On Monday, March 26, US Congressman Barney Frank hosted a delegation from MCA Cape Verde which presented to Congress the progress to date on its MCA compact. Cape Verde signed a $110 million compact with the MCA in July of 2005 (with an additional $7.5 million in government counterpart financing). It has been almost a year and a half since Entry Into Force (October 2005), so--as MCA watchers are increasingly looking for evidence of implementation--it was a great opportunity to hear about some of the things happening on the ground.The main story in Cape Verde is what has been accomplished behind the scenes. This is comparable to the "invisible year" story that Sarah Lucas reported from Madagascar (another early MCA country). In fifteen months, MCA Cape Verde has (among other things):
- Established its operational basis: It set up and staffed its management unit, established a procurement review commission and put in place the fiscal agent, constituted its steering and stakeholders committees, and set up implementing entities within various relevant ministries.
- Created the foundation for M&E: It conducted baseline surveys for watershed management and the agriculture/agribusiness projects and started a poverty profile survey that uses GIS to map poverty levels geographically. This will be ongoing throughout the compact lifespan (and beyond, one hopes!).
- Continued outreach to promote local involvement in the MCA projects: It held environmental awareness presentations around the forthcoming roads project and launched procurement training for local associations to bid for projects.
- Contracted for implementation guidance: It received TA on pest fighting, agriculture inspection/certification and identifying sectors for private sector investment and has contracted studies for port rehabilitation.
- Worked to promote an enabling legal environment: It facilitated the passage of a new law on microfinance which will serve as the basis for direct support to microfinance institutions through MCA funds.
- Set the foundation for a financially sound and transparent operation: It has already undergone one external audit, three internal audits (all of which passed without comment) and one review of the financial sector by GAO.
These are important steps that are fundamental to the success of the compact, but they are less directly measurable and not particularly visible to observers outside MCA-CV and the Government of Cape Verde.More visible, measurable progress is making headway as well. The Government of Cape Verde is working to enhance its e-readiness capabilities, and it has made great strides integrating government information and services in an interactive web-based portal. For example, MCA-CV estimates that by June, citizens will be able to start a business in one day (as opposed to the more than 50 days it takes now). This is a good sign since it shows the
MCC Effect continues to work even after compact signing. Furthermore, within the e-government framework the MCA was the driver behind the shift to electronic procurement, M&E and loan applications which is a big boost for transparency. The MCA-Cape Verde partnership marks the first time that Cape Verde is doing a completely paper-free financial execution.Work has also begun on road construction in Santiago, that also includes a social component: integrated HIV/AIDS awareness campaigns for workers and the population along the roads. Work on four bridges on the island of Santo Antao is scheduled to begin next month, and work on the Port of Praia is scheduled to begin one year from now (although studies are currently underway).Laurent Brito, managing director of MCA-CV, concluded his presentation by saying that the MCA concept is valid, that the implementing entity agreements build capacity in the government that will ensure sustainability, and that overall, the program will support long run institutional change. These are hopeful words from Cape Verde even though much remains to be done before the five year expiration date. That said, the MCA countries and the stories they tell about changing policies to gain eligibility and changing the mindset about how they and their citizens view and manage foreign aid are terrific for members of Congress to hear.
CGD blog posts reflect the views of the authors, drawing on prior research and experience in their areas of expertise.
CGD is a nonpartisan, independent organization and does not take institutional positions.