ABSTRACT
Cape Verde faces severe development constraints: poor natural resources, prolonged cycles of drought, 1 and small domestic markets. The scattered nature of the islands gives rise to costly communications and infrastructure. However, at US$1,010 per person in 1996, per capita income in Cape Verde is not low compared to the average for SSA of $490; 2 though this income is sustained by a very high level of remittances, 3 supplemented by high aid flows. In 1996 Cape Verde received over $300 per person in aid, which is one of the highest figures in the world and compares with the African average of $26 and that for low-income countries of only $8 (or $21 excluding China and India).
