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To the Business Magazine Liechtenstein as a business location simply successful Liechtenstein ist einer von nur zwei doppelten Binnenstaaten weltweit. Das bedeutet, dass die Nachbarländer Schweiz und Österreich ebenfalls kei- nen Anschluss zum Meer haben. Das zweite Land ist übrigens Usbekistan. 2—3 LOCATION AND OVERVIEW Hoi 160 km That’s how people in For 300 years, Liechtenstein’s national borders, and Liechtenstein say hello. thus its surface area, have remained virtually unchanged. 42 % of its total area (67 km) is made up of forests. German 38 201 Inhabitants German is the ocial and national The population of Liechtenstein has more language of Liechtenstein. Principality of than quadrupled over the last 100 years. Liechtenstein 33.9% Immigrant population 12 961 of the Principality’s inhabitants do not have a CHF Liechtenstein passport. They are citizens of over 108 di£erent countries, the main ones being Switzerland, simply On 26 May 1924, Liechtenstein Austria, Germany and Italy. adopted the Swiss franc (CHF) as its legal currency. extraordinary 11 Municipalities The municipalities of Liechtenstein are divided into two constituencies, Oberland (Vaduz, Triesen, Balzers, Triesenberg, Schaan, Planken) and Unterland (Eschen-Nendeln, Mauren- Schaanwald, Gamprin-Bendern, Ruggell, Schellenberg). A tiny country boasting a stable and highly Constitutional diversified economy, nestled between hereditary monarchy Switzerland and Austria, with around 4700 on a democratic and 38 660 Jobs active companies – thatʼs Liechtenstein. parliamentary basis Liechtenstein has more jobs than inhabitants. Over 20 000 people commute The Principality’s unique to the Principality every day for work. form of government is based Munich on its constitution from 1921. 18 % Germany This is the annual share of public expenditure invested in education. Public education Vaduz expenditure accounts for 3.72 % of the gross France national income. With approximately 5500 inhabitants, the capital of Basel Liechtenstein is not the St. Gallen Zurich largest municipality. In fact, 1:8 Innsbruck Schaan is bigger with about 6000 inhabitants. In Liechtenstein, the ratio of companies Austria to inhabitants is about 1:8. In Switzerland it’s about 1:14, and in Germany about 1:24. Bern 25 Members Chur of Parliament Switzerland 6 124 000 000.– Liechtenstein’s parliament is also called the Landtag. In absolute terms, Liechtenstein has the lowest gross domestic product of all EU and EFTA countries. However, the gross domestic product per person employed (converted to full-time- equivalent employment as an annual average) reached a Italy record high of CHF 194 000 in 2016. Geneva 5 Members of Government 24.2 % Public spending ratio The highest executive body in the land consists Liechtenstein has the lowest public spending ratio (government of the Prime Minister expenditure in relation to GDP) of all European countries. In and four Ministers. Switzerland, the rate is just over 30 %, and it is over 50 % in Austria. Milan Hoi 160 km That’s how people in For 300 years, Liechtenstein’s national borders, and Liechtenstein say hello. thus its surface area, have remained virtually unchanged. 42 % of its total area (67 km) is made up of forests. German 38 201 Inhabitants German is the ocial and national The population of Liechtenstein has more language of Liechtenstein. than quadrupled over the last 100 years. 33.9% Immigrant population 12 961 of the Principality’s inhabitants do not have a CHF Liechtenstein passport. They are citizens of over 108 di£erent countries, the main ones being Switzerland, On 26 May 1924, Liechtenstein Austria, Germany and Italy. adopted the Swiss franc (CHF) as its legal currency. 11 Municipalities The municipalities of Liechtenstein are divided into two constituencies, Oberland (Vaduz, Triesen, Balzers, Triesenberg, Schaan, Planken) and Unterland (Eschen-Nendeln, Mauren- Schaanwald, Gamprin-Bendern, Ruggell, Schellenberg). Constitutional hereditary monarchy on a democratic and 38 660 Jobs parliamentary basis Liechtenstein has more jobs than inhabitants. Over 20 000 people commute The Principality’s unique to the Principality every day for work. form of government is based Munich on its constitution from 1921. 18 % Germany This is the annual share of public expenditure invested in education. Public education Vaduz expenditure accounts for 3.72 % of the gross France national income. With approximately 5500 inhabitants, the capital of Basel Liechtenstein is not the St. Gallen Zurich largest municipality. In fact, 1:8 Innsbruck Schaan is bigger with about 6000 inhabitants. In Liechtenstein, the ratio of companies Austria to inhabitants is about 1:8. In Switzerland it’s about 1:14, and in Germany about 1:24. Bern 25 Members Chur of Parliament Switzerland 6 124 000 000.– Liechtenstein’s parliament is also called the Landtag. In absolute terms, Liechtenstein has the lowest gross domestic product of all EU and EFTA countries. However, the gross domestic product per person employed (converted to full-time- equivalent employment as an annual average) reached a Italy record high of CHF 194 000 in 2016. Geneva 5 Members of Government 24.2 % Public spending ratio The highest executive body in the land consists Liechtenstein has the lowest public spending ratio (government of the Prime Minister expenditure in relation to GDP) of all European countries. In and four Ministers. Switzerland, the rate is just over 30 %, and it is over 50 % in Austria. Milan 4—5 HISTORY AND PRINCELY HOUSE Confident entrepreneurs simply visionary The Principality of Liechtenstein is a consti­ The history of the Liechtenstein The Liechtenstein Family is also tutional hereditary monarchy with a democratic Family goes back a long way. an entrepreneurial success. Prob- The name Liechtenstein comes from ably the most famous company of parliamentary system. Sovereignty in Liechten­ the Liechtenstein Castle south the Princely Family is the LGT stein is equally shared between the Prince and of Vienna. On 23 January 1719, at the Group, a global private banking the people. As the worldʼs sixth smallest state, it request of Prince Anton Florian and asset management company. of Liechtenstein, Emperor Karl VI Further more, one of the world’s takes its name from one of the oldest noble united the County of Vaduz and most important art collections, families in Europe, the House of Liechtenstein. the Dominion of Schellenberg, real estate companies, agricultural creating the Imperial Principality and forestry companies can be of Liechtenstein. found under the roof of the Foun- dation Prince Liechtenstein. Since 1938, the Princely Family Wineries, electricity companies has lived in the centuries-old castle, and innovative companies in which towers over the capital of the agricultural sector are also part Vaduz. On 15 August 2004, Prince of the Head of State’s corporate The history of Liechtenstein in 165 seconds. Hans-Adam II handed over his portfolio. bit.ly/liechtenstein­history duties as Head of State to his son, Hereditary Prince Alois. 1938 Prince Franz Josef II is the first Prince Regnant to take up residence in Liechtenstein. Since then, the Princely Family has lived in Vaduz Castle. 1699 1818 1862 1924 1995 2019 Prince Johann Adam I of Liechtenstein adopts its With the Constitution of 1862, The Customs Treaty with Switzerland Liechtenstein becomes Liechtenstein celebrates Liechtenstein purchases the first written constitution. the parliamentary system comes into eect. Liechtenstein part of the European its 300th birthday on Dominion of Schellenberg. 1719 of Liechtenstein is created. adopts the Swiss franc as its currency. Economic Area (EEA). 23 January 2019. The County of Vaduz and the Dominion of Schellenberg are 1806 1921 1712 combined by Emperor Napoleon incorporates The new Constitution of 1921 enshrines state power in the Prince Johann Adam I Karl VI to form the Liechtenstein into the Prince and in the people and included the parliament 1990 also acquires the Imperial Principality Confederation of the Rhine, in the formation of government. The Constitution of 1921 Liechtenstein is admitted as the 160th County of Vaduz. of Liechtenstein. giving the state sovereignty. is still valid today. member of the United Nations (UN). 3 Questions for His Serene Highness Hereditary Prince Alois of Liechtenstein 1— How did Liechtenstein manage to evolve from a farming state to a successful financial and business location within a few years in the 20th century? In addition to a highly educated population and appealing economic conditions, it was down, above all, to the fact that the markets were opened up to the world. Without this, it would not have been possible for Liechtenstein to develop into a widely diversified and highly specialised business location. What’s more, having a good, close working relation- ship with our neighbours was key to our success. 2— Issues with a global reach and global impact are being discussed more and more in business. Which of these issues can Liechtenstein make the largest contribution towards? If increasing protectionism threatens free trade, which is essential for small states, it is worth talking about the dangers of protectionism. Liechtenstein can make a credible contribu- tion to such a discussion. Our special form of government – that of a directly democratic monarchy with a parliamentary system – ensures people-oriented, unbureaucratic and cost-effective regulation, which, at the same time, has a long- term focus and is well-thought-out with regard to the incentive effects. This knowledge and know-how can also be valuable for other countries. 3— Which issue could Liechtenstein use to position itself internationally as a role model? Sustainable development has become very important on an international level. By taking smart steps towards compre- hensive sustainability, we can not only increase the attrac- tiveness of Liechtenstein as a location, but also assume international responsibility and create added value for the benefit of the international community. If we manage to successfully develop this area, we can gain as much respect and recognition for our sustainability as for the products and services of our industrial and financial companies.
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