Background: The Principality of Liechtenstein was established within the Holy Roman Empire in 1719; it became a sovereign state in 1806. Until the end of World War I it was closely tied to Austria but the economic devastation caused by that conflict forced Liechtenstein to conclude 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.

Land boundaries: 78 km total; Austria 37 km, Switzerland 41 km

Coastline: none--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

Natural resources: hydroelectric potential

Land use: arable land: 25%; permanent crops: 0%; meadows and pastures 38%; forest and woodland 19%; other 18%

Geography
Note: defense is responsibility of Switzerland

Population: 28,476 (July 1991), growth rate 0.6% (1991)

Nationality: noun--Liechtensteiner(s; adjective--Liechtenstein

Ethnic groups: Alemannic 95%, Italian and other 5%

Languages: German (official), Alemannic dialect

Religions: Roman Catholic 87.3%, Protestant 8.3%, unknown 1.6%, other 2.8% (1988)

Birth rate: 13 births/1000 population (1991)

Death rate: 7 deaths/1000 population (1991)

Net migration rate: 0 migrants/1000 population (1991)

Environment
Current issues: variety of microclimatic variations based on elevation

Infant mortality rate: 5 deaths/1000 live births (1991)

Life expectancy at birth: 73 years male, 81 years female (1991)

Total fertility rate: 1.5 children born/woman (1991)

Literacy: 100% (male 100%, female 100%) age 10 and over can read and write (1981)

Country name: conventional long form: Principality of Liechtenstein

Government type: hereditary constitutional monarchy

Capital: Vaduz

Administrative divisions: 11 communes (gemeinden, singular--gemeinde; Balzers, Eschen, Gamprin, Mauren, Planken, Ruggell, Schaan, Schellenberg, Triesen, Triesenberg, Vaduz

Independence: 23 January 1719, Imperial Principality of Liechtenstein established

National holiday: Saint Joseph's Day, 19 March

Constitution: 5 October 1921

Legal system: local civil and penal codes; accepts compulsory ICJ jurisdiction, with reservations

Suffrage: universal at age 18

Executive branch: Chief of State--Prince HANS ADAM II (since 13 November 1989; assumed executive powers 26 August 1984; Heir Apparent Prince ALOIS von und zu Liechtenstein (born 11 June 1968; Head of Government--Hans BRUNHART (since 26 April 1978; Deputy Head of Government Dr. Herbert WILLE (since 2 February 1986)

Legislative branch: Police Department

Judicial branch: Supreme Court (Oberster Gerichtshof) for criminal cases and Superior Court (Obergericht) for civil cases

International organization participation: CE, CSCE, EBRD, EFTA, IAEA, INTELSAT, INTERPOL, IOC, ITU, LORCS, UN, UNCTAD, UPU, WIPO

Diplomatic representation
In the us: in routine diplomatic matters, Liechtenstein is represented in the US by the Swiss Embassy; US--the US has no diplomatic or consular mission in Liechtenstein, but the US Consul General at Zurich (Switzerland) has consular accreditation at Vaduz

Flag description: two equal horizontal bands of blue (top) and red with a gold crown on the hoist side of the blue band Liechtenstein LiechtensteinLiechtenstein

Economy overview: The prosperous economy is based primarily on small-scale light industry and tourism. Industry accounts for 54% of total employment, the service sector 42% (mostly based on tourism), and agriculture and forestry 4%. The sale of postage stamps to collectors is estimated at $10 million annually. Low business taxes (the maximum tax rate is 20%) and easy incorporation rules have induced about 25,000 holding or so-called letter box companies to establish nominal offices in Liechtenstein. Such companies, incorporated solely for tax purposes, provide 30% of state revenues. The economy is tied closely to that of Switzerland in a customs union, and incomes and living standards parallel those of the more prosperous Swiss groups.

Agriculture products: livestock, vegetables, corn, wheat, potatoes, grapes

Industries: electronics, metal manufacturing, textiles, ceramics, pharmaceuticals, food products, precision instruments, tourism

Industrial production growth rate: NA%

Labor force: 12,258; 5,078 foreign workers (mostly from Switzerland and Austria; industry, trade, and building 54.4%; services 41.6%; agriculture, fishing, forestry, and horticulture 4.0%

Unemployment rate: 0.1% (December 1986)

Budget: revenues $240 million; expenditures $197 million, including capital expenditures of NA (1988)

Fiscal year: calendar year

Exports: $1.28 billion (1988)
Commodities: small specialty machinery, dental products, stamps, hardware, pottery
Partners: EC 40%, EFTA 22% (Switzerland 18%) (1988)

Imports: $NA
Commodities: machinery, metal goods, textiles, foodstuffs, motor vehicles
Partners: NA

Debt external: $NA

Exchange rates: Swiss francs, franken, or franchi (SwF) per US$1--1.2724 (January 1991), 1.3892 (1990), 1.6359 (1989), 1.4633 (1988), 1.4912 (1987), 1.7989 (1986), 2.4571 (1985)

Electricity
Capacity: 23,000 kW capacity; 150 million kWh produced, 5,340 kWh per capita (1989)

Airports: none