Andorra

Background: Long isolated and impoverished, mountainous Andorra has achieved considerable prosperity since World War II through its tourist industry. Many immigrants (legal and illegal) are attracted to the thriving economy with its lack of income taxes.
Location: Southwestern Europe, between France and Spain Area: Total: 468 sq km, water: 0 sq km. Area - comparative: 2.5 times the size of Washington, DC. Land boundaries: Total: 120.3 km, border countries: France 56.6 km, Spain 63.7 km.
Climate and Terrain: Climate: Temperate; snowy, cold winters and warm, dry summers. Terrain: Rugged mountains dissected by narrow valleys. Elevation extremes: Lowest point: Riu Runer 840 m, highest point: Coma Pedrosa 2,946 m. Natural resources: Hydropower, mineral water, timber, iron ore, lead.
People: Population: 68,403. Ethnic groups: Spanish 43%, Andorran 33%, Portuguese 11%, French 7%, other 6%. Religions: Roman Catholic. Languages: Catalan (official), French, Castilian.
Government: Government type: Parliamentary democracy (since March 1993) that retains as its heads of state a co-principality; the two princes are the president of France and bishop of Seo de Urgel, Spain, who are represented locally by co-princes' representatives. Capital: Andorra la Vella. Independence: 1278 (was formed under the joint suzerainty of France and Spain).
Economy overview: Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for roughly 80% of GDP. An estimated 9 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts. Andorra's comparative advantage has recently eroded as the economies of neighboring France and Spain have been opened up, providing broader availability of goods and lower tariffs. The banking sector, with its "tax haven" status, also contributes substantially to the economy. Agricultural production is limited - only 2% of the land is arable - and most food has to be imported. The principal livestock activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products. Agriculture - products: Small quantities of tobacco, rye, wheat, barley, oats, vegetables; sheep.
Statistics: Telephones - main lines in use: 32,946. Telephones - mobile cellular: 14,117. Radio broadcast stations: AM 0, FM 15. Radios: 16,000. Television broadcast stations: 0. Televisions: 27,000. Internet users: 24,500. Railways: 0 km. Highways: Total: 269 km, paved: 198 km, unpaved: 71 km. Airports: None.
Notes: No regular military forces, but there is a police force. Defense is the responsibility of France and Spain. Disputes - international: Border is un-demarcated in sections.