Cape Verde - DPL 1/PRSC V

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The Fifth Poverty Reduction Support Credit (PRSC V) Program is the first operation of a new series of three one-year operations to support the implementation of the Government's Growth and Poverty Reduction Strategy, as presented in the Second Growth and Poverty Reduction Strategy Paper (GPRSP-II). The new series will support policies and institutions aimed at developing a dynamic private sector to be the engine of sustainable growth and poverty reduction. In so doing, it will selectively support the Government's efforts in the five pillars of the GPRSP-II: government reform, human resources, competitiveness, economic infrastructure and social cohesion. The operation will have two main policy areas: (i) good governance; and (ii) competitiveness and growth. Good governance, broadly defined, includes fiscal policy, public financial management (PFM), procurement, monitoring and evaluation (M&E), statistics and state modernization. Competitiveness constitutes the main multi-sector anchor for the operation and includes human capital, trade, tourism, financial services, tax, land management and energy issues. The operation builds on the results achieved under PRSC I through IV, which supported policies and reforms in the health and education sectors that achieved sustained improvements in the well-being of the population. This new series marks a shift of Bank support from the health and education sectors towards growth and competitiveness. This shift reflects the new priorities of the Government's growth and poverty reduction strategy as well as the positive results obtained in the health and education sectors after a five-year period of sustained Bank involvement.