Information about Cape Verde
The uninhabited islands were discovered and colonized by the Portuguese in the 15th century; Cabo 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. Cabo 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, Cabo Verde's expatriate population is greater than its domestic one. Most Cabo Verdeans have both African and Portuguese antecedents.
Cape Verde's economy
The economy is service-oriented with commerce, transport, tourism, and public services accounting for about three-fourths of GDP. Tourism is the mainstay of the economy and it is heavily dependent on conditions in the euro zone countries. 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. 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. Cabo 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 and mitigate high unemployment. Future prospects depend heavily on the maintenance of aid flows, the encouragement of tourism, remittances, and the momentum of the government's development program. Cabo Verde became a member of the WTO in July 2008.
Issues in Cape Verde
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)