Although Pereira initially promised to lead a democratic and socialist nation upon becoming president, he compounded the country's chronic poverty by crushing dissent following the overthrow of Luís de Almeida Cabral. Cabral was the president of Guinea-Bissau and Pereira's former ally. However, Pereira's government had a much better human rights record than most countries in Africa. After the coup, political repression sharply decreased but the one-party PAICV state established at independence remained until 1990.
The country's policies during Pereira's rule tended toward Cold War nonalignment and economic reforms to help the peasantry. He controversially allied his country with the regimes in China and Libya.
Current Cape Verdean president Pedro Pires served as prime minister for the duration of Pereira's presidency.