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The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I, it was closely tied to Austria, but the economic devastation caused by that conflict forced Liechtenstein to conclude 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. However, shortcomings in banking regulatory oversight have resulted in concerns about the use of the financial institutions for money laundering.

[edit] Geography

Location 

Central Europe, between Austria and Switzerland

Geographic coordinates 

47 16 N, 9 32 E

Map references 

Europe

Area 

total: 160 sq km
water: 0 sq km
land: 160 sq km

Area - comparative 

about 0.9 times the size of Washington, DC

Land boundaries 

total: 76 km
border countries: Austria 34.9 km, Switzerland 41.1 km

Coastline 

0 km (doubly landlocked)

Maritime claims 

none (landlocked)

Climate 

continental; cold, cloudy winters with frequent snow or rain; cool to moderately warm, cloudy, humid summers

Terrain 

mostly mountainous (Alps) with Rhine Valley in western third

Elevation extremes 

lowest point: Ruggeller Riet 430 m
highest point: Grauspitz 2,599 m

Natural resources 

hydroelectric potential, arable land

Land use 

arable land: 25%
permanent crops: 0%
other: 75% (1998 est.)

Irrigated land 

NA sq km

Natural hazards 

NA

Environment - current issues 

NA

Environment - international agreements 

party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Sulphur 85, Air Pollution-Sulphur 94, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Wetlands
signed, but not ratified: Air Pollution-Persistent Organic Pollutants, Climate Change-Kyoto Protocol, Law of the Sea

Geography - note 

along with Uzbekistan, one of only two doubly landlocked countries in the world; variety of microclimatic variations based on elevation

[edit] People

Population 

32,842 (July 2002 est.)

Age structure 

0-14 years: 18.3% (male 3,003; female 3,001)
15-64 years: 70.5% (male 11,530; female 11,639)
65 years and over: 11.2% (male 1,494; female 2,175) (2002 est.)

Population growth rate 

0.94% (2002 est.)

Birth rate 

11.24 births/1,000 population (2002 est.)

Death rate 

6.76 deaths/1,000 population (2002 est.)

Net migration rate 

4.93 migrant(s)/1,000 population (2002 est.)

Sex ratio 

at birth: 1.01 male(s)/female
under 15 years: 1 male(s)/female
15-64 years: 0.99 male(s)/female
65 years and over: 0.69 male(s)/female
total population: 0.95 male(s)/female (2002 est.)

Infant mortality rate 

4.92 deaths/1,000 live births (2002 est.)

Life expectancy at birth 

total population: 79.1 years
female: 82.74 years (2002 est.)
male: 75.47 years

Total fertility rate 

1.5 children born/woman (2002 est.)

HIV/AIDS - adult prevalence rate 

NA%

HIV/AIDS - people living with HIV/AIDS 

NA

HIV/AIDS - deaths 

NA

Nationality 

noun: Liechtensteiner(s)
adjective: Liechtenstein

Ethnic groups 

Alemannic 86%, Italian, Turkish, and other 14%

Religions 

Roman Catholic 76.2%, Protestant 7%, unknown 10.6%, other 6.2% (June 2002)

Languages 

German (official), Alemannic dialect

Literacy 

definition: age 10 and over can read and write
total population: 100%
male: 100%
female: 100% (1981 est.)

[edit] Government

Country name 

conventional long form: Principality of Liechtenstein
conventional short form: Liechtenstein
local short form: Liechtenstein
local long form: Fuerstentum Liechtenstein

Government type 

hereditary constitutional monarchy on a democratic and parliamentary basis

Capital 

Vaduz

Administrative divisions 

11 communes (Gemeinden, singular - Gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz

Independence 

23 January 1719 Imperial Principality of Liechtenstein established; 12 July 1806 established independence from the Holy Roman Empire

National holiday 

Assumption Day, 15 August

Constitution 

5 October 1921

Legal system 

local civil and penal codes; accepts compulsory ICJ jurisdiction, with reservations

Suffrage 

18 years of age; universal

Executive branch 

chief of state: Prince HANS ADAM II (since 13 November 1989, assumed executive powers 26 August 1984); Heir Apparent Prince ALOIS, son of the monarch (born 11 June 1968)
elections: none; the monarch is hereditary; following legislative elections, the leader of the majority party in the Diet is usually appointed the head of government by the monarch and the leader of the largest minority party in the Diet is usually appointed the deputy head of government by the monarch
cabinet: Cabinet elected by the Parliament, confirmed by the monarch
head of government: Head of Government Otmar HASLER (since 5 April 2001) and Deputy Head of Government Rita KIEBER-BECK (since 5 April 2001)

Legislative branch 

unicameral Parliament or Landtag (25 seats; members are elected by direct, popular vote under proportional representation to serve four-year terms)
election results: percent of vote by party - FBP 49.90%, VU 41.35%, FL 8.71%; seats by party - FBP 13, VU 11, FL 1
elections: last held 11 February 2001 (next to be held by NA 2005)

Judicial branch 

Supreme Court or Oberster Gerichtshof; Court of Appeal or Obergericht

Political parties and leaders 

Fatherland Union or VU [Dr. Heinz FROMMELT]; Progressive Citizens' Party or FBP [Johannes MATT]; The Free List or FL [Dr. Pepo FRICK, Karin JENNY, Rene HASLER]

Political pressure groups and leaders 

NA

International organization participation 

CE, EBRD, ECE, EFTA, IAEA, ICRM, IFRCS, Interpol, IOC, ITU, OPCW, OSCE, PCA, UN, UNCTAD, UPU, WIPO, WTrO

Diplomatic representation in the US 

chief of mission: Ambassador Claudia FRITSCHE
chancery: 1300 Eye Street NW, Suite 550W, Washington, DC 20005
telephone: [1] (202) 216-0460
FAX: [1] (202) 216-0459

Diplomatic representation from the US 

the US does not have an embassy in Liechtenstein, but the US Ambassador to Switzerland is also accredited to Liechtenstein

Flag description 

two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band

[edit] Economy

Economy - overview 

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 the urban areas of 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 a large number of 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 European Free Trade Association (EFTA) and EU) since May 1995. The government is working to harmonize its economic policies with those of an integrated Europe.

GDP 

purchasing power parity - $730 million (1998 est.)

GDP - real growth rate 

NA%

GDP - per capita 

purchasing power parity - $23,000 (1998 est.)

GDP - composition by sector 

agriculture: NA%
industry: NA% 40%
services: NA% (1999)

Population below poverty line 

NA%

Household income or consumption by percentage share 

lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices) 

1% (2001)

Labor force 

28,783 of which 13,847 are foreigners; 8,231 commute from Austria and Switzerland to work each day

Labor force - by occupation 

industry, trade, and building 48%, services 51%, agriculture, fishing, forestry, and horticulture 1% (37256 est.)

Unemployment rate 

1.3% (1999)

Budget 

revenues: $424.2 million
expenditures: $414.1 million, including capital expenditures of $NA (1998 est.)

Industries 

electronics, metal manufacturing, dental products, ceramics, pharmaceuticals, food products, precision instruments, tourism, optical instruments

Industrial production growth rate 

NA%

Electricity - production by source 

fossil fuel: NA%
other: NA% 2% (2001)
hydro: NA% 98%
nuclear: NA%

Electricity - consumption 

313.45 million kWh NA kWh (2001)

Electricity - exports 

NA kWh (2001)

Electricity - imports 

232.847 million kWh NA kWh (2001)

Agriculture - products 

wheat, barley, corn, potatoes; livestock, dairy products

Exports 

$2.47 billion (1996)

Exports - commodities 

small specialty machinery, connectors for audio and video, parts for motor vehicles, dental products, hardware, prepared foodstuffs, electronic equipment, optical products

Exports - partners 

EU 62.6% (Germany 24.3%, Austria 9.5%, France 8.9%, Italy 6.6%, UK 4.6%), US 18.9%, Switzerland 15.7%

Imports 

$917.3 million (1996)

Imports - commodities 

agricultural products, raw materials, machinery, metal goods, textiles, foodstuffs, motor vehicles

Imports - partners 

EU countries, Switzerland

Debt - external 

$0 (1996) (2001)

Economic aid - recipient 

none

Currency 

Swiss franc (CHF)

Currency code 

CHF

Exchange rates 

Swiss francs per US dollar - 1.6668 (January 2002), 1.6876 (2001), 1.6888 (2000), 1.5022 (1999), 1.4498 (1998), 1.4513 (1997)

Fiscal year 

calendar year

[edit] Communications

Telephones - main lines in use 

20,072 (2000)

Telephones - mobile cellular 

NA

Telephone system 

general assessment: automatic telephone system
domestic: NA
international: linked to Swiss networks by cable and microwave radio relay

Radio broadcast stations 

AM 0, FM 4, shortwave 0 (1998)

Radios 

21,000 (1997)

Television broadcast stations 

NA (linked to Swiss networks) (1997)

Televisions 

12,000 (1997)

Internet country code 

.li

Internet Service Providers (ISPs) 

44 (Liechtenstein and Switzerland) (2000)

Internet users 

NA

[edit] Transportation

Railways 

total: 18.5 km
standard gauge: 18.5 km 1.435-m gauge (electrified)
note: owned, operated, and included in statistics of Austrian Federal Railways (2001)

Highways 

total: 250 km
paved: 250 km
unpaved: 0 km

Waterways 

none

Ports and harbors 

none

Airports 

none (2001)

[edit] Military

Military - note 

defense is the responsibility of Switzerland

[edit] Transnational Issues

Disputes - international 

Liechtenstein's royal family claims restitution for 1,600 sq km of land in the Czech Republic confiscated in 1918

Illicit drugs 

multilateral organizations engaged in issuing international guidelines for financial sector oversight found gaps in Liechtenstein's financial services controls that made it vulnerable to money laundering, but Liechtenstein has become less attractive as a haven for illicit funds, based on implementation in 2001 of new anti-money-laundering legislation and improved mutual legal assistance cooperation with other countries