Administrative divisions of Portugal (on Terceira Island), the historical and cultural capital, is the home of the Azorean judiciary and seat of the Diocese of the Azores. Madeira is an archipelago that includes two principal islands, Madeira and Porto Santo, plus two uninhabited natural group of islands, the Desertas and Savage Islands (). The archipelago is located closer to Africa than Europe, is highly commercial and urbanized; its regional capital (Funchal) is developmentally comparable to urban centers in the Canary or Balearic Islands. The division of the Portuguese territory is established in title eight (Título VIII) of the Portuguese constitution: granting local authority to
Madeira over 6,000 "arrobas" (an "arroba" was equal to 11 to 12 kilograms) by 1455, using advisers from Sicily and financed by Genoese capital. (Genoa acted as an integral part of the island economy until the 17th century.) The accessibility of Madeira attracted Genoese and Flemish traders, who were keen to bypass Venetian monopolies. Sugarcane production was the primary engine of the island's economy, increasing the demand for labour. African slaves were used during portions of the island's history to cultivate sugar cane, and the proportion of imported slaves reached 10% of the total population of Madeira by the 16th century.