Economic Overview
This island economy suffers from a poor natural resource base, including serious water shortages exacerbated by cycles of long-term drought. the economy is service-oriented, with commerce, transport, tourism, and public services accounting for about three-fourths of gdp. although nearly 70% 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 emigrants; remittances supplement gdp by more than 20%. 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.
Environmental Issues
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
Government Type
Republic
Population
426,998 (july 2008 est.)
Location
Western africa, group of islands in the north atlantic ocean, west of senegal
Area
Total: 4,033 sq km
land: 4,033 sq km
water: 0 sq km
Slightly larger than rhode island
Country Aliases
Conventional long form: republic of cape verde
conventional short form: cape verde
local long form: republica de cabo verde
local short form: cabo verde
Capital
Name: praia
geographic coordinates: 14 55 n, 23 31 w
time difference: utc-1 (4 hours ahead of washington, dc during standard time)
Military Service
18 years of age (est.) for selective compulsory military service; 14-month conscript service obligation (2006)
International Disputes
None
Sources: Central Intelligence Agency (CIA)
