(THIS ARTICLE IS COURTESY OF THE CIA WORLD FACT BOOK)
|Introduction||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.|
|History||At one time, the territory of Liechtenstein formed a part 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 advisers. 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 for the added power a seat in the Imperial government would bring, and therefore sought to acquire lands that 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. As a 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.
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, 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 of 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. Liechtenstein’s Army was disbanded in 1868 for financial reasons. At the time of the dissolution of the Austro-Hungarian Empire, it was argued that Liechtenstein as a fief of the Holy Roman Empire was no longer bound to the emerging independent state Austria, since the latter did not consider itself as the legal successor to the Empire. This is partly contradicted by the coeval Liechtenstein perception that the dethroned Austro-Hungarian Emperor still maintained an abstract heritage of the Holy Roman Empire, which was dissolved in 1806.
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 km² (618 sq mi) 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 leader with an estimated wealth of USD $4 billion. The country’s population enjoys one of the world’s highest standards of living.
|Geography||Location: Central Europe, between Austria and Switzerland
Geographic coordinates: 47 16 N, 9 32 E
Map references: Europe
Area: total: 160 sq km
land: 160 sq km
water: 0 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: Vorder-Grauspitz 2,599 m
Natural resources: hydroelectric potential, arable land
Land use: arable land: 25%
permanent crops: 0%
other: 75% (2005)
Irrigated land: NA
Natural hazards: NA
Environment – current issues: NA
Environment – international agreements: party to: Air Pollution, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulfur 85, Air Pollution-Sulfur 94, Air Pollution-Volatile Organic Compounds, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Ozone Layer Protection, Wetlands
signed, but not ratified: 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
|Politics||Liechtenstein’s current constitution was adopted in October 1921. It 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.
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. The prince 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 ten 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. The parliament can call for referendums on proposed legislation. The parliament shares the authority to propose new legislation with the prince and with the requisite number of citizens required for an initiative referendum.
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.
In March 2003, the results of a national referendum showed that nearly two-thirds of Liechtenstein’s electorate agreed to vote in support of Hans-Adam II’s proposal of a renewed constitution which replaced the version of 1921. The implications of the referendum, the actual changes to the governance of Liechtenstein, and the repercussions of the vote in the wider context of Europe, are yet unknown.
On 1 July 2007, the Liechtenstein Ruling Prince, H.S.H Hans-Adam II, and Liechtenstein Prime Minister, Otmar Hasler, appointed Dr. Bruce S. Allen and Mr. Leodis C. Matthews, ESQ., both in the United States of America, as the first two Honorary Consuls in history for the Principality of Liechtenstein.
|People||Population: 34,498 (July 2008 est.)
Age structure: 0-14 years: 16.9% (male 2,892/female 2,927)
15-64 years: 69.8% (male 11,905/female 12,180)
65 years and over: 13.3% (male 1,964/female 2,630) (2008 est.)
Median age: total: 40.5 years
male: 40 years
female: 41 years (2008 est.)
Population growth rate: 0.713% (2008 est.)
Birth rate: 9.86 births/1,000 population (2008 est.)
Death rate: 7.42 deaths/1,000 population (2008 est.)
Net migration rate: 4.7 migrant(s)/1,000 population (2008 est.)
Sex ratio: at birth: 1 male(s)/female
under 15 years: 0.99 male(s)/female
15-64 years: 0.98 male(s)/female
65 years and over: 0.75 male(s)/female
total population: 0.94 male(s)/female (2008 est.)
Infant mortality rate: total: 4.52 deaths/1,000 live births
male: 6.03 deaths/1,000 live births
female: 3 deaths/1,000 live births (2008 est.)
Life expectancy at birth: total population: 79.95 years
male: 76.38 years
female: 83.52 years (2008 est.)
Total fertility rate: 1.51 children born/woman (2008 est.)
HIV/AIDS – adult prevalence rate: NA
HIV/AIDS – people living with HIV/AIDS: NA
HIV/AIDS – deaths: NA
Nationality: noun: Liechtensteiner(s)
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%