Liechtenstein, independent principality in central Europe; bounded on the east by Austria, and on the south, west, and north by Switzerland. One of the smallest independent states in the world, Liechtenstein has a total area of 160 sq km (62 sq mi).
11 communes (gemeinden, singular - gemeinde); Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz
The population of Liechtenstein (2001 estimate) is 32,528 (about one-third of whom are resident aliens), with an overall density of 203 persons per sq km (527 per sq mi). The capital and principal urban center is Vaduz (population, 1999, 5,106). German is the official language, but a dialect, Alemannish, is spoken commonly. Approximately 88 percent of the population is Roman Catholic. In 1991 primary school enrollment totaled 1,985 pupils; about 1,200 pupils attended secondary schools. Primary and secondary education is free in Liechtenstein; schooling is compulsory for 8 years.
The modern history of Liechtenstein dates from 1719, when the country formally acquired its present name and ruling family with the consolidation of the counties of Vaduz and Schellenberg under the house of Liechtenstein. During the 18th and 19th centuries, it was allied with the Habsburg monarchy of Austria. When that monarchy was abolished after World War I (1914-1918), Liechtenstein formed its present connection with Switzerland.
The Liechtensteiners are descended from the Alemanni tribe that came into the region after AD 500. Although the official language is German, the population still speaks an Alemanni dialect containing local variations in pronunciation and vocabulary. The Walsers, descendants of immigrants from the Swiss canton of Valais, settled in Triesenberg at the end of the 13th century and continue to speak a particularly distinctive form of the language. The majority of the population is Roman Catholic.
Prince Franz Joseph II, who became sovereign in 1938, yielded executive authority in 1984 to his son and heir, Crown Prince Hans Adam II, who succeeded his father in 1989. Also in 1984, a referendum granted women the right to vote in national elections. Liechtenstein joined the United Nations in 1990 and the European Free Trade Association (EFTA) as a full member in September 1991. In December 1992 voters approved Liechtenstein’s membership in the European Economic Area (EEA). In February 1993 Markus Buechel of the Progressive Citizens’ Party was elected to the post of prime minister. Buechel inherited a coalition government—made up of his own party and the Fatherland Union—that had ruled the country since 1938. In September, the parliament passed a no-confidence vote against Buechel, saying that he refused to work with other members of the government. However, instead of dismissing Buechel, Prince Hans Adam dissolved parliament and called new elections, saying that the voters should decide who ran the government. In elections held the following month, Mario Frick of the Fatherland Union became prime minister.
Liechtenstein has no natural resources of commercial value, and virtually all raw materials, including wood, have to be imported. Industrialization, therefore, has as yet been free of the pollution problems suffered by other developed areas. All of the principality's forested areas are protected in order to maintain the ecology of the mountain slopes and to guard against erosion. There is no heavy industry, and the small manufacturing concerns are spread throughout the country. Production includes metalworking, pharmaceuticals, optical lenses, electronic equipment, food processing, and the manufacture of consumer goods. In 1921 Liechtenstein adopted Swiss currency, and in 1923 it joined the Swiss customs union.
Tourism is sponsored by the government. Most visitors come from the surrounding European countries and centre their activities around Vaduz. The registration of foreign firms in Liechtenstein provides a source of tax income. The country has also become a centre of banking because of its stable political situation and its absolute bank secrecy.
The western edge of Liechtenstein lies in the valley of the Rhine River. The rest of the country consists of foothills of the Alps, which rise in the south to peaks of more than 2,400 m (more than 8,000 ft) above sea level. The Rhine River, which forms the western border, drains, along with its local tributaries, the greater part of the country. The Samina River is the principal stream of the mountain region. Liechtenstein has a mild climate; average temperatures range from -1°C (30°F) in January to 21°C (70°F) in July. The average annual precipitation is about 1,000 mm (about 40 in). Forests cover 45 percent of the land; deciduous trees predominate at lower elevations, conifers at higher elevations. Wildlife includes deer, chamois, fox, marten, and badger.
Liechtenstein is highly industrialized, with less than 2 percent of the labor force engaged in agriculture. The principal crops are corn, potatoes, barley, wheat, vegetables, and grapes. Livestock are grazed in the alpine meadows in summer. The major manufactures include machinery, pharmaceuticals, food products, metal goods, precision instruments, furniture, and pottery. Much of the principality’s income is derived from banking, tourism, the sale of postage stamps, and from international firms that maintain headquarters here because of favorable tax treatment. The unit of currency is the Swiss franc, and Liechtenstein maintains a customs union with Switzerland. The country has 19 km (12 mi) of railroads and 323 km (201 mi) of roads, but it has no airport.
Liechtenstein has a remarkable variety of vegetation. Water milfoil and mare's-tail as well as reeds, bulrush, bird's eye primrose, and orchids can be found. The forests comprise a mixed woodland with copper beeches, common and Norway maple, sycamore, lime, elm, and ash. As to the animal life, Liechtenstein is rich in red deer, roe deer, chamois, hare, marmot, blackcock, pheasant, hazel grouse, partridge, fox, badger, marten, polecat, stoat, weasel, and others.
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. Low business taxes - the maximum tax rate is 18% - and easy incorporation rules have induced 73,700 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.
automatic telephone system
domestic: NA
international: linked to Swiss networks by cable and microwave radio relay
Fatherland Union or VU [Dr. Oswald KRANZ]; Progressive Citizens' Party or FBP [Dr. Ernst WALCH]; The Free List or FL [Dr. Pepo FRICK, Karin JENNY, Rene HASLER]
Liechtenstein is a constitutional monarchy governed by hereditary princes. According to the constitution of 1921, legislative power is exercised by the unicameral parliament, made up of 25 members elected to four-year terms by universal adult suffrage. On the recommendation of parliament, the prince appoints a chief of government and four councillors who form the government. Since 1919, Switzerland has represented Liechtenstein diplomatically.
Legal system: local civil and penal codes; accepts compulsory ICJ jurisdiction, with reservations
Suffrage: 20 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)
head of government: Head of Government Mario FRICK (since 15 December 1993) and Deputy Head of Government Michael RITTER (since 2 February 1997)
cabinet: Cabinet elected by the Diet; confirmed by the monarch
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
Legislative branch: unicameral Diet or Landtag (25 seats; members are elected by direct popular vote under proportional representation to serve four-year terms)
elections: last held on 9-11 February 2001 (next to be held by NA 2005)
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
Judicial branch: Supreme Court or Oberster Gerichtshof; Superior Court or Obergericht
International organization Member
CE, EBRD, ECE, EFTA, IAEA, ICRM, IFRCS, Intelsat, Interpol, IOC, ITU, OPCW, OSCE, UN, UNCTAD, UNIDO, UPU, WCL, WHO (observer), WIPO, WTrO
defense is the responsibility of Switzerland
Liechtenstein's royal family claims restitution for 1,600 sq km of land in the Czech Republic confiscated in 1918
