Background: During the 17th century the archipelago was divided into two territorial units one English and the other Danish. Sugarcane produced by slave labor drove the islands' economy during the 18th and early 19th centuries. In 1917 the US purchased the Danish portion which had been in economic decline since the abolition of slavery in 1848.
Natural hazards: several hurricanes in recent years; frequent and severe droughts and floods; occasional earthquakes
Geography Note: important location along the Anegada Passage - a key shipping lane for the Panama Canal; Saint Thomas has one of the best natural deepwater harbors in the Caribbean
Administrative divisions: none (territory of the US); there are no first-order administrative divisions as defined by the US Government but there are three islands at the second order; Saint Croix Saint John Saint Thomas
Legislative branch: unicameral Senate (15 seats; members are elected by popular vote to serve two-year terms)
Judicial branch: US District Court judges are appointed by the president; Territorial Court judges appointed by the governor
Political parties and leaders: Democratic Party [James O'BRYAN Jr.]; Independent Citizens' Movement or ICM [Virdin C. BROWN]; Republican Party [James OLIVER]
Flag description: white with a modified US coat of arms in the center between the large blue initials V and I; the coat of arms shows a yellow eagle holding an olive branch in one talon and three arrows in the other with a superimposed shield of vertical red and white stripes below a blue panel
Economy overview: Tourism is the primary economic activity accounting for more than 70% of GDP and 70% of employment. The islands normally host 2 million visitors a year. The manufacturing sector consists of petroleum refining textile electronics pharmaceutical and watch assembly plants. The agricultural sector is small with most food being imported. International business and financial services are a small but growing component of the economy. One of the world's largest petroleum refineries is at Saint Croix. The islands are subject to substantial damage from storms.