Sao Tiago Island, is Cape Verde’s capital
and largest city.
Cape Verde lies 385 miles (620 kilometers)
west of Africa. It includes 10
islands and five rocky islets. TheWindward,
or Barlavento, Islands lie to the
north of the Leeward, or Sotavento,
Islands. The islands are mountainous.
The climate is warm and very dry.
Grasses and some pine trees grow on
mountain slopes that face the wind,
where there is more rainfall. The sheltered
slopes are desertlike, with thorny
shrubs. Many lizards, butterflies, and
birds live on the islands. Sea turtles lay
their eggs on the sandy shores. The longeared
bat is the only mammal native to
Cape Verde.
More than two thirds of Cape Verde’s
population is Creole, or of mixed African
and European roots. Most of the rest
of the people are African. The official
language is Portuguese, but most people
speak a form called Crioulo. Most Cape
Verdeans are Roman Catholics. Most
live in towns or cities.
Trade and transportation bring the most
money to Cape Verde’s economy. Agriculture
and manufacturing play smaller
roles. Crops include corn, sugarcane,
bananas, coconuts, and sweet potatoes.
No one lived in Cape Verde until Portuguese
settlers landed on Sao Tiago in
1462. They used the islands in their
African slave trade. In 1951 Portugal
made Cape Verde a province. All the
people of the islands gained Portuguese
citizenship in 1961. In 1975 Cape Verde
became an independent republic.
..More to explore
Praia
The town of Porto Novo, Cape Verde, is
tucked into the mountains.
Facts About
CAPE VERDE
Population
(2008 estimate)
500,000
Area
1,557 sq mi
(4,033 sq km)
Capital
Praia
Form of
government
Republic
Major cities
Praia, Mindelo,
Sao Filipe
BRITANNICA STUDENT ENCYCLOPEDIA Cape Verde 33
Capitalism
Capitalism is an economic system. That
is, it is a system for dealing with money
and wealth. In a capitalist country, citizens,
not governments, own and run
companies. These companies compete
with other companies for business. They
decide which goods and services to provide.
They also decide how much to
charge for the goods and services and
where to sell them. Companies do all
these things to make money for their
owners. People who use their money to
start or to run companies are called capitalists.
Many countries of the world—including
the United States, Great Britain, Japan,
and Germany—practice capitalism.
Other names for capitalism are freemarket
economy and free enterprise.
Rise of Capitalism
Capitalism has existed since ancient
times—for as long as people have
bought and sold goods. However, it
gained importance in the 1500s with the
growth of trade, industry, and banking.
During this time governments tried to
encourage trade. To do this, countries
behaved like merchants. They tried to
sell more to foreign countries than they
bought from those countries. This idea
of profit (taking in more money than
one pays out) helped modern capitalism
to develop.
“Laissez-Faire” Capitalism
In the 1700s and 1800s, the Industrial
Revolution brought great changes to the
economies of many countries. Factories
were invented, and soon manufacturing
grew greatly. Manufacturers did not
want governments to control trade anymore.
They wanted to be left alone to
run their companies. This idea became
known as “laissez-faire,” which means
“allow to do” in French.
Reactions to Capitalism
During the 1800s and early 1900s companies
produced more and more goods,
and many capitalists became rich. However,
ordinary workers earned low wages
while working long hours, sometimes in
dangerous conditions. These problems
led to the growth of labor movements.
Many workers banded together to
demand better treatment from companies.
The ideas of socialism also became
popular. Under socialism, a government
controls the economy by owning companies
and property. It then tries to
spread its country’s wealth fairly among
its citizens. Many countries followed
some socialist ideas in the 1900s. Some
In a capitalist economy, many different
companies compete against one another for
business. For example, many different companies
make televisions for people to buy.
34 Capitalism BRITANNICA STUDENT ENCYCLOPEDIA
countries, including the Soviet Union,
adopted an extreme form of socialism
called Communism.
Capitalism Today
Laissez-faire capitalism mostly ended
during the 1930s. People throughout
the world suffered economic problems
during a period called the Great Depression.
Many people—not just socialists—
came to believe that governments had to
help control the economy. Most governments
now pass laws to make companies
treat customers and workers fairly.
Capitalism remains the world’s most
popular economic system. Many countries
today even mix capitalism with
socialism. In these countries, the government
owns some companies and provides
many services, but individuals may
own companies, too.
#More to explore
Bank and Banking • Economics
• Industry • Labor • Socialism • Trade
Capital
Punishment
Of all punishments for convicted criminals,
capital punishment is the most
severe. Because it means putting the
criminal to death, it is often called the
death penalty. In the 20th century many
