Liechtenstein

The Principality of Liechtenstein (German: Fürstentum Liechtenstein) is a small, doubly landlocked country in Central Europe, bordered by Switzerland to its west and by Austria to its east. Mountainous, it is a winter sports resort, though it is perhaps best-known as a tax haven. Despite this, it is not heavily urbanized (in the way that the Principality of Monaco and Gibraltar are). Many cultivated fields and little farms characterize its landscape both in the north (Unterland) and in the south (Oberland). It is the smallest German-speaking country in the world.

History

At one time, the territory of Liechtenstein formed a part (albeit a diminutive one) of the ancient Roman province of Raetia. For centuries this territory, geographically removed from European strategic interests, had little impact on the tide of European history. Prior to the reign of its current dynasty, the region was enfiefed to a line of the counts of Hohenems.

Politics

More information on politics and government of Liechtenstein can be found at Politics of Liechtenstein, the main article in the Politics and government of Liechtenstein series.
Politics of Liechtenstein takes place in a framework of a parliamentary representative democratic monarchy, whereby the Chief of Government is the head of government, and of a pluriform multi-party system, though strong powers are still concentrated with the Prince. The Executive power is exercised by the government. Federal legislative power is vested in both the government and the Diet.

Geography

Liechtenstein is situated in the Upper Rhine valley of the European Alps. The entire western border of Liechtenstein is formed by the river. Measured north to south, the country is only about 15 miles (24 km) long. In its east, Liechtenstein rises to higher altitudes; its highest point, the Grauspitz, reaches 2,599 metres (8,527 ft). Despite its alpine location, prevailing southerly winds make the climate of Liechtenstein rather mild. In winter, the mountain slopes are well suited to winter sports.

New surveys of the country's borders in 2006 have set its area at 160.475 square kilometres, with borders of 77.9 km.

Liechtenstein is one of only two doubly landlocked countries in the world; i.e., a landlocked country wholly surrounded by other landlocked countries. The other is Uzbekistan. It is the only country with a predominantly German-speaking population that does not share a border with the Federal Republic of Germany.

Liechtenstein discovered in 2006 that its borders are 1.9km (1.2 miles) longer than previously thought as more modern measuring methods have been introduced and measure more accurately the borders in mountainous regions

Economy

Despite its small geographic area and limited natural resources, Liechtenstein is currently the only country in the world with more registered companies than citizens; it has developed into a prosperous, highly industrialized, free-enterprise economy, and boasts a financial service sector and also living standard which compare favourably to those of the urban areas of Liechtenstein's large European neighbours. Advantageously low business taxes — the maximum tax rate is 18% — as well as easy Rules of Incorporation have induced about 73,700 holding (or so-called 'letter box') companies to establish nominal offices in Liechtenstein. Such processes provide about 30% of Liechtenstein's state revenue.

Demographics

Liechtenstein is the fourth smallest country of Europe, after the Vatican City, Monaco and San Marino. Its population is primarily ethnic Alemannic, though its resident population is approximately one third foreign-born, primarily Germans from the Federal Republic of Germany, Austria, and the Swiss Confederation, other (Latin) Swiss, Italians and Turks. Foreign-born people make up two-thirds of the country's workforce. Nationals are referred to by the plural: Liechtensteiners. Liechtenstein is a country with a very high standard of living, higher than Switzerland or the United States.

Culture

Due to Liechtenstein's small size, the country has been strongly affected by external cultural influences, most notably those originating in the southern German-speaking areas of Europe, including Austria, Bavaria, Switzerland, and the Tyrol. The Historical Society of the Principality of Liechtenstein plays a role in preserving the culture and history of the country.