Cape Verde: Archipelago graduates to Middle-Income Country

2 January 2008

Praia, Cape Verde, 2 Jan – From 1 Jan, Cape Verde changed its status from a Least-Developed Country (LDC), a club it has belonged to since 1977, to a Middle-Income Country (MIC).

Cape Verde’s promotion was decided by the United Nations in December, 2004 and is due to the fact Praia meets two of three criteria for a MIC in raising its Human Development Index (HDI) and per capital earnings.

But Cape Verde’s full transition to MIC status will only become effective after three years, during which the islands will have to work in close cooperation with international partners on a staged transition strategy.

With UN support, Praia has crated a Transition Support Group consisting of the archipelago’s main cooperation partners. This group will facilitate transition strategies and identify measures aimed to transform Cape Verde into a social and economically viable state.

Despite Cape Verde having a Human Development Index of around 0.717 percent, above the average of the 86 MIC states (0.695 percent), the archipelago still suffers from vulnerabilities like low domestic production and strong economic dependency on external factors, especially fluctuating global energy prices. (macauhub)