Faced with a lack of natural resources Cape Verde has made good governance one of its most marketable products. Running parallel to the institutionalisation of democratic politics there has been an overhaul and growing sophistication in public administration, though certain weaknesses persist. This report argues that it is reform and improvement in this area in particular that has enabled this small island state to punch above its weight and achieve remarkable social, economic and political results. But will the successful formula of the past decade prove sufficient for the future? Poverty and unemployment have by no means been conquered. Much of the economic growth has been based in the tourist sector and the government is well aware of the dangers of over-reliance on a single industry. Cape Verde’s midway location between South America and Europe and its increasing international transport connections will continue to offer advantages to drug traffickers. The next few years of the world financial crisis will show whether marketing good governance is enough and whether this is the model for small resource developing states.