IESET.
Policies·cpv_imf_ecf_fiscal_consolidation_2022

Cabo Verde IMF ECF fiscal consolidation 2022

CPV·2022 – present·MpD governmentcandidate
movesspending level↓tax corporate↑rule of law↑

What the policy did

Cabo Verde entered an IMF Extended Credit Facility arrangement in 2022 after the pandemic shock sharply increased debt and damaged tourism revenues. The programme supports fiscal consolidation, domestic revenue mobilisation, public-enterprise risk management, debt reduction, and public-financial-management reforms while protecting priority social and investment spending.

Policy-content fingerprint — what this policy moved, on which axes

Per invariant 3, reforms are scored by what they did on each channel-separated axis, not by the party that enacted them. This fingerprint is how the policy-match engine finds historical analogues.

intended
↓
spending level
fiscal.spending_level
General government spending as share of GDP, excluding transfers already captured under fiscal.transfer_expansion to avoid double-counting.
decreased · moderate
lower spending share
The ECF anchors a lower deficit and debt path through revenue and expenditure measures.
↑
tax corporate
fiscal.tax_corporate
Statutory and effective corporate tax rates, treatment of depreciation, and international competitiveness.
increased · weak
higher corporate tax burden
Revenue mobilisation raises effective tax effort and compliance pressure.
↑
rule of law
institutional.rule_of_law
Rule of law as institutional substrate — contract enforcement, judicial independence, equal treatment before the law. Upstream of most other axes.
increased · weak
stronger rule of law
Public-enterprise, debt-management, and budget-control reforms make fiscal administration more rule-bound.

Enacted by

Empirical evidence — linked hypotheses

Explicit links are curated by the author. Inferred links are hypotheses in the library that test the same axes this policy moved — the framework's answer to "what does the data say about a policy like this?".

The v1 decomposition (three channels: WGI gov effectiveness, WGI rule of law, IMF debt/GDP) left 98% of the Nordic-vs-Southern-Europe log GDP/capita gap unexplained.
nordic_outcome_persistence_decomposition_v2inferred
viainstitutional.rule_of_lawfiscal.spending_level
PARTIAL — coef=-0.1578, p=0.211 (above α=0.1); direction inconclusive
partial
Large welfare states sustain long-run real GDP per capita growth when paired with market flexibility (low product- and labour-market barriers), trade openness, and fiscal discipline (debt-to-GDP below 90%), but not when paired with rigid product and labour markets, in an OECD and rich- country panel 1980-2020.
welfare_state_market_flexibility_complementinferred
viafiscal.spending_level
PARTIAL — coef=+3.308e-18, p=0.653; effect magnitude effectively zero
partial
El Salvador's FDI inflow, real-GDP growth, tourism arrivals, and business-formation rate accelerated under the Bukele era (2019-2024) relative to a Central American peer-country donor pool (Honduras, Guatemala, Nicaragua, Costa Rica, Panama, Dominican Republic).
bukele_fdi_gdp_investment_climate_2019_2024inferred
viainstitutional.rule_of_law
PARTIAL — mean_gap=-0.697, |gap|/pre_sd=1.2, p_perm=1 (gap below 0.5×pre_sd or placebo p≥0.10)
partial
Truss 2022 mini-budget shows that unfunded fiscal expansion above the ZLB triggers sharp bond-market and currency responses through expected-inflation and risk-premium channels.
unfunded_fiscal_expansion_above_zlb_bond_market_responseinferred
viafiscal.spending_level
SUPPORTED — GBP/USD trough on 2022-09-26 (1.0703) was 5.02% below the 2022-09-22 pre-announcement close (1.1269); log-decline +0.0515 clears the 3.0% threshold …
supported
Following El Salvador's perceived success with the régimen de excepción (March 2022 onward) and the homicide-rate collapse, multiple Latin American jurisdictions enacted Bukele-style emergency measures: Honduras (Estado de Excepción in select municipalities, December 2022), Ecuador (Estado de Excepción + designation of gangs as terrorist organisations, January 2024), Peru (Estado de Emergencia in Lima/Callao, 2023-).
latam_bukele_imitation_effect_homicide_security_stateinferred
viainstitutional.rule_of_law
PARTIAL — ATT=+0.03571, p=0.598, N=99, treated_countries=1 (above α=0.10)
partial
Across a pre-registered panel of OECD and major emerging-market economies from 1996 to 2023, stronger rule-of-law institutions predict faster real GDP per capita growth after country and year fixed effects and basic macro controls.
market_order_rule_of_law_gdp_pc_growth_panelinferred
viainstitutional.rule_of_law
PARTIAL — coef=-0.08348, p=0.913 (above α=0.1); direction inconclusive
partial
Across a pre-registered panel of OECD and major emerging-market economies from 1996 to 2023, stronger rule-of-law institutions predict higher high-technology export intensity after country and year fixed effects and basic macro controls.
market_order_rule_of_law_high_tech_exports_panelinferred
viainstitutional.rule_of_law
PARTIAL — coef=+0.621, p=0.746 (above α=0.1); direction inconclusive
partial
Across a pre-registered panel of OECD and major emerging-market economies from 1996 to 2023, stronger rule-of-law institutions predict higher private and total investment shares after country and year fixed effects and basic macro controls.
market_order_rule_of_law_investment_share_panelinferred
viainstitutional.rule_of_law
PARTIAL — coef=-0.3477, p=0.814 (above α=0.1); direction inconclusive
partial

Similar historical policies

Ranked by axis-fingerprint overlap with this policy. Direction match bolded — those are the closest historical analogues. Shape of the match is what drives policy-outcome comparison, not the country or party label.

Comoros IMF ECF fiscal governance programme 2023
COM·2023
match
1.5
spending leveltax corporaterule of law
Djibouti IMF ECF fiscal and debt reforms 2024
DJI·2024
match
1.5
spending leveltax corporaterule of law
Paris Club Nigeria debt relief deal
NGA·2005
match
1.4
spending levelrule of law
Handlingsregelen fiscal rule (4% spending rule) 2001
NOR·2001
match
1.4
spending levelrule of law
Norwegian Petroleum Fund establishment 1990
NOR·1990
match
1.4
rule of lawspending level
Government Petroleum Fund first deposit 1996
NOR·1996
match
1.4
spending levelrule of law
Handlingsregelen — Norway fiscal-rule 2001
NOR·2001
match
1.4
spending levelrule of law
Derviş Transition to Strong Economy Programme
TUR·2001
match
1.4
spending levelrule of law

References