Liechtenstein

Liechtenstein

Introduction

Background

The Principality of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic 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 that went into effect in 2003.

Geography

Location

Central Europe, between Austria and Switzerland

Geographic coordinates

47 16 N, 9 32 E

Map references

Europe

Area

total: 160 sq km
country comparison to the world: 218 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

People and Society

Nationality

noun: Liechtensteiner(s)
adjective:Liechtenstein

Ethnic groups

Liechtensteiner 65.6%, other 34.4% (2000 census)

Languages

German (official), Alemannic dialect

Religions

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

Population

35,236 (July 2011 est.)
country comparison to the world: 212

Age structure

0-14 years: 16.1% (male 2,809/female 2,856)
15-64 years:69% (male 11,970/female 12,326)
65 years and over:15% (male 2,304/female 2,971) (2011 est.)

Median age

total: 41.8 years
male:41.2 years
female:42.3 years (2011 est.)

Population growth rate

0.653% (2011 est.)
country comparison to the world: 141

Birth rate

9.65 births/1,000 population (2011 est.)
country comparison to the world: 197

Death rate

7.61 deaths/1,000 population (July 2011 est.)
country comparison to the world: 113

Net migration rate

4.48 migrant(s)/1,000 population (2011 est.)
country comparison to the world: 21

Urbanization

urban population: 14% of total population (2010)
rate of urbanization:0.9% annual rate of change (2010-15 est.)

Major cities – population

VADUZ (capital) 5,000 (2009)

Sex ratio

at birth: 1 male(s)/female
under 15 years:0.98 male(s)/female
15-64 years:0.97 male(s)/female
65 years and over:0.77 male(s)/female
total population:0.94 male(s)/female (2011 est.)

Infant mortality rate

total: 4.15 deaths/1,000 live births
country comparison to the world: 199 male:5.37 deaths/1,000 live births
female:2.92 deaths/1,000 live births (2011 est.)

Life expectancy at birth

total population: 80.31 years
country comparison to the world: 24 male:76.86 years
female:83.77 years (2011 est.)

Total fertility rate

1.53 children born/woman (2011 est.)
country comparison to the world: 182

HIV/AIDS – adult prevalence rate

NA

HIV/AIDS – people living with HIV/AIDS

NA

HIV/AIDS – deaths

NA

Education expenditures

2% of GDP (2007)
country comparison to the world: 156

Literacy

definition: age 10 and over can read and write
total population:100%
male:100%
female:100%

School life expectancy (primary to tertiary education)

total: 12 years
male:13 years
female:12 years (2008)

Government

Country name

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

Government type

constitutional monarchy

Capital

name: Vaduz
geographic coordinates:47 08 N, 9 31 E
time difference:UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time:+1hr, begins last Sunday in March

ends last Sunday in October

Administrative divisions

11 communes (Gemeinden, singular – Gemeinde)

Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz

Independence

23 January 1719 (Principality of Liechtenstein established)

12 July 1806 (independence from the Holy Roman Empire)

National holiday

Assumption Day, 15 August

Constitution

5 October 1921

amended 15 September 2003

Legal system

civil law system influenced by Swiss, Austrian, and German law

International law organization participation

accepts compulsory ICJ jurisdiction with reservations

accepts ICCt jurisdiction

Suffrage

18 years of age

universal

Executive branch

chief of state: Prince HANS ADAM II (since 13 November 1989, assumed executive powers on 26 August 1984)

Heir Apparent Prince ALOIS, son of the monarch (born 11 June 1968)

note – on 15 August 2004, HANS ADAM transferred the official duties of the ruling prince to ALOIS, but HANS ADAM retains status of chief of state
head of government:Head of Government (Prime Minister) Klaus TSCHUETSCHER (since 25 March 2009)
cabinet:Cabinet elected by the Parliament, confirmed by the monarch
(For more information visit the World Leaders website ) elections:the monarchy is hereditary

following legislative elections, the leader of the majority party in the Landtag usually appointed the head of government by the monarch and the leader of the largest minority party in the Landtag usually appointed the deputy head of government by the monarch if there is a coalition government

Legislative branch

unicameral Parliament or Landtag (25 seats

members elected by popular vote under proportional representation to serve four-year terms)
elections:last held on 8 February 2009 (next to be held in February 2013)
election results:percent of vote by party – VU 47.6%, FBP 43.5%, FL 8.9%

seats by party – VU 13, FBP 11, FL 1

Judicial branch

Constitutional Court or Verfassungsgericht

Supreme Court or Oberster Gerichtshof

Court of Appeal or Obergericht

Political parties and leaders

Die Freie Liste (The Free List) or FL [Wolfgang MARXER]

Fortschrittliche Buergerpartei (Progressive Citizens’ Party) or FBP [Alexander BATLINER]

Vaterlaendische Union (Fatherland Union) or VU [Adolf HEEB]

Political pressure groups and leaders

NA

International organization participation

CE, EBRD, EFTA, IAEA, ICRM, IFRCS, Interpol, IOC, IPU, ITSO, ITU, ITUC, OPCW, OSCE, PCA, Schengen Convention (de facto member), UN, UNCTAD, UPU, WIPO, WTO

Diplomatic representation in the US

chief of mission: Ambassador Claudia FRITSCHE
chancery:2900 K Street, NW, Suite 602B, Washington, DC 20007
telephone:[1] (202) 331-0590
FAX:[1] (202) 331-3221

Diplomatic representation from the US

the US does not have an embassy in Liechtenstein

the US Ambassador to Switzerland is 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

the colors may derive from the blue and red livery design used in the principality’s household in the 18th century

the prince’s crown was introduced in 1937 to distinguish the flag from that of Haiti

National anthem

name: “Oben am jungen Rhein” (High Above the Young Rhine)
lyrics/music:Jakob Joseph JAUCH/unknown
note:adopted 1850, revised 1963

the anthem uses the tune of “God Save the Queen”

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 likely the second highest per capita income in the world. 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 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. In 2008, Liechtenstein came under renewed international pressure – particularly from Germany – to improve transparency in its banking and tax systems. In December 2008, Liechtenstein signed a Tax Information Exchange Agreement with the US. Upon Liechtenstein’s conclusion of 12 bilateral information-sharing agreements, the OECD in October 2009 removed the principality from its “grey list” of countries that had yet to implement the organization’s Model Tax Convention. By the end of 2010, Liechtenstein had signed 25 Tax Information Exchange Agreements or Double Tax Agreements.

GDP (purchasing power parity)

$5.028 billion (2008)
country comparison to the world: 162 $4.16 billion (2007)
$4.035 billion (2006 est.)

GDP (official exchange rate)

$5.08 billion (2008)

GDP – real growth rate

1.8% (2008 est.)
country comparison to the world: 154 3.1% (2007 est.)

GDP – per capita (PPP)

$141,100 (2008 est.)
country comparison to the world: 2 $122,100 (2007 est.)

GDP – composition by sector

agriculture: 6%
industry:36%
services:58% (2008)

Labor force

32,880 (2009)
country comparison to the world: 201 note:51% of people at work in Liechtenstein commute daily from Austria, Switzerland, and Germany (2009)

Labor force – by occupation

agriculture: 1.5%
industry:43.5%
services:55% (December 2006)

Unemployment rate

1.5% (2007)
country comparison to the world: 8 1.3% (September 2002)

Population below poverty line

NA%

Household income or consumption by percentage share

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

Budget

revenues: $943 million
expenditures:$820 million (2008 est.)

Taxes and other revenues

18.6% of GDP (2008 est.)
country comparison to the world: 165

Budget surplus (+) or deficit (-)

2.4% of GDP (2008 est.)
country comparison to the world: 21

Inflation rate (consumer prices)

0.7% (2010)
country comparison to the world: 16 0.3% (2009)

Market value of publicly traded shares

$NA

Agriculture – products

wheat, barley, corn, potatoes

livestock, dairy products

Industries

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

Industrial production growth rate

NA%

Exports

$2.83 billion (2009)
country comparison to the world: 124 $3.92 billion (2008)

Exports – commodities

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

Imports

$1.77 billion (2009)
country comparison to the world: 159 $2.59 billion (2008)

Imports – commodities

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

Debt – external

$0 (2001)
country comparison to the world: 200

Exchange rates

Swiss francs (CHF) per US dollar -
1.0429 (2010)
1.0881 (2009)
1.0774 (2008)
1.1973 (2007)
1.2539 (2006)

Transportation

Pipelines

gas 20 km (2010)

Railways

total: 9 km
country comparison to the world: 134 standard gauge:9 km 1.435-m gauge (electrified)
note:belongs to the Austrian Railway System connecting Austria and Switzerland (2011)

Roadways

total: 380 km
country comparison to the world: 200 paved:380 km (2010)

Waterways

28 km (2010)
country comparison to the world: 106

Military

Military branches

no regular military forces (constitutionally prohibited)

Principality of Liechtenstein National Police (Landespolizei, LP) (2010)

Manpower available for military service

males age 16-49: 8,009 (2010 est.)

Manpower fit for military service

males age 16-49: 6,538
females age 16-49:6,746 (2010 est.)

Manpower reaching militarily significant age annually

male: 219
female:211 (2010 est.)

Military – note

Liechtenstein has no military forces but is interested in European security policy and is an active member of the Organization for Security and Cooperation in Europe (OSCE)

Transnational Issues

Disputes – international

none

Illicit drugs

has strengthened money laundering controls, but money laundering remains a concern due to Liechtenstein’s sophisticated offshore financial services sector