Liechtenstein

I

Introduction

Liechtenstein, small country in central Europe. Liechtenstein is one of the smallest independent nations in the world, with a total area of only 160 sq km (62 sq mi). The capital of Liechtenstein is Vaduz.

Roughly triangular in shape, Liechtenstein is a picturesque country that occupies a part of the Rhine River Valley in the Alps. The tiny landlocked nation is nestled between Austria on the north and east and Switzerland on the west and south. Its entire western border with Switzerland is formed by the Rhine. The river valley is narrow in the mountainous south, but it widens to form fertile lowlands in the north.

Until the mid-20th century, Liechtenstein was largely a nation of farmers. Today it is a prosperous, industrialized country with a vigorous financial services sector. Liechtenstein’s low taxes and relaxed corporate governance rules have encouraged more than 75,000 business entities to establish offices in the country. Liechtenstein’s numerous banks provide financial services for foreign entities. Liechtenstein is world-famous for its decorative postage stamps, which are prized by tourists and provide an important source of national income.

Liechtenstein is a principality (a territory ruled by a prince). Its official name is the Principality of Liechtenstein (German Fürstentum Liechtenstein). Like its Swiss neighbor, with which it is closely tied, Liechtenstein is a neutral nation. In 1921 Liechtenstein adopted the Swiss franc as its national currency, and in 1924 it entered into a customs union with Switzerland. The borders between both nations are open. Swiss customs officials are responsible for safeguarding the border with Austria and for representing Liechtenstein abroad. Liechtenstein has not maintained an army since 1868.

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II

Land and Resources

Liechtenstein measures about 25 km (16 mi) from north to south and about 6 km (3.7 mi) from east to west. The northern and western parts of Liechtenstein lie in a broad floodplain formed by the Rhine River Valley. In the east are foothills of the Alps, which rise in the south to peaks of more than 2,400 m (more than 8,000 ft) above sea level. The Grauspitze, in the far southeast, is Liechtenstein’s loftiest point, climbing to a height of 2,599 m (8,527 ft).

The Rhine, which forms the western border, drains the greater part of the country. The Samina River is the principal stream of the mountain region.

Despite its elevated, continental location, Liechtenstein has a mild climate. Average temperatures range from -1°C (30°F) in January to 21°C (70°F) in July. Rain and snow are plentiful, with average annual precipitation of about 100 cm (about 40 in). A warm, dry wind that blows from the south, known locally as the foehn, keeps winters mild and relatively brief.

Forests cover 44 percent of the land; deciduous trees predominate at lower elevations, conifers at higher elevations. Wildlife includes deer, chamois, fox, marten, weasel, and badger.

III

People

The population of Liechtenstein (2007 estimate) is 34,247, with an overall density of 213 persons per sq km (551 per sq mi). Liechtenstein is overwhelmingly rural, with 79 percent of the population living in the countryside in 2003. The principality contains no large cities.

Resident aliens, mainly people from Germany, Austria, and Switzerland, make up about one-third of Liechtenstein’s population. In addition, many citizens from Austria and Switzerland commute daily into Liechtenstein to work.

A

Principal Communities

The capital of Liechtenstein is Vaduz (population, 2006, 5,050), a town situated along the banks of the Rhine in the west central part of the country. Vaduz is home to the State Art Museum, which displays some of the art collected by Liechtenstein’s princes over the centuries. The museum’s rich collection includes works by masters such as Rembrandt, Sandro Botticelli, and Pieter Bruegel the Elder. Also located in Vaduz is the Postage Stamp Museum, which showcases the hundreds of colorful stamps issued by the principality. The castle of the prince of Liechtenstein stands on a bluff high above the town.

The nearby community of Schaan, with a population of 5,771 (2006), is Liechtenstein’s largest town. Other sizable communities include Triesen (population, 2002, 4,510), Balzers (population, 2002, 4,300), Eschen, and Mauren.

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