General Overview
The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleanic wars, it became a sovereign state in 1806 and joined the Germanic Confederation in 1815. Liechtenstein became fully independent in 1866 when the Confederation dissolved. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to enter into a customs and monetary union with Switzerland. Since World War II (in which Liechtenstein remained neutral), the country's low taxes have spurred outstanding economic growth. In 2000, shortcomings in banking regulatory oversight resulted in concerns about the use of financial institutions for money laundering. However, Liechtenstein implemented anti-money-laundering legislation and a Mutual Legal Assistance Treaty with the US went into effect in 2003.
Demographics
Approximately one-third of the population are resident aliens, including Iranians, Turks, and others, while the vast majority of the Liechtenstein nationals are mostly of ethnic Germanic origin, like their neighbors in eastern Switzerland and western Austria.
A south German dialect, Alemannish, is commonly spoken by some 87.5 percent of the population, while literary German is the official language of the country. In 2000, the labor force included 22,891 people, of which an astounding number of 13,847 were foreigners, mostly guest workers; 8,231 people commuted from neighboring Austrian and Swiss towns to work daily.
• Country name: Principality of Liechtenstein
• Capital Name: Vaduz
• Population: 34,498 (July 2008 est.)
• Nationality: Liechtensteiner(s)
• Languages: German (official), Alemannic dialect
• Ethnic Groups: Liechtensteiner 65.6%, other 34.4% (2000 census)
Economy
Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, highly industrialized, free-enterprise economy with a vital financial service sector and living standards on a par with its large European neighbors.
The Liechtenstein economy is widely diversified with a large number of small businesses. Low business taxes - the maximum tax rate is 20% - and easy incorporation rules have induced many holding or so-called letter box companies to establish nominal offices in Liechtenstein, providing 30% of state revenues.
The country participates in a customs union with Switzerland and uses the Swiss franc as its national currency. It imports more than 90% of its energy requirements. Liechtenstein has been a member of the European Economic Area (an organization serving as a bridge between the European Free Trade Association (EFTA) and the EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe.
• GDP (purchasing power parity): $1.786 billion (2001 est.)
• GDP - real growth rate: 11% (1999 est.)
• GDP - per capita (PPP): $25,000 (1999 est.)
• Inflation rate (consumer prices): 1% (2001)
• Exports: $2.47 billion (1996)
• Imports: $917.3 million (1996)
Government
Liechtenstein is a constitutional monarchy governed by a hereditary prince. According to the constitution of 1921, legislative power is vested in the unicameral parliament (Landtag), consisting of 25 members elected by universal suffrage for 4-year terms.
The Landtag members are elected in the 2 multi-seat constituencies (electoral districts): the Upper (or highland, formerly called Vaduz) and the Lower (or lowland, formerly called Schellenberg), by proportional representation. Although very small in size, Liechtenstein is further divided into 11 administrative units or communes (Gemeinden): Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, and Vaduz.
• Administrative divisions: 11 communes (Gemeinden, singular - Gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz
• Legal system: Local civil and penal codes based on civil law system; accepts compulsory ICJ jurisdiction with reservations
• Constitution: 5 October 1921
• Independence: 27 October 1979 (from UK)
References
Principality of Liechtenstein - Official Website
Central Intelligence Agency (CIA) - The World Factbook
Nation Master - World Data Center
Wikipedia - The Free Encyclopedia
Lonely Planet - Travel Guidebook
