Cape Verde comes in 88th place on the list of the world’s economically freest countries, according to the 2007 edition of the report, which measures economic freedom in 161 countries - in other words, the tools they have or lack to encourage investment and economic growth.

The document states that Cape Verde is in a position slightly above the average in countries in its region, with “good performance in indicators related to government intervention in the economy, property rights and fiscal and monetary freedom.” The Cape Verdean economy is, however, penalized by high fees and taxes and by its heavy bureaucratic machinery. Another factor highlighted in the report is the “corruption imbued in economic transactions.”

“Cape Verde has major challenges ahead. Freedom in commercial exchanges in weak, as is the capacity to deal with corruption. Corruption resides at the heart of economic transactions, and bureaucracy makes business more difficult. Commercial exchanges are overburdened with fees and high taxes and immense non-tariff barriers,” explains the report.

Starting a business in Cape Verde takes 52 days. Reducing this length of time “is within the reach of regulating entities,” stresses the document, which is aimed at measuring the degree of openness of economies and, consequently, their potential for growth,

The report also adds that the judiciary system is among “the most efficient in Africa,” which serves as an attraction for foreign investment.

The economists from the Heritage Foundation and the Wall Street Journal recommend investment in sectors such as tourism, fishing, manufacturing, communications and transportation. Within the framework of the Community of Portuguese Language Countries (CPLP), Cape Verde is surpassed by Portugal, which is in 43rd place in the ranking, and Brazil, which comes in 70th place. Hong Kong is first on the list, while Cuba and North Korea come in last.

Source A semana