Liechtenstein

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Fürstentum Liechtenstein
Principality of Liechtenstein
Flag of Liechtenstein Coat of arms of Liechtenstein
Flag Coat of arms
Motto: "Für Gott, Fürst und Vaterland"

"For God, Prince and Fatherland"

Anthem: Oben am jungen Rhein
"Up on the Young Rhine"
Location of Liechtenstein
Location of  Liechtenstein (circled in inset)
on the European continent (white)  —  [Legend]
Capital Vaduz
47°08.5′N 9°31.4′E
Largest city Schaan
Official languages German
Government Constitutional monarchy
 - Prince Hans-Adam II
 - Prince-Regent Alois
 - Prime Minister Otmar Hasler
Independence as principality 
 - Treaty of Pressburg 1806 
Area
 - Total 160.4 km² (214th)
62 sq mi 
 - Water (%) negligible
Population
 - 2007 estimate 34,247
 - 2000 census 33,307
 - Density 215/km²
557/sq mi
GDP (nominal) 2004 estimate
 - Total $825 million
 - Per capita $25,000
Currency Swiss franc (CHF)
Time zone CET (UTC+1)
 - Summer (DST) CEST (UTC+2)
Internet TLD .li
Calling code +423

The Principality of Liechtenstein is a tiny, doubly landlocked alpine country in Western Europe, bordered by Switzerland to its west and by Austria to its east. Mountainous, it is a winter sports resort, although 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 small farms characterize its landscape both in the north (Unterland) and in the south (Oberland).

Not only is it the smallest German-speaking country in the world, but also the only European country whose bordering countries are also landlocked.

The five independent countries smaller than Liechtenstein are Vatican City, Monaco, Nauru, Tuvalu, and San Marino.

Geography

Map of the Principality of Liechtenstein.
The city centre of Vaduz.
Schloss Vaduz, overlooking the capital, is still home to the prince of Liechtenstein.

Liechtenstein is situated in the Upper Rhine valley of the European Alps. It is one of only two doubly landlocked countries in the world — being 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.

The entire western border of Liechtenstein is formed by the river. Liechtenstein is the sixth-smallest independent nation in the world, by land area. Measured north to south, the country is only about 15 miles (24km) long, and has a land area of 62 square miles (160.4 square kilometers), which is about 0.9 times the size the state of Washington, DC in the United States.

The rugged foothills of the Rhätikon Mountains, part of the central Alps, make up the eastern 66 percent of the country. Its highest point, the Grauspitz, reaches 8527 feet (2599 metres). The Rhine River floodplain, together with the valley of the Ill River, forms a triangular lowland widening northward in the west of the country. Once marshy, a drainage channel cut in the 1930s has made its soils suitable for agriculture.

Despite its alpine location, prevailing southerly foehn winds make the climate of Liechtenstein comparatively mild. In winter, the mountain slopes are well suited to winter sports. The winter temperature rarely falls below 5°F (-15°C), while the summer average daily maximum temperature varies from 68 to 82°F (20 to 28°C). Annual precipitation ranges from about 35 to 47 inches (900mm to 1200mm).

This climate allows for the cultivation of grapes and corn (maize), which is unusual in a mountainous area, and the warm foehn wind enables a number of orchid species to grow. Alpine plants as gentian, alpine rose, and edelweiss grow in higher mountain areas. Trees include the red beech, sycamore, maple, alder, larch, and various conifers. Indigenous mammals include the deer, fox, badger, and chamois. There are 120 species of birds, including ravens and eagles.

Natural resources include hydroelectric potential, and arable land. There were no natural hazards or environmental issues of note in 2007.

Vaduz' is the capital and the seat of the national parliament. The town, located along the Rhine, has about 5248] inhabitants, most of whom are Roman Catholic. Its cathedral is the seat of a Roman Catholic archbishop. While Vaduz is better known internationally, it is actually not the largest town in the principality: neighbouring Schaan has a greater population.

History

Closest railway station, Sargans.

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 enfeoffed to a line of the counts of Hohenems.

The Liechtenstein dynasty, from which the principality takes its name (rather than vice-versa), comes from Castle Liechtenstein in faraway Lower Austria, which the family possessed from at least 1140 to the thirteenth century, and from 1807 onward. Through the centuries, the dynasty acquired vast swathes of land, predominantly in Moravia, Lower Austria, Silesia, and Styria, though in all cases, these territories were held in fief under other more senior feudal lords, particularly under various lines of the Habsburg family, to whom several Liechtenstein princes served as close advisors. Thus, and without any territory held directly under the Imperial throne, the Liechtenstein dynasty was unable to meet a primary requirement to qualify for a seat in the Imperial diet, the Reichstag.

The family yearned greatly for the added power which a seat in the Imperial government would garner, and therefore, searched for lands to acquire which would be unmittelbar or held without any feudal personage other than the Holy Roman Emperor himself having rights on the land. After some time, the family was able to arrange the purchase of the minuscule Herrschaft ("Lordship") of Schellenberg and countship of Vaduz (in 1699 and 1712 respectively) from the Hohenems. Tiny Schellenberg and Vaduz possessed exactly the political status required, no feudal lord other than their comital sovereign and the suzerain Emperor.

Thereby, on January 23, 1719, after purchase had been duly made, Charles VI, Holy Roman Emperor, decreed Vaduz and Schellenberg were united, and raised to the dignity of Fürstentum (principality) with the name "Liechtenstein" in honor of "[his] true servant, Anton Florian of Liechtenstein". It is on this date that Liechtenstein became a sovereign member state of the Holy Roman Empire. Ironically, but as testament to the pure political expediency of the purchases, the Princes of Liechtenstein did not set foot in their new principality for over 120 years.

Schloss Vaduz, overlooking the capital, is still home to the prince of Liechtenstein

In 1806, most of the Holy Roman Empire was invaded by Napoleon I of the First French Empire. This event had broad consequences for Liechtenstein: imperial, legal and political mechanisms broke down, while Francis II, Holy Roman Emperor, abdicated the imperial throne and the Empire itself dissolved. As a result, Liechtenstein ceased to have any obligations to any feudal lord beyond its borders. Modern publications generally (although incorrectly) attribute Liechtenstein's sovereignty to these events. In reality, its prince merely became suzerain, as well as remaining sovereign lord. From 25 July 1806 when the Confederation of the Rhine was founded, the prince of Liechtenstein was a member, in fact a vassal of its hegemon, styled protector, French Emperor Napoleon I Bonaparte, until the dissolution of the Confederation on 19 October 1813.

Soon afterward, Liechtenstein joined the German Confederation (20 June 1815 – 24 August 1866, which was presided over by the Emperor of Austria).

Then, in 1818, Johann I granted a constitution, although it was limited in its nature. 1818 also saw the first visit of a member of the house of Liechtenstein, Prince Alois, however, the first visit by a sovereign prince would not occur until 1842.

Liechtenstein also had many advances in the nineteenth century, as in 1836, the first factory was opened, making ceramics. In 1861, the Savings and Loans Bank was founded, as was the first cotton-weaving mill. Two bridges over the Rhine were built in 1868, and in 1872 a railway line across Liechtenstein was constructed.

When the Austro-Prussian War broke out in 1866 new pressure was placed on Liechtenstein as, when peace was declared, Prussia accused Liechtenstein as being the cause of the war through a miscount of the votes for war with Prussia. This led to Liechtenstein refusing to sign a peace treaty with Prussia and remained at war although no actual conflict ever occurred. This was one of the arguments that were suggested to justify a possible invasion of Liechtenstein in the late 1930s.

Until the end of World War I, Liechtenstein first was closely tied to the Austrian Empire and later, to Austria-Hungary; however, the economic devastation caused by WWI forced the country to conclude a customs and monetary union with its other neighbor, Switzerland. (Their Army had been disbanded in 1868, out of financial considerations.) At the time of the dissolution of the Austro-Hungarian Empire, it was argued that Liechtenstein as a fief of the Holy Roman Empire (supposedly still incarnated in Liechtensteiner eyes at an abstract level in the person of the then-dethroned Austro-Hungarian Emperor, despite its formal dissolution in 1806) was no longer bound to Austria, then emerging as an independent state, which did not consider itself as the legal successor to the Empire. Liechtenstein is thus the last independent state in Europe which can claim an element of continuity from the Holy Roman Empire.

In the spring of 1938, just after the annexation of Austria into Greater Germany, eighty-four year-old Prince Franz I abdicated, naming his thirty-one year-old third cousin, Prince Franz Joseph, as his successor. While Prince Franz I claimed that old age was his reason for abdicating, it is believed that he had no desire to be on the throne if Germany gobbled up its new neighbor, Liechtenstein. His wife, whom he married in 1929, was a wealthy Jewish woman from Vienna, and local Liechtenstein Nazis had already singled her out as their anti-Semitic "problem". Although Liechtenstein had no official Nazi party, a Nazi sympathy movement had been simmering for years within its National Union party.

During World War II, Liechtenstein remained neutral, while family treasures within the war zone were brought to Liechtenstein (and London) for safekeeping. At the close of the conflict, Czechoslovakia and Poland, acting to seize what they considered to be German possessions, expropriated the entirety of the Liechtenstein dynasty's hereditary lands and possessions in Bohemia, Moravia, and Silesia — the princes of Liechtenstein lived in Vienna until the Anschluss of 1938. The expropriations (subject to modern legal dispute at the World Court) included over 1,600 square kilometres (600 mi.²) of agricultural and forest land, also including several family castles and palaces. Citizens of Liechtenstein were also forbidden from entering Czechoslovakia during the Cold War. Liechtenstein gave asylum to approximately five hundred soldiers of the First Russian National Army (a collaborationist Russian force within the German Wehrmacht) at the close of World War II; this is commemorated by a monument at the border town of Hinterschellenberg which is marked on the country's tourist map. The act of granting asylum was no small matter as the country was poor and had difficulty feeding and caring for such a large group of refugees. Eventually, Argentina agreed to permanently resettle the asylum seekers. In contrast, the British repatriated the Russians who fought on the side of Germany to the USSR, and they all perished in the GULAG.

In dire financial straits following the war, the Liechtenstein dynasty often resorted to selling family artistic treasures, including for instance the priceless portrait "Ginevra de' Benci" by Leonardo da Vinci, which was purchased by the National Gallery of Art of the United States in 1967. Liechtenstein prospered, however, during the decades following, as its economy modernized with the advantage of low corporate tax rates which drew many companies to the country.

The Prince of Liechtenstein is the world's sixth wealthiest with an estimated wealth of $4 billion. The country's population enjoys one of the world's highest standards of living.

Government and politics

Government and Parliament Building, Vaduz, Liechtenstein

Constitutional structure

Liechtenstein's constitution, adopted in October 1921, established in Liechtenstein a constitutional monarchy ruled by the reigning prince of the Princely House of Liechtenstein. It also established a parliamentary system, although the reigning prince retained substantial political authority. A referendum in 2003 showed that nearly two-thirds of Liechtenstein's electorate backed a revised constitution.

The reigning prince of the Princely House of Liechtenstein is the head of state and, as such, represents Liechtenstein in its international relations (although Switzerland has taken responsibility for much of Liechtenstein's diplomatic relations). The prince may veto laws adopted by the parliament, can call referendums, propose new legislation, and dissolve the parliament, although dissolution of parliament may be subjected to a referendum.

Executive authority is vested in a collegial government (government) comprising the head of government (prime minister) and four government councilors (ministers). The head of government and the other ministers are appointed by the prince upon the proposal and concurrence of the parliament, thus reflecting the partisan balance of the parliament. The constitution stipulates that at least two members of the government be chosen from each of the two regions. The members of the government are collectively and individually responsible to the parliament; the parliament may ask the prince to remove an individual minister or the entire government.

Legislative authority is vested in the unicameral "Landtag" (parliament) made up of 25 members elected for maximum four-year terms according to a proportional representation formula. Fifteen members are elected from the "Oberland" (Upper Country or region) and 10 members are elected from the "Unterland" (Lower Country or region). Parties must receive at least eight percent of the national vote to win seats in the parliament. The parliament proposes and approves a government, which is formally appointed by the prince. The parliament may also pass votes of no confidence against the entire government or against individual members. Additionally, the parliament elects from among its members a "Landesausschuss" (National Committee) made up of the president of the parliament and four additional members. The National Committee is charged with performing parliamentary oversight functions. Suffrage is universal to all aged 18 years and over.

From 1938 to 1997, Liechtenstein had a coalition government. Until a few years ago there were only two parties in Parliament, the Fatherland Union and the Progressive Citizens' Party. Liechtenstein's distinctive form of coalition government came to an end in April 1997. The Fatherland Union took sole responsibility for the government during the 1997 to 2001 parliament. Since 2001 it has been the Progressive Citizen's Party. The minority parties, as opposition parties, act as a check on the government in Parliament and on parliamentary commissions.

Judicial authority is vested in the Regional Court at Vaduz, the Princely High Court of Appeal at Vaduz, the Princely Supreme Court, the Administrative Court, and the State Court. The State Court rules on the conformity of laws with the constitution. The State Court has five members elected by the parliament. Civil and penal codes are based on civil law system. Liechtenstein accepts compulsory International Court of Justice jurisdiction with reservations.

The principality of Liechtenstein is divided into 11 municipalities called gemeinden (singular gemeinde). The gemeinden mostly consist only of a single town. Five of them fall within the electoral district Unterland (the lower county), and the remainder within Oberland (the upper county). Defense is the responsibility of Switzerland

Economy

Looking northward at Vaduz city-centre
Vineyards in Vaduz.

Despite its small geographic area and limited natural resources, Liechtenstein currently is one of the few countries 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 as well as a living standard which compares favourably to those of the urban areas of Liechtenstein's large European neighbours.

The people of Liechtenstein enjoy a standard of living in the upper 20 percent of the world's countries. Without being listed on either the 2006 HDI, or The Economist's 2005 world-wide quality-of-life index, Liechtenstein has an average per capita income that has been estimated at $25,000 for the year 2006, about 30th on the IMF list of 179 countries, comparable to that of Brunei, and Slovenia.

Advantageously low business taxes — the maximum tax rate is 18 percent — 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 percent of Liechtenstein's state revenue. Liechtenstein also generates revenue from the establishment of stiftungs or foundations, which are financial entities created to increase the privacy of non-resident foreigners' financial holdings. The foundation is registered in the name of a Liechtensteiner, often a lawyer.

Recently, Liechtenstein has shown strong determination to prosecute any international money-laundering and worked to promote the country's image as a legitimate financing center.

Liechtenstein participates in a customs union with Switzerland and employs the Swiss franc as national currency. The country imports more than 90 percent 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 European Union) since May 1995.

The government is working to harmonize its economic policies with those of an integrated Europe. Since 2002, Liechtenstein's rate of unemployment has doubled — the rate was 9.2 percent in 2006. There was only one hospital in Liechtenstein in 2007, the Liechtensteinisches Landesspital in Vaduz.

Liechtenstein's most recognizable international company and largest employer is Hilti, a manufacturer of concrete fastening systems. Liechtenstein also is the home of the Curta calculator.

There are about 155 miles (250km) of paved roadway within Liechtenstein. About six miles (9.5km) of railway connect Austria and Switzerland through Liechtenstein. Four stations in Liechtenstein, namely Schaan-Vaduz, Forst Hilti, Nendeln, and Schaanwald, are served by an irregularly stopping train service running between Feldkirch and Buchs. While EuroCity and other long distance international trains also make use of the route, these do not call at Liechtenstein stations. There is no airport in Liechtenstein (the nearest large airport is Zürich Airport).

Exports totalled $2.47-billion in 1996. Export commodities included small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products Export partners included EU 62.6 percent (Germany 24.3 percent, Austria 9.5 percent, France 8.9 percent, Italy 6.6 percent, UK 4.6 percent), US 18.9 percent, Switzerland 15.7 percent. Imports totalled $917.3-million in 1996. Import commodities included agricultural products, raw materials, energy products, machinery, metal goods, textiles, foodstuffs, and motor vehicles. Import partners included EU, and Switzerland.

In June 2003 the state tourism agency decided to give a boost to the country's tourism by offering to rent out the country to businesses and other organizations for conference hosting, weddings, or other such events. The company will be given keys to the capital city and be offered team-building/tourist activities and attractions, such as wine-tasting, tobogganing, and full access to one of the country's royal castles. Karl Schwarzler, along with the entire nation of Liechenstein, was awarded the Ig Nobel Prize in Economics in 2003 for this unique enterprise.

Demographics

A woman wearing the traditional Liechtenstein Tracht.

Liechtenstein's total population in 2007 was 34,247. Liechtenstein is the fourth smallest country of Europe, after the Vatican City, Monaco, and San Marino. The median age for the total population was 40.1 years in 2007. Liechtenstein people had an average life expectancy at birth of 79.81 years (76.24 years for males and 83.4 years for females) in 2007.

Its population is primarily ethnic Alemannic, although its resident population is approximately one third foreign-born, primarily German speakers from the Federal Republic of Germany, Austria, and the Swiss Confederation, other Swiss, Italians, and Turks. Foreign-born people make up two-thirds of the country's workforce. Nationals are referred to by the plural: Liechtensteiners.

Among religions in Liechtenstein, Roman Catholic Christianity is the predominant one, with 76.2 percent of the population counted as adherents, according to the 2002 census. About seven percent of the population were Protestant, 10.6 percent were classified as "unknown", and 6.2 percent as "other."

The official language is German. Most speak Alemannic, a dialect of German that is highly divergent from Standard German but closely related to those dialects spoken in neighbouring regions.

Primary education lasts for five years, starts at age six, and results in a fifth grade certificate. There are two types of lower secondary schools: the Oberschule and Realschule which last four years and grant a leaving certificate, and the Gymnasium (lower cycle), which lasts three years from age 11 to 14, and awards an eighth Grade certificate. Upper secondary school lasts one year, from age 14 to 14 and awards a leaving certificate. Gymnasium schools offer senior secondary education for four years from age 15 to 18 and award a Matura certificate. Higher education is provided by the Fachhochschule (University of Applied Sciences) and the Internationale Akademie für Philosophie (International Academy for Philosophy). Non-university level post-secondary studies (technical/vocational type) at the Berufsmittelschule lasts for four terms, and the final examination leads to the Berufsmatura Certificate. Its holders are admitted to universities and technical colleges. The Fachhochschule Liechtenstein, confers bachelors, masters and Ph. D. degrees. An estimated 100 percent of the population, age 10 and older, can read and write.

Culture

Souvenirs from Vaduz.
Rheinpark Stadium.

As a result of its small size Liechtenstein 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 Tyrol. The Historical Society of the Principality of Liechtenstein plays a role in preserving the culture and history of the country.

There are several art museums, the largest being the Princely Collections, there are also the National Art Museum and the Postage Stamp Museum, and a few others. The most famous historical sites are Vaduz Castle, Gutenberg Castle, the Red House and the ruins of Schellenberg.

Music and theatre are an important part of the culture. There are numerous music organisations such as the Liechtenstein Musical Company, the annual Guitar Days and the International Josef Gabriel Rheinberger Society; and two main theatres

Liechtenstein football teams play in the Swiss football leagues. The Liechtenstein Cup allows access to one Liechtenstein team each year in the UEFA Cup; FC Vaduz, a team playing in the Swiss Challenge League (i.e. the second level of Swiss football) is the most successful team in the Cup, and scored their greatest success in the European Cup Winners' Cup in 1996 when they defeated the Latvian team FC Universitate Riga by 1–1 and 4–2, to go on to a lucrative fixture against Paris St Germain, which they lost 0–4 and 0–3.

The Liechtenstein national football team has traditionally been regarded as an easy target for any team drawn against them, a fact that served as the basis for a book about Liechtenstein's unsuccessful qualifying campaign for the 2002 World Cup by British author, Charlie Connelly. In one surprising week during autumn 2004, however, the team, headed by Patrick Nikodem, managed a 2–2 draw with Portugal, which only a few months earlier had been the losing finalists in the European Championships. Four days later, the Liechtenstein team travelled to Luxembourg where they defeated the home team by 4 goals to 0 in a 2006 World Cup qualifying match. They are still considered by many to be an easier touch than most, however, they have been steadily improving over the last few years, and are now considered the best of the European "minnows". In the qualification stage of the European Championship 2008, Liechtenstein beat Latvia 1-0, score which prompted the resignation of the Latvian coach. They went on to beat Iceland 3-0 (October 17, 2007), which is considered one of the most dramatic losses of the Icelandic national soccer team.

As an alpine country, the main opportunity for Liechtensteiners to excel is in winter sports such as downhill skiing: Hanni Wenzel won two gold medals in the 1980 Winter Olympics. With nine medals overall (all in alpine skiing), Liechtenstein has won more Olympic medals per capita than any other nation[citation needed]. The country's single ski area is Malbun.

References and notes

  • Liechtenstein — A Modern History by David Beattie, CMG, London, 2004, ISBN 1-85043-459-X

External links

  • Liechtenstein World Fact Book 2007, accessed November 23, 2007.
  • Liechtenstein BBC Country Profiles, accessed November 25, 2007.
  • Liechtenstein U.S. Department of State, accessed November 25, 2007.
  • Turkey economist.com, accessed May 30, 2007.

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