Switzerland’s Economics and Culture Report

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Updated: Dec 6th, 2023

Location and Landscape

Switzerland is a mountainous, landlocked country in Western and Central Europe. Its geography is made up of all of its physical features. The natural landscape of Switzerland is made up of many lakes and mountains. It is surrounded by France, Liechtenstein and Austria, Italy, and Germany. Switzerland is about 220 km long from north to south and about 350 km from east to west (Dao et al. 56).

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The Alps, located in the south and southeast of Switzerland, are among the country’s most recognizable geographical features (Dao et al. 53). The Swiss Plateau spans the country’s northern half from east to west. The Swiss majority resides on the plateau’s gentle slopes and plains. In the northwest corner of the plateau are the lesser Jura Mountains. Near Schaffhausen on the Swiss side of the Rhine is where the northern boundary with Germany begins. With Lake Constance as the dividing line, Germany and a slice of Austria share an eastern border.

Culture

Switzerland is in the middle of some of the best European cultures, which indicates its culture is very different from other countries. Switzerland has more than one official language, as Italian, French, German, and Romansh are all spoken there. There are also many different languages spoken in each area, and each canton has its unique cultural features. Different parts of the country have different cultures, customs, and traditions because each canton and municipality has cultural autonomy (Besse). The Swiss Alps have been a big part of Switzerland’s history and cultural diversity. More than 600 museums in Switzerland show off the country’s cultural history (Besse). Switzerland is also known for its arts and crafts, especially making watches. Over the past few decades, the Swiss watch industry has earned a good name for itself.

Politics

The way Switzerland runs its government is based on decentralization and direct democracy. Most of the time, the state’s government comprises people from four of the biggest political parties in the parliament. In the Swiss Confederation, the 26 cantons have powers to make decisions, and the public often has a say in policy through referendums (Vatter). Civil liberties are generally respected in the country.

However, new laws and policies over the past few years have shown a growing fear of immigration and minority groups of foreign origins, which are sometimes treated unfairly by society. Various political parties are active at national and state levels, and the right to form and operate as a political party is guaranteed by law (Vatter). Most parties work together to run the government in the country’s consensus-based political system. However, they compete fiercely in elections and can gain or lose power depending on how they do. Referendums are used to decide on contentious policy issues.

Economics

Switzerland is a neutral country with a modern market economy, low unemployment, a highly skilled workforce, and one of the highest GDPs per person in the world. Switzerland’s economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that focuses on high-tech, knowledge-based production (Lalive and Tobias 413). Switzerland is one of the most competitive economies in the world because of its stable economy and government, clear legal system, excellent infrastructure, efficient capital markets, and low corporate tax rates.

To get into the EU’s Single Market and make Switzerland more competitive on the world stage, the Swiss have mostly changed their economic policies to match those of the EU (Lalive and Tobias 413). There is still some trade protectionism, though, especially in its small agricultural sector.

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The Swiss economy is closely tied to that of its neighbors in the Eurozone, who buy half of Switzerland’s exports. In the past few years, neighboring countries and trading partners have put more and more pressure on Switzerland to change its banking secrecy laws (Lalive and Tobias 413). In response, Switzerland agreed to follow the rules of the Organization for Economic Cooperation and Development (OECD) on administrative assistance in tax matters, including tax evasion. The Swiss government has also renegotiated its double taxation agreements with many countries, including the US, to include OECD standards.

Population

In January 2022, 8.74 million people were living in Switzerland. According to data, the number of people living in Switzerland went up by 60,000 between 2021 and 2022 (Wartmann 210). Switzerland has 50.4% women and 49.6% men and 74.1 percent of Switzerland’s people lived in cities at the start of 2022, while 25.9 percent lived in rural areas (Wartmann 209). The population distribution in Switzerland is affected by the country’s terrain, with the most populated area being the plateau, which contains the country’s largest cities (Wartmann 210). With 450 individuals per square kilometer, it is one of Europe’s most densely populated regions (Wartmann 215). There are significant differences in population density between cantons on the plateau and cantons in the Alps.

I chose Switzerland because of its natural beauty, which includes the mighty Alps, calm lakes, quaint villages, big cities, and tall castles. Switzerland gives assistance for disaster relief and long-term development in developing nations and also shapes and implements international norms. It offers asylum to those persecuted. Switzerland’s financial sector is a global leader in wealth management, with Swiss banks, insurance companies, and pension funds contributing approximately 10 per cent to the country’s gross domestic product.

Works Cited

Besse, Marie. (Geneva, Switzerland). Archaeopress Publishing Ltd, 2022. Web.

Dao, Hy, Pascal Peduzzi, and Damien Friot. “National environmental limits and footprints based on the Planetary Boundaries framework: The case of Switzerland.” Global environmental change 52 (2018): 49-57. Web.

Lalive, Rafael, and Tobias Lehmann. “IZA World of Labor 402v2 (2020). Web.

Vatter, Adrian. Swiss federalism: The transformation of a federal model. Routledge, 2018. Web.

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Wartmann, Flurina M., et al. “Landscape and Urban Planning 208 (2021): 104024. Web.

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IvyPanda. 2023. "Switzerland's Economics and Culture." December 6, 2023. https://ivypanda.com/essays/switzerlands-economics-and-culture/.

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