Vatican City
Size: 0.17 sq. mi. (0.44 km²)
Population: 783 (2005 census)
Location: Rome, Italy
The size of a golf course, the Vatican City [wiki official website] is the smallest country in the world. It's basically a walled enclave inside of Rome, Italy. It's so small that the entire country does not have a single street address.
The Vatican City may be small, but it is very powerful. It is the sovereign territory of the Holy See, or the seat of the Catholic Church (basically its central government), which has over 1 billion people (about 1 in 6 people on the planet) as constituents.
The Vatican City was created in 1929 by the Lateran Treaty (which was signed by one of history's most repressive dictators, Benito Mussolini) and is ruled by the Pope, basically a non-hereditary, elected monarch who rules with absolute authority (he's the legislative, executive and judiciary all rolled into one) - indeed, the Pope is the only absolute monarch in Europe.
Another unique thing about the smallest country in the world is that it has no permanent citizens. Citizenship of the Vatican City is conferred upon those who work at the Vatican (as well as their spouses and children) and is revoked when they stop working there
The Vatican City is guarded by the smallest and oldest regular army in the world, the Swiss Guard [wiki]. It was originally made up of Swiss mercenaries in 1506, now the army (also personal bodyguards of the Pope) number 100, all of which are Catholic unmarried male Swiss citizens. The Swiss Guard's Renaissance-style uniform was commonly attributed as to have been designed by Michelangelo - this was actually incorrect: the large "skirt" pants were a common s tyle during the Renaissance. Only their uniforms seem antiquated: most of the Swiss Guards carry pistols and submachine-guns.
The official languages of the Vatican City are Latin and Italian. In fact, its ATMs are the only ones in the world that offer services in Latin! And here you thought that Latin is a dead language…
For a country that has no street address, the Vatican City has a very efficient post office: an international mail dropped in the Vatican will get there faster than one dropped in Italy just a few hundred yard away - in fact, there is more mail sent annually per inhabitant from this country (7,200 mails per person) than anywhere else in the world.
The Vatican City has a country code top level domain of .va - currently there are only 9 publicly known .va domains [wiki]. It also has a radio broadcasting service, called Vatican Radio [wiki], which was set up by Guglielmo Marconi (the Father of Radio) himself!
The country's economy is unique: it is the only non-commercial economy in the world. Instead, the Vatican City is supported financially by contributions of Catholics worldwide (called Peter's Pence - hey, even the Pope accepts credit cards!), the sale of postage stamps and publications, and tourism.
Lastly, as an ecclesiastical paradise, the Vatican City has no taxes.
Monaco
Size: 0.8 sq. mi. (1.96 km²)
Population: 35,657 (2006 estimate)
Location: French Riviera on the Mediterranean
Monaco [wiki official website] is the second smallest country on Earth (it's roughly the size of New York's Central Park), yet it's the most densely populated (23,660 people per km²). Actually, Monaco used to be much smaller than it is now - about 100 acres were reclaimed from the sea and added to its land size. At the narrowest, Monaco is only 382 yards wide!
The Principality of Monaco, its formal name, means that the territory is ruled by a prince. For the last seven centuries, Monaco was ruled by princes of the Grimaldi family from Genoa. (The whole thing started one night in 1297 when François Grimaldi disguised himself as a monk and led a small army to conquer the fortress guarding the Rock of Monaco. The coat of arms of the Grimaldi bears the image of monks with swords!) Now, the Prince shares legislative authority with a National Council.
In 1861, Monaco relinquished half of its territory to France in exchange for cash and independence. When the reigning prince realized that most of Monaco's natural resources were on the land that got bartered away, he decided to bet the whole economy on … what else, gambling (see, casinos aren't only for American Indians, it's a time-tested, universal solution!)
And so began Monte Carlo [wiki], a region of Monaco well known for its glamorous casinos (a setting for Ian Fleming's first James Bond Novel Casino Royale [wiki]) and its Formula One Grand Prix.
In 1918, Monaco entered a treaty with France for military protection - the treaty, however, also stipulated that Monaco would lose its independence (and become French) should the reigning Grimaldi prince died without leaving a male heir! When Prince Rainier III took over, he was a bachelor and most Monegasques (that means people of Monaco) were gloomy about the country's future. However, he ended up marrying Hollywood actress Grace Kelly [wiki] - the marriage not only produced a male heir, it also helped burnish Monaco's image as a glamorous place to be for the wealthy. (Monaco can rest easy now, a new treaty with France stated that the Principality will remain independent even without a male heir).
For a long time, Monaco had no income taxes and was a tax haven for wealthy foreigners and international corporations. This caused a unique thing about Monaco's population: most of its residents are not native - in fact, only about 1 in 5 people are native Monegasques. After a long dispute with France, Monaco started to impose income taxes on all of its residents who are not born there. Its natural citizens are forbidden from entering casinos, but to make up for it, they do not have to pay any income taxes.
San Marino
Size: 24 sq. mi. (61 km²)
Population: 28,117 (2005 estimate)
Location: North-central Italy near the Adriatic coast.
With the formal name of The Most Serene Republic of San Marino [wiki], it's not surprising that San Marino has got lots of charms. Founded in AD 301 by a Christian stonecutter named (what else) Marino (or Marinus, depending on who you ask), who along with a small group of Christians, was seeking escape from religious persecution, San Marino is the world's oldest republic.
Its history belies its simple motto: "Liberty." Indeed, San Marino was such a good neighbour, that it was hardly ever conquered by larger enemies (it was briefly conquered in the 1500s and the 1700s, for like a month each). Even when Napoleon gobbled most of Europe, he left San Marino alone, saying it was a model republic!
San Marino takes its government seriously: for such a tiny country, San Marino has a very complex government structure, based on a constitution written in 1600. The country is ruled by an elected Council of 60, who appoints 2 captain regents (from opposing political parties, no less) to administer governmental affairs for six-month term. Talk about preserving liberties through division of authority!
Before World War II, San Marino was amongst the poorest countries in Europe. Today, with more than 3 million tourists visiting every year (half of San Marino's income is derived from tourism), the people of San Marino are amongst the world's richest people
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