Cape Verde is an island nation. In recent years, its economic growth has chiefly been fuelled by tourism, and it has undergone a marked improvement in governance – not only economic governance, but also in terms of democracy, human rights and basic freedoms. In 2008, Cape Verde joined the group of middle-income countries and became a member of the World Trade Organisation.

However, Cape Verde remains very vulnerable – it has scarcely any natural resources and, being almost totally barren, it is heavily dependent on imports. Development aid and money sent home by Cape Verdeans working abroad account for some 30% of its GDP. The global financial crisis has caused a drastic drop in foreign investment and income from tourism.

Despite its economic success and remarkable democratic stability, Cape Verde still has far to go to eradicate poverty. There are marked disparities within its population in terms of participation in the economy and distribution of income. The government's efforts to support Cape Verdean women, who are often in a very vulnerable position, have not yet yielded the hoped-for results.

Key issues in EU-Cape Verde relations

Cape Verde is seeking much closer ties with the EU. This is natural, given the country's history and cultural heritage, its demographic and migratory history, its trade flows, its tradition of democracy and good governance, and its position as a transit point for flows of goods and people between Europe, Africa and America. Sharing certain security concerns with Europe – in particular the war against illegal trafficking (drugs, illegal immigration, money laundering, etc) – Cape Verde is seeking greater cooperation with Europe with regard to policing and justice.

Since 2007, a special partnership between the EU and Cape Verde, under the auspices of the Cotonou Agreement, has sought to transform the existing donor-beneficiary relationship into a framework of mutual interests. This is to be achieved through political cooperation and cooperation on migration, security, sustainable development, the alleviation of poverty, trade liberalisation and flows of goods, people and capital, information, science, education and culture. One recurring theme is cooperation and integration with the EU's remotest regions in the North Atlantic (the Canaries, Azores and Madeira).

Assistance from the European Development Fund (EDF) 2008-13

Cape Verde will receive a total of €51 million, to be channelled into:

• Budget support for government programmes to alleviate urban and rural poverty
• Developing the special partnership.