It was January 23, 1719, that the Holy Roman Emporer, Charles VI, announced the creation of a new principality, Liechtenstein, named in honor of "[his] true servant, Anton Florian of Liechtenstein." The sixth smallest nation in the world, it is the the richest, per capita, with a Gross Domestic Product of $118,000 per person.
Liechtenstein is a large producer of ceramics, and is the world's largest producer of sausage casings and false teeth. Other industries include electronics, textiles, precision instruments, metal manufacturing, power tools, anchors, calculators, pharmaceuticals, and food products. Liechtenstein also produces wheat, barley, corn, potatoes, dairy products, livestock, and wine. Tourism also accounts for a large portion of the country's economy.
One interesting thing is that Liechtenstein follows a policy of neutrality and is one of few countries in the world that maintains no military. The army was abolished soon after the Austro-Prussian War in which Liechtenstein fielded an army of 80 men, although they were not involved in any fighting. The demise of the German Confederation in that war freed Liechtenstein from its international obligation to maintain an army, and parliament seized this opportunity and refused to provide funding for an army. The prince objected, as such a move would leave the country defenseless, but relented on 12 February 1868, and disbanded the force. The last soldier to serve under the colors of Liechtenstein died in 1939 at the age of 95. Order within the country is kept by a small police force.
Combine the lack of military spending with a low tax rate (the business tax rate is 20%, the personal tax rate tops out at 17%), and it's easy to see why this small, microcountry holds a great deal of the worlds wealth!
