third pillar - on monitoring, analysis and 1

An example of an instrument to measure this overall contribution to Development is The Commitment to Development Index (CDI), used by the Center for Global Development since 2003, with annual publication of a country ranking that scores seven policy areas from developed countries that affect the well-being of others around the world: aid, trade, finance, migration, environment, security, and technology. More information: http://www.cgdev.org/initiative/commitment-development-index/index

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communication/information systems - the drafting of annual PCD reports by the national parliaments, the development of indicators and evaluation tools, or fostering partnerships with academic institutions and civil society to research for data and evidence and to carry out impact studies are some of the measures to be highlighted.

Several studies have pointed out to difficulties and obstacles in each of these levels, which are summarised in the following Figure.

Figure 1: Bottlenecks for PCD

Source: ECDPM (2014); The European Experience on PCD: Lessons Learned and Challenges for the Future, 12/06/2014

Among the barriers identified are thus poor visibility and public attention, insufficient resources (human and financial), divergent interests, dispersion among several policies, or the lack of adequate structures to disseminate and integrate the acquired knowledge – in order to have a real influence in decision-making and enhanced coherence.

The biggest obstacle to PCD, which underlies all of this framework, is the lack of political will.

In other words, it is a mistake to approach PCD as a purely technical issue which will be achieved if there are the mechanisms and the appropriate tools, without addressing the political variable. By requiring the reconciliation of interests, often conflicting or competing with each other, Coherence usually involves trade-offs and is an eminently political issue in its nature, which cannot go further if a strong will and leadership are not in place, in order to target and reorient policies and actions towards more coherent development processes. If this is place, technical solutions will be more easily found and adequate resources released; not vice versa2.

2

Keijzer, N. (2012).

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This lack of political will and leadership can result from deliberate strategies or choices, as development is subordinated to other interests - as stated in the expression “politics matters more than policies”. But it may also derive from the simple lack of knowledge and awareness.

Often, only development community is aware of PCD and of the need to promote it, as in other sectors there is widespread ignorance about what it means. Therefore, it is necessary to invest in awareness-raising on how to integrate PCD in the various fields of political action, alongside the various sectors and stakeholders.

As an instrument, PCD gives us the opportunity to better understand the barriers to development, and the implications that global challenges have on the economic, social and environmental sectors, as well as the links between these areas. At the operational level, PCD allows you to analyse and evaluate whether policy measures are harmonised and coherent with Development, both in its design and implementation, and if the policy outcomes do not harm development process or, on the contrary, they negatively impact in these goals. That is, PCD should be used to prevent incoherences, to detect them when they happen, and to reverse them or solve them in order to improve our Development impacts.

To be used as a useful tool for change, three essential steps are required: 

Knowledge. A profound knowledge of the local context and of the addressed themes is needed, so that there is an objective and independent analysis of the coherences and incoherences. These coherences and incoherences should be based on concrete evidences data, focused on results.



Monitoring. A continuous and systematic monitoring of public policies is needed, so that the coherences and incoherences are analysed over time - this also allows for a perspective over medium and long term, which is essential to create a critical body of knowledge about the incoherences (e.g. identifying the repetition of errors, duplication of efforts, etc.) and identify the lessons learned.



Act. The identification of incoherences has to result in an proactive attitude to discuss these issues, to try to include them on political agendas, and to report incoherences in a constructive way, aiming at improving policies and actions for development. The previous steps - Knowledge and Monitoring - only make sense if they are translated into actions, translated into clear messages and in the creation of some influencing capacity.

These steps are only achievable if relevant stakeholders have the necessary will and capacity for mobilisation - to know, monitor and act - and, on the other hand, if there are appropriate mechanisms and tools to channelling this knowledge and actions in order to influence and inform political decisions.

1.2. PCD in the international context and in the Global Development Agenda PCD is now recognised as a need; it is considered a global policy instrument and seen as a process that aims to integrate the various dimensions of development into policy design and implementation. This concept has gained terrain in international discussions, mainly due to four factors:

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a)

Changes in the global economic and development architecture. On one hand, changes in growth poles bring new actors, new sources of financing, growth and innovation, as well as increased complexity and fragmentation of the international system. On the other hand, increasing inequality within and between countries, points to the need to rethink conventional Development approaches. In this context, it no longer makes sense "to give with one hand and take with the other", a contradiction that is present in policy incoherences: incoherences have costs, namely economic costs.

b)

The recognition that the promotion of Development goes far beyond the fight against poverty and that other challenges - demographic, security, environmental are themselves Development challenges, increasingly global and interdependent.

The multiple crises of the last decade - financial, economic, food, energy - have shown that the Development challenges have implications for everyone, whether developed or developing countries. Incoherences mean that the answer to these challenges is inadequate; coherence is thus a need.

c)

The international context of globalisation, as it blurs the distinction between internal and external policy dimensions, meaning that local, internal or national policies have increased impact on the external and global levels and vice versa.

The demand for more coherent and coordinated responses is thus urgent for countries at multiple levels: local, national, regional, global.

d)

The increased focus on Development effectiveness and results, at a time when budgets for development cooperation of the so-called "traditional donors" (Western, and particularly European), suffer considerable pressure. If we increasingly seek for effectiveness and results, increased coherence is needed, as incoherent policies are inefficient and ineffective.

Some of the major milestones of the adoption of PCD at the international level are shown in the following figure: Figure 2: The evolution of the PCD concept: international milestones

Monterrey Consensus

European Union: Maastricht Treaty

OCDE-DAC Strategy “Shaping the 21st Century”

OCDE: PCD is included in European DAC Peer Consensus on Reviews Development Millenium Declaration : MDG 8

Establishment of a PCD Unit at OECD

Paris Declaration on Aid Effectiveness

Creation of the Commitment to Development Index (CDI)

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Busan Declaration: Effective Partnerships for Development

Inclusion of PCD in Sustainable Governance Indicators EU: “A Decent life for all”+ Council Conclusions

European Union: CPD important in “Agenda for negotiations for the Change” Post-2015 Global European Development Agenda Union: Lisbon Treaty

OECD: Ministerial Declaration on PCD

OECD Strategy on Development

OECD Council Recommendation on Good Institutional Practices in Promoting PCD EU: PCD Work Programme 2010-2013

Approval of the Global Goals and Development Agenda 2030

As illustrated by chronology, the Organisation for Economic Cooperation and Development (OECD) has led, to a large extent, the efforts to include PCD as a key factor in promoting Development. The main instruments developed by this institution are summarised in the following table.

Table 1: PCD promotion instruments in OECD Action for a Shared

Statement which called on the OECD to “enhance understanding of the development

Development

dimensions of member country policies and their impacts on developing countries… to

Agenda (2002)

encourage “greater policy coherence in support of the internationally agreed development goals.” http://www.oecd.org/dac/oecdactionforashareddevelopmentagenda.htm

DAC-OCDE Peer

PCD is part of the DAC Peer Reviews, the periodic assessment of development

Reviews (since

cooperation policy of each DAC member country.

2002)

http://www.oecd.org/dac/peer-reviews/

Ministerial

This statement is a political commitment and strengthens PCD as a key component in

Statement on PCD

promoting development worldwide to achieve the MDGs. It pledges for more dialogue

(2008)

with developing countries and calls for better international coordination to ensure that the benefits of globalisation are widely shared. http://www.oecd.org/officialdocuments/publicdisplaydocumentpdf/?doclanguage=en&cote =C/MIN(2008)2/FINAL

Recommendation of the Council on Good Institutional Practices in Promoting PCD

The Recommendation encourages OECD members to promote PCD and translate political commitment on PCD into practice and to work towards assessment of the impacts that domestic policies have on wider development efforts.

(2010)

https://community.oecd.org/docs/DOC-32778

Policy Framework

A self-assessment tool that provides guidance to policy makers regarding the promotion

for PCD (2010)

and assessment of PCD. https://community.oecd.org/docs/DOC-32662

Strategy on

PCD is one of the main objectives of this Strategy, approved at ministerial level. It

Development

emphasizes the need to strengthen members’ capacities to design policies consistent

(2012)

with development. It defines three priority areas: “food security”, “illicit financial flows”, and "green growth". http://www.oecd.org/pcd/OECD_Strategy_on_Development.pdf

Source: Adapted from "Tools to promote and assess PCD”, Ebba Dohlman - OECD, Senior Advisor of Policy Coherence for Development.

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As the OECD is largely perceived as "The Club of Rich Countries", in that it congregates the most developed economies, we face the risk of thinking that PCD is a concept promoted only by donor countries and whose implementation only these concerns. However, even within the OECD, thinking about PCD has evolved to increasingly involving developing countries and extending the implementation of PCD to these countries. Therefore, the understanding is more and more that participation of developing countries is essential both in the international dialogue on this matter and so that they share their own experience about incoherences or good practices.

This is linked to the global debate on Development Effectiveness. The "Busan Partnership for Effective Development Cooperation" (2011) was signed by the OECD member countries, developing countries, private donors and influential countries that are not OECD members such as China and Brazil, and recognises the relevance of coherence "(‌) is essential to examine the interdependence and coherence of all public policies - not just development policies - so that countries can fully seize the opportunities provided by international trade and investment, and expand their domestic capital markets�. While countries like China have been only partially committed to the agreements reached in Busan (the statement stresses that these countries implement the agreements on a voluntary basis), Busan is seen by many as an important step in a gradual transition from aid effectiveness to development effectiveness.

PCD has also made its way into contention in the Global Development Agenda. In the framework of the Millennium Development Goals (MDGs), only MDG 8 - implement a Global Partnership for Development, stressed the need to take into account, for example, trade issues and open markets, or international aid commitments. Resources were allocated to monitor the progress of policies and programmes in developing countries, but a similar effort has not been made to monitor the improvement of developed countries’ policies.

In the negotiations of a new Post 2015 Global Development Agenda, which will be approved by the United Nations General Assembly in September 2015, the process and the issues covered have been substantially different.

Firstly, the definition of the new Sustainable Development Goals (SDGs) has been a much longer and participated process than what had been the MDGs. Through a long process of consultations and discussions, efforts were made to collect and integrate the perspectives of various stakeholders, government and non-governmental, so that the agenda is to be effectively owned by different sectors of societies.

Secondly, the agenda assumes the goal of being transformative and comprehensive, including those that are considered to be, in today's world, the main challenges to development in its three dimensions: economic, social and environmental. This means that in the 17 proposed SDGs issues as varied as sustainable agriculture, energy, decent work, sustainable patterns of production and consumption, climate change, the preservation of ecosystems and biodiversity, peace and rule of law are included3. In this sense, the very agenda will be the expression of greater coherence for development, taking input from a number of areas for this purpose. Its implementation will also require greater coherence and coordination between various sectoral areas, since the policies and objectives are interrelated and require more integrated and comprehensive approaches.

Thirdly, improving PCD constitutes a specific target within the SDG 17: "Enhancing means of implementation and revitalise the global partnership for sustainable development". This meets 3

See the proposal of the 17 Sustainable Development Goals 2015-2030: https://sustainabledevelopment.un.org/focussdgs.html .

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what has been argued, for example, by the European Union, in its statements on the post 2015, where the need to intensify efforts to carry out coherent policies at all levels (national, regional and global)4 is affirmed.

Fourthly, the new development agenda will be of universal application, meaning that all countries, developed and developing, will have to implement it accordingly with the development level and national contexts, setting priorities, measures and indicators to achieve the proposed goals and targets. Each country will therefore need to invest in improving the coherence of a set of policies, practices, institutions and resources, to create the enabling domestic environment to successfully implement the Global Development Agenda. PCD can be an important tool to be used by the various stakeholders (including civil society) in the discussion, approval and implementation of national and sub-national plans in all countries.

With regard to civil society, one should mention that various networks and civil society organisations of the so-called "North", particularly in Europe, already use PCD to policy monitoring. One of the clearest examples is the European NGO Confederation for Relief and Development – CONCORD5 that carries out a systematic effort to monitor the impact of European policies in developing countries. However, there are also relevant opportunities for the implementation of this tool in the so-called "South". In developing countries in general, there is a growing middle class and educational levels; people are becoming more aware of their rights and civil society has an increased capacity to demand accountability from political decision-makers, therefore fulfilling a more active watchdog role to counterbalance power and authority.

1.3. PCD as an European commitment 1.3.1 PCD in the European Union

The EU is the only region in the world where there is a legal obligation of accountability for the impact of policies in developing countries. PCD is both a legal obligation and political commitment by Member States: 

In addition to the "3C" - Coordination, Coherence and Complementarity – recognised already in 1992 in the Treaty of Maastricht (art. 130v), the Treaty of Lisbon (2009) states that "The Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries" (art.208). More specifically, states that "the Union's development cooperation policy and that of the Member States complement and reinforce each

4

In its Communication "A Decent Life for All: Moving from Vision to Collective Action", it is said, for example, that "All partners in the developed and developing world are encouraged to promote policy coherence and review their policies, as appropriate, in order to ensure their consistency with efforts for poverty eradication and sustainable development as an important contribution to the implementation of the global framework".

5

More information at http://www.concordeurope.org/coherent-policies. CONCORD publishes a biennial report PCD: The 2013 report is particularly focused on development financing, food security, climate change and natural resources and is available at http://www.concordeurope.org/publications/item/259spotlight-on-eu-policy-coherence-for-development

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other" and that "the Union and the Member States shall comply with the commitments and take account of the objectives they have approved in the context of the United Nations and other competent international organisations" (art.208, clause 1 and 2). 

PCD is a commitment made to development partners, since the Cotonou Agreement (2000) between the European Union and the African, Caribbean and Pacific (ACP) mentions the coherence of EU policies and their impact on the implementation of this Partnership Agreement (Article 12). A consultation procedure on the coherence of EU policies is introduced, in which the European Community is requested to inform 'in a timely manner' the ACP States on the actions it intends to carry out "that may affect the interests of the ACP States"; this information can also be requested by ACP countries.



Several resolutions of the Foreign Affairs Council insist on the relevance of PCD to affirm the EU's credibility as a global actor, stress the need for regular political discussions on the subject and call for a PCD approach that is more targeted, practical and results-oriented (Council Conclusions in 2009, 2012, 2013). For example, the Council Conclusions on supporting developing countries in coping with the global economic and financial crisis underline the relevance of PCD and the importance of ensuring that European responses to the crisis take into account the impact on developing countries.



The Agenda for Change (2011), which is the policy guidance document for EU Development Policy, states the need for EU external relations to strengthen PCD, including through new thematic programmes that create synergies between global interests and poverty reduction.



The EU position on the post-2015 Development Agenda (approved by the Council in December 2014) stresses PCD as fundamental to global development, namely the synergies and linkages between goals and targets. It calls on all countries to analyse and assess their policies, with particular emphasis on the need for appropriate policies on trade, science, migration, technology and innovation and knowledge sharing.



With regard to monitoring, the PCD work programme (2010-2013) provides for a working basis, and follow-up reports are published biennially since 20076. Since 2010, the European Parliament has a Standing Rapporteur on PCD. The European Commission has an obligation to carry out prior impact assessments on EU regulations or policies in the economic, social and environmental dimensions, including since 2009 the impacts on developing countries.



PCD has become a key element of the aid programming process in the period 20142020, according to the European Development Fund (EDF) and the Development Cooperation Instrument programming regulations, which shall be applied by the EU Delegations in the world.

In 2005, the European Consensus on Development has established 12 sectors to focus PCD efforts, and subsequently defined five priority areas: climate change, trade and finance, food security, migration and security.

6

The last report, published in 2013, is available at https://ec.europa.eu/europeaid/sites/devco/files/pcd-report-2013_en.pdf

18

Almost all EU policies have an external dimension, and should be designed and implemented taking into account those impacts. In formal and conceptual terms, this is something consensual in European circles, but in practice the challenges and difficulties are evident in overcoming the conflicts of interest between the various EU policies, the contradictions of these with Member States bilateral policies, and also the reconciliation of those policies with the development needs.

Thus, despite the conceptual developments, much remains to be done to enhance good practices and to ensure an effective response to the identified incoherences. These incoherences and inconsistencies of European foreign policy in several sectors are increasingly recognised, including in several European studies or studies promoted by the European Union.

In terms of European instruments and mechanisms that are related to the institutional framework for PCD, it is easy to conclude that there is no real capacity to prevent, detect and correct policies that are incoherent with poverty eradication in the world7. In the preliminary impact assessments of European regulations or policies promoted by the European Commission, only a small minority includes some reference to the impact on developing countries.

The European Parliament itself points out in this regard that "the current European development framework lacks effective mechanisms for the prevention or correction of incoherencies resulting from EU policies" and in that sense defines some recommendations for improving PCD in the context of European policies - whose knowledge is also important for actors in developing countries: −

Recalls the importance of the European External Action Service (EEAS)’ role in implementing PCD, in particular the role of EU delegations in the supervision, monitoring and promotion of consultation and dialogue with stakeholders and partner countries on the impacts of EU policies in developing countries; stresses that a broader debate with all relevant stakeholders is needed, such as NGOs and civil society organisations (CSOs);

−

Calls on the European Commission to carry out regular independent ex-post evaluations of the development of key policies, as requested by the Commission; stresses the need to improve the EC impact assessment system, explicitly targeting PCD and ensuring that Development is the fourth central element of this analysis, (along with the economic, social and environmental impacts);

−

It draws attention to the need for creating an independent mechanism within the EU that gathers and formally reviews the complaints from citizens or communities affected by EU policies.

In addition to these recommendations, the peer review of EU Development Policy held by the OECD Development Assistance Committee in 2012 concludes the need for a systematic and high-level involvement, in the Council, the European Parliament, the European Commission and the European External Action Service. For example, the new Rapporteur for PCD, recently created by the European Parliament, may identify incoherencies in EU policies and ensure that the effects of European legislation in developing countries are duly taken into account in the legislative process. To improve consistency, the OECD also recommends that procedures are to 7

This is recognised in several biennial PCD Reports (2007, 2009, 2011, 2013), in European Parliament Resolutions on PCD, in analysis by independent organisations and studies commissioned by the EU (e.g.

ECDPM studies) and in the reports elaborated by several European civil society organisations (e.g.

CONCORD)

19

be simplified and that the EU delegations in developing countries have increased decisionmaking power. These delegations currently have some responsibilities on PCD, but their role in the monitoring of European commitments is still undervalued.

One of the aspects to note is the difficulty of coherence between EU policies and bilateral Member States policies. It should be noted, for example, that joining the EC Work programme for PCD is on a voluntary basis and depends on Member States’ political priorities.

On the other hand, in regarding task division, while the EU has exclusive competence in certain areas that affect developing countries (e.g. trade), in other sectoral areas responsibilities are shared between the EU and the Member States (e.g. environment, agriculture, energy).

Negotiating positions and contributions from the Member States also influence decisionmaking processes in the EU and, ultimately, European policies. Thus, the European legal and institutional system has great complexity, being therefore crucial to ensure greater cohesion between EU institutions and Member States, under penalty of European action for global development to be fragmented, incoherent and with few positive effects in the life improvement of the most vulnerable populations.

1.3.2. PCD in European countries The Post-2015 Global Development Agenda covers a wide range of sectoral policies and will have a universal nature. This means that European countries (and all countries worldwide) will also have to work to design and implement national implementation plans, trying to coordinate the best policies, institutions, skills and resources to push forward the development goals. This necessarily requires an enhanced governance and a more systematic support to policy coherence. The following Box reproduces the text of the recent European Commission Communication on the Post-2015 Agenda, in what has to do with the particular context of each country.

Box 1 The implementation of the Post-2015 Agenda: Challenges at national and sub-national levels, from a PCD perspective 8

At national level, all governments in full consultation with their citizens will need to decide how they will contribute to the achievement of the goals and targets, keeping in mind the need to reach out to all members of society, in particular the most vulnerable. The full involvement of civil society is essential. (‌) For implementation at the national and sub-national levels, each country needs an effective legislative and regulatory framework to achieve policy objectives. Countries need to promote effective and responsive institutions, transparent policies and systems and accountability to their citizens through democratic processes based on the rule of law. This should include providing fair and predictable legal frameworks that promote and protect human rights, core labour standards and the environment, and 8

This text is reproduced here as it was considered to have relevant aspects also for the Cape Verdean national context, since all countries need to take steps to implement the post-2015 agenda at the national level, PCD being a useful tool in this sense.

20

ensure the sustainable management of natural resources. It also requires providing a stable enabling environment for the private sector, including establishing a level playing field for competition and encouraging sustainable investments. Implementing and enforcing legislation is critical, including through combating illegal activities, removing barriers to implementation, building enforcement capacity and raising public awareness, so that stakeholders can hold governments and authorities to account. (…)

Good governance requires effective systems for budgeting, financial allocation and monitoring of expenditure. These systems need to be fully transparent and open to the general public in order to encourage participatory decision-making and private sector engagement, and to tackle corruption.

Effective macroeconomic policies are vital to ensure that the necessary resources are mobilised and spent effectively in line with the objectives of the SDGs. (…)

Policy coherence is at the core of a truly conducive policy environment. For the global partnership to succeed, all policies at national and subnational level need to contribute coherently to the achievement of the SDGs both domestically and internationally. Account should be taken of the key role of many sectors, such as agriculture, energy and health in contributing to a range of goals and targets. Policy measures that help create and promote access to decent jobs with sustainable and adequate social protection for all, as well as those that facilitate investment in human capital via education, skilling and training, are of critical importance. Addressing inequality and social exclusion, in particular among the most vulnerable, including women, children, the elderly and persons with disabilities remains essential (…)Policy coherence also implies adequate coordination mechanisms for dialogue between stakeholders and monitoring and assessment of policies and results.”

European Commission, A Global Partnership for Poverty Eradication and Sustainable Development after 2015, February 2015.

Is also relevant to analyse good practices in implementing PCD by EU Member States, especially European countries that are also key external and aid partners of Cape Verde9.

It should be noted that there is no single approach or one that works for all countries. “The unique nature of decision-making and the political process in each country excludes the possibility of ‘copying’ successful experiences from one country to another. Successful mechanisms in Germany do not work in France, and vice-versa"10.

Essentially, many countries recognise the importance of PCD at political and public levels, but there are problems in translating these agreements into concrete results. This can be explained mainly by political obstacles and the low leverage of global development and development cooperation in the hierarchy of public policies, competing with other domestic and foreign policy interests. Overall, difficulties are similar to those already mentioned for the European Union, including the fact that PCD is identified with development actors; therefore much needs to be done in order to reach out to stakeholders in other sectors that impact on development.

9

This study focuses only on some examples of how European countries are implementing PCD. For a thorough and complete analysis of various countries, see for example: OCDE (2014): Better Policies for Development; Jeske van Seters et al (2015): Use of PCD indicators by a selection of EU Member States; ECDPM (2012): Measuring Policy Coherence for Development; or Instituto Marquês de Valle Flor (2012): EU member states on the road towards more Policy Coherence for Development.

10

Keijzer, N. (2012).

21

PCD systems and how they are implemented vary considerably. In several European countries, PCD is still seen as a complex concept, which relates only to those working in development and there are no mechanisms in place for reporting to the Parliament or a systematic analysis of the potential impacts in global development. In other countries, more concrete efforts have been developed to integrate PCD in decision-making processes, in sectoral policies and in development cooperation. Thus, some examples of how PCD has been incorporated by some European countries are presented, on the three levels/ pillars of PCD:

Level/Pillar 1: Political commitment and strategic documents

Major advances are being made regarding political and legal commitment to PCD. A growing number of European countries, mostly EU Member States, has approved official documents with commitments to improve coherence and to take into account development objectives in other sectors. These objectives are often incorporated in strategic documents, although mostly within development cooperation: e.g. the White Paper on Irish Aid (2006 and 2012); the Austrian Development Policy (2013-2015); the Strategy for Denmark’s Development Cooperation - The right to a better life (2012), among others. In the UK, a whole-ofgovernment approach to global eradication of poverty has been defined since the White Paper of 2000. In the Netherlands, PCD is a specific objective of Dutch foreign policy.

In several European countries, PCD has become a legal obligation, with the introduction of this commitment in domestic law, thus the government and public administration will now be required to promote PCD. In most cases this happens because Development Cooperation is usually subject of a law or government decree, including in this legal document a commitment towards PCD; this is the case of Luxembourg, Denmark, Belgium, Portugal, Spain, among others. In Belgium, PCD is one of six general objectives of the Development Cooperation Policy (2013).

In fewer countries there is a specific legal commitment with PCD. This is the case of Portugal, where the resolution of the Council of Ministers on November 4, 2010 11 "recognises that the coherence of development policies is an essential instrument for promoting the Portuguese foreign policy’ objectives"; it stresses "the need to establish formal coordination and monitoring mechanisms”, it reinforces interministerial dialogue and it creates an "interministerial working group, coordinated by the Government member responsible for foreign affairs, with the task of elaborating an internal work programme on PCD (...) and for a report on PCD, every two years”.

Level/Pillar 2: Policy Coordination Mechanisms

In most European countries, the implementation of institutional mechanisms within an integrated framework for promoting PCD is still at an embryonic or experimental stage. In some cases, the Pillar 1 commitments are translated into attempts to implement joint crosssectoral approaches (whole-of-Government). Some European countries have designed action

11

Resolution of the Council of Ministers 82/2010, 4th November, available at (in Portuguese): http://www.coerencia.pt/_files/ResolucaodoConselhodeMinistros82-2010.pdf

22

plans to implement these commitments - as is the case in Denmark, Finland, Sweden, Belgium - and/ or have identified the priority sectors to monitor PCD. These action plans may have an internal focus (in national sectoral policies that contribute to the global development), or be focused on external actions to enhance in PCD at multilateral level and in the European Union. This is the approach of the Denmark’s Action Plan for PCD (2014)12 and the Netherlands’ Agenda for International Public Goods (2011), both focused on Danish and Dutch contributions to improve PCD within the European Union.

At domestic/national level, a mandatory review of policy impacts in developing countries is unusual. The Belgian law on development cooperation requires an impact evaluation, while Germany has established a mandatory scrutiny by the Parliament on the effects of each law in global development: this means that the legislative proposals require the analysis of several criteria: budgetary (if there are available funds to implement the law), environmental (if the law has harmful impacts on the environment), and PCD (if that law has negative effects on global development). This is a concrete example of how Parliaments can play an active and leading role in promoting policy coherence, and of how legislative work can take into account the Development impacts.

Interministerial and other policy coordination mechanisms do exist in several countries, though more related to development cooperation in general. Other countries are putting in place interdepartmental or interministerial committees specifically on PCD, as is the case of Belgium.

Some countries prefer to establish PCD teams and specific departments: in the Netherlands, for example, a Policy Coherence Unit was created within the Ministry of Foreign Affairs, in order to (i) scrutinise all European legislation, (ii) actively influence national policies in specific sectors, and (iii) raise awareness and increase knowledge about PCD at national and international levels. Others, such as Ireland or Portugal, are moving into the definition of PCD focal points in line ministries, in order to enhance coordination and coherence on an intergovernmental basis. In many cases, however, practical implementation of these mechanisms is lacking, and they end up not working systematically, either because indicators for monitoring coherences/incoherences are yet to be defined, or due to other difficulties inherent to the interministerial coordination.

Level/Pillar 3: Monitoring, analysis and information systems

Several European countries have set up monitoring systems (which in most cases are linked to annual or biennial reports), in particular to report to the respective parliaments. For the most part, these are reports on the Development Cooperation Policy, which include a section or chapter on PCD. Few countries have set concrete benchmarks to guide this monitoring and assessments; only Denmark, the Netherlands and Sweden have intergovernmental and official indicators approved for PCD. The monitoring and assessment systems often suffer from lack of capacity or resources to ensure a comprehensive, complete and systematic gathering of information on the policy 12

Available at: http://um.dk/da/~/media/UM/Danishsite/Documents/Danida/Nyheder_Danida/2013/2%20Handlingsplan%20PCD.PDF

23

impacts in partner countries. Another difficulty is the lack of information and communication between various development actors regarding development policies in general, and PCD in particular, besides the serious lack of awareness in some countries.

In some European countries, civil society and NGOs play an active monitoring role in collaboration with governments. In Luxembourg, the government collaborates with a nongovernmental coalition on PCD, which publishes the "Fair Politics" Barometer on policy coherence for a fair and sustainable development. Although this is not a governmental report, it includes texts from state actors and has the government support. In Finland, the Netherlands and Luxembourg, several non-state organisations have a structured work on PCD - as the programme “Fair Politics” of the Max van der Stoel13 Foundation or “Fair Politics Luxembourg”, from Cercle de Coopération des ONG de Développement 14 , in close collaboration with Members of Parliament and other government agencies. In Sweden, a NGOs coalition publishes a shadow report on PCD after the publication of the biennial report by the Swedish government. This allows for cross-checked information, different views on the same issues and, ultimately, a more thorough monitoring.

To increase knowledge of PCD, Ireland uses its "Advisory Board" on Irish Development Aid and has supported various NGOs (such as Trocaire) and partnered with an university to carry out studies on this issue. This has proved very useful, with studies on various sectors and the development of concrete indicators 15, which have been used by government entities to inform policy-making and improve the Irish PCD action.

To increase knowledge and evidence on PCD, some countries have carried out studies on specific countries or sectors, sometimes in partnership with research centres or academic institutions. The Netherlands, has reviewed the impact of Dutch and European policies in Ghana and Bangladesh16. Finland is involved in a pilot study to evaluate the incoherences of OECD members' policies in Tanzania, particularly on food security (in partnership with the OECD Secretariat, ECDPM and the Economic and Social Research Foundation - ESRF). A similar pilot study will be conducted in Burkina Faso, supported by Switzerland. Portugal has jointly supported with the EU a study on policy coherence regarding fisheries and migration in Cape Verde (2011), and also finances this Manuel, in partnership with Portuguese and Cape Verdean civil society organisations. These studies are useful to assess the role that incoherences play in specific contexts and thus identify response strategies that are adequate to concrete realities.

13

http://www.fairpolitics.eu/

14

http://fairpolitics.lu/, and the CPD report - Luxembourg, 2014, available at http://fairpolitics.lu/files/2014/09/barom%C3%A8tre2014low_res-copie.pdf 15

See, for instance, Institute for International Integration Studies (2012); PCD: Indicators for Ireland http://www.tcd.ie/iiis/assets/doc/IIIS%20PCD%20Indicator%20Report%202012.pdf 16

See, as an example, the study on Ghana, at http://www.government.nl/documents-andpublications/reports/2014/07/24/iob-autonomy-partnership-and-beyond-a-counterfactual-analysis-ofpolicy-coherence-for-ghana.html

24

Table 2: An example of good practice: Policy for Global Development - Sweden Level/Pillar 1: Political Level/Pillar 2: Policy commitment and strategic Coordination Mechanisms documents

Level/Pillar 3: Monitoring, analysis and information systems

2003 - Government Bill "Shared responsibility: Sweden’s policy for global development" included the global development goals as a responsibility of all government departments

The Government presents a biennial report to Parliament, with performance indicators for each ministry and sector.

2008 - New Swedish Policy for Global Development, with goals defined both internally and for foreign policy, as well as monitoring indicators. All government departments have a responsibility to ensure that their sectoral policies are in line with the joint whole-of-government PCD approach.

Strategic coordination of 6 global challenges and its 18 policy areas; Interministerial network of PCD focal points Formal Direction; annual letters from the agencies are prepared. There is a PCD unit in the Ministry of Foreign Affairs The "Team Sweden" and "Trade and Development Council" are concrete examples of groups that bring together actors and combine resources from various sectors.

25

Reporting on results, according to a performance framework established in 2009 Development of indicators and assessment tools for impact assessment Partnerships with independent organisations (e.g. ECDPM and the Centre for Global Development) to carry out studies, research and collection of evidence.

Part II – PCD in Cape Verde

2.1 PCD in Africa As noted in Part I, the concept and instrument PCD has been developed and applied primarily in developed countries, namely in the OECD European Union frameworks. However, this situation is changing, as it is believed that it is increasingly necessary to involve developing countries, both through their participation in international dialogue and dissemination of incoherences / good practices according to their own experience, and by extending the implementation of PCD in developing countries as a tool to monitor external partners’ policies and domestic public policies.

In Africa, although there is no systematic framework for analysis and evaluation of public policies, there are already instruments and assessments that incorporate PCD-related analysis, even if not with this designation. Some of these continental frameworks, of which Cape Verde is part, are: African Peer Review Mechanism (APRM)17 Launched in 2003 by the African Union, the APRM is a voluntary instrument, open to all Member States of the African Union. It is a mechanism of self-monitoring, i.e., designed and implemented by Africans, whose goal is to promote the adoption of policies, rules and practices that contribute to political stability, economic growth, sustainable development and the acceleration of continental and regional integration. This is pursued peer reviews of countries that voluntarily submit to this analysis.

The aim is to share experience and reinforce good practices, in particular by identifying constrains / incoherences and analysing the requirements and measures necessary to improve the country’s capacities. The performance and progress are measured in four main areas: (i) Democracy and Political Governance; (ii) Economic Governance; (iii) Corporate Governance and (iv) Socio-economic Development, each of which with specific guidelines and criteria.

APRM experts work with governments and civil society groups to assess the country's performance in these areas, and a report with concrete recommendations and follow-up instruments is produced. It is expected that the countries reviewed implement these recommendations, which not always happens, namely due to lack of capacity, including financial capacity (since some recommendations may involve unforeseen expenditures in the national budget).

These assessments are made by African experts and countries and are thus useful for providing an African perspective (although external) to the problems and challenges faced by the reviewed country in various sectors – and they are useful particularly because participatory performance assessments are not made frequently in most of these countries. By December 2013, 33 countries had joined the APRM, of which 17 have been the subject of a peer review.

Cape Verde joined the mechanism in 2009, but has not yet signed the Memorandum of Understanding that formalises the membership, as foreseen in 2010.

17

http://aprm-au.org/

26

The Ibrahim Index of African Governance18 This index, sponsored by the Mo Ibrahim Foundation, has gained great notoriety in evaluating the performance of African countries on governance issues. It is both an instrument to assess and discuss the governmental performance and a tool for policy-making and governance. It provides a framework for citizens, governments, institutions and the private sector to assess the provision of public goods and services and policy results in various dimensions, at national, regional and continental level (since it allows comparisons across African countries and regions).

The Index analyses the status and progress of governance provision in four main categories: Safety and Rule of Law, Participation and Human Rights, Sustainable Economic Opportunity, Human Development. These pillars are informed by quantitative and qualitative data, which include various elements - from infrastructure to freedom of expression, from sanitation to property rights. The scores and rankings have been published since 2000, which allows an analysis of trends over time.

The instruments of the United Nations Economic Commission for Africa 19 With 54 member countries, the United Nations Economic Commission for Africa (UNECA) is both the main UN regional organisation in Africa and an important element of the African continental institutional setting. It has given very important insights and inputs to understand and respond to the development challenges in Africa, providing counselling and support to national capacity building in various priority areas: industrialisation; design and implementation of macroeconomic policies; design and coordination of development planning; support for negotiations on mineral resources; promotion of proper management of natural resources to the transformation of Africa. It also finances development cooperation programmes and is the implementing agency of some projects. Within the PCD framework, one should mention the centres for specific analysis on some sectors/policies: the African Minerals Development Centre, the African Climate Policy Centre, and the African Trade Policy Centre.

The UNECA also conducted, jointly with the OECD, and upon a request of the African countries in 2003, a Mutual Review of Development Effectiveness. This exercise looks at what has been done by Africa and its external partners to fulfil the commitments on African development, including the outcomes, and the priorities for action in the future20.

2063 Agenda21 The Agenda 2063 may prove to be an important instrument for the promotion of PCD in the continent. It is the vision for African development in the long-term (50 years) and its definition was a participatory process with discussions and consultations at regional and continental levels. In addition to defining the main African "aspirations", it also identifies specific targets (e.g. reduce by 50% the dependence on aid). If clear monitoring indicators are defined, and the Agenda is properly appropriated by African countries and regions, it could provide a good framework for the promotion of PCD. It is yet to be determined how this agenda will be coordinated with the Sustainable Development Goals for the period 2015-2030 and the new Global Agenda approved at the United Nations in September 2015.

18

http://www.moibrahimfoundation.org/interact/

19

http://www.uneca.org/

20

The 2014 report is available at: http://www.uneca.org/publications/2014-mutual-reviewdevelopment-effectiveness-africa 21

http://agenda2063.au.int/.

27

Some frameworks with the participation of Africa and donor countries are also to be highlighted, which have been developing joint work of implementation and assessment on several sectors. This is the case of the Joint EU-Africa Strategy (2007) that is embodied in a political dialogue between the two blocs, Europe and Africa, in several sectoral areas as the promotion of peace, security and stability in Africa and Europe; governance and human rights; trade and regional integration; accelerate progress towards the development goal; environmental sustainability and climate change; migration and development; agriculture and food security; infrastructure, water and basic sanitation, energy; or the development of knowledge societies22. This Strategy created an institutional architecture that is unfolded in a set of mechanisms and working groups led by European and African countries, aiming at being the umbrella that frames the relations between the two continents.

Specifically in relation to PCD, it is stated in the Joint Strategy that "In the implementation of this new partnership, the principle of policy coherence for development will be applied by both African and EU partners by identifying and promoting interactions and positive complementarities between sectoral policies and strategies, while ensuring that measures taken in one policy area do not undermine results in other areas". The EU-Africa Roadmap for 2014-2017 turns the partnership into actions, measures and concrete programmes, partly financed by the EU Pan-African Programme, recently created.

22

Text available at http://www.africa-eupartnership.org/sites/default/files/documents/eas2007_joint_strategy_en.pdf . The 2014-2017 Roadmap is available at : http://www.africa-eupartnership.org/sites/default/files/userfiles/2014_04_01_4th_eu-africa_summit_roadmap_en.pdf

28

2.2. Development challenges in Cape Verde and the relevance of PCD Cape Verde is a small island developing state, whose economic development strategies and democratic consolidation have been praised by numerous international reports, as an example to Africa and developing countries. The result of this is that it became one of the three countries on the continent to have transited from the Least Developed Country category (LDC) to a Middle Income Country (MIC), from January 200823. However, Cape Verde recorded a slowdown of economic indicators in recent years, partly due to the impact of the international financial and economic crisis, which particularly hit main external partners as the European countries.

As with all analysis, the numbers may support a more optimistic or pessimist perspective, depending on the angle of analysis and the data used. There are clearly positive aspects that support the perspective that "the glass is half full", while other aspects and factors point to the prospect that "the glass is half empty". Some of the most and least positive indicators are summarised in Box 2.

(Selected) Development Indicators in Cape Verde The “Glass half full ” perspective 

The country is on track to achieve the Millennium Development Goals (MDGs) by 2015 and four of its objectives - achieving universal primary education, promoting gender equality, reducing child mortality and improving maternal health – were soon achieved in 201024.



In most social indicators, Cape Verde is well above the sub-Saharan Africa average, as it is the case with: average life expectancy of 75 years (Africa: 56), infant mortality rate of 19 per 1000 births (Africa: 64), or access to an improved water source by 89% of the population (Africa: 64%): Compared with medium-low income countries, Cape Verde also outperforms the average of these countries regarding the majority of social and human development indicators25.



Regarding political stability, the country has consolidated its democracy through pacific democratic alternation and institution building, it has been ranked in recent years as the second country with better governance in Africa (after Mauritius)26 and good records in the Freedom House index on civil liberties and political rights27.

23

Resolution of the General Assembly of the United Nations A/59/210 of 20 December 2004. The other two countries are Botswana (1994) and the Maldives (2010). Cape Verde was eligible for graduation for the first time in 1997, but the decision was postponed in 2000 due to its economic vulnerability.

24

. According to the World Bank, only Cape Verde, Ethiopia, Ghana and Malawi will be able to achieve most of the MDGs by 2015 in Sub-Saharan Africa.

25

Cape Verde at a Glance, World Development Report, World Bank: http://devdata.worldbank.org/AAG/cpv_aag.pdf 26

Index of African Governance, Mo Ibrahim Foundation. In recent years, Cape Verde has improved in the indicators Participation and Human Rights and Economic Opportunity, while worsened in the indicators Security and Human Development. Learn more: http://www.moibrahimfoundation.org/interact/ 27

Cape Verde is considered a model in the context of civil and political rights, but registers poor results with regard to drug trafficking, police violence against detainees and slowness of the judicial system.

Freedom in the World 2015, Freedom House, www.freedomhouse.org/

29



The country ranks 123 on the Human Development Index in 2014 (of 187 countries) and falls under the category of medium-low development28. In the education sector, the trends are very positive: the illiteracy rate decreased from 63% in 1975 to less than 18% in 2012 and the gross enrolment rate has reached 100%, compared to 5% in 1975.



Cape Verde is one of the three countries in the UN system to achieve graduation from the Least Developed Country List (along with Botswana in 1994 and the Maldives in 2011), graduating to Middle Income Country in 2008.

The “Glass half empty” perspective 

Approximately 25% of the Cape Verdean population lives in poverty and this percentage is significantly higher in rural areas. Despite some progress, the pace of decline in poverty rates has slowed down in recent years.



The official unemployment rate is 16,4% (according to the Bank of Cape Verde) but it is estimated to actually exceed 20%, being particularly worrying among youth (in which unemployment rate is estimated to be twice as high).



Inequalities are persistent: territorial (between islands and urban / rural), social and economic, gender inequalities, opportunities for access to quality basic services such as drinking water, health, energy and sanitation29. According to the Convergence Matrix for Municipalities to the achievement of the Millennium Development Goals, of the 22 municipalities, 7 (Sal, Boavista, São Vicente, Praia, Tarrafal, Ribeira Brava of São Nicolau and Maio) record very good progress to achieve the MDGs, 5 (São Salvador do Mundo, São Domingos, Brava, São Filipe and Mosteiros) are almost reaching them and the remaining 10 record slow progress.



GDP growth slowed down considerably since 2011, when it grew by 4%, while it reached a minimum growth of 0,5% in 201330. Public debt is high, at around 107, 3% of GDP in 2014, reflecting a combination of weaker revenue performance and growing capital expenditures. Cape Verde ranks 112th in the “ease of doing business” Indicator of the World Bank, Doing Business 2014, (among 189 economies analysed) and 114th in the Global Competiveness Report 2014-2015 (in a total of 144 economies)31.



External financing is declining, notably aid based in grants, Foreign Direct Investment (which has been decreasing for 6 consecutive years with the exception of a slight recovery in 2013) and remittances have stagnated due to the decline of the Euro zone remittances.

Cape Verde is experiencing a unique and crucial period in its development process and is currently at a crossroads. Several macroeconomic constraints already identified, many of them related to the context of international crisis, have conditioned the evolution of foreign direct investment, foreign aid and remittances. The country is largely vulnerable to external shocks and has great structural weaknesses, but has tried to create new basis for sustainable growth through private sector development, economic diversification, improvement of the infrastructures’ efficiency and increasing quality of human resources.

28

UNDP, Report on Human Development 2014, available at: http://hdr.undp.org/sites/default/files/hdr2014_pt_web.pdf 29 30

United Nations, 2013 http://data.worldbank.org/country/cape-verde

31

Cape Verde results on the several indicators, at http://reports.weforum.org/global-competitivenessreport-2014-2015/economies/#economy=CPV

30

One example is the sector of Tourism, which has grown at rate of about 10% on average annually, with the number of tourist arrivals to triple from 2002 to 2011. The government contributed to this growth through reforms and substantial investment in infrastructures (roads, ports and airports) and FDI attraction, but these results also stem from the diversion of tourists from other parts of the world, notably due to conflict and instability. Cape Verde ranks 11th globally in the relative importance of the tourism sector to its economy (about 22% contribution to GDP32), and 10th with respect to growth expectations for the sector. Also investments in agriculture - water mobilisation, facilitating farmers' access to credit through microfinance, drop by drop irrigation and support for rural extension - played a role in the growth of agricultural outputs and incomes, although poverty rates remains very high in rural areas.

One of the important elements in order to work towards greater coherence is the identification of enablers and disablers, i.e. factors that enhance or hinder the country's ability to achieve its development goals. This analysis is done in Cape Verde, and there is a relative consensus on these factors, some of them structural.

Among structural vulnerability factors are economic vulnerability (lack of natural resources, very limited agricultural production, incipient productive structure, structural imbalances in the balance of payments, external dependence, permanent exposure to external shocks, budgetary constraints, total dependence on resources for financing development); security vulnerability (emergence of trafficking and related crimes and disproportion between the threats and the financial, material, technological and human resources available); environmental vulnerability and insularity (geographic and climatic characteristics, ongoing drought and accelerated desertification, insufficient water resources, high costs of insularity and small size, market fragmentation). An illustration of these vulnerabilities is the fact that in the graduation process to Middle Income Country, Cape Verde clearly met two of the three criteria - the national income and human capital index - but falls far short on the economic vulnerability index.

In recent years, there are two relevant milestones to the future of development in Cape Verde, from a PCD perspective: a) Graduation from LDC in 2008, which has sparked a rethinking of development in Cape Verde. Indeed, after the formal transition to MIC, effectively fulfilling this graduation is required. In the so-called "transition period", which has no timeframe, it is expected "the newly graduated country to be able to reach new and sustainable dynamics of sustainable development, with the support of development partners."33 Nevertheless, this has been reflected in a gradual reduction of grants and concessional loans (difficult for an economy strongly dependent on external resources) as well as a gradual loss of trade preferences. This raises coherence concerns regarding the actions and mechanisms of the international community, since the graduation process cannot just be a political validation but must contribute to the sustainable viability of this graduation. Under more difficult conditions to mobilise concessional funds and grants that tend to benefit poorer countries, Cape Verde will also have to carry out a mental 32

Espírito Santo Research (2014); Cabo Verde: Internacionalização e Desenvolvimento, available at http://www.portugalglobal.pt/PT/geral/Documents/DOCs2014/InternacionalizacaEconomiasEstudoCab oVerdeElaboradoEspiritoSanto.pdf 33

Pais, Irina (2012).

31

shift that appears to be real on the formal strategic plans, but is still poorly accomplished in practice34. b) The Membership of the World Trade Organisation (WTO) in 2007 also represented a major change in the sense that it imposes the liberalisation of trade, meaning that Cape Verde depends more on its endogenous capacity to compete. The demands by developed countries on the granting of market, both in terms of tariffs reduction as on the services sector have implied (and will continue to require) legislative and institutional reforms; greater assertiveness in seeking solutions beyond external aid; modernising institutions and improving the quality of basic services; organising and modernising the business sector/actors; among other measures.

These processes involve contradictions and incoherences. On the one hand, in the medium term, Cape Verde is no longer eligible for concessional loans from major international institutions, and the window to increase the debt level is closing. With the transition to MIC, the cut in grants is inevitable, obliging the country to resort to capital markets in order to avoid reduction of credit in the private sector. The use of loans has been reflected in a growing public debt in recent years. On the other hand, this happens during a period when there is a need for massive investments to further improve infrastructure, qualify human resources and deepen and broaden reforms in order to effectively materialise this “leap� towards a middleincome country.

In this context, the International Monetary Fund (IMF) has warned on the need to strengthen the quality and efficiency of public investment under way, to ensure the necessary return on the investments made, taking into account that public debt remains high and the related risks to economic growth. The Cape Verdean authorities have been advised to moderate government spending and to adopt a more ambitious medium-term fiscal consolidation programme. According to a report of the rating agency Fitch, released in March 2014, the Cape Verdean public debt could rise to 115% of Gross Domestic Product (GDP) in 2015 and reach 120% in 2017.

This means that a country can be a "victim" of its own success, as it faces new challenges related to constrained access to foreign aid, attracting foreign investment, a more restrictive fiscal situation and other difficulties common to middle income countries. The so-called "middle income trap", and is characterised by a situation where a developing economy is in an intermediate situation associated with the loss of competitiveness against low income economies and lower wage levels, and still does not meet the necessary conditions to compete with more sophisticated and innovative economies. In this trap, Cape Verde may be stuck to the consequences of low investment, slow growth, lack of diversification of the production base and limited conditions in the labour market.

There is therefore a broad consensus on the fact that the economic growth model adopted so far is exhausted (high public investment rates financed by ODA, by concessional external financing and by FDI flows and improving human capital) and that the country must build a new basis for growth, mainly based on private investment and economic diversification35.

34

Funds are scarce today, but institutional structures continue to function in the previous mindset, and have not given the qualitative leap to a different foreign policy, and to a MIC situation (Interviews in Cape Verde).

35

For a very complete analysis of the sectors of trade, agriculture, fisheries and economic growth opportunities in Cape Verde, see MTIE (2013).

32

In addition to investment in infrastructure, there is a need to ensure access to financing so that the various clusters of the transformation agenda can be implemented (see Figure 3).

Figure 3: Transformation and growth drivers

Source: Adapted from Furtado, Carlos (2014): Model for the Development of Cape Verde.

Implementing this transformative vision requires the enlargement of the productive base and the creation of competitive advantages in new sectors, which in turn requires both the reinforcement of the private sector and the empowerment of the most vulnerable groups, in order to increase their production capacity and its market integration. All the structural reforms needed to promote multiple growth drivers mean that the coherence between policies will become increasingly relevant and important to achieve the growth objectives and to multiply development gains.

In recent years, the major projects from the public investment programme have focused on infrastructure; nearly 50% are related to energy, water, transport and maritime logistics. While some of these investments had visible results (e.g. the improvement of ports, the programme "Housing for All", etc.), the country indebts itself and the national GDP is mortgaged; thus it is necessary find alternative instruments that enable the payment of debt service. It could be useful in this context to create a platform for the weighting and evaluation of public investments, particularly for those investments that imply debt36.

The integrated development of value chains - either in agri-business, air transport, tourism, ICT, economy of culture, financial services or maritime economy - requires investments and a qualitative and quantitative change that the local banking sector is unable to finance. It is also 36

Interviews in Cape Verde.

33

a fact that many of the public investment financing needs are beyond the financial capacity of the Government. Within this framework, "the traditional sources of financing for Cape Verde’s development no longer fulfil the country’s needs, and there is a national consensus that the country must find new sources and new approaches to finance its development."37. The main question is: what are these sources, and how they can be mobilised?

37

II National Forum of Transformation: Cape Verde 2030.

34

2.3. Cooperation policies and PCD instruments of Cape Verde external partners: opportunities for the participation of civil society 2.3.1. European and external dependence In a context of increasing globalisation and interdependence, the national political space and the effectiveness of available national tools are increasingly conditioned not only by international rules and commitments, but also by the global environment and market conditions at any given time, as well as by decisions and policies implemented by other countries. On one hand, this implies that foreign policy measures are taken to minimize the impact of the international/ external context in national development. On the other hand, international and/or regional alliances are increasingly relevant, actively seeking cooperation with others in order to increase the ability to act and influence.

The dynamics of the Cape Verdean economy is almost totally dependent on the performance of the external sector; it is highly vulnerable to external shocks and dependent on domestic variations in its major economic partners. Dependence on external resources is a feature of Small Island Developing States (SIDS) 38 widely recognised by the international community.

However, in the case of Cape Verde, this is particularly worrying for two reasons.

The first of these factors is the dependence on Europe. The European Union has emerged as one of the nearest and natural spaces to build a relationship and meet the national specificities and needs regarding development and security. The rapprochement with the European Union constituted largely a political and cultural identity endeavour through the social representation of a country "with the feet in Africa but the head in Europe". This includes historical and cultural roots, linked to the origin of the Cape Verdean nation, to which is added the close cooperation maintained over the years with the Macaronesia region (Azores, Madeira and Canary Islands) and comprise the Outermost Regions of the European Union (ORs) 39. To this it should be added that the European Union is the main trading partner, the main investment and multilateral aid partner of Cape Verde.

With regard to exports, the country's economy seems to have specialised in two exports: tourism and fisheries, almost always with Europe as a major client. Exports of goods are dominated by fishery products (over 60% of the total), its majority to Spain and Portugal, and between 2000 and 2011 the share of Europe in Cape Verde's exports was always above 70%.

Cape Verde is also heavily dependent on Europe as a source of tourists, as the European nationals account for about 80% of arrivals. Regarding remittances, about 80% come from Diaspora living in Europe, especially in Portugal, France and the Netherlands. European countries are also the biggest investors, namely Spain, Portugal, the UK and Italy, plus there is a currency arrangement with the Euro zone. The possibility of a continuous but sluggish recovery in Europe presents strategic challenges for Cape Verde and reinforces the urgent need to accelerate the economic transformation agenda.

38

See for example the article by Carlos Lopes, "It is time to solve the paradox of small island states" with references to Cape Verde, available at http://ow.ly/JjgNo 39

The Partnership with the EU advocates the integration of Cape Verde in the outermost regions "through the access of Cape Verde to this internal market as well as the possibility of progressively participate in certain EU policies and programmes." The European Strategy for the Atlantic Region from 2014, proposed by the European Parliament in a resolution adopted in March 2011, defines its scope to "all EU regions along the Atlantic coast, including Macaronesia’s outermost regions (Azores, Madeira, Canary Islands and Cape Verde)�.

35

The second of these factors is the downward trend of the traditional financing sources for Cape Verdean development, that being external, are also linked to the previous factor.

International financial assistance and other external resources finance on average 80% of the investment programme. In this framework, remittances tend to decrease as emigrants of second and third generation grow; the prospects for ODA are its reduction or stagnation, either due to financial constrains from donor countries, either due to the end of the transition period for the graduation; and FDI has been decreasing for 6 consecutive years (with the exception and a slight recovery in 2013).

In this regard, the intervention of the Executive Secretary of UNECA, Carlos Lopes, in the II National Forum of Transformation: Cape Verde 2030 (May 2014) should be remembered, which summarised the problems of this "European anchorage" and the need for diversification of foreign policy and economic relationships: "In terms of trade, Africa represents 1% or less. Cape Verde has a greater ability to extend its arm to Asia than to reach out to Africa. The main cost is that Cape Verde is anchored to a recession area. The problems are very deep and structural, including one of demographic nature (these are countries with structural aging that will affect the productive capacity) and another of public debt (which is too high and is an issue that will continue to drag on in the future). Will Cape Verde continue to be anchored to this structure? We must have a structured relationship with Africa; this is not political ideology, it is pragmatism. ECOWAS is growing 6.3% per year, and is one of the regions to grow less in Africa; its foreign trade increased by 18% over the past 5 years; its investments grew 25%; Nigeria's economy has become the largest on the continent. But Africa is still regarded from the security and poverty lens, and this is a major strategic error. Over the past decade, the African GDP has doubled, and two thirds of African growth comes from domestic consumption. Aid dependency has passed from an average of 6% to less than 3% on the continent. We have to look at this anchorage as a strategic problem of Cape Verde The competition will be fierce and Cape Verde will be out of the orbit of sites with higher growth. What is there to do?�

This is therefore a necessary reflection to be made at national level, regarding economic and foreign policy options. One should note that the European Union supports integration in ECOWAS and that regional integration is one of the pillars of the EU-Cape Verde Partnership.

2.3.2. Development Assistance Cape Verde is one of the few examples where development assistance has played a key role in leveraging the country's development process, having been central to the pursuit of the national strategy and the graduation to MIC. While ODA has contributed to the improvement of economic and social infrastructures, to balance the balance of payments, to human development and to positive results of structural reforms in the country, we must also recognise that this is due to the weighted use and the rational management of these resources made by the Cape Verdean authorities over the past decades40.

This sound aid management appears to be recognised by most international partners present in Cape Verde41 and has had an effect on aid modalities (with increasing importance of budgetary aid) and on donors engagement - notably, it is the first country where the United Nations have established a joint office, and one of the first eight countries where the 40

Ferreira (2011)

41

Interviews in Cape Verde.

36

mechanism of the United Nations reform "Delivering as One" was introduced. Another example of this recognition is the completion of the first Millennium Challenge Corporation Compact (MCC) – an US programme - and the unprecedented election, in 2011, for a second compact, plus the fact that it was the first country to start the direct management of MCC allocated funds.

However, in recent years, aid from external partners has undergone a significant makeover.

Firstly, there is a general decrease in ODA, either in its total or particularly in regard to the grant component. ODA has declined in absolute numbers (see Figures on the following page) and in its GDP share: if in the 1990s it represented on average 22% of GDP in the last decade it seems to stagnate around 11-14%.

The decline in grants has been largely counterbalanced by an inverse evolution of loans and their share in the financing of public investment programmes, not only in terms of economic infrastructure but also on social sectors (such as health and the education) 42. In this context, it was possible to access various concessional loans, which are partly recorded as ODA, notably from Portugal, Spain, Japan and AfDB, taking advantage of the preferential conditions which will soon no longer have access to. For example, Portugal is the largest bilateral donor of Cape Verde (and Cape Verde, in recent years, has also been the main destination of Portuguese ODA), largely due to the use of preferential loans and credit lines, mostly targeting infrastructure: ports and airports, roads, programme "Housing for All", renewable energy and water collection43.

This type of development assistance44 can be criticised for the incoherence it reveals by allowing, on one hand, the projection of commercial and economic interests, the internationalisation of the donor country companies (constituting the so-called "tied aid", which donor countries pledged to decrease, within the OECD) and leading, on the other hand, to the growth of the recipient country debt, albeit with more favourable conditions regarding "traditional" loans.

The general decline of aid is linked also to the withdrawal of some donors, such as the Netherlands, Sweden, Austria and, more recently, Spain 45. France closed the cooperation offices, though it maintains some programmes. This evolution is linked both with Cape Verde's graduation, which led to a re-prioritisation by donors, and with domestic policy options of development cooperation, in a European context in which the principles of aid effectiveness

42

The data we have, though it is from the 2010 State Budget, provides a picture of this issue: concessional loans accounted for 66.6% of external funding, in that year. UN 2012 43

The line for Ports and Airports (200 million) and the line of Roads (100 million) are exhausted, while the line House for All (200 million) and the line of Renewable Energies (100 million to build dams and photovoltaic centrals) is close to being exhausted. Interviews in Cape Verde.

44

It should be noted that there are exceptions - donors who have chosen to continue to focus its aid on grants taking a clear stance of separation between what is non-tied aid, on the one hand, and the internationalisation of business and economic interests of donors on the other. This is the case of Luxembourg.

45

Delegated cooperation is a solution to ensure the sustainability of some actions: for example, Spain will delegate the management of vocational training centres, from the Spanish cooperation to the Luxembourg cooperation. Despite the “phasing-out� of the Spanish cooperation it is important to highlight the regional cooperation promoted by the Canary Islands that take advantage, in a very active form, of the ERDF funds for Macaronesia. Cape Verde received 62 of the 83 projects in the programme from 2007 to 2013.

37

and the pressure on aid budgets require a rationalisation and increasing concentration of aid.

On the contrary, the European Union has increased its aid package to Cape Verde.

This option is usually taken based on an analysis of donor country’s interests and priorities in some countries (economic, commercial, political or security), leading to a cut of aid and donor presence in a number of other countries 46. This is a phenomenon common to several bilateral agencies, including DFID/UK, the Netherlands and other Nordic countries, which significantly cut the number of countries where they are present. The financial crisis is an accelerating factor of these options, as in the case of Spain 47. Conversely, in some cases there is a shift of interests and modes of action, with the decrease in aid corresponding to an enhanced action linked to the private sector (e.g. Netherlands by "matching grants", Spain in processed fish sector, etc.)

It is undeniable that a reduction in ODA undermines several initiatives directly aimed at the poorest and most vulnerable population, with global effects on poverty reduction policies, in a context where graduation to MIC is mostly a formal measure and large pockets of poverty persist. This challenges the international community to think about the continuity and type of support that should be provided, as well as about the coherence and sustainability of graduation processes, as they are conducted internationally.

Secondly, there is a greater focus on aid disbursed through budget support, particularly in strategic terms. The budget support group 48 has been increasing its weight in overall external aid; in 2015, the allocation of 38 million Euros to Cape Verde's state budget - for the strategy of growth and poverty reduction - is expected. For some donors, this is the main aid instrument to support Cape Verde: this is the case of the European Union, whose 2014-2020 package commits 55 million Euros, 91% for budget support.

This aid modality is usually part of a “natural” evolution of the development levels, reflecting the confidence that donors deposit in the Cape Verdean government’s management and implementation capacity, as well as the internationally approved principles of aid effectiveness. This has also been the trend in other countries with capacity to implement their own development programmes, as is the case of Mozambique or Tanzania. The experience of these countries that have been benefiting from budgetary aid for some time can also be useful to Cape Verde.

One aspect often mentioned in the existing studies on budget support concerns the "leverage" that the budget support group may start to have on the options taken by beneficiary governments/countries, in terms of policies and programmes. Another aspect is that the concentration of donor funds in budget support implies necessarily fewer funds for other important actors in national development, such as civil society. As the Cape Verdean government is responsible for the distribution of these funds, there tends to be a discretionary power that doesn’t safeguard the interests of other stakeholders whose role is equally important in promoting development.

46

Ferreira (2011)

47

Interviews in Cape Verde.

48

The Budget Support Group was formed in December 2006 and currently has the contributions of the African Development Bank, World Bank, European Union, Portugal and Luxembourg. In 2012, Cape Verde became the first country to receive budget aid from Luxembourg. Austria, the Netherlands and Spain announced the withdrawal of the group, in line with the cessation of aid to the country.

38

Figure 4 4.1. Aid and major donors in Cape Verde 2010 2011 2012 2013 328 252,2 246,1 243,4 20,7 14,1 14,3 13,3 -28 -53,5 -357 -1,4

Net ODA in USD million (2012 prices) Net ODA - %GDP Net private flows 4.2. Major donors in Cape Verde Gross ODA, average 2012-2013, million USD Portugal 166,4 Luxembourg 18,6 EU Institutions 14,3 Japan 14,1

Figure 5: Budget Support disbursements Partners African Development Bank World Bank European Union Spain The Netherlands Luxembourg Portugal Total

Figure 6: Development Partners’ Actions by Sector (July 2013) Sectors External Public Partner

Macroeconomic finance Private Stability management Procurement Statistics Sector

x x x x x

2012 10 9

7,7 4,47 1,7

2013 15 8,77

2014 15 11 7,94

1,5 1,0 26,27

0,5 0,5 34,94

3

2,0 30,87

0,5 1,2 23,70

Source: Budget Support Group Note: in the case of the World Bank, an indicative conversion from dollars to Euros was made Aid from European partners (Luxembourg and Portugal) are grants, while the World Bank and African Development Bank are concessional loans

Source: DAC/OECD.

AfDB IMF World Bank EU Portugal* United States Spain Japan Luxembourg Netherlands France Austria Brazil Cuba China

(million Euros)

2011 15

Security

Infrastructure

Water and Sanitation

x

x

x

x

x

x

x x x

x

x x

x

x

x

x

x x x

x x

x x

x x

x

x

x

x

x

Education and Professional Environment Energy Training Agriculture

x x x x x x x x x x

x x x x x x

x

Source: African Development Bank, CAPE VERDE: COUNTRY STRATEGY PAPER 2014-2018 * Public finance management and infrastructure were added, as information on the interventions in these areas are available.

39

Health

x x x x

x x x

x x x x x x x x

x x x

x x

x

x x

Within the aid framework, the main partners in this area have been, in recent years, Portugal, European Union, Luxembourg and Japan, distributed by a multitude of sectors (as illustrated in the Figure). Overall, there is an alignment of efforts by external partners around the priorities defined by the Cape Verdean government, particularly under the Poverty Reduction and Growth Strategy Paper (PRGSP).

In terms of design and implementation of concrete actions, a fragmentation of interventions remains and coordination could be improved in all sectoral areas. It is not intended that these failures and shortcomings contradict the undeniable success achieved by Cape Verde in many areas, neither nullify the positive effects of many projects and programmes implemented in various sectors, but simply demonstrate the possibilities of improvement and correction, from the PCD standpoint. Furthermore, it is noted that these are not problems specific to Cape Verde, but common to several of the projects and cooperation for development actions in various parts of the world, which highlight the need for greater coordination, harmonisation and coherence.

In the Cape Verdean context49 reference to the fact that there is duplication of projects or projects taking place in parallel in the same area, in complementary sectors, without prior coordination, leading to mismatches and undermining the outcome to be achieved, is common. Often the actions are designed separately by the various players without an integrated vision. In addition, there is a perception that communities are not sufficiently involved in the drafting process of programmes and projects designed for them.

Many projects don’t have ensured sustainability that promotes the continuation of their effects beyond the project life span, and there are several examples of production units that went bankrupt with the termination of financing from international cooperation, equipment that was abandoned after completion of projects due to the inability to ensure its maintenance (due to lack of financial resources or logistics), among other incoherences. This means that there is no adequate capitalisation and harnessing of the results of the investments for development.

There is also a long way to go in order to work according to a results oriented logic and analysis on the real social and economic impact that the actions and projects have are rarely performed. In a context where all sectors have been supported by some project or cooperation program, it is essential to always assess what has been done in that sector and geographical area, with that partner, by other donors, what went well or badly, the results previously achieved. In other words, it is essential to invest more in harnessing lessons learned. Furthermore, sustainability cannot be considered only when a given project is finished, since an upwind reflection has impacts on how the actions are managed and implemented50.

Responsibility is shared between the various stakeholders, external and internal. Only with improvements in these areas will be possible to increase coherence and go beyond an aid effectiveness perspective to a real development effectiveness approach.

49

All these findings and examples stem from research carried out based on a multitude of studies and projects and programmes evaluation documents, as well as from interviews performed in Cape Verde 50

Interviews in Cape Verde. These are shortcomings identified in the case studies promoted by the project "Policy Coherence for Development (PCD) - The challenge for an active citizenship in Cape Verde", specifically on agriculture, fisheries and the environment.

40

2.3.3. Donors’ PCD mechanisms and opportunities for the Cape Verdean civil society

PCD commitments, mechanisms and instruments in donor countries, particularly in European countries, were approached in Part I of this study. An analysis of the Cape Verdean context points out to weak translation of these commitments on the ground, in particular, due to the fact that the delegations/embassies are still insufficiently involved in the political decisionmaking process. In the case of the European Union, the delegation does not intervene in the formulation of EU policies (such as the Common Agricultural Policy, the Common Fisheries Policy, the Global Approach to Migration, etc.), with these processes centred almost exclusively in Brussels.

The political role of the EU delegations, however, increased as agreed upon in the Lisbon Treaty and in the context of reinforced coherence of EU external action. In Cape Verde this is especially relevant because in addition to the programmes linked to development assistance, the Delegation also operates under a specific instrument for the Cape Verdean case: the EUCape Verde Partnership. Another positive aspect to note is, when compared to other African countries, the considerable degree of coordination among Member States on the ground and between these and the EU Delegation, in order to ensure a satisfactory level of coordination, complementarity and coherence of the EU action as a whole.

Regarding the main bilateral partners, there is an effort to move from strict aid frameworks to more strategic frameworks that combine various instruments and sectors. In the case of Portugal, for example, the summits Portugal-Cape Verde51 plan to establish a multisectoral strategic dialogue beyond development programmes; the new Strategic Programmes for Cooperation signed with key partner countries of the Portuguese Development Cooperation, also have the express purpose of promoting PCD. Box 3 Good practices to enhance: RENEWABLE ENERGY

Developing countries such as Cape Verde are greatly exposed to the energy crisis, to the fluctuation and volatility of commodities prices (especially oil) and to climate change, being increasingly vulnerable to external shocks, which can undermine the achievement of its development goals. In the energy sector, the need for new alliances, partnerships and funding mechanisms is crucial.

The various diagnostic studies conducted in the energy sector in the past decade pointed out to problems related to the lack of technical and financial management capacity from the public producer and distributor of energy, as well as to the structure and organisation of the sector itself.

In the past, systematic and prolonged failures in the power supply system have resulted in substantial costs for economic activity, a constraint both to the growth of the Cape Verdean economy and to FDI attraction. Increased pressure on the demand side, resulting greatly from urbanisation and the growth of tourism52, has generated concerns about rising fossil fuel costs and the demand for new solutions.

Thus, the Government of Cape Verde has set as guiding principle of its energy policy "to build a country without dependence on fossil fuels on the long-term" as stated in the Renewable Energy 51 52

The III Summit was held in December 2014 and 11 agreements were signed on very diverse matters.

The government estimates that electricity consumption will double by 2020.

41

Plan of Cape Verde (2011). This Plan sets out a plan of action, based on five pillars: (i) prepare infrastructure, (ii) secure funding and engage the private sector, (iii) implement projects through an investment plan, (iv) maximize efficiency, particularly reducing losses, and (v) implement the Renewable Energy Cluster, making Cape Verde an exporter of technology and know-how in this area.

The goal is to fulfil its energy needs through clean and renewable sources, wind and solar, until 2020 (the target for renewable energy penetration is 50% in that period and 100% in the longterm53). The private sector is a strategic partner in this goal, as the Government estimates that achieving the 50% target will require an investment of 300 million Euros.

Since 2008 renewable sources rose from about 2% to nearly 30%. For this greatly contributed 4 wind farms (Santiago, Sal, Boavista, São Vicente) and two solar parks (Santiago and Sal)54. Alongside the fact that this may turn out to generate substantial savings and reduce production costs, it may also lead Cape Verde to assume itself as an example in environmental promotion and as a lab for a green economy.

External partners have an opportunity - jointly with the Cape Verdean partners - to implement coherent strategies and actions that combine environment and development, with multiplier effects in various sectors and in the national economy. Among the areas with the greatest potential, in addition to infrastructure and expansion of energy coverage, are energy efficiency, exploitation for other purposes (e.g. water desalination, which represents 20-25% of the national energy costs), improvement of the legal framework and regulation to create a favourable environment for private investment in this area, among others.

A positive link between energy, environment and development can be safeguarded in the projects and programmes to be implemented if they are designed and implemented in a Policy Coherence for Development approach. A concrete example: if we consider that urban solid waste can be a competitive energy source in Santiago and São Vicente (as stated by the Renewable Energy Plan), that should be taken into account when evaluating the issue of waste collection and treatment ( e.g. addressing the advantages and disadvantages of building a landfill compared to a more integrated solution that may also include an incinerator with waste recycling and the production of energy and fertilizers)55.

An assessment of the projects already in place and the lessons learned in the sector should also be held. There are several development cooperation projects in this sector, particularly in the context of the Global Environment Facility (GEF). The European Union, through the EU-ACP Energy Facility and the European Development Fund (EDF) has also supported some programmes56. One of these projects, SESAM- ER57, implemented with the Porto Novo Municipality and via a consortium of Portuguese and Cape Verdean companies led by Ponta Preta Water Ltd, intended to build a sustainable energy service to isolated rural populations, through the photovoltaic Central Monte Trigo, with potential important lessons for other projects and locations.

53

The target is based on a study from a German organisation. Technical assistance missions from the “Sustainable Energy for all” were held, including an economic feasibility study to increase the penetration of renewable energy. Cape Verde and Samoa are the only ACP countries identified as having great potential for a large renewable energy coverage. In its 2011 report, the Global Wind Energy st Council (GWEC) ranked Cape Verde as 1 in several index calculations for the use of renewable energy.

54

These structures have allowed savings of 4 billion escudos, in a year, in fuel imports. Interviews in Cape Verde.

55

Interviews in Cape Verde.

56

According to the European financial framework for 2014-2020, the EU will provide 2 billion Euros to finance projects and programmes linked to renewable energy in Africa.

57

The SESAM-ER (Sustainable Energy Services for rural isolated populations through Micro-Networks with Renewable Energy in Santo Antão Island) was implemented between March 2008 and June 2013.

42

Other projects are funded by the European Regional Development Fund (ERDF) in the context of Macaronesia (ISLAGUA, APRENMAC), Luxembourg (which supports the RECIM - Renewable Energy Centre and Industrial Maintenance, which regional dimension allows Cape Verde to receive sub regional technicians that will be trained in this area) , Portugal and Spain, the United Nations, Japan, the African Development Bank and the European Investment Bank. The ECOWAS Centre for Renewable Energy and Energy Efficiency (ECREEE)58, created in 2010, has its regional headquarters in Praia.

Several donors are to include this sector as a priority of their cooperation strategies with Cape Verde in the coming years (Luxembourg, Portugal), in addition to the interest shown by other partners (e.g. Germany). For the European Union, the sector is not included in the National Indicative Programme 2014-2020 but it is possible to use other financing sources and instruments.

In September 2014, a Joint Declaration59 was signed to strengthen cooperation in the field of sustainable energy, which foresees the elaboration of a Roadmap with the actions to be taken.

Regarding sectoral dialogue, it foresees the creation of a Coordination Group on Energy, to enable an increased alignment and complementarity between donors and the Cape Verdean authorities, through a division of labour that promotes coherence for development.

Overall, there are two important mechanisms for promoting PCD between external partners and the Cape Verdean government, and with opportunities for civil society participation.

a) Budget Support Group (BSG) The Budget Support Group has more and more weight in the overall context of external aid and greater political influence regarding the dialogue between external partners and between them and the Cape Verdean authorities. An example of this is the increased importance of BSG compared to other broader aid coordination mechanisms, as the Group of Development Partners.

The Partnership Framework signed by Cape Verde and international partners establishes monitoring and evaluation mechanisms involving regular meetings and preparatory work, both through high-level political dialogue and technical meetings with in-depth discussions on these matters60. There is a continuous sectoral policy dialogue with the Cape Verdean public authorities within the permanent thematic groups established, particularly on the water and sanitation and vocational training. A review the implementation of the Strategy for Growth and Poverty Reduction is performed, both at macroeconomic and sectoral levels, based on a General Matrix of common follow-up, and on sectoral Matrixes. There is a regular assessment of the implementation of the funds and of the ongoing reforms.

However, there is still no formal and independent mechanism or performance evaluation agreement of the commitments assumed between Cape Verde and its development partners that may reflect a genuine mutual evaluation (of Cape Verde and international partners), as exists in other countries benefiting from this aid modality.

The participation of civil society in the BSG is being considered, though in accordance with procedures yet to be defined (with which status? which representation? what rights and 58

www.ecreee.org

59

Statement signed by Cape Verde and the European Union, Luxembourg, Spain, Portugal and Austria.

60

Interviews in Cape Verde.

43

duties?). This possible openness to civil society is a European Union initiative, subscribed by all members of the BSG, which will be proposed to the Cape Verdean government.

This is all the more important by widespread lack of awareness on the part of civil society regarding budget aid, its mechanisms and monitoring; this can enable a real involvement and avoid a sense of exclusion against a group considered "closed and unknown". In addition, the participation of civil society would also allow conveying some of their concerns in regard to aid in general and budget support in particular, since budgetary aid tends to be perceived as having negatively contributed to the access of non-state actors to external financing.61

b) EU-Cape Verde Special Partnership Since 2007, Cape Verde and the EU have been trying to give a new impetus and guidance to their relationship, in order to overcome the traditional donor-recipient relationship and embrace common interests in matters of security and development. From the Cape Verdean side, this was pursued with the aim of granting access to norms, mechanisms and instruments that would approximate its economic system to Europe’s and to increase its participation in EU programmes and policies, particularly in the context of the outermost regions (OR) - Madeira, the Azores and the Canary Islands.

The EU-Cape Verde Partnership is based on six pillars: Good Governance; Security and Stability; Regional Integration (OR and ECOWAS); Technical and regulatory convergence; society of knowledge; and development and the fight against poverty. The unprecedented nature of this partnership, and therefore undefined, has advantages and risks: on the one hand, it is an umbrella to frame the cooperation in various fields, thus producing important synergies and complementarities in terms of PCD; on the other hand, the absence of other similar examples requires a "learning by doing� approach which may take longer to consolidate processes and results.

Among the pillars that have presented some concrete results are Governance (with the implementation of institutional improvement projects and e-government) and Security (which has been built more on the bilateral level – with Spain, Portugal, Italy - and that is now being strengthened and restructured to an European level, in order to become an autonomous partnership for Stability and Security).

One of the key sectors for PCD is the Technical and Regulatory Convergence, as it will strengthen institutional capacity and economic governance by facilitating exports of Cape Verdean goods and services trough convergence of Cape Verde and EU rules and standards. A White Paper on regulatory convergence was elaborated and remarkable progress and dialogue has been developed mainly in three priority sectors: Food, Pharmaceuticals, and Quality.

For managing the Special Partnership, Cape Verde has a permanent secretariat under the direction of the Ministry of Foreign Affairs (MIREX), which aims to ensure the smooth functioning of bilateral mechanisms for follow-up, which are: the local follow-up group, the technical follow-up group and the Ministerial Troika.

The participation of civil society is envisaged in the text of the Partnership. Already in the Introduction, n.6: "It shall be open for active participation of non-state actors of Cape Verde and all Member States, highlighting the role of civil society and the private sector as well as the Cape Verdean Diaspora in development and poverty alleviation", and then in the Monitoring of Implementation Mechanisms, point 55. "At the advisory level, a National Steering Committee 61

Interviews in Cape Verde.

44

will be created that includes a representative of the Public Administration for each pillar, a representative of Civil Society, a representative of Municipalities and a representative of NGOs. (...) This Committee will work on the basis of its internal regulation and deliver its advice on the plans to implement and the reports, and will be assisted by the Technical Unit". This provision has not been implemented; however, interaction with the civil society has been taking place particularly through the pillar on development and fight against poverty. Several events have been organised, to inform and debate with civil society on several Partnership issues and pillars, namely on Knowledge Society and Regional Integration. Within initiatives such as the "Special Partnership Week"62, dissemination activities and debates are organised annually with the involvement of several local civil society actors.

This important dialogue is also developed through other financial thematic lines especially devoted to support the Civil Society and Local Authorities.

Still in relation to civil society, its participation in donor policies is promoted in particular by the European Union and the United Nations.

Nevertheless, it is acknowledged that these actors have not been sufficiently involved in the dialogue, being frequently involved on information and consultation sessions with few practical results in terms of effectively influencing the decision-making process. The United Nations Development Assistance Framework for Cape Verde (2012-2016), in its Outcomes Results Matrix and with regard to the Pillar of “consolidation of institutions, democracy and citizenship” states as an objective “supporting mechanisms for improved dialogue and participation of social actors and citizens, particularly women and youth, in the planning and evaluation of public policies and programmes”. Among the indicators to assess its compliance are: • • •

the number of mechanisms that facilitate the participation of civil society in policy planning and evaluation; the % of organised civil society that is satisfied with the fact that its voice is acknowledged by national public institutions; the number of alternative reports to the policy planning and evaluation documents that are elaborated by civil society.

Regarding the dialogue between the European Union and the Cape Verdean authorities, the EU is considering, according to the National Indicative Programme 2014-2020, the creation of a more inclusive dialogue group, involving civil society and the Parliament. In addition project funding, civil society is also consulted about the priorities to include in EU lines of financing, such as the Budget Line on Civil Society and Local Authorities in Development.

A public consultation was held and a EU Roadmap for a Commitment with Civil Society (for the period 2014-2017) elaborated, which states that "CSO could play a significant role in the follow-up and monitoring of central and local authorities’ policies, in order to ensure the necessary check and balances in the Cape Verde political framework". In this context, an EU Technical Assistance Mission (September 2014) took place to carry out consultations, needsassessment and training, for the identification of priority areas for future initiatives and support modalities to strengthen the technical capacities of civil society organisations (CSOs)

62

The "Special Partnership Week" took place in May 2014, in São Vicente; the initiatives, coordinated with the EU, targeted mainly university students, A mission from journalists to Brussels took place in order to held contacts with European institutions (September 2014), and the European Commissioner on Science and Technology went to Cape Verde.

45

and local authorities (LA) in Cape Verde. A Mapping of Civil Society will be prepared in 2015 that is to include an updated list of all organisations by theme and intervention scale.

The EU Roadmap defines three action pillars with corresponding priorities for which the EU and Member States are committed to contribute, both through direct financing, technical assistance, political dialogue and promotion of synergies: Level 1: Enabling Environment − − −

Knowledge improvement about Cape Verdean civil society CSO and LA financial sustainability Adaptation of the legal framework to the needs of CSO and LA

Level 2: Active Participation − − −

Participation of CSO and AL in the preparation and decision-making on public policies Improve contributions of CSO and LA in governance and development processes at the local level Engage sections of the population/the economy directly related to the fight against poverty and other sectors identified by CSO and LA

Level 3: Capacity Development − −

Support to CSO and LA for the improvement of its autonomy, internal governance and transparency mechanisms Improve technical capacities of CSO and LA

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2.4. Coherence of public policies and the participation of Cape Verdean civil society Political decision-making is complex in all countries and subject to varied and sometimes contradictory interests. PCD acknowledges these conflicts and can be an incentive to address the interests of various actors and stakeholders, in that it gives voice to those who are affected by policies and encourages more participatory and informed decisions to be taken. By allowing the expression of multiple perspectives, it also allows the dissemination of new proposals and options, which otherwise would not even be envisaged. However, mobilising the attention and political support for PCD is not easy, both due to competition between interests and to the difficulty of the poorest in making their voices heard.

The objectives of promoting PCD in Cape Verde are easily replicable from the overall objectives of PCD according to the OECD: 

To explore the potential for positive synergies between different policies, to promote development and achieve mutual benefits;



To increase the government's ability to balance divergent sectoral interests and to reconcile the domestic policy objectives with its commitments and objectives at global level;



To avoid or minimise negative effects and impacts of various policies on development (incoherences).

PCD should be promoted in the Cape Verdean context at three operational levels: Political Commitments/ Institutional mechanisms/ monitoring through analysis, information and communication, as the following figure: Figure 7: PCD in the national context

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As discussed in previous chapters, policy coherence, enabling a more positive impact in development in Cape Verde, is especially important in the current national context, both in regarding its development process and the current trends in aid policies from the main external partners.

Several public policies, designed through strategies and action plans resulting from the Transformation Strategy set in 2003, are currently in the process of review and formulation of new plans, better suited to the current national dynamics and challenges in each sector. With regard to sectoral areas prioritised by this study, it is worth mentioning the Strategic Plan for Agricultural Development (2005 to 2015) and respective National Agricultural Investment Plan (2010), the National Action Plan for Environment (NAPE II, 2004-2014), and the Fishery Resources Management Plan (2004-2014). The Poverty Reduction and Growth Strategy Paper (PRGSP III) ends in 2016, with mid-term review foreseen to be held in 2015.

Internationally, Cape Verde will also be called upon to implement on a national and local basis the post-2015 global development agenda, which will require innovative ways of engaging in policies that are more coherent and consistent with the Sustainable Development Goals (SDGs). We are therefore in a very specific period of strategic review and reforms, with great opportunities and challenges for PCD promotion.

Box 4 The PRGSP III as an instrument to foster PCD The Poverty Reduction and Growth Strategy Paper (PRGSP III)63 is the long-term planning instrument in Cape Verde 64 The PRGSP is one of the main framework documents promoting PCD in Cape Verde, by taking the anti-poverty policy as an integral part of the overall public policy. In other words, it is supposed that all policies, objectives and actions identified there, belonging to a multitude of sectoral areas, contribute to the ultimate goal of poverty reduction. This document provides the reference framework for the diverse partners in the definition and implementation of public policies, as well as the basis for the allocation of domestic and external resources.

The PRGSP III (2012-2016), unlike the previous two, was an exercise of engagement and participation, because it relied on diverse contributions and effective coordination between various sectors, which allowed for enhanced coherence, at least on paper. It is based on five main action pillars: (i) infrastructure, (ii) human capital, (iii) good governance, (iv) strengthening the private sector and (v) country positioning at the global level; the achievement of the defined targets involves the implementation of investments by sectors, the improvement of public services provided to citizens and the optimisation of bureaucratic activities.

Investment programmes and sectoral action plans have made an alignment exercise with the PRGSP, which serves as the umbrella for interventions in various areas. Logical Frameworks of PRGSP Programmes are defined, by axes, including indicators and means of verification. The 63

PRGSP I (2004-2007), PRGSP II (2008-2011); PRGSP III (2012-2016)

64

Law of the National Planning System: Law n.ยบ72/VIII /2014, September 19 2014.

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External partners in general have also made efforts to align their actions with the priorities set in this framework.

The strengthening of the PRGSP follow-up mechanisms, either with a more systematic and participatory monitoring of indicators either with more effective communication and information (especially to public opinion and civil society) could therefore be translated into effective gains in the policy coherence.

Consistency applies primarily to public actors, who are responsible for designing, structuring and implementing public policies. In Cape Verde, historical reasons reinforced the perception of the central role and responsibility of the State65. Cape Verdeans in general, "consider the results achieved so far in Cape Verde fruit of good governance by the successive postindependence governments and blame the state for the ills that affect society, including unemployment, lack of social security and violence. There is an idea of the welfare state to which they attribute the mandate to define the societal goals to be achieved, and the responsibility to plan, guide and create the conditions for achieving those objectives"66.

In this context, the Cape Verdean experience on PCD is not different from other contexts, as coherence is much easier to ensure on declarations and political commitments, rather than on concrete actions, on institutional coordination and monitoring. Therefore, we witness incoherences between the guidelines defined in documents or strategic plans and the concrete implementation of agreements and policies67.

Institutional coordination and monitoring has shown some improvement in recent years.

Namely, the PRGSP III introduced innovations to improve the monitoring of public expenditure in sectoral areas, to assess reforms (with a monitoring and indicators matrix, each project must have a logical framework developed and updated by sectoral ministries) and to enhance the results-based management, as has been applied to the programmatic approach of the State Budget in recent years. In this context, it is important to increasingly strengthen the engagement and capacity of national statistical authorities - particularly the Cape Verde National Statistics Institute - to enable a systematic follow-up and continuous assessment of the indicators and targets defined by the PRGSP. The management of public funds has also changed, with the introduction of SIGOF 68 and several reforms in planning, budgeting and management. However, the assessments on public policies focus almost exclusively on financial management and immediate results - outputs (e.g. X dams were built, X ports were improved, etc.), and impact or outcomes evaluation is still scarce (i.e. what was the impact of dams on the living conditions of communities? did the 65

Interviews in Cape Verde.

66

United Nations (2013).

67

This has been evidenced by the case studies undertaken within the project: agriculture, fisheries and environment.

68

The Integrated Public Financial Management System (SIGOF) is the computer support instrument for the National Planning System that organises and integrates the short, medium and long-term planning tools and enables its monitoring and evaluation. This instrument allows “the programming, implementation and evaluation of Sectoral Programmes and corresponding investment projects, management units and administrative support, both on financial as material issues�. All these programmes and projects must be included in SIGOF, as determined by the Basic Law for the National th Planning System (Law 71/VIII/2014, 19 September).

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ports resulted in increased economic activity by sea?). Therefore, PCD promotion requires an comprehensive view of problems and solutions, both on political and technical levels - see Box on the example of Dams.

Moreover, institutional mechanisms sometimes do exist but are not properly fuelled or pushed forward, and could therefore be better used. One example: in the specific case of the fisheries sector, dialogue between the various stakeholders is irregular and there is no real consultation, which could be encouraged as part of the National Fisheries Commission, created exactly for this purpose69. There is a general perception that relevant stakeholders and the final beneficiaries of the sectoral policy - in this case artisanal fishermen - are not properly heard in the negotiations of agreements by the Cape Verdean government, or are not sufficiently informed on the agreements and the decisions taken. Boosting these spaces for dialogue, communication and information that already exist in the national institutional framework, could thus be important to move towards greater coherence.

The general lack of knowledge about public and private policies implemented in Cape Verde, as well as in relation to Cape Verde international commitments, limits the possibility of sustained action to demand accountability and responsibility. It is therefore important to improve the communication strategy and dissemination among institutions as well as with the population in general.

However, it is also worth noting that despite the initial finding on "widespread alienation of the population", a higher level of engagement, organisation and empowerment is noticed. In other words, people are interested in participating in their communities, in solving the problems and challenges they face in their daily lives, and usually have an opinion about what should be done, about the performance of central and local governments, about what has gone more or less well. As referred in the Forum 2030, held in May 2014 to debate national transformation, “this is also facilitating mental change. People are becoming less dependent and the focus is now more on empowerment and capacity-building to participate in the economy as opposed to waiting for a hand out”. The issue here is to improve the exercise of that citizenship: having the proper channels to transmit these opinions, willingness to do it in the public space, and being effectively heard.

Box 5 An example to consider: DAMS - Coherence or Incoherence?

With climate volatility and frequent dry years, associated with a growing population and human practices that increasingly demand for water, Cape Verde is an archipelago increasingly vulnerable in regard to the availability and management of water resources. The mobilisation of water resources in Cape Verde represents an imperative both for improving living conditions and to enhance agricultural productivity. The national growth strategy, including the PRGSP (in line with the National Plan for Agricultural Investment 2010) foresees the construction of 17 dams covering most of the islands - as well as dozens of water dikes and five water pumping systems - of which seven have already been built (5 in Santiago, 1 in Santo Antão and 1 in São Nicolau). The construction of dams and other infrastructure was perceived as an urgent need and thus benefited from a broad political consensus.

69

The fisheries policy is not within the scope of analysis of this study. For an in-depth analysis, see Ferreira, Patrícia (2011) and Silva, Damaris (2013).

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In recent years, the growth of production and productivity in some rural areas has been clear, as a result of the construction of dams and water reservoirs, irrigation management, expansion of drop by drop irrigation, introduction of new technologies, construction of rural roads and better access to microfinance. As a result, the irrigated area has doubled between 2003 and 2012 (in drop by drop irrigation growth was 6x higher, according to the Ministry of Agriculture data) and agricultural production of some vegetables rose sharply, leading to a decrease of food imports in some islands.

The positive effects began to be felt as early as 2010, with greater abundance of vegetables and decrease in prices on the island of Santiago.

However, dams are structures of major environmental and socio-economic impact. At the environmental level, potential impacts include the so-called barrier effect, the landscape change, habitat destruction, the existence of surplus/leftover materials, environmental change in the areas of access and movement, among others. The construction of dams planned and designed in Cape Verde is considered a very relevant option, however these should be accompanied by rigorous evaluation and monitoring throughout the process. In this context, reference should be made to several points: - The dams had some impact on agricultural production, but there are other issues that were not considered, as failures on products’ packaging and transportation, product certification and quality, etc. In the islands where the greatest tourist resorts are located there is no horticulture production - Boavista and Sal – and there these issues are particularly relevant.

- Participatory management of water dam after its construction is needed, where all farmers feel “part of the team”, because many consider that dam management is pursued “back to back” with the farmers’ interests and aspirations.

- Despite progress in the irrigation system, most farmers use irrigation by flooding that uses large quantity of water, and promote overexploitation, thus wasting dam water.

- Many farmers believe that the price stipulated for the water is too expensive (they state that what they earn from the sale of agricultural products is only enough to pay the water that should have at much lower price, since the water of the reservoir comes from the rain at no cost).

- There is a considerable capacity-building and mobilisation work to do with farmers, in order to: determine what to plant, develop cooperatives to solve the problem of small scale, facilitate the processing of products and their distribution, increase quality, and facilitate the link between producers and the market.

There have been therefore some incoherences such as "scenarios of vegetables being sold at very low prices, or even getting spoiled in the island of Santiago, while the hotels and touristic resorts import from abroad and the local populations purchase agricultural products at exorbitant prices on the non-producing islands"70. The main conclusion is that dams were designed to solve a specific and very pressing problem for the development of Cape Verde - water scarcity - but in order to have coherent and sustainable effects in the medium and long-term development processes, they have to be part of a comprehensive and integrated approach encompassing synergies between various sectors (and to which various factors contribute, such as the following figure).

70

Case Study: Agriculture.

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Figure 8: Comprehensive and multisectoral vision of dam construction

To enhance PCD good practices, it is essential to promote a multi-stakeholders dialogue on the sectoral policies, to identify obstacles and drivers for change. In Cape Verde, the partisanship and politicisation of opinions is a real obstacle to obtaining positive and concrete results in the dialogue between actors. However, improvements can be made to enhance the important role that civil society has to play in the dialogue with the central government, municipalities and Parliament. −

Civil Society /NGO and dialogue with the government

There are numerous associations and civil society organisations operating on various locations, subjects and levels, from small community organisations to associations and NGOs with national scope. These organisations have proven to work well in coordination and networks, as most NGOs are members of a network or committee for debate and research. At the national level, the Platform of NGOs of Cape Verde enjoys great representativeness and has evolved to represent various organisations of civil society (not only NGOs), with almost 300 members although the universe of non-state organisations in Cape Verde may reach 3,000 organisations.

This is a very significant number when compared to other African countries, and particularly given the size of the country.

The work of these organisations is perceived as crucial to the country's development, both by public and governmental actors, and by external partners. Overall, their work is very much appreciated by institutions and populations, due to the type of activities undertaken (often meeting needs the government cannot respond to) and to the achieved results.

52

With regard to participation in policy formulation and implementation, the Basic Law for the National Planning System, of September 2014, states that "in the national planning system, consultative planning organisms are responsible for enabling the participation of the private sector and civil society organisations in the processes and instruments of the national planning system"71.

Some CSOs are consulted by the Government within the Council for Social Dialogue, which is relatively unique when compared to other African countries. They are also consulted in the elaboration of national strategies and sectoral plans, usually for dissemination and validation of documents. Some NGOs with recognised work in specific sectors (e.g. environment) act as a bridge between government entities and community associations. The Platform of NGOs is acknowledged as the main interlocutor of civil society, giving advice on various issues and being present in a large number of committees and government working groups (which raises capacity issues - see following points).

However, the general feeling is that this dialogue is uneven, that consultation is often only formal, and that the contributions and opinions are not duly taken into consideration and integrated into policy implementation. Consultations are often made at the time of elaborating and/or validating a document, but then there is no continuous work in terms of monitoring its implementation. Furthermore, although the technical expertise and addedvalue of some NGOs in specific sectors are acknowledged, this does not translate into an effective delegation of competences in the programmes’ implementation72. In short, "the participation of CSOs in general is limited to information and consultation of CSOs by public institutions, but does not reach higher degrees of delegated powers, empowerment, control, influence and decision on public policies. In this sense, there is a need to strengthen the organisational and institutional capacity of CSOs themselves, but also to review public participation mechanisms provided for in the political and legal systems, in decision-making, in the legislative processes, in the definition of public policies, in budgeting and provision of social services"73.

The advocacy and influence capabilities of civil society organisations are limited due to the following factors: 

CSOs are very much focused on providing basic and social services - education, health, community-based interventions, etc. - being somewhat not particularly aware of the role they can and should play on the advocacy and policy levels.



Knowledge and experience is fragmented, that is, the technical expertise of CSOs is usually limited and specific to the sector they intervene in - there are few human resources able to drive comprehensive strategic thinking and able to master various issues and technicalities.



CSOs are absorbed by the daily work and management, having little real capacity in terms of human resources, financial resources, time, etc., to participate more actively in dialogue and other processes;



Heavy dependence on financing, which leads to some organisations being only seasonal (when they have a specific funding or project) and operating largely on a

71

Art. 12: Planning Advisory Bodies.

72

Interviews in Cape Verde.

73

EU Roadmap for a Commitment with Civil Society 2014-2017.

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voluntary basis, so its human resources cannot devote to the work fully and permanently. 

Difficulty to "speak in one voice", or at least to agree and coordinate positions on particular subject - which is not a surprise given the fragmentation and diversity of CSOs, but weakens their bargaining power and leverage, also hampering the coherence of CSOs contribution to the development processes.



Although there is progress in internal dialogue and reflection within CSOs, it is still difficult to pursue independent and in-depth analysis about governance issues in these organisations, and the Code of Ethics promoted by the Platform of NGOs jointly with its members is still seldom applied.



There is a geographical dispersal that arises from territorial discontinuity, with difficulties to travel and participation in policy dialogues – and these are very much centralised because of the concentration of government officials and institutions in the capital.

There is thus much work to be done with the OSCs to increase their ability to identify incoherences, convey their positions and propose solutions. Strengthening their leverage and influencing capacity can be done simultaneously by two ways. On the one hand, by creating civil society networks on specific issues, namely promoted by the Platform of NGOs, which enable several organisations to take a more active stance and ongoing follow-up of the national debate on certain matters. This is already being done, e.g. through the civil society network for food and nutritional security, and can be pushed forward in other sectors. This would allow organisations to coordinate positions and better take advantage of their participation in governmental networks and organisms (in mentioned example, the National Council for Food and Nutritional Security, also recently created and where the civil society participates with an advisory role). Fostering a culture of producing reports, letters and position papers by civil society on specific issues also contribute to this end.

On the other hand, CSOs capacity development can also be pursued through the establishment of a PCD Observatory that could organise all this work in a more systematic and sustained manner, by consolidating and following up on the dialogue and dynamics already initiated with the project "PCD - The challenge for an active citizenship in Cape Verde "74.

With regard to Government-CSO dialogue, PCD would benefit from the creation of spaces, teams and organisms for consultation and policy monitoring, and particularly from spaces and mechanisms where civil society is an active partner at the table. Civil society is consulted on an ad hoc basis and depending on the political priorities of each given moment, but it could be useful to foster cooperation and dialogue about selected themes in coordination spaces/bodies, where civil society is an effective partner and engages in more structured, regular and systematic monitoring.

In the Cape Verdean framework, the Ministry of Environment, Housing and Territorial Planning (MAHOT) has a mandate to: (i) Follow-up NGOs and Local Development Associations regarding information and facilitation in their relations with the State, in particular with regard to 74

Several interviewees mentioned the project’s added-value and results: (i) helping to systematise concepts and tools (since coherence was already approached in practice, but that there was no reflection, debate or even understanding of the concept itself); (ii) giving opportunity to a number of actors to build capacity in this area (association leaders, journalists, etc.); and (iii) having demystified the dialogue between different actors, particularly with policy makers, local officials and deputies, through joint meetings on specific topics, where they freely expressed their opinions.

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governmental institutional support to these organisations; (ii) propose and adopt policy measures, strategies and methodologies to frame the activity of NGOs and the legal framework of their relationship with the State; (iii) monitoring and evaluating the impact of CSOs actions on local and regional development; (iv) encourage partnerships between local authorities and civil society organisations in the design and implementation of development programmes and projects with positive impact on local and regional communities; and (v) ensure technical and institutional support to civil society organisations regarding a participatory approach to local development projects, human resources training, and mobilisation of funds and partnerships at domestic and external levels.

MAHOT is thus the most important focal point for facilitating the interaction between civil society and the central government. Within this framework, several actions can be reinforced, particularly to jointly raise awareness on CSOs work and disseminate the achieved results. In some sectors there is still a perception about lack of rigor and transparency in CSOs activities, but this stems largely from lack of knowledge about their work and the development results achieved75. The lack of regulation is acknowledged and it is thus necessary to agree and clarify some criteria, formal requirements, rights and duties. In this context, it would be important to jointly work towards the approval of the legislative package - forthcoming for several years that includes (i) the legal statute of CSOs; (ii) registration and accountability; (iii) the creation of a CSOs support fund. −

Dialogue and coherence with Municipalities

The democratically elected powers at sub-national level have extensive experience in solving problems related to local development and formulating local answers to global problems76.

Their proximity to the population and their role in coordinating diverse regional and local actors are very important added-values in promoting more participatory and inclusive development processes. The recent thinking and practice on this issue stresses the importance of local authorities not only as service providers but as active players in development policies and as drivers for change.

The process of decentralisation in Cape Verde has recently been analysed and reviewed, resulting in the Diagnostic Report on 20 years of Decentralisation in Cape Verde 77. Of the dozens of conclusions reached, there are some particularly relevant to PCD and to dialogue with civil society:

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

There is a sharp democratic deficit regarding the decentralisation of municipal services, the administrative and institutional decentralisation towards civil society organisations and local communities, and citizens’ participation - participatory democracy - in management and control of local public affairs;



There is still much to be done regarding ownership by citizens of the organisms and mechanisms that the Constitution and legislation place at their disposal for exercising an active citizenship and participation;

Interviews in Cape Verde.

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The analysis of the MDGs results reveals that there is a strong link between progress on poverty reduction and access to health and education, on the one hand, and the decentralisation of power, policies, competencies and resources, on the other.

77

MAHOT (2013). You can follow this issue here: http://www.regionalizacaocv.org/

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

The existing legal framework requires better systematisation in order to become more coherent (thus avoiding repetitions, inconsistencies, dysfunctions, contradictions) and to eliminated certain mechanisms that contradict the principle of municipal autonomy;



The current regulatory and legal framework would benefit from the regulation of some institutes and mechanisms - including the local referendum, popular action, popular initiative and the participation of individuals - in order to ensure the effective citizens’ participation in the management of local public affairs and in decision-making processes;



There are still many gray areas, overlap and conflict between the policy areas of action of the central government and local governments, notably regarding social support, education and training, youth, health, urban public transport, roads, local territory management, local public investments, etc.;



Local authorities do not have the necessary human, organisational, material and financial resources to perform the duties and powers assigned by law, with effectiveness and efficiency;



The orientation towards participatory democracy at the local level has not been followed and implemented;



There are still many constraints to the full realisation of local competencies, functions and good governance that are closely related to difficulties arising from weak institutional, technical and local management capacities. Most Cape Verdean Municipalities continue to be structurally weak and lacking in financial, technical, material and human resources necessary and adequate to carry out its tasks.

We can thus consider that a balanced system of multilevel governance is still on construction, and that there are many aspects to improve within the interaction between central and local authorities. The politicisation of dialogue is a concern, as well as the lack of resources: central and local authorities often compete for international cooperation funds. Within certain sectors, local governments are perceived as having lost leadership in the development process, particularly with the predominance of external budget support: on the one hand, it is increasingly difficult to identify their interlocutors among external partners and, on the other hand, projects have to be approved by the respective sectoral ministries, according to their priorities and interests. In this sense, it seems that there is almost a "centralisation of decentralised cooperation"78.

This competition also occurs in relation to civil society organisations, because although local authorities are often CSOs partners in implementing development projects, a reluctance of municipalities towards the implementation of projects by local NGOs (funded by the Government or by international partners) is not unusual79.

In addition, it is necessary to promote greater democratisation of relations between the communities and local governments in the implementation of local development policies, through effective participation. An instrument with great potential to enhance PCD at local levels are local participatory budgets, which require wide participation, accountability and transparency in setting priorities and actions. The approach of participatory budgeting is 78

Opposite to this trend is the intention of the Luxembourg Development Cooperation to create a fund for decentralisation and integrated local development, through a partnership between the Luxembourg Government and the NAMCV, encompassing EUR 5 million for small projects.

79

Interviews in Cape Verde.

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innovative at the local governance level, not only because it helps to develop collaborative institutional relations between local organisms and entities, but mainly because it gives participants and citizens a leading role in defining the rules and influencing decisions, thus being an effective monitoring, transparency and accountability mechanism.

In the Cape Verdean case, of the four existing pilot experiences (Santa Cruz, SĂŁo Miguel, Paul and Mosteiros), only Paul remained engaged in the process. There are clear difficulties in raising awareness among local governments/mayors about this methodology and in building local ownership of the process. Indeed, the creation of participatory budgets is completely voluntary and depends on the local political will, as there is no legal requirement or concrete incentives for its implementation.

More recently, the Maio island has become an example in implementing this instrument, as it has included the participatory budget in its plan of activities. This process involves several phases: in the first phase, a socio-economic diagnosis of the main activities to be developed is undertaken; in the second, associative leaders are trained on participatory budget; and in the third meetings in each community are held, in order to identify the population's needs and to elect the delegates. The fourth stage focuses on the technical analysis of proposals made by each community, after an analysis of financial, environmental and social feasibility, so that in the fifth phase the results of this technical assessment and the prioritisation of investments to include in the budget proposal for the coming year are presented. This is an example to follow closely, which can allow drawing lessons on promoting PCD locally. −

Dialogue and coherence with the Parliament

The political debate is naturally monopolised by political parties that end up leaving little room for a wider participation of citizens and civil society, including at the parliamentary level. On the one hand, the polarisation of the political debate is in line with the election cycles and electoral interests of parties - this is reflected in the parliamentary work and generates little interest or political consciousness by large sectors of the population, especially young people.

On the other hand, the Parliament is in practice not very open to civil society, and this could be remedied by more systematic consultation and involvement of citizens in bills and debates, for example recurring to new technologies (ICT).

Awareness within the Parliament regarding PCD is still scarce and limited to a small group of parliamentarians. It is therefore important to raise knowledge and awareness so that they increasingly integrate this perspective in their speeches and questions to the government (which may focus on "any relevant matter of political, economic, social or cultural interest") in suggesting debates, and in other instruments at their disposal. Multisectoral dialogue in the Parliament is limited and parliamentarians are usually not mobilised or organised in a structured way around specific themes (unless through Specialised Committees). There are, however, exceptions that are worth mentioning from a PCD point of view..

One is the Network of Cape Verdean Women Parliamentarians, which has been developing an interesting work of policy monitoring on gender equality, fight against discrimination and violence against women, and the link between gender and development.

Another example is the Parliamentary Network for the Environment, Fight Against Desertification and Poverty that was created in 2004 and brings together 46 of the 72 members of the National Assembly80, with the objective, among others, "to contribute so that 80

Data from July 2014.

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environmental issues, territorial planning, the fight against desertification and poverty appear, with due priority, in the parliamentary agenda through legislative initiatives, debates, hearings and monitoring of government actions.". Under the Constitution of Cape Verde, it is up to the National Assembly the exclusive competence to endorse basic laws about "the system of nature conservation, natural resources protection, and historical and cultural heritage"81. This Parliamentary Network has managed to position itself as a space for information, training and debate on these issues; it regularly consults and engages civil society organisations with extensive experience on the Environment. However, much needs to be done to ensure that the Cape Verdean Parliament fully performs its competences regarding the definition of environmental policy, the fight against desertification and poverty eradication in the country.

In particular, there is room to reinforce the Network for the supervision and monitoring of governmental performance on this subject.

Parliamentary actions and work on supervision of public finance and expenditures has been supported by some international cooperation projects. It is worth noting the on-going Propalop/TL Project, funded by the European Union and managed by UNDP82, aimed at strengthening the external control capabilities of the court of Auditors and the parliamentary oversight of public accounts, as well as contributing to more informed public participation in the budgetary process.

Beyond the supervision and monitoring role, PCD also seeks to ensure that the development impact is duly taken into account in the legislative proposals and in the adoption of legal instruments, in line with the Parliament’s mandate. In other words, the approval of laws could include in the justification parameters not only budgetary criteria (if there are financial resources to implement the law), but also a development criteria - that is, a previous analysis of whether a law has a positive or negative impact in local and national development.

81

Art. 187 n.2 of the Constitution, 1992. See article of JanuĂĄrio Nascimento (2006).

82

The project - Project for the reinforcement of technical skills in the Supreme Audit Institutions, national Parliaments and civil society for the supervision of public finances in PALOP and East Timor involves a total amount of EUR 6,400,000 with actions to be implemented in all PALOP and East Timor, from January 2014 to December 2016.

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CONCLUSIONS AND RECOMMENDATIONS

PCD was initially a concept and approach promoted by the "developed North" to assess the impact that its various sectoral policies have in the "developing South�. However, the donorrecipient paradigm has been diluted in many forms at international level, with the blurring of the distinction between North and South and between developed and developing countries, as well as with the integration of a variety of multidimensional challenges in what is considered today to be "Development".

Policy incoherence is currently a concern of all countries that imply economic costs and ineffectiveness; the development of more integrated and comprehensive approaches is therefore a challenge for all governments and stakeholders in the development process. PCD consists in the analysis of various policies "through the lens of development�, identifying incoherences and possibilities for synergies, in order to properly integrate the development dimensions: economic, environmental and social.

With the adoption of a post-2015 Global Development Agenda including goals and targets of universal implementation (in September 2015), every country, developed and developing, will have to implement it depending on their level of development and national realities (principle of differentiation), by setting priorities, measures and indicators to achieve the defined goals and targets. In this sense, each country will need to invest in improving the coherence of policies, practices, institutions and resources. PCD may therefore be an important instrument to various actors (including civil society) in the discussion, approval and implementation of national and subnational plans.

At EU level, PCD is both a political commitment and a legal obligation, as discussed in Chapter 1.3.1. Virtually all EU policies have an external dimension and should be designed and implemented taking into account those impacts. Formally and conceptually, this is something consensual in European settings, but in practice the challenges and difficulties are evident in overcoming the conflicts of interest between the various EU policies and the contradictions with bilateral Member States policies, as well as in reconciling these policies with development needs.

Despite progress in PCD ownership in European countries, the study found out that the practical implementation of this instrument/approach in many European countries is still not systematic in the PCD 3 implementation pillars (Chapter 1.3.2). Among the good practices under the declarations and political commitments (pillar 1), one can mention the approval of legislation or the design of development strategies that actively promote PCD. Regarding the institutionalisation of coordination mechanisms (pillar 2), the creation of interministerial groups and technical-political forums, funding mechanisms that combine various sectors, or the establishment of a PCD focal points network are examples to be highlighted. In terms of monitoring, reporting and information (pillar 3) in several countries the existence of annual PCD reports of the national parliaments, the development of indicators and evaluation tools, or the partnerships with academic institutions and civil society to demand data and evidence and to carry out impact studies are examples.

In the case of Cape Verde, the search for greater effectiveness and coherence is especially relevant in the current national context. Two recent milestones, important for the future of development in Cape Verde, are highlighted from a PCD standpoint: graduation to Middle 59

Income Country (MIC) and membership of the World Trade Organisation (WTO), with the changes that these have implied. The country experiences a unique and important juncture of its development process, with the effects of the European economic crisis, the exhaustion of the economic model pursued so far, falling tax revenues and rising debt, and the decline in traditional sources of external financing while the investments made are slow to bear fruit.

This expresses a paradigm shift, in which the country will have to attract increased investment to promote economic growth, in order to be able to fund the state and social policies – and the improvement of the business environment will therefore be fundamental. It is necessary, on the one hand, to find new solutions for financing and innovation, to seek in a more systematic way new partners and instruments and, on the other hand, to focus on effectiveness, impact and coherence of policies for development. All the structural reforms needed to the boost multiple growth drivers stress that policy coherence will be increasingly relevant and important at a time when also various documents and sectoral strategic plans are under review.

Regarding aid, there is a general decrease in grants (although it slightly increased in the case of the European Union), an increase in the share of budgetary aid and a reorientation of donor priorities. Overall, there is an effort to aid alignment with the priorities defined by the Cape Verdean government, namely in the context of the PRGSP. Regarding the implementation of concrete actions, the fragmentation of actions persists and the projects’ coordination and sustainability could be improved in all sectoral areas. Much remains to be done to move from an approach of aid effectiveness to development effectiveness.

There is an effort from external partners to move from strict aid frameworks to more strategic frameworks that combine several instruments and sectors. The renewable energy sector is an example with great potential for implementing a PCD approach, between external partners and Cape Verdean actors, as discussed in Section 2.3.3.

Two important mechanisms for promoting PCD between external partners and the Cape Verdean government are to be highlighted, and with opportunities for civil society participation: the Budget Support Group (where such participation is being considered and organised) and the EU-Cape Verde Special Partnership (where it is planned but can be improved). The implementation of the measures foreseen in the EU Roadmap for a Commitment with Civil Society (for the period 2014-2017) can also drive the dialogue between external partners and the Cape Verdean civil society.

At national level, mobilising attention and political support for PCD is not easy, both due to competition between sometimes conflicting interests and to the difficulty of the poorest and most vulnerable sectors of the population to have a voice. There are, however, several opportunities to explore the potential for positive synergies between different policies, to increase the ability to balance divergent interests, and to avoid or minimise negatives development effects and impacts of some policies.

Coherence applies primarily to public actors and policy-makers who are responsible for designing, organising and implementing public policies. Institutional coordination and monitoring has shown some improvement in recent years: for example, the PRGSP III introduced new measures to improve the monitoring of public expenditure in various sectors, to assess the approved reforms (with a monitoring and indicators matrix) and to improve a results-based management. Public funds management also changed, with the introduction of SIGOF and reforms in planning, budgeting and management, although assessments on public policies tend to focus almost exclusively on financial management and outputs while outcomes and impact assessments are still scarce. This means that PCD promotion requires 60

an integrated approach to problems and solutions, at political and technical levels, as illustrated in this study by the example of Dams. On the other hand, institutional mechanisms, multisectoral and multi-actors committees, sometimes do exist but are not properly fuelled or pushed forward, and could therefore be better used (as exemplified in the case of Fisheries).

To enhance PCD good practices, it is crucial to promote multi-stakeholders dialogue on various policies, in order to identify both obstacles and drivers for change. The culture of civic participation is still limited, but can be boosted: people have their opinions on several issues but often lack the channels to express these opinions, the willingness to do so in public, and to be effectively heard. Despite the partisanship and politicisation of opinions and dialogue in Cape Verde, there is space to enhance the important role that civil society has to play in its dialogue with the central government, municipalities and Parliament, as discussed in Chapter 2.4.

Currently, the Platform of NGOs gives advice in various areas and is present in a large number of committees and government working groups, CSOs are usually consulted in the formulation of national strategies and sectoral plans, for socialisation and validation of documents, and some NGOs with recognised work in specific sectors (e.g. environment) act as a bridge between government bodies and community associations. However, the general feeling is that this dialogue is uneven and that the contributions and opinions are not duly taken into consideration and integrated into policies. Although the technical added-value of some NGOs is acknowledged, this does not translate into an effective delegation in terms of projects implementation, or into a systematic partnership for monitoring policies. Responsibilities are mutual, since the CSOs capacity for coordination and finding common positions is weak (due to various factors mentioned to in the study), which eventually undermines their influencing and advocacy capacity.

The same goes for municipalities and local authorities, albeit with different factors and characteristics. The politicisation of dialogue is a concern, such as the lack of resources: central and local authorities often compete for international cooperation funds. This competition also occurs in relation to civil society organisations, because although local authorities are often CSOs partners in implementing development projects, a reluctance of municipalities towards the implementation of projects by local NGOs (funded by the Government or by international partners) is not unusual. In addition, it is necessary to promote greater democratisation of relations between the communities and local governments in the implementation of local development policies, through effective participation.

Another key player in promoting PCD is the Parliament. Knowledge and awareness in the Parliament about PCD is still scarce and limited to a small group of parliamentarians, and should therefore be enhanced so that they increasingly integrate this approach in the questions to the government and in other instruments at their disposal, as well as into the supervision and monitoring of public policies. Some examples of parliamentarians’ mobilisation around specific themes are mentioned in the study - such as gender or the environment – that can be useful to replicate.

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RECOMMENDATIONS The study concludes with three major and general recommendations that apply to all actors external partners and donors, government and policy makers, national and local authorities, Parliament and civil society actors: −

Start assessing their policies, measures, actions and projects from a Policy Coherence for Development’ perspective, in order to capitalise on synergies and minimise the negative effects that inconsistencies can have on beneficiaries and target-groups.

−

Foster by all possible means a "culture of citizenship", as citizens need to be empowered in order to demand greater monitoring of public and private funds.

−

To identify a limited number of key sectors for the country's development, especially important to monitor policy coherence. In these areas, the monitoring framework may cover a more systematic work and multi-stakeholders dialogue, focused on: results and impacts, identifying possible solutions (legal, administrative, financial, etc.) and formulating proposals.

Other recommendations are addressed to specific stakeholders, without prejudice to linkages and synergies between them:

External partners/donors: 1. Balance arrangements and instruments to support various actors. In a context where the government, municipalities and CSOs are often competing with each other, external funds should take into account the danger of exclusion and the need to diversify partnerships.

2. Make a strategic use of development funds: namely, aid has been used to support objectives in other sectoral areas, which contribute to development (e.g. studies on fish stocks, local institutional capacity building in various sectors) and this should be boosted. This means using aid as a PCD driver, bridging, for example, needs in terms of infrastructure and capacity building.

3. Increasing knowledge and understanding on PCD: bring the population and the Cape Verdean authorities to discuss PCD and invest on increased local knowledge about interaction between policies, including through research and data collection – this would enable donors that are present on the country (the EU Delegation, embassies) to inform their headquarters about concrete examples and about the importance of PCD in the country.

4. Improve communication and information strategies for the beneficiaries, partners, political actors and the Cape Verdean society.

5. Allocate adequate resources - human and material - to analyse policy coherence within their actions/programmes, resorting to partnerships with civil society and academic institutions, both nationally and internationally, to identify incoherences, best practices, evidences and impact analysis.

6. Effectively involve civil society in the existing processes and mechanisms that have great potential to promote PCD, such as the Budget Support Group and EU-Cape Verde Partnership.

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Government entities, public officials and policy-makers: 7. National and international goals. Acknowledge the relevance of PCD through public commitments at the highest level, interlinked with the national objectives on poverty reduction and with the international commitments within the Global Development Agenda. In this context, set an agenda and clear objectives for reinforcing policy coherence. In particular, a matrix to identify and better understand the articulations and synergies between various public policies can be developed. This agenda should be aligned with the national implementation of the post-2015 agenda and the 17 SDGs. 8. Foreign Policy. Improve its projection and the bargaining power with large blocks (like the EU) by strengthening the coordination and coherence of positions with other African countries in certain sectors/policies, including within the framework of ECOWAS. In addition, define positions to demand compensatory programmes when there are negative consequences from external partners’ policies (e.g. subsidised medicines, climate compensation, "aid for trade" funds).

9. Coordination. Establish interministerial consultation mechanisms, formal or informal, that ensure policies are in line with the commitments made by the Cape Verdean government. Furthermore, ensure that working practices promote effective communication between ministries and public bodies both within and between various sectors, improving interministerial coordination.

10. Impacts. Create mechanisms to evaluate systematically how the options and actions taken impact in national development in the medium and long term. In particular, create a platform to weight and assess public investment, to analyse both the economic viability and effects in terms of debt, and the impacts of these investments on development (frame each investment into an integrated and multisectoral approach).

11. PRGSP. Align all sectoral policies and decisions with the development objectives and the PRGSP, carrying out systematic monitoring of these targets and widely disseminating these results. Develop a new PRGSP taking into account the PCD tool.

12. Sectoral plans. Adapt strategies, plans, decision-making structures and implementation policies to the current stage of national development. Ensure that sectoral strategic plans are accompanied by a clear budgetary framework and a monitoring and evaluation framework, which allows the monitoring of several actors. Start using PCD indicators in strategy and policy documents for various sectors, thus ensuring their follow-up from a coherence point of view.

13. Capacity. Invest in capacity building of sectoral departments, both regarding awareness about the importance of PCD and with regard to the analysis and monitoring capacities. Count on the political and technical bodies to identify and resolve conflicts of interest and propose solutions (technical, legal, administrative, financing): at the political level (ministerial), direction (state secretaries, general directorates) and technical (ministerial representatives, specific sectoral agencies or institutions, etc.).

14. Knowledge. Improve thorough and independent knowledge on incoherences so that policies are increasingly informed by evidences and concrete analyses, and by updated 63

and relevant data. Conduct impact assessments on development (just as it is already done in environmental impact analysis, for example).

15. Municipalities. Consider setting up some sort of legal obligation or incentives to developing participatory local budgets, as a true tool of democratic reinforcement, monitoring, transparency and accountability of the local authorities.

16. Dialogue with the CSOs. Move from ad-hoc consultations of civil society organisations, usually to dissemination and validation of a specific document, to a more systemic and continued work on monitoring and assessing the implementation of these documents and policies, so that CSOs become strategic partners.

Civil Society Organisations: 17. Invest not only in reporting incoherences and negative impacts of certain actions or policies, but also in identifying common solutions, synergies that can be promoted amongst actions and sectors, and scenarios with mutual benefits. This constructive perspective can be translated into concrete proposals for addressing problems, thus opening channels of dialogue that may improve the ability to influence political decisions.

18. Take a more proactive attitude with the preparation of reports and opinion papers on various topics, letters to decision makers with clear advocacy targets, coordination of common positions, etc. In particular, regularly produce reports about relevant national development sectors, which can bring a different perspective and complement the official reports.

19. Produce knowledge and evidence, in a more systematic, structured and organised manner, which will allow to identify incoherences and proposing solutions through the creation of a CPD Observatory.

20. Regarding sectoral approaches, focus on creating civil society networks on specific issues, namely pushed forward by the Platform of NGOs, to enable various organisations to take a more active and continuous intervention in the national debate on certain issues (similar to the Civil Society Network to Food Security and Nutrition).

21. Promote greater transparency and credibility of CSOs, by improving their communication and information towards policy makers and the population in general.

22. Press the public authorities for the approval of the legislative package that is forthcoming for several years, and that includes the Statute of CSOs; the registration of organisations and accountability; and creating a CSOs support fund.

Parliament: 23. Create more effective communication channels with civil society, in particular by recurring to ICT (emails, social networks, etc.). This can be promoted at various times: in a broader public participation in the budget process, in the parliamentary discussion of important laws for national development, within the framework of parliamentary debates, etc.

24. Create discussion dynamics on PCD, both in various sectors (enhancing and replicating the experiences of existing networks about specific issues and reinforcing the 64

mobilisation of parliamentarians on specific subjects) and by carrying out specific debates on PCD. 25. Establish a regular dialogue and partnerships with civil society organisations that have a recognised added-value and expertise in specific sectors/issues.

26. Strengthen the role of supervision and monitoring government action, making full use of the various tools at its disposal.

27. Ensure that the development impact is duly taken into account in bills and in the approval of legislation (considering introducing this criteria in the formulation of laws).

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Websites for official documents:

Government of Cape Verde: http://www.governo.cv/ Ministry for Rural Development: http://www.mdr.gov.cv/ Ministry for Foreign Affairs (MIREX): http://www.mirex.gov.cv/ National Assembly: http://www.parlamento.cv/ Platform of NGOs of Cape Verde: http://www.platongs.org.cv/ EU Delegation in Cape Verde: http://www.eeas.europa.eu/delegations/cape_verde/index_pt.htm

Useful links on PCD: European Union https://ec.europa.eu/europeaid/policies/policy-coherence-development_en OECD – Platform on PCD http://www.oecd.org/pcd/

The European NGO Confederation for Relief and Development (CONCORD) http://www.concordeurope.org/coherent-policies Policy Coherence for Development (in Portuguese) www.coerencia.pt

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Interviews/Meetings in Cape Verde:

Adelina Vicente, Director for Cooperation, Ministry for Rural Development Ana Silva and Irani Pereira, Members of the Project Working Groups, Platform of NGOs of Cape Verde António Lima and Rosário Gomes, Association for Environmental Protection and Development (ADAD) e Network of Small-Scale Fishing Organisations (ROPA-CV) Arnaldo Andrade, Member of Parliament, PAICV Parliamentary Group Avelino Bonifácio, Society for Tourism Development of Boavista and Maio Islands Eduardo Jorge Silva, Cabinet Director of the Minister, Ministry for Foreign Affairs (MIREX) Felipe Furtado, , Member of Parliament, MDP Parliamentary Group – written questionnaire Fernando Jorge, National Association of Cape Verde Municipalities (ANMCV) Francisca Inês dos Santos, Director General of Decentralisation and Local Administration, Ministry for Environment, Housing and Territorial Planning Guilherme Bragança, Programme Officer, Delegation of the European Union in the Republic of Cape Verde Irina Pais, Cooperation Attaché, Embassy of Portugal in Cape Verde Jaime Puyoles Garcia, General Coordinator for Development Cooperation, AECID, Spanish Embassy in Cape Verde Manuel Barreto, President, Young Entrepreneurs Association of Santa Cruz Marc de Bourcy, Chargé d'Affaires, Embassy of Luxembourg in Cape Verde Maria da Luz Monteiro, Member of Parliament, PAICV Parliamentary Group – written questionnaire Maria Goretti Lima, Cabinet of the EU-Cape Verde Special Partnership, MIREX Mário Moniz, Executive Secretary, Platform of NGOs of Cape Verde Tatiana Neves, Director General for Cooperation, Ministry for Environment, Housing and Territorial Planning

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