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Liechtenstein, independent principality in central Europe; bounded on the east by Austria, and on the south, west, and north by Switzerland. One of the smallest independent states in the world, Liechtenstein has a total area of 160 sq km (62 sq mi).

The western edge of Liechtenstein lies in the valley of the Rhine River. The rest of the country consists of 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 Rhine River, which forms the western border, drains, along with its local tributaries, the greater part of the country. The Samina River is the principal stream of the mountain region. Liechtenstein has a mild climate; average temperatures range from -1�C (30�F) in January to 21�C (70�F) in July. The average annual precipitation is about 1,000 mm (about 40 in). Forests cover 45 percent of the land; deciduous trees predominate at lower elevations, conifers at higher elevations. Wildlife includes deer, chamois, fox, marten, and badger.

The population of Liechtenstein (2001 estimate) is 32,528 (about one-third of whom are resident aliens), with an overall density of 203 persons per sq km (527 per sq mi). The capital and principal urban center is Vaduz (population, 1999, 5,106). German is the official language, but a dialect, Alemannish, is spoken commonly. Approximately 88 percent of the population is Roman Catholic. In 1991 primary school enrollment totaled 1,985 pupils; about 1,200 pupils attended secondary schools. Primary and secondary education is free in Liechtenstein; schooling is compulsory for 8 years.

Liechtenstein is highly industrialized, with less than 2 percent of the labor force engaged in agriculture. The principal crops are corn, potatoes, barley, wheat, vegetables, and grapes. Livestock are grazed in the alpine meadows in summer. The major manufactures include machinery, pharmaceuticals, food products, metal goods, precision instruments, furniture, and pottery. Much of the principality�s income is derived from banking, tourism, the sale of postage stamps, and from international firms that maintain headquarters here because of favorable tax treatment. The unit of currency is the Swiss franc, and Liechtenstein maintains a customs union with Switzerland. The country has 19 km (12 mi) of railroads and 323 km (201 mi) of roads, but it has no airport.

Liechtenstein is a constitutional monarchy governed by hereditary princes. According to the constitution of 1921, legislative power is exercised by the unicameral parliament, made up of 25 members elected to four-year terms by universal adult suffrage. On the recommendation of parliament, the prince appoints a chief of government and four councillors who form the government. Since 1919, Switzerland has represented Liechtenstein diplomatically.

The modern history of Liechtenstein dates from 1719, when the country formally acquired its present name and ruling family with the consolidation of the counties of Vaduz and Schellenberg under the house of Liechtenstein. During the 18th and 19th centuries, it was allied with the Habsburg monarchy of Austria. When that monarchy was abolished after World War I (1914-1918), Liechtenstein formed its present connection with Switzerland.

Prince Franz Joseph II, who became sovereign in 1938, yielded executive authority in 1984 to his son and heir, Crown Prince Hans Adam II, who succeeded his father in 1989. Also in 1984, a referendum granted women the right to vote in national elections. Liechtenstein joined the United Nations in 1990 and the European Free Trade Association (EFTA) as a full member in September 1991. In December 1992 voters approved Liechtenstein�s membership in the European Economic Area (EEA). In February 1993 Markus Buechel of the Progressive Citizens� Party was elected to the post of prime minister. Buechel inherited a coalition government�made up of his own party and the Fatherland Union�that had ruled the country since 1938. In September, the parliament passed a no-confidence vote against Buechel, saying that he refused to work with other members of the government. However, instead of dismissing Buechel, Prince Hans Adam dissolved parliament and called new elections, saying that the voters should decide who ran the government. In elections held the following month, Mario Frick of the Fatherland Union became prime minister.

Frick was returned to office in April 1997. Shortly after the elections the Progressive Citizens� Party announced that it was leaving the coalition with Frick�s Fatherland Union to become an official opposition party. This was the first time in almost 60 years that the two parties had not governed in an official coalition with one another.