Andorra

ANDORRA

LOCATION, SIZE, AND EXTENT
TOPOGRAPHY
CLIMATE
FLORA AND FAUNA
ENVIRONMENT
POPULATION
MIGRATION
ETHNIC GROUPS
LANGUAGES
RELIGIONS
TRANSPORTATION
HISTORY
GOVERNMENT
POLITICAL PARTIES
LOCAL GOVERNMENT
JUDICIAL SYSTEM
ARMED FORCES
INTERNATIONAL COOPERATION
ECONOMY
INCOME
LABOR
AGRICULTURE
ANIMAL HUSBANDRY
FISHING
FORESTRY
MINING
ENERGY AND POWER
INDUSTRY
SCIENCE AND TECHNOLOGY
DOMESTIC TRADE
FOREIGN TRADE
BALANCE OF PAYMENTS
BANKING AND SECURITIES
INSURANCE
PUBLIC FINANCE
TAXATION
CUSTOMS AND DUTIES
FOREIGN INVESTMENT
ECONOMIC DEVELOPMENT
SOCIAL DEVELOPMENT
HEALTH
HOUSING
EDUCATION
LIBRARIES AND MUSEUMS
MEDIA
ORGANIZATIONS
TOURISM, TRAVEL, AND RECREATION
FAMOUS ANDORRANS
DEPENDENCIES
BIBLIOGRAPHY

Principality of Andorra

Principat d'Andorra

CAPITAL: Andorra la Vella

FLAG: The national flag is a tricolor of blue, yellow, and red vertical stripes. On the state flag (shown here) the yellow stripe bears the coat of arms.

ANTHEM: The Himne Andorra begins "El gran Carlemany mon pare" ("Great Charlemagne my father").

MONETARY UNIT: Andorra has no currency of its own; the euro, adopted by both Spain and France, is used. There are coins of 1, 5, 10, 20, and 50 cents and 1 euro and 2 euros. There are notes of 5, 10, 20, 50, 100, 200, and 500 euros. €1 = $1.25475 (or $1 = €0.79697) as of 2005.

WEIGHTS AND MEASURES: The metric system and some old local standards are used.

HOLIDAYS: New Year's Day, 1 January; National Festival, 8 September; Christmas, 25 December. Movable religious holidays include Good Friday and Easter Monday.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

Landlocked Andorra lies in southwestern Europe on the southern slopes of the Pyrénées Mountains between the French departments of Ariège and Pyrénées-Orientales to the n and the Spanish provinces of Gerona and Lérida to the s, with a total boundary length of 120.3 km (74.6 mi).

Andorra is about 2.5 times the size of Washington, D.C., with a total area of 468 sq km (180 sq mi), extending 30.1 km (18.7 mi) e–w and 25.4 km (15.8 mi) n–s.

Andorra's capital city, Andorra la Vella, is located in the south-western part of the country.

TOPOGRAPHY

Andorra is situated in a single drainage basin, but its main stream, the Riu Valira, has two distinct branches and six open basins; hence the term "Valleys" (Les Valls) was traditionally employed as part of the name of the principality. The section of the river flowing through El Serrat by way of Ordino and La Massánan is the Valira del Nord, while that flowing through Canillo, Encamp, and Les Escaldes is the Valira d'Orient. Most of the country is rough and mountainous, and there is little level surface. All the valleys are at least 900 m (3,000 ft) high, and the mean altitude is over 1,800 m (6,000 ft). There are lofty peaks, of which the highest is Coma Pedrosa (2,946 m/9,665 ft).

CLIMATE

Because of its high elevation, Andorra has severe winters. The northern valleys are completely snowed up for several months. Most rain falls in April and October. Humidity is very low. Summers are warm or mild, depending on the altitude. There are considerable variations between maximum day and night temperatures.

FLORA AND FAUNA

The plant and animal life is similar to that found in the neighboring areas of France and Spain. Chestnut and walnut trees grow only in the area around Sant Julía de Lòria, the lowest village. Elsewhere, evergreen oaks still are common. Higher regions and many valleys have pines, firs, and various forms of subalpine and alpine plant life. At the highest altitudes there are no trees, but grass is plentiful during the summer. There are carnations, violets, bellflowers, and daisies, as well as blackberries, wild strawberries, and moss. Bears, wolves, foxes, martens, Pyrenean chamois, rabbits, hares, eagles, vultures, wild ducks, and geese may be found in isolated areas. The mountain streams contain trout, brochet, and crayfish.

ENVIRONMENT

Andorra was once heavily forested. One explanation for the name of the country is that it came from the Moorish word aldarra, meaning "place thick with trees." Andorra's mountainous environment attracts 12 million tourists each year. In recent decades, however, the forested area has been decreasing steadily. Overgrazing of mountain meadows by sheep, with consequent soil erosion, is another environmental problem. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 1 type of mammal: the common otter. The Apollo butterfly and the lesser horseshoe bat are vulnerable species.

POPULATION

The population of Andorra in 2005 was estimated by the United Nations (UN) at 74,000, which placed it at number 183 in population among the 193 nations of the world. In 2005, approximately 13% of the population was over 65 years of age, with another 15% of the population under 15 years of age. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.7%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 81,000. The population density was 164 per sq km (426 per sq mi).

The UN estimated that 92% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.35%. The capital city, Andorra la Vella, had a population of 21,000 in that year. Other leading towns are Les Escaldes, Sant Julía de Lòria, Encamp, and La Massánan.

The population is concentrated in the seven urbanized valleys that form Andorra's political districts.

MIGRATION

Immigration consists mainly of Spanish, Portuguese, and French nationals who intend to work in Andorra; these groups make up some 70% of the population. Spanish nationals account for the largest group of foreign residents, comprising approximately 43% of the population in 1999. There is also a small but rapidly growing group of African immigrants, especially from North Africa, working mostly in agriculture and construction. Immigrant workers are supposed to hold temporary work authorization permits, which are valid only as long as the job exists for which the permit was obtained. However, more than 4,000 immigrants did not have work permits in 1999, due to the fact that the quota for immigration is not as high as the number of workers needed in the country. In 2005, the net migration rate was estimated as 6.53 migrants per 1,000 population. In 2004, approximately 63% of the population was not born in Andorra. The government views the migration levels as satisfactory.

ETHNIC GROUPS

Native Andorrans made up only about 33% of the total population in 1998; they are of Catalan stock. About 43% of the population was Spanish, 11% were Portuguese, and about 7% were French. About 6% are from other groups.

LANGUAGES

The official language is Catalan. French, Portuguese, and Castilian are also spoken.

RELIGIONS

Traditionally, over 90% of all Andorrans are Roman Catholic. Though it is not an official state religion, the constitution acknowledges a special relationship with the Roman Catholic Church, offering some special privileges to that group. The Muslim community is primarily made up of North African immigrants. Other Christian denominations include the Anglican Church, Jehovah's Witnesses, the Reunification Church, the New Apostolic Church, and the Church of Jesus Christ of Latterday Saints. There is a small community of Hindus.

TRANSPORTATION

A north-south highway links Andorra la Vella with the Spanish and French borders. Secondary roads and trails also cross the border but are sometimes closed in winter because of deep snows. There were 269 km (167 mi) of roads in 2001, of which 198 km (123 mi) were paved. As of 1995 there were 40,127 motor vehicles, of which 35,941 were passenger cars and 4,186 were trucks, taxis, and buses.

Buses, the principal means of mass transit, provide regular service to Seo de Urgel and Barcelona in Spain, and to Perpignan in France. Among several cable cars, the most important operates between Encamp and Engolasters Lake. Vehicles from neighboring countries transport most merchandise.

Andorra does not have railways or commercial airports, but the airport at Seo de Urgel is only 20 km (12.5 mi) from Andorra la Vella. The nearest international airports are at Barcelona, Spain, located 215 km (134 mi) from Andorra, and at Toulouse, France, 165 km (103 mi) away. There is daily bus service from the Barcelona and Toulouse airports to Andorra.

HISTORY

According to one tradition, Charlemagne gave the region the name Andorra for its supposed likeness to the biblical town of Endor. Tradition also asserts that Charlemagne granted the Andorran people a charter in return for their help in fighting the Moors, and that Charlemagne's son Louis I, king of France, confirmed the charter.

It is generally agreed that Charles the Bald, the son of Louis, appointed the count of Urgel (now Seo de Urgel) overlord of Andorra and gave him the right to collect the imperial tribute. The bishop of Urgel, however, also claimed Andorra as part of the endowment of his cathedral. In 1226, the lords of the countship of Foix, in presentday south-central France, by marriage became heirs to the counts of Urgel. The quarrels between the Spanish bishop and the French counts over rights in Andorra led in 1278 to their adoption of a paréage, a feudal institution recognizing equal rights of two lords to a seigniorage.

In 1505, Germaine of Foix married Ferdinand V of Castile, thereby bringing the lordship of Andorra under Spanish rule. On taking over the kingdom in 1519, Emperor Charles V granted the lordship of Les Valls, as it was then known, to Germaine of Foix's line in perpetuity. Henry III of Navarre, who was also count of Foix, in 1589 ascended the French throne as Henry IV, and by an edict of 1607 established the head of the French state, along with the bishop of Urgel, as coprinces of Andorra.

In 1793, the French revolutionary government refused the traditional Andorran tribute as smacking of feudalism and renounced its suzerainty, despite the wish of the Andorrans to enjoy French protection and avoid being under exclusively Spanish influence.

Andorra remained neutral in the Napoleonic wars with Spain. Napoleon restored the coprincipality in 1806 after the Andorrans petitioned him to do so. French title to the principality subsequently passed from the kings to the president of France.

Long an impoverished land having little contact with any nations other than adjoining France and Spain, Andorra after World War II achieved considerable prosperity through a developing tourist industry. This development, abetted by improvements in transport and communications, has tended to break down Andorra's isolation and to bring Andorrans into the mainstream of European history. Public demands for democratic reforms led to the extension of the franchise to women in the 1970s and to the creation of new and more fully autonomous organs of government in the early 1980s.

Andorra formally became a parliamentary democracy in May 1993 following approval of a new constitution by a popular referendum in March 1993. The new constitution retained the French and Spanish coprinces although with reduced, and narrowly defined, powers. Civil rights were greatly expanded including the legalization of political parties and trade unions, and provision was made for an independent judiciary. Andorra entered into a customs union with the European Communities (now the EU) in 1991 and was admitted to the UN on 28 July 1993. The country has been seeking ways to improve its export potential and increase its economic ties with its European neighbors. The financial services sector of the economy is highly important, given Andorra's status as a tax haven and its banking secrecy laws.

GOVERNMENT

The governmental system of Andorra is unique. The constitution adopted in 1993 retained the French and Spanish coprinces but reduced their powers. The coprinces are the president of France and the bishop of Urgel, Spain. The coprinces are represented in Andorra by permanent delegates and veguers. Both the delegates and veguers reside in Andorra and acquire Andorran nationality ex officio, but they are not typically native Andorrans.

Legislation is enacted by the General Council, consisting of 28 members (14 members chosen from the national constituency and 14 representing the 7 parishes), elected for a four-year term since December 1981.

As of 2005, the president of the General Council was Marc Forné Molné. The General Council designates as its head a first syndic (syndic procureur général ) and a second syndic for the conduct of administration; upon election to their four-year terms, these syndics cease to be members of the council.

The right to vote, which at one time was limited to third-generation Andorran males of 25 years of age or over, by 1981 had been extended to include all native Andorrans of Andorran parentage (at age 21) and first-generation Andorrans of foreign parentage (at age 28). In October 1985, the voting age was lowered to 18 years. In October 1992, the suffrage was broadened to include spouses of Andorran citizens and long-term residents.

POLITICAL PARTIES

Prior to 1993, political parties were illegal in Andorra, though the Democratic Party of Andorra (formed in 1979) was tolerated. There have been two main factions in organized political life—conservatives and liberals. However, in the 2001 elections, three parties with distinct political tenets competed: the conservative Liberal Party of Andorra (PLA), the left-of-center Social Democratic Party (PS), and the Andorran Democratic Center Party (CDA).

The general election of December 1993, in which five parties gained representation, was the first under Andorra's new constitution. The results of the general election held April 2005 were as follows: the Liberal Party of Andorra (PLA), 14 seats; the Social Democratic Party (PS), 12; and the Andorran Democratic Center Party (CDA) 2.

LOCAL GOVERNMENT

Andorra is divided into seven parishes or districts: Andorra la Vella, Canillo, Encamp, La Massána, Escaldes-Engordany, Ordino, and Sant Juliá de Lòria. Eligible voters in each of the districts elect members of its parish council (comú ).

Parish councils administer local affairs. Each council generally consists of 8 to 14 members elected by universal suffrage for four-year terms at the same time as general councilors. Councils elect a senior consul and a junior consul.

JUDICIAL SYSTEM

The 1993 constitution guarantees an independent judiciary and the judiciary has in fact been independent. A Superior Council of Justice oversees and administers the judicial system. The Superior Council of Justice has five members. One member each is appointed by the two coprinces, the head of government, the president of the General Council, and members of the lower courts. Members of the judiciary are appointed for six-year terms. The judicial process is fair and efficient.

The new constitution also calls for respect for the promotion of liberty, equality, justice, tolerance, defense of human rights, dignity of the person, and privacy, and guarantees against arbitrary arrest and detention.

Under the current system, civil cases in the first instance are heard by four judges (batlles ). Appeals are heard in the Court of Appeal. Final appeals in civil cases are brought before the Supreme Court of Andorra at Perpignan, France, or the Ecclesiastical Court of the Bishop of Seu d'Urgell, Spain.

Criminal cases are heard in Andorra la Vella by the Tribunal des Cortes, consisting of the veguers, and the judge of appeal, two judges, and two members of the General Council. Few criminal trials are held, and the principality's jail is used only for persons awaiting sentencing. Sentenced criminals have the choice of French or Spanish jails. The courts apply the customary law of Andorra, supplementing it where necessary with Roman law and customary Catalan law. Traditional laws are compiled in the Manual Digest of 1748 and the Politar of 1763; legal standards are found in the Instructions to Bailiffs of 1740.

ARMED FORCES

Andorra has no defense force, and the police force is small. The sole military expenses are for ammunition used in salutes at official ceremonies, the lone responsibility of Andorra's small army. France and Spain are pledged to defend Andorra.

INTERNATIONAL COOPERATION

Andorra was admitted to the United Nations on 28 July 1993. It participates in the ECE, ICAO, ITU, UNESCO, UNCCD, ICCROM, WHO, WIPO, WToO, and is an observer at the WTO. It is also a member of the Council of Europe, the ICCt, and Interpol. Andorra joined the OSCE on 25 April 1996. As of 1991, Andorra has had a special agreement with the European Union. Andorra is part of the Organization for the Prohibition of Chemical Weapons. In cooperation on environmental issues, Andorra is part of the Basel Convention.

ECONOMY

The Andorran economy is primarily based on trade and tourism, with the traffic between France and Spain providing most of the revenue. Andorra is attractive for shoppers from France and Spain because of low taxes. However, Andorra's comparative advantage has recently eroded as the economies of France and Spain have been opened up, providing broader availability of goods and lower tariffs. Approximately 10 million tourists visit Andorra each year, drawn by Andorra's summer and winter resorts.

The Andorran banking system is of significant importance as a tax haven for foreign financial transactions and investments.

Prior to the creation of the European Union there was an active trade in consumer goods, which were duty-free in Andorra. With the creation of the EU, Andorran manufactured goods remain tariff free, but Andorran agricultural products are subject to EU tariffs. The production of agricultural goods is limited, though, as only 2% of the land is arable. Most food has to be imported.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Andorra's gross domestic product (GDP) was estimated at $1.9 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $26,800. The annual growth rate of GDP was estimated at 2%. The average inflation rate in 2004 was 4.3%.

LABOR

Total employment as of 2001 was estimated at 33,000. As of 2000, an estimated 1% were employed in the agricultural sector, with 21% employed in industry and 78% in the services sector. There is virtually no unemployment in Andorra.

Under the constitution passed in 1993, workers were granted the right to form and maintain trade union associations without prejudice, but implementation has not been provided. Associations must register with the government, and in 2002, there were 600 such associations. However, no unions existed as of that year. The right to strike is not covered under the law, nor does it specifically cover collective bargaining. With no business regulation or registration requirements, smuggling goods between France and Spain is a leading source of informal employment.

There are government-mandated health and safety standards, which are regularly enforced with routine inspections. There is a government-set minimum wage, which was $7.20 per hour in 2005. The minimum working age is 18, with some exceptions allowing 16- and 17-year-olds to work. The workweek is limited to 40 hours, with an additional 66 hours per month of overtime allowed.

AGRICULTURE

Because of Andorra's mountainous character, only about 2% of the land is suitable for crops. However, until the tourism sector in Andorra experienced an upsurge, agriculture had been the mainstay of the economy. Hay, tobacco, and vegetables must be irrigated; cereals, mainly rye and barley, are dry-cropped. Most of the cropped land is devoted to hay production for animal feed. Since there is insufficient sunlight on northward-facing slopes and the lands in shadow are too cold for most crops, some southward-facing fields high in the mountains must be used even though they are a considerable distance from the farmers' homes.

Tobacco, the most distinctive Andorran crop, is grown on the best lands. Andorran tobacco is usually mixed with eastern tobaccos, because of its strong quality. Other farm products include cereals, potatoes, and garden vegetables. Grapes are used mainly for raisins and for the making of anisette. The lack of modern methods on Andorra's family farms is causing the agricultural sector to decrease in importance. Most food is now imported.

ANIMAL HUSBANDRY

For many centuries, until eclipsed by tourism and other service industries, sheep raising was the basis of Andorra's economy. Andorran mules are still greatly prized. Cattle, sheep, and goats are raised both in the valleys and in some of the higher areas. Cattle are raised mainly for their meat, and there are few dairy cows. When the cattle move upward in the spring, entire families move to temporary villages in the mountains to herd, mow, and plant. Large droves of sheep and goats from France and Spain feed in Andorra in the summer, and the Spanish-owned animals in particular are looked after by Andorran shepherds. On their way back to their native land, many of the animals are sold at annual fairs; the Spanish fairs are usually held in Andorra in September and the French in November. Andorra's own animal fairs are also held in the fall.

Livestock includes an estimated 9,000 sheep, 1,100 cattle, and 200 horses. Meat production has increased in recent years, but imports account for about 90% of total meat consumption. The milk produced is sufficient for domestic consumption, and some milk has been exported to Spain.

FISHING

The streams are full of trout and other freshwater fish, but Andorra imports most fish for domestic consumption from Spain.

FORESTRY

About 10,000 hectares (24,700 acres), or 22% of the total land area, is forested. Fuel wood may be freely gathered by anyone, but it may not be bought or sold. Wood needed for building purposes is cut in rotation from a different district each year. For centuries logs have been shipped to Spain. Most reforestation is in pines.

MINING

For hundreds of years, Andorran forges were famous in northern Spain. There are still iron ore deposits in the valley of Ordino and in many of the mountain areas, but access to them is difficult. In addition to iron, small amounts of lead are still mined, and alum and building stones are extracted. The sulfurous waters of Les Escaldes are used in washing wool.

ENERGY AND POWER

The largest hydroelectric plant, at Encamp, has a capacity of 26.5 MW and provides about 40% of Andorra's electric power needs, with most of the remainder being imported from Spain. The total installed capacity in 1991 was 35,000 kW. Energy production in 1992 totaled 140 million kWh.

There are four gas companies, with Andor Gas supplying propane and the others butane.

INDUSTRY

Manufacturing accounted for approximately 5% of GDP in 2004. Andorra produces cigars, cigarettes, textiles, leather, building materials, and furniture, both for local use and for export. Woolen blankets and scarves are made at Les Escaldes.

Many enterprises produce frozen foods, pastry, and other commodities. There are distilleries for the production of anisette, vermouth, liqueurs, and brandy.

Several firms manufacture woolen goods. There are a number of construction companies, the largest producing building materials from iron.

SCIENCE AND TECHNOLOGY

Students wishing to pursue scientific and technical careers usually receive their training abroad. The Andorra Scientific Society in Andorra la Vella was founded in 1983. The National Motor Car Museum in Encamp, founded in 1988, exhibits cars, motorbikes, and bicycles dating from 1898 to 1950.

DOMESTIC TRADE

Andorra la Vella has many stores where commodities of all kinds and origins may be purchased. The larger villages have small general stores. The French, Spanish, and Andorran animal fairs that take place at Andorra la Vella, Encamp, Ordino, and elsewhere are attended by most Andorrans and by many French and Spanish farmers.

There is a high level of competition between the large department stores and the small shops. There are some 600 retail establishments in the country, of which the department and jewelry stores are the most numerous, followed by food and clothing outlets. Trade in consumer goods is very active, particularly with French and Spanish shoppers who are attracted by the lower tax rates on purchases. Handicrafts, cigars, cigarettes, and furniture are major products manufactured for both domestic and export markets.

There are over 270 hotels and 400 restaurants catering to the thriving tourist trade.

FOREIGN TRADE

Owing to the large traffic of unaccounted goods across Andorra's borders, official statistics do not reflect the true volume of transactions. Of recorded trade, close to half is with Spain and over one-quarter with France. The majority of imports consist of consumer goods sold to visitors. Reported imports exceed recorded exports by some 26:1.

A customs union with the EC (now the EU) took effect in 1991, allowing industrial goods to pass between Andorra and EC members under a uniform customs tariff. The EU's external tariffs are to be applied by Andorra to its trade with non-EU members.

BALANCE OF PAYMENTS

Most goods have to be imported, and there is a structural trade deficit. Owing to the large traffic of unaccounted goods across Andorra's borders, official statistics do not reflect the true volume of transactions.

Country	Exports	Imports	Balance
World	63.2	1,198.1	-1,134.9
Spain	33.6	599.5	-565.9
France-Monaco	18.6	293.8	-275.2
Germany	6.0	61.4	-55.4
Norway	0.8	…	0.8
United States	0.6	15.5	-14.9
Italy-San Marino-Holy See	0.4	38.4	-38.0
Netherlands	0.4	11.7	-11.3
Switzerland-Liechtenstein	0.3	18.9	-18.6
United Arab Emirates	0.3	…	0.3
Portugal	0.2	3.6	-3.4
(…) data not available or not significant.

BANKING AND SECURITIES

An unofficial Convention of Banks and Bankers periodically attends to financial affairs. The banking system attracts foreign financial transactions and investments because there are no direct taxes in Andorra.

There were six private banks in 1997: Banc Internácional d'Andorra, Banca Mora, Banca Privada d'Andorra, Credit Andorra, Banc Agricol i Comercial d'Andora, and Banca Reig. About half of all deposits are made in pesetas, with one-fourth in francs and the balance in other currencies.

There is no stock exchange, and therefore, stocks and bonds are not traded in Andorra.

INSURANCE

The principal firm is the Andorra Insurance Co., established in 1951, which provides coverage that includes life, fire, accident, and plate glass. There are several other insurance companies, including Assegurances Bercia, Assegurances GAN, Assegurances Generali France, Assegurances Generals, Assegurances la Catalana, Assegurances La Equitativa, Assegurances Layetana, Assegurances Lepanto, Assegurances Riba, Assegurances Royal Insurance, Assegurances Santamaria Cosan, Assegurances Schweiz, Atlantis Compañía d'Assegurances, CMA, Commercial Union Assegurances, Compañía Andorrana d'Assegurances, Financera d'Assegurances, Generali, Grup Assegurador Catalana Occident, Multinacional Asseguradora, Patrimoine Assegurances, Santamaria Cosan Assegurances, Unio I Aliança de Previsio, and Zürich Delegacio.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 1997 Andorra's central government took in revenues of approximately $385 million and had expenditures of $342 million. Revenues minus expenditures totaled approximately $43 million.

TAXATION

There is no income tax on the individual or corporate level. Employees pay social security taxes at rates of 5-9%; employers pay 13%. As of October 1991, a value-added tax had been enacted and was expected to impose charges of 1-7% on the production and import of goods. Also scheduled for implementation under the 1992 budget law were a registration tax on certain activities, to provide 8.6% of government revenues, and a tax on electricity consumption and telephone services to contribute 1.6% of state revenues.

CUSTOMS AND DUTIES

Andorra is a member of the EU Customs Union and generally abides by the EU trade regime. However, its agricultural exports are treated as of non-EU origin and, therefore, are subject to ordinary tariffs.

FOREIGN INVESTMENT

Andorra has no formal investment incentive programs, other than offering some financial support for the development of tourist facilities. Andorran banks attract foreign depositors and investors, in part due to the lack of taxes but also due to Andorra's bank secrecy laws. As such, this has long made Andorra a tax haven and a refuge for smugglers. In 2004, however, Andorra was obliged to accept the EU's Savings Tax Directive, and as of July 2005, imposes a withholding tax of 15% on return of savings paid to citizens of EU member states, of which 75% is remitted onwards to the states concerned. In 2001, a Department for the Prevention of Money Laundering was established, which is authorized to carry out unannounced inspections and hands information to the public prosecutor's office or to the government.

ECONOMIC DEVELOPMENT

Government policy is to encourage local industries and to promote private investment. In addition to handicrafts, manufacturing includes cigars, cigarettes, and furniture. Tourism accounts for 80% of gross domestic product (GDP), and the banking sector significantly contributes to the economy.

In 2002, Andorra adopted the EU's common currency, the euro. In 2004, Andorra signed a series of accords with the EU in the fields of economic, social, and cultural cooperation.

SOCIAL DEVELOPMENT

There is a social welfare system that was first introduced in 1966. Programs include oldage, disability, and survivors' pensions, health and maternity coverage, and workers' compensation.

There is no legal discrimination against women, although they have only enjoyed full suffrage since 1970 and play only a very minimal role in the country's government. Women's rights advocates have reported that pregnant women frequently lose their jobs. On average, women earn 25% less than men. In 2004, violence against women declined, but there was an increase in child abuse. Children's welfare is promoted by the government.

The constitution prohibits discrimination on the basis of birth, race, sex, origin, religion, or any other personal or social condition. Foreign nationals, primarily from Spain, France, Portugal, and the United Kingdom, account for over 40% of the population. While accorded the same rights and freedoms as citizens, foreigners lack access to some of the social benefits provided by law. Recent legislation has improved living conditions for immigrant workers, but many still have only temporary work permits and face deportation if they lose their jobs.

The rights of freedom of speech, press, peaceful assembly, religion, and movement are provided by the constitution and are respected in practice.

HEALTH

Infant mortality was estimated at 4.05 per 1,000 births in 2005. Life expectancy for that year was estimated at 83.5 years, the highest in the world. The 1999 birth rate was 10.27 and the overall mortality rate was 5.5 per 1,000 people. In the same year the fertility rate was 1.25. In 2004, Andorra had 259.4 physicians, 302.4 nurses, 1.8 midwives, and 62 dentists per 100,000 people.

HOUSING

Most Andorran houses are made of stone. Since the flat land is used for farm crops, the rural houses are frequently backed against the mountainsides. The high villages (cortals ) are situated on a line between the highest fields and the lowest limits of high-level pastures. Isolated houses (bordes ) are found at higher elevations. Many families maintain temporary dwellings in the highest pasture areas. All residents have access to safe water and sanitation systems.

EDUCATION

By law, students must attend school between the ages of 6 and 16. There are essentially three coexisting school systems in the country: French, Spanish, and Andorran. The French government partially subsidizes education in Andorra's French-language schools; schools in the southern section, near Spain, are supported by the church. The local language, Catalan, has been introduced at a school under the control of the Roman Catholic Church. About 50% of Andorran children attend French primary schools, and the rest attend Spanish or Andorran school. In general, Andorran schools follow the Spanish curriculum, and their diplomas are recognized by Spain. Primary school enrollment in 2003 was estimated at about 89%; 88% for boys and 90% for girls. The same year, secondary school enrollment was about 71%; 69% for boys and 74% for girls. The pupil to teacher ratio for primary school was at about 12:1 in 2003; the ratio was about 7:1 for secondary classes.

The University of Andorra was established in July 1997. It has a small enrollment and mostly offers long-distance courses through universities in Spain and France. The majority of secondary graduates who continue their education attend schools in France or Spain. In 2003, about 8% of eligible adult students were enrolled in tertiary programs. Virtually the entire adult population is literate. Andorra also has a nursing school and a school of computer science.

LIBRARIES AND MUSEUMS

The National Library and National Archives founded in 1974 and 1975 respectively are located in Andorra la Vella; the library holds over 45,000 volumes. Small museums reflect a variety of interests. The Museu Nacional de l'Automòbil (National Automobile Museum) is located in Encamp. Museu Postal (Postal Museum) is in Ordino. Also in Ordino is the Nikolaï Siadristy Museum—Museum of Miniatures, the first permanent museum of the artist Siadristy's miniatures.

MEDIA

Automatic telephone service was begun in 1967. In 2001, there were 35,000 mainline and 23,500 mobile cellular phones in use. Postal and telegraph services are handled by the Spanish and French administrations; a telex system was installed in 1970.

ORTA (public) and Radio Valira, are radio broadcast stations operated by Andorrans and supervised by the General Council. Andorrans also receive broadcasts from Spain and France. As of 1998, there were 15 FM radios stations. Andorra does not have its own television stations; television transmission is provided through technical accords with the Spanish and French government networks. In 1997 there were 16,000 radios and 27,000 television sets in use throughout the country.

The two main daily papers are the independent publications of Diari D'Andorra (Andorra Daily —2002 circulation 3,000) and El Peridico de Andorra. Poble Andorra is a major weekly publication with a circulation of about 3,000. Other newspapers, with smaller circulations, are the dailies Independent and Informacions Diari, and the weeklies Correu Andorra and Informacions. French and Spanish newspapers are also widely available.

As of 2001, there were an estimated 24,500 Internet users. In 2004, there were about 4,144 Internet hosts in the country.

The Andorran constitution ensures freedom of speech and press, and the government is said to respect these rights in practice.

ORGANIZATIONS

There are about 10 human rights associations in the country, the most active being the Association of Immigrants in Andorra (AIA), which defends the rights of foreign residents. The Association of Andorran Women (AAW) focuses on women's rights.

The Andorra Chamber of Commerce, Industry and Services works to support commercial and economic growth in Andorra by promoting commercial and industrial instruction; collaborating with the educational government in the administration of practical training for companies; coordinating trade fairs, exhibitions, and conventions; and supporting research programs. There are networking and educational associations representing a variety of professions, such as the Andorran Medical Association, the Andorran College of Dentists, the Andorran Bar Association, and the Andorran College of Engineers.

The Youth Council of Andorra (Area de Jovent), founded in 1988, serves as a nongovernmental platform for major youth and student organizations. The General Union of Andorran Students (Agrupacio General dels Estudiants d'Andorra (AGEA), founded in 1990, is a union of university students. Other youth NGOs include: the Andorran Red Cross Youth, Andorran Catholic Student Movement, and youth associations of Andorran Kiwanis, Lions and Rotary clubs. Andorra also sponsors an organization of the Special Olympics and a few national sports organizations, including groups for squash and sailing.

There are national chapters of the Red Cross Society, Caritas, and UNICEF.

TOURISM, TRAVEL, AND RECREATION

Tourism has brought considerable prosperity to Andorra and now constitutes the principal source of income. Visitors, mostly from France and Spain, come to Andorra each summer to attend the fairs and festivals, to buy consumer items at lower prices than are obtainable in the neighboring countries, and to enjoy the pleasant weather and beautiful scenery. There is skiing at Pas de la Casa and Soldeu in winter.

Shrines and festivals are both key attractions to tourists. Romanesque churches and old houses of interest are located in Ordino, Encamp, Sant Julía de Lória, Les Escaldes, Santa Coloma, and other villages. The best known is the shrine of Our Lady of Meritxell, Andorra's patroness, between Canillo and Encamp.

Pilgrims come from France and Spain to pay homage on 8 September, the festival day of Andorra's patroness. Each of the larger villages has its own festival during which the sardana, Andorra's national dance, is performed.

There is an International Jazz Festival at Escaldes-Engordany in July and the International Music Festival of Ordino in September.

In 2003, about 3,138,000 tourists visited Andorra, of whom 72% came from Spain, a 3% decline from 2002. Visitors need a valid passport to enter Andorra. No visa is required.

In 2003, the US Department of State estimated the daily cost of a stay in Andorra at $226.

FAMOUS ANDORRANS

There are no internationally famous Andorrans.

DEPENDENCIES

Andorra has no territories or colonies.

BIBLIOGRAPHY

Cameron, Peter. Andorra. New York: Farrar, Straus and Giroux, 1997.

De Cugnac, Pascal. Pyrenees and Gascony: Including Andorra. London: Hachette UK, 2000.

Taylor, Barry. Andorra. Oxford, England, and Santa Barbara, Calif.: Clio Press, 1993.

United Nations Conference on Trade and Development. Handbook of International Trade and Development Statistics. New York: United Nations, 1993.

World Bank. World Tables 1994. Baltimore and London, England: Johns Hopkins University Press, 1994.