The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; Cape Verde subsequently became a trading center for African slaves and later an important coaling and resupply stop for whaling and transatlantic shipping. Following independence in 1975, and a tentative interest in unification with Guinea-Bissau, a one-party system was established and maintained until multi-party elections were held in 1990. Cape Verde continues to exhibit one of Africa's most stable democratic governments. Repeated droughts during the second half of the 20th century caused significant hardship and prompted heavy emigration. As a result, Cape Verde's expatriate population is greater than its domestic one. Most Cape Verdeans have both African and Portuguese antecedents.
soil erosion; deforestation due to demand for wood used as fuel; water shortages; desertification; environmental damage has threatened several species of birds and reptiles; illegal beach sand extraction; overfishing
president elected by popular vote for a five-year term (eligible for a second term); election last held on 7 August 2011 with a second round runoff on 21 August 2011; prime minister nominated by the National Assembly and appointed by the president
percent of vote (second round) - Jorge Carlos FONSECA 53.4%, Manuel Inocencio SOUSA 46.6%
African Party for Independence of Cape Verde or PAICV [Jose Maria Pereira NEVES, chairman]; Democratic and Independent Cape Verdean Union or UCID [Antonio MONTEIRO]; Democratic Christian Party or PDC [Manuel RODRIGUES]; Democratic Renovation Party or PRD [Victor FIDALGO]; Movement for Democracy or MPD [Jorge SANTOS]; Party for Democratic Convergence or PCD [Dr. Eurico MONTEIRO]; Party of Work and Solidarity or PTS [Isaias RODRIGUES]; Social Democratic Party or PSD [Joao ALEM]
five unequal horizontal bands; the top-most band of blue - equal to one half the width of the flag - is followed by three bands of white, red, and white, each equal to 1/12 of the width, and a bottom stripe of blue equal to one quarter of the flag width; a circle of 10, yellow, five-pointed stars is centered on the red stripe and positioned 3/8 of the length of the flag from the hoist side; blue stands for the sea and the sky, the circle of stars represents the 10 major islands united into a nation, the stripes symbolize the road to formation of the country through peace (white) and effort (red)
This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought and poor soil for agriculture on several of the islands. The economy is service oriented with commerce, transport, tourism, and public services accounting for about three-fourths of GDP. Although about 40% of the population lives in rural areas, the share of food production in GDP is low. About 82% of food must be imported. The fishing potential, mostly lobster and tuna, is not fully exploited. Cape Verde annually runs a high trade deficit financed by foreign aid and remittances from its large pool of emigrants; remittances supplement GDP by more than 20%. Despite the lack of resources, sound economic management has produced steadily improving incomes. Continued economic reforms are aimed at developing the private sector and attracting foreign investment to diversify the economy. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program. Cape Verde became a member of the WTO in July 2008.
general assessment: effective system, extensive modernization from 1996-2000 following partial privatization in 1995
major service provider is Cabo Verde Telecom (CVT); fiber-optic ring, completed in 2001, links all islands providing Internet access and ISDN services; cellular service introduced in 1998; broadband services launched in 2004
country code - 238; landing point for the Atlantis-2 fiber-optic transatlantic telephone cable that provides links to South America, Senegal, and Europe; HF radiotelephone to Senegal and Guinea-Bissau; satellite earth station - 1 Intelsat (Atlantic Ocean) (2007)
state-run TV and radio broadcast network plus a growing number of private broadcasters; Portuguese public TV and radio services for Africa are available; transmissions of a few international broadcasters are obtainable (2007)
used as a transshipment point for Latin American cocaine destined for Western Europe, particularly because of Lusophone links to Brazil, Portugal, and Guinea-Bissau; has taken steps to deter drug money laundering, including a 2002 anti-money laundering reform that criminalizes laundering the proceeds of narcotics trafficking and other crimes and the establishment in 2008 of a Financial Intelligence Unit (2008)