Liechtenstein has, since the end of the Second World War and particularly in the last fifty years, experienced an economic and cultural development unsurpassed, in relation to the size of the country, by any other western nation. From being an agrarian state, Liechtenstein has developed into being one of the world's most highly industrialised countries. The high extent of the industrialisation is, however, not immediately apparent to the visitor because industrial buildings and areas, with their clean and light appearance, blend in harmoniously with surrounding orchards, meadows and forests. No ugly, high chimneys or billows of smoke intrude on the beauty of the countryside.

Liechtenstein has approx. 36000 inhabitants today, whereas in 1950 there were 13 750. The income/expenditure of the country was about 5 million Swiss Francs in 1950; in 2000 it was 1115,9 and 658,8 million respectively. Liechtenstein exported goods to the value of 15.2 million Swiss Francs in 1950, and by 2000 this figure had climbed to 4 billion Swiss Francs.

Apart from efficient industries one also finds numerous trades and well-organized services in Liechtenstein. The following summary shows the percentage of people in employment (including people resident across the border in neighbouring countries) in the various sectors. These figures are per December 31, 2000:

Sector I: Agriculture and Forestry 1,3%
Sector II: Industry and Trades 44,9%
Sector III: Commerce and Services 53,8%

Liechtenstein consists of 11 municipal areas. The capital Vaduz has about 5000 inhabitants and is the place of residence of the Sovereign Family and the seat of the government. The people of Liechtenstein are of Germanic origins and speak a dialect of German which has regional differences from one community to the next. After belonging to the diocese of Chur since ancient times, Liechtenstein was made an archdiocese on December 21, 1997. The people of Liechtenstein are mostly Roman Catholics.

The form of government in the Principality of Liechtenstein is that of a male line monarchy. According to the constitution of 5th October 1921, the governmental power is shared between the Prince and the people. The Liechtenstein Parliament is elected by secret ballot. It consists of 25 members, 15 from the Upper Country and 10 from the Lower Country. The term of office is four years. The main duty of the parliament is to implement the law in accordance with the constitution, and to propose the formation of the government to the Prince. The government is made up of the head of government, a deputy and three ministers. Their term of office also lasts four years. The ruling of the country is the duty of the government which is responsible to the Prince and the parliament. The people of Liechtenstein can directly influence the law through the System of right of initiative and referendum.

The history of Liechtenstein

The history of the Principality of Liechtenstein can be traced back along way. It can be proved that there was a settlement here in the Neolithic age. Since 800 B. C. the area was colonized by the Rhaetians. 15 B.C. it was conquered by the Romans. A Roman road transversed the country from north to south. Roman villas that have been excavated in Schaanwald and Nendeln bear witness to this fact. Particularly important was the carefully researched Schaan Castle that served to protect the way across the alpine regions from any attack by the Germanic peoples.

Christianity found its way to the province of «Churrhaetia» in the 4th century, with Saint Luzius being the first to be venerated. During the mass migration people of Germanic origins made their way from the north and drove out the Romans. Years later, the area which is the Principality of Liechtenstein today belonged to the German Dukedom and was part of the country of Lower Rhaetia. Out of this emerged the two domains of Vaduz and Schellenberg.

As a result the domains were governed by four distinguished families: the Counts of Werdenberg - Vaduz, the Barons of Brandis, the Counts of Sulz and the Counts of Hohenems.

Prince Johann Adam Andreas of Liechtenstein bought the domain of Schellenberg in 1699 and the county of Vaduz in 1712. By acquiring these two counties he was striving for a seat and a vote in the government. The actual date on which the Principality of Liechtenstein was founded was January 23, 1719. On this day, Kaiser Karl VI decreed that the counties of Vaduz and Schellenberg be promoted to a principality with the name Liechtenstein for his true servant Anton Florian of Liechtenstein.

Liechtenstein was made part of the Rhine Confederacy by Napoleon in 1806. At that time, Napoleon founded a union of 16 regions of the German Reich that recognized him as their protector. He officially granted them independence, and so Liechtenstein also attained sovereignty. At the Viennese Congress of 1815, Liechtenstein became part of the German Confederation. The dissolution of the German Confederation in 1866 marked the final separation of Liechtenstein from Germany. There has not been an army in Liechtenstein since 1868. From 1852 to 1919, a customs agreement existed between Liechtenstein and the Dual Monarchy Austria-Hungary.

Liechtenstein has seen great progress under recent heads of state, particularly since the beginning of the reign of Johann II (1858-1929). The modern development of the country is largely due to his granting of a constitution in 1862 and the liberal democratic constitution of 1921 that still holds good today. The new connections between Liechtenstein and Switzerland also developed in his time, culminating with the signing of the customs agreement in 1923. The Swiss Franc has been the monetary unit of Liechtenstein since 1924.

Prince Franz Josef II was the first prince to take up permanent residence in Liechtenstein. He died on November 13, 1989 after a reign of 51 years. Immediately after the death of Prince Franz Josef II, his oldest son succeeded him as Prince Hans Adam II.

In 1978, Liechtenstein joined the Council of Europe, in 1990 it was accepted as a member of the United Nations, 1991 followed membership in the EFTA and in 1995 in the European Economic Area, as well as in the WTO.

Text: Berthold Konrad