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Liechtenstein Liechtenstein 2016 Country Review http://www.countrywatch.com Table of Contents Chapter 1 1 Country Overview 1 Country Overview 2 Key Data 4 Liechtenstein 5 Europe 6 Chapter 2 8 Political Overview 8 History 9 Political Conditions 10 Political Risk Index 17 Political Stability 32 Freedom Rankings 47 Human Rights 59 Government Functions 61 Government Structure 63 Principal Government Officials 66 Leader Biography 69 Leader Biography 69 Foreign Relations 72 National Security 75 Defense Forces 76 Chapter 3 78 Economic Overview 78 Economic Overview 79 Nominal GDP and Components 85 Population and GDP Per Capita 87 Real GDP and Inflation 88 Government Spending and Taxation 89 Money Supply, Interest Rates and Unemployment 90 Foreign Trade and the Exchange Rate 91 Data in US Dollars 92 Energy Consumption and Production Standard Units 93 Energy Consumption and Production QUADS 94 World Energy Price Summary 95 CO2 Emissions 96 Agriculture Consumption and Production 97 World Agriculture Pricing Summary 99 Metals Consumption and Production 100 World Metals Pricing Summary 102 Economic Performance Index 103 Chapter 4 115 Investment Overview 115 Foreign Investment Climate 116 Foreign Investment Index 118 Corruption Perceptions Index 131 Competitiveness Ranking 143 Taxation 152 Stock Market 152 Partner Links 153 Chapter 5 154 Social Overview 154 People 155 Human Development Index 156 Life Satisfaction Index 159 Happy Planet Index 171 Status of Women 180 Global Gender Gap Index 182 Culture and Arts 192 Etiquette 193 Travel Information 194 Diseases/Health Data 203 Chapter 6 209 Environmental Overview 209 Environmental Issues 210 Environmental Policy 210 Greenhouse Gas Ranking 212 Global Environmental Snapshot 223 Global Environmental Concepts 234 International Environmental Agreements and Associations 248 Appendices 273 Bibliography 274 Liechtenstein Chapter 1 Country Overview Liechtenstein Review 2016 Page 1 of 286 pages Liechtenstein Country Overview LIECHTENSTEIN The principality of Liechtenstein is a microstate measuring just 62 square miles and home to a population of about 35,000, making it one of the world's smallest countries. Tucked away in the Alps between Austria and Switzerland, Liechtenstein is located at the crossroads of Europe. Early inhabitants of Liechtenstein included Celts, Romans, and Alemanni, but the modern population is fairly homogenous with predominantly Germanic roots. Liechtenstein part of Charlemangne's empire in the late 700s and was then in 1699, Prince Johann Adam Andreas of Liechtenstein purchased the County of Schellenberg, and soon thereafter, in 1712, the County of Vaduz. The nation state of Liechtenstein was established within the Holy Roman Empire in 1719. Occupied by both French and Russian troops during the Napoleonic wars, Liechtenstein claimed its independence 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. Despite its small size and limited natural resources, Liechtenstein has developed into a prosperous, well-diversified and highly industrialized economy. Low business taxes and easy incorporation rules have attracted many so-called letter-box companies to establish nominal offices in Liechtenstein. Through the monetary and customs union, Liechtenstein is fully integrated with Switzerland and it uses the Swiss franc as its national currency. 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 United States that went into effect in 2003. The country is also a member of the European Economic Area and as a result, benefits from trade with European Union members. Liechtenstein Review 2016 Page 2 of 286 pages Liechtenstein Liechtenstein Review 2016 Page 3 of 286 pages Liechtenstein Key Data Key Data Region: Europe Population: 37624 continental; cold, cloudy winters with frequent snow or rain; cool to Climate: moderately warm, cloudy humid. Languages: German (official) Alemannic dialect Currency: 1 Swiss franc (SwF) = 100 centimes Holiday: Assumption Day, August 15 Area Total: 160 Area Land: 160 Coast Line: 0 Liechtenstein Review 2016 Page 4 of 286 pages Liechtenstein Liechtenstein Country Map Liechtenstein Review 2016 Page 5 of 286 pages Liechtenstein Europe Regional Map Liechtenstein Review 2016 Page 6 of 286 pages Liechtenstein Liechtenstein Review 2016 Page 7 of 286 pages Liechtenstein Chapter 2 Political Overview Liechtenstein Review 2016 Page 8 of 286 pages Liechtenstein History History in Brief The area of the present-day Principality of Liechtenstein has been inhabited since approximately 4000 B.C.E. The Alemanni (or Alemannics) settled in the area between 300 and 700 C.E. As mentioned in the "government" section, the present Principality of Liechtenstein is composed of two regions, the "Oberland" (Upper Country or region) and the "Unterland" (Lower Country or region). Prior to Liechtenstein becoming a principality, these two areas were known as the County of Vaduz (Upper County), formed in 1342, and the County (or Lordship) of Schellenberg (Lower County). In 1699, Prince Johann Adam Andreas of Liechtenstein purchased the County of Schellenberg, and soon thereafter, in 1712, the County of Vaduz. In 1719, the prince declared the area the "Principality of Liechtenstein." In this way, the country acquired its present name. Possession of this territory entitled the prince to membership in the Assembly of Princes at the Imperial Court of the Holy Roman Empire. In 1806, the principality became a member of the Rhenish Confederation (or Confederation of the Rhine), and in 1815 a member of the German Confederation. In 1862, a Diet (parliament) was created to represent the people of the principality. In 1866, the German Confederation dissolved, changing the status of the principality to that of an independent state. As such, Liechtenstein became a fully sovereign entity at that time. During the 20th century, the principality retained its sovereignty, maintaining neutrality during World War I and II. Liechtenstein signed customs treaties, first with Austria and later with Switzerland. The treaty with Austria was dissolved shortly after World War I -- in 1919 -- when the Hapsburg monarchy of Austria was abolished. Indeed, Switzerland then replaced Austria as the Liechtenstein Review 2016 Page 9 of 286 pages Liechtenstein representative of Liechtenstein's interests abroad. Meanwhile, the customs treaty with Switzerland was enacted and put into effect in 1923. As well, in 1921, Liechtenstein adopted the Swiss currency. It was only after World War II that Liechtenstein was able to move from a primarily agrarian economy to an industrialized and service-sector oriented economy. Earlier, in 1938, Prince Franz Josef II ascended to the throne to rule the country. He handed executive power to his son, Crown Prince Hans Adam II in 1984. In that very year, women were granted the right to vote in national elections following a referendum. Five years later, the head of state died. The current head of state, Prince Hans Adam II, succeeded Prince Franz Josef II in 1989. As noted above, Prince Hans Adam II had been the executive leader of the country since 1985. In 1990, Liechtenstein joined the United Nations and a year later, it joined the European Free Trade Association. In 2003, Liechtenstein voted to expand the princely powers, thus changing the political landscape of the country. Supplementary sources include: FirstLink to the Principality of Liechtenstein. History of the Principality of Liechtenstein. 2001. URL: <http://www.firstlink.li/eng/regierung/jahreszahlen.htm;> Principality of Liechtenstein. Permanent Mission to the United Nations. "Information about Liechtenstein and Links to Related Sites." 2001. URL: <http://www.un.int/liechtenstein/info.htm.> Note on History: In certain entries, open source content from the State Department Background Notes and Country Guides have been used. A full listing of sources is available in the Bibliography. Political Conditions Historically, there have been two main political parties in Liechtenstein, the center-right "Fortschrittliche Bürgerpartei Liechtensteins" (Progressive Citizens' Party of Liechtenstein or Liechtenstein Review 2016 Page 10 of 286 pages Liechtenstein FBPL), founded in 1918, and the conservative "Vaterländische Union" (Fatherland/Patriotic Union or VU) founded in 1936. (The VU is a continuation of the People's Party - which was also founded in 1918.) More recently, Liechtenstein has had three main political parties, with the advent of the "Freie Liste" (Free List or FL), founded in 1985, and focused primarily on environmental issues. In the parliamentary elections (held on Jan. 31, and Feb. 2, 1997), the Fatherland/Patriotic Union (VU) won 13 seats; the Progressive Citizens' Party won 10 seats; and the Free List won two. Following these elections, the government was controlled by the Fatherland/Patriotic Union, and headed by Mario Frick. The new head of government was distinguished from his compatriots across the continent having been elected as the
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