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Monaco

MONACO

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 MONEGASQUES
DEPENDENCIES
BIBLIOGRAPHY

Principality of Monaco

Principauté de Monaco

CAPITAL: The seat of government is at Monaco-Ville

FLAG: The national flag consists of a red horizontal stripe above a white horizontal stripe.

ANTHEM: Hymne Monégasque, beginning "Principauté Monaco, ma patrie" ("Principality of Monaco, my fatherland").

MONETARY UNIT: The euro replaced the French franc as the official currency in 2002. The euro is divided into 100 cents. There are coins in denominations of 1, 2, 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. Monégasque coins also circulate; denominations are 10, 20, and 50 centimes, and 1, 2, 5, 10, and 50 francs. Fr1 = $0.184 (or $1 = Fr5.4) as of March 2006.

WEIGHTS AND MEASURES: The metric system is the legal standard.

HOLIDAYS: New Year's Day, 1 January; St. Dévôte, 27 January; Labor Day, 1 May; Assumption, 15 August; All Saints' Day, 1 November; National Day, 19 November; Immaculate Conception, 8 December; Christmas, 25 December. Movable religious holidays include Easter Monday, Ascension, Pentecost Monday, and Fête-Dieu.

TIME: 1 pm = noon GMT.

LOCATION, SIZE, AND EXTENT

The second-smallest country in Europe and the world after the Vatican, Monaco is situated in the southeastern part of the French department of Alpes-Maritimes. The area, including recent reclamation, is 195 hectares (482 acres), or 1.95 sq km (0.75 sq mi). Comparatively, the area occupied by Monaco is about three times the size of the Mall in Washington, DC. The principality's length is 3.18 km (1.98 mi) ew, and its width is 1.1 km (0.68 mi) ns. Bounded on the n, ne, sw, and w by France and on the e and se by the Mediterranean Sea, Monaco has a total border length of 8.5 km (5.3 mi), of which 4.1 km (2.5 mi) is coastline.

TOPOGRAPHY

There are four main areas (determined more by economic activity than geographic difference): La Condamine, the business district around the port; Monte Carlo, the site of the famous casino, which is at a higher elevation; Monaco-Ville, on a rocky promontory about 60 m (200 ft) above sea level; and Fontvieille, a 22-hectare (54-acre) industrial area of La Condamine that was reclaimed by landfill in the 1960s and 1970s.

CLIMATE

Winters are mild, with temperatures rarely falling below freezing and with a January average of about 8°c (46°f). Summer heat is tempered by sea breezes; the average maximum in July and August is 26°c (79°f). Rainfall averages about 77 cm (30 in) a year, and some 300 days a year have no precipitation whatsoever.

FLORA AND FAUNA

Palms, aloes, carobs, tamarisks, mimosas, and other Mediterranean trees, shrubs, and flowers are abundant. Monaco does not have a distinctive fauna.

ENVIRONMENT

Monaco is noted for its beautiful natural scenery and mild, sunny climate. The principality has sponsored numerous marine conservation efforts. Its own environment is entirely urban. According to UN reports, Monaco's environmental circumstances are very good. The nation has consistently monitored pollution levels in its air and water to ensure the safety of its citizens. One-fifth of the nation's land area (1.95 sq km) and two marine areas are protected by environmental statutes.

The government has also instituted a system of air pollution control facilities controlled by the Environmental Service. Citizens are encouraged to use public transportation to limit the amount of gas emissions. Similar techniques have been applied to the protection of Monaco's water supply. Noise levels from industry and transportation are also monitored to ensure safe levels.

Monaco also has a sea-farming area which annually produces 800 tons of fish grown in clean water. Monaco is known for its activity in the field of marine sciences. The Oceanographic Museum, formerly directed by Jacques Cousteau, is renowned for its work and exhibits on marine life.

According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 26 species of marine life. Threatened species included the great white shark, the blue shark, striped dolphin, albacore tuna, and swordfish.

POPULATION

The population of Monaco in 2005 was estimated by the United Nations (UN) at 33,000, which placed it at number 188 in population among the 193 nations of the world. In 2005, approximately 22% of the population was over 65 years of age, with another 13% of the population under 15 years of age. According to the UN, the annual population rate of change for 200510 was expected to be 0.6%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 44,000. The population density was 16,988 per sq km (44,000 per sq mi), making Monaco the most densely populated nation in the world.

The UN reported that 100% of the population lived in urban areas in 2005. Most of the people in Monaco are resident foreigners.

MIGRATION

There is a long waiting list for Monégasque citizenship. A 1992 law allows Monégasque women to confer citizenship on their children. In 2005, the net migration rate was an estimated 7.71 migrants per 1,000 population. In 2000, more than two-thirds of the residents were noncitizens. The government views the migration levels as satisfactory.

ETHNIC GROUPS

On the evidence of certain place names, the native Monégasques are said to be of Rhaetian stock; they make up only 16% of the population. The foreign residents are a highly cosmopolitan group: 47% are French; 16% are Italian; and various other groups comprise the remaining 21%.

LANGUAGES

French is the official language. English and Italian are also widely spoken. Many inhabitants speak the Monégasque language, which has its origins in the Genoese dialect of Italian and the Provençal language of southern France.

RELIGIONS

About 90% of the population adheres to Roman Catholicism, which is the official state religion. Freedom of worship is guaranteed by the constitution. Monaco is also part of the diocese of Gibraltar of the Church of England. There are five Catholic churches and one cathedral in the principality, two Protestant churches, and one Jewish synagogue. Though there are a small number of Muslims, there are no mosques.

TRANSPORTATION

French national roads join Monaco to Nice toward the west, and to Menton and the Italian Riviera toward the east. In 2002 there were 50 km (31 mi) of roadways, all of them paved. There is frequent bus service. The principality itself is served by motorbuses and taxicabs. In 1995 there were 17,000 passenger cars and 4,000 commercial vehicles. The southeastern network of the French national railroad system serves Monaco with about 1.7 km (1 mi) of track. Express trains on the Paris-Marseille-Nice-Ventimiglia line pass through the principality. Monaco is only 10 km (6 mi) from the international airport at Nice and is connected with it by bus and by a helicopter shuttle service. In 2001 (the latest year for which data was available), 77,800 passengers were carried on domestic and international airline flights. The harbor provides access by sea.

HISTORY

The ruling family of Monaco, the house of Grimaldi, traces its ancestry to Otto Canella (c.10701143), who was consul of Genoa in 1133. The family name, Grimaldi, was adapted from the Christian name of Canella's youngest son, Grimaldo. The Genoese built a fort on the site of present-day Monaco in 1215, and the Grimaldi family secured control late in the 13th century. The principality was founded in 1338 by Charles I, during whose reign Menton and Roquebrune were acquired. Claudine became sovereign upon the death of her father, Catalan, in 1457. She ceded her rights to her husband and cousin, Lambert, during whose reign, in 1489, the duke of Savoy recognized the independence of Monaco. The first Monégasque coins were minted in the 16th century. Full recognition of the princely title was obtained by Honoré II in 1641.

The last male in the Grimaldi line, Antoine I, died in 1731. His daughter Louise-Hippolyte in 1715 had married Jacques-François-Léonor de Goyon-Matignon, Count of Thorigny, who adopted the name Grimaldi and assumed the Monégasque throne. France annexed the principality in 1793, but independence was reestablished in 1814. The following year, the Treaty of Stupinigi placed Monaco under the protection of the neighboring kingdom of Sardinia. In 1848, the towns of Roquebrune and Menton, which constituted the eastern extremity of Monaco, successfully rebelled and established themselves as a republic. In 1861, a year after the Sardinian cession of Savoy and Nice to France, Roquebrune and Menton also became part of that nation.

The economic development of Monaco proceeded rapidly with the opening of the railroad in 1868 and of the gambling casino. Since that time, the principality has become world famous as a tourist and recreation center. Gambling, operated by Société des Bains de Mer, a state controlled group, recorded a 30% increase in gambling receipts in 1998. Real estate and retail sales have also registered strong growth in recent years. As of 2005 Monaco has no unemployment and provides jobs for 25,000 Italian and French commuters. More than half of government revenues, however, come from value-added tax. The rate levied by France is also in effect in Monaco. France has the highest VAT in the European Union and has come under pressure to adjust its rate downward in conformity with the rest of the EU. However, Monaco is not an EU member. Light industry and banking have also become important. Monaco joined the United Nations on 28 May 1993. Monaco is the second-smallest independent state in the world, after the Holy See, and is almost entirely urban.

Prince Rainier III, once married to the American actress Grace Kelly, led the country 19492005 and is often credited for the country's impressive economic growth. Tourism, banking and other types of financial services augment the economy's former dependence on gambling. Rainier died in early 2005 and in July 2005, Prince Albert II, son of Rainier and Kelly, assumed the throne. The event was somewhat overshadowed by his admission of having a 22-month-old illegitimate child. His illegitimate son will not be able to inherit the throne, although Prince Albert has acknowledged paternity and assumed his financial responsibilities.

GOVERNMENT

Monaco is a constitutional monarchy ruled, until 2002, by the hereditary princes of the Grimaldi line. Prior to constitutional changes made in 2002, if the reigning prince were to die without leaving a male heir, Monaco, according to treaty, would be incorporated into France. Because Prince Rainier III's son Albert was a 43-year-old bachelor in 2002, without male heirs, and his own health was failing, Rainier changed Monaco's constitution to allow one of his two daughters, Caroline or Stephanie, to inherit the throne and preserve the Grimaldi dynasty.

On 7 January 1911, Monaco's first constitution was granted by Prince Albert I. On 29 January 1959, Prince Rainier III temporarily suspended part of the constitution because of a disagreement over the budget with the National Council (Conseil National), and decreed that the functions of that body were to be assumed temporarily by the Council of State (Conseil d'État). In February 1961, the National Council was restored and an economic advisory council established to assist it.

A new constitution was promulgated on 17 December 1962. It provides for a unicameral National Council of 18 (now 24) members elected every five years (now 16 by majority vote and 8 by proportional representation); it shares legislative functions with the prince. Executive operations are conducted in the name of the prince by a minister of state (a French citizen) with the assistance of the Council of Government, consisting of three civil servants who are in charge of finances, public works, and internal affairs, respectively. All are appointed by the prince.

Women were enfranchised for municipal elections in 1945, and participated in elections for the National Council for the first time in February 1963. Until 2003, suffrage was exercised only by trueborn Monégasques of 21 and over. Naturalized Monégasques were granted voting rights in 2003 and the voting age was reduced to 18.

POLITICAL PARTIES

Monaco does not have political parties as such, but candidates compete on the basis of various lists. Major political groups have been the National and Democratic Union (Union Nationale et DémocratiqueUND), founded in 1962; Communist Action (Action CommunaleAC); Évolution Communale (EC); and the Movement of Democratic Union (MUD). In the general election of February 1998, the UND took all 18 seats in the National Council. Elections held on 9 February 2003 were the first under a new electoral law establishing 24 seats in the National Council. A unified opposition list, the Union for Monaco, composed of the National Union for the Future of Monaco and the Rally for the Monégasque Family, took 58.5% of the vote and 21 seats, to the UND's 41.5% and 3 seats. The introduction of proportionality voting enabled the UND to obtain its seats. The next election was scheduled for 2008.

LOCAL GOVERNMENT

Municipal government is conducted by an elected council ( Conseil Communal) of 15 members, headed by a mayor. The council members are elected by universal suffrage for four-year terms, and the mayor is chosen by the Communal Council. The three communes that made up Monaco before 1917Monaco-Ville, La Condamine, and Monte Carloeach had its own mayor from 1911 to 1917. Since that date, they have formed a single commune, together with Fontvieille.

Anne Marie Campora became mayor of Monte Carlo in 1991 succeeding Jean-Louis Médecin who had served as mayor since 1971. Georges Marsan was elected mayor of Monte Carlo in 2003.

JUDICIAL SYSTEM

A justice of the peace tries petty cases. Other courts are the court of first instance, the court of appeal, the court of revision, and the criminal court. The highest judicial authority is vested in the Supreme Court, established as part of the 1962 constitution, which interprets the constitution and sits as the highest court of appeals. It has five full members and two assistant members, named by the prince on the basis of nominations by the National Council and other government bodies.

The Code Louis, promulgated by Prince Louis I (d.1701) and based on French legal codes, was formally adopted in 1919. Under the 1962 constitution the prince delegates his authority to the judiciary to render justice in his name.

The legal guarantee of a fair and public trial for criminal defendants is respected in practice. Defendants have the right to counsel at public expense if necessary.

The constitution provides for freedom of speech, although the penal code prohibits denunciations of the royal family. The constitution differentiates between the rights of nationals and those of noncitizens; of the estimated 32,000 residents in the principality, only about 7,000 are actual Monégasques.

Monaco is a member of the United Nations and International Criminal Court.

ARMED FORCES

France assumed responsibility for the defense of Monaco as part of the Versailles Treaty in 1919. There is no army in the principality. A private guard protects the royal family, and a police force of 390 ensures public safety.

INTERNATIONAL COOPERATION

Monaco joined the United Nations on 28 May 1993 and is a member of the ECE and several nonregional specialized agencies, such as the FAO, IAEA, ICAO, IMO, ITU, UNCTAD, UNESCO, WHO, and WIPO. Monaco is also a member of the Council of Europe and the OSCE. The headquarters of the International Hydrographic Bureau (IHB) is located in Monaco.

A treaty providing in detail for mutual administrative assistance between France and Monaco became operative on 14 December 1954. Fiscal relations between the two countries are governed by a convention signed on 18 May 1963. France may station troops in Monaco and make use of Monaco's territorial waters. As a result of a customs union with France and French control of Monaco's foreign policy, the principality operates within the European Union.

In environmental cooperation, Monaco is part of the Basel Convention; Conventions on Biological Diversity, Whaling, and Air Pollution; Ramsar; CITES; the London Convention; the Montréal Protocol; MARPOL; and the UN Conventions on the Law of the Sea, Climate Change, and Desertification.

ECONOMY

Monaco depends for its livelihood chiefly on income from tourism, real estate, financial services, and small, high value-added, nonpolluting industry. A substantial part of the principality's revenue from tourist sources comes from the operations of Sea-Bathing Co. (Société des Bains de MerSBM), in which the government holds a 69% interest. The SBM operates the gambling casino at Monte Carlo as well as four hotels, 19 restaurants, a cabaret, and the Thermos Margins spa. Its reported profits in 2002 were about $21 million, down from close to $30 million in 2001. The government also retains monopolies in telephone services, postal services and tobacco. A 22-hectare landfill project at Fontvielle increased Monaco's total land area. Land reclamation since Prince Rainier's accession to the throne in 1949 has increased Monaco's territory by 23%.

The principality does not publish statistics on its economy and all estimates are rough. The government's annual income was estimated at $586 million for 1997, about 25% derived from tourism. Monaco also serves as a tax haven for foreign non-French residents. In 2000 the OECD published a list of "uncooperative tax havens" that included Monaco. Two years later, Monaco was still on the list, though 31 other jurisdictions had been removed by promising to take corrective actions.

Estimate data put together by the United Nations Statistic Division shows that the economy of the principality has been expanding modestly. Similar to other countries in Europe, the GDP growth rate was 2.7% in 2001, falling to 1.9% and 1.4% in 2002 and 2003 respectively, and recuperating again in 2004, at 3%. Unemployment in 1998 was estimated to be around 3.1%.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Monaco's gross domestic product (GDP) was estimated at $870.0 million. 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 $27,000. The annual growth rate of GDP was estimated at 0.9%. The average inflation rate in 2000 was 1.9%. It was estimated that agriculture accounted for 17% of GDP.

LABOR

There is virtually no unemployment in Monaco, as the Prince guarantees all his subjects lifetime employment. The major employer of the working population is the SBM; others work in industry or in service establishments. As of January 1994 (the latest year for which data was available), the labor force totaled 30,540, of which 4,000 worked in the industrial sector, 2,200 in construction, and 1,500 in the financial sector.

Owners and workers are each grouped in syndicates. Less than 10% of the workforce in 2005 was unionized. However, most of these union workers commute from outside the principality. About two-thirds of all employees commute from France and Italy. Unions operate independently of the government and political parties. The rights to strike, organize, and bargain collectively are protected by law, although public government workers may not strike. Labor disruptions are infrequent.

The minimum working age is 16, although special restrictions apply until the age of 18. Employers who violate the minimum age laws can be criminally prosecuted. The standard workweek is 39 hours. The minimum wage is the French minimum plus an additional 5% to adjust for travel costs for commuters. In 2005, this wage was equivalent to $9.60 per hour. This provides a family with a decent standard of living, and most workers earn more than the minimum. Health and safety standards are rigorously enforced.

AGRICULTURE

There is no agriculture.

ANIMAL HUSBANDRY

There is a dairy industry serving local needs.

FISHING

Some fishing is carried on to meet domestic requirements. The annual catch was 3,000 tons in 2003. Monaco actively engages in marine science research, and in marine life preservation. The Oceanographic Institute has been studying the effects of radiation in the ocean since 1961.

FORESTRY

There are no forests.

MINING

There is no mining.

ENERGY AND POWER

Services are provided by the Monégasque Electric Co. and Monégasque Gas Co. In 1991, standby electrical capacity totaled 10,000 kW; power is supplied by France.

INDUSTRY

The tourist industry dominates Monaco's economic life, but smallscale industries produce a variety of items for domestic use and for export, contributing 11.6% of business turnover in the mid-1990s. Most industrial plants are located on Fontvieille. About 700 small businesses make pottery and glass objects, paper and cards, jewelry, perfumes, dolls, precision instruments, plastics, chemicals and pharmaceuticals, machine tools, watches, leather items, and radio parts. There are flour mills, dairies, and chocolate and candy plants, as well as textile mills and a small shipyard. The chemicals, pharmaceuticals, and cosmetics industries consisted of 23 companies with 1,000 employees that generated approximately 45% of the total industrial turnover in the 1990s. Due to territorial constraints, Monaco's industries are forced to expand their facilities upward; some industrial buildings rise as high as 13 stories. A new construction project begun in 2001 was extending the pier used by cruise ships in the main harbor.

SCIENCE AND TECHNOLOGY

Marine sciences have been the focus of scientific inquiry in the principality for several decades. Prince Albert (18481922), who reigned in Monaco during the early 1900s, was well-known internationally for his work as an oceanographer, and he inaugurated the Oceanographic Museum of Monaco at Monaco-Ville in 1910. His interest led to the establishment of a focus on oceanography for scientific pursuits in Monaco. Jacques-Yves Cousteau, a famous oceanographer and activist, was involved with Monaco's activities in marine life research.

In March 1961, in its first research agreement concluded with a member government, the International Atomic Energy Agency, with the government of Monaco and the Oceanographic Institute in Monaco, undertook to research the effects of radioactivity in the sea. The Oceanographic Institute put at the disposal of the project a number of valuable facilities, including marine-biology laboratories, oceanographic vessels, specialized fishing equipment, and a wide variety of electronic and monitoring equipment.

The Scientific Center of Monaco, founded in 1960 at Monte Carlo, conducts pure and applied research in oceanology and the environment. The Museum of Prehistoric Anthropology, founded in 1902 at Monte Carlo, is concerned with prehistory and quaternary geology.

DOMESTIC TRADE

Domestic trade practices are similar to those in other towns along the French Riviera. Specialty shops deal primarily in tourist souvenirs. The SBM controls most of the amusement facilities and owns most major hotels, sporting clubs, workshops, a printing press, and various retail shops. In the mid-1990s, commerce represented 21% of the economic turnover in Monaco. There is no personal income tax. Business taxes are low, but still account for about 50% of government income. Tourism and related services account for about 25% of revenues.

Advertising media include magazines, billboards, and motion pictures. General business hours are from 8:30 am to 12:30 pm and from 2 to 6 pm, MondayFriday. Banking hours are 9 am to 12 noon and 2 to 4 pm, MondayFriday.

FOREIGN TRADE

Statistical information is not available. Foreign trade is included in the statistics for France, with which Monaco has a customs union. France also collects the Monegasque trade duties, and serves as the principality's link to the EU market.

In 2003, the US Department of State estimated that Monaco's exports totaled $644 million, while its imports reached $513 million.

BALANCE OF PAYMENTS

The economy is driven by such foreign currency-earning activities as banking and tourism. Since separate records are not kept of Monaco's foreign trade transactions, payment statistics are not available.

The United Nations Statistics Division has looked at the data available in France, and came up with some estimates of the exports and imports of goods and services in Monaco. Thus, exports totaled $299 million in 2004, up from $257 million in 2003 and $219 million in 2002. Imports grew from $205 million in 2002, to $246 million in 2003, and $296 million in 2004. Consequently, Monaco has, year to year, managed to keep a positive, although fragile, resource balance. In 2000, it was estimated that the country's external debt was $18 billionan impressive figure when compared to the size of the principality.

BANKING AND SECURITIES

Foreign currency circulates within Monaco under the supervision of the French government. The most important local bank is Crédit Foncier de Monaco, founded in 1922. As of 1994, there were 45 banks operating in Monaco. In 1999, an Monaco's banking industry had approximately 310,000 accounts and employed 1,700 people. The vast majority of customers were nonresidents. Total assets in 1998 were estimated at a little over $44 billion.

There is no securities exchange.

INSURANCE

Branches of French insurance companies provide life, fire, accident, and other forms of insurance. They include: CGRM-Compagnie Générale de Réassurance de Monte Carlo; Concorde; Mutuelle de Marseille Assurances Compagnie Générale de Réassurance; and the Shipowners' Mutual Strike Insurance Association (Bermuda)all located in Monte Carlo.

PUBLIC FINANCE

The US Central Intelligence Agency (CIA) estimated that in 1995 Monaco's central government took in revenues of approximately $518 million and had expenditures of $531 million. Revenues minus expenditures totaled approximately -$13 million. Total external debt was $18 billion.

TAXATION

There are no personal income taxes. Indirect taxes include the following: a value-added tax of 19.6% (as of 2005); a service tax on compensation received by Monégasque firms for services rendered in Monaco and France; excise taxes on alcoholic beverages; registration fees; and warranty duties on gold, platinum, and silver jewelry. Monaco is treated as part of France for VAT purposes.

There is a tax of up to 33.3% on the profits of businesses that obtain more than 25% of their gross profits from operations outside Monaco. Corporations whose income is derived from royalties, licenses, trademarks, or other industrial or artistic property rights are subject to this tax, whether or not the income arises outside Monaco. Qualifying new companies may be assessed at reduced rates. There are no inheritance or gift taxes between spouses or between parents and children. Between brothers and sisters, the rate is 8%; between uncles or aunts and nephews or nieces, 10%; between other relatives, 13%; and between unrelated persons, 16%.

CUSTOMS AND DUTIES

By treaty, France and Monaco form a customs union that treats the Monaco coast as part of France. The French customs service collects the duties on cargoes discharged in Monaco and pays a share to the principality.

Monaco imposes a duty on all exports to places other than France; the levy applies whether the transfer of goods is actual or fictitious.

FOREIGN INVESTMENT

Monaco permits foreign businesses to establish their headquarters in its territory; ownership and management must be made a matter of public record. Although both corporations and limited partnerships with shares are allowed, in fact only corporations are in existence. Two persons may form a corporation; the minimum capital must be fully subscribed and at least one-fourth paid up front. Foreign companies may establish subsidiaries in Monaco. Low taxes on company profits are a considerable incentive for locating in Monaco.

ECONOMIC DEVELOPMENT

The government strenuously promotes Monaco as a tourist and convention attraction. A government-financed International Convention Center offers large conference rooms, projection equipment, television and radio recording studios, telex communications, and simultaneous translation into five languages.

Two major development and reclamation projects were undertaken under Prince Rainier. These are the major landfill and reclamation project at Fontvieille, and the Monte Carlo Bord de Mer. At Fontvieille, the government financed the reclamation of 220,000 sq m (2,368,000 sq ft) of inundated shore, creating a "platform" for residential construction and new port facilities.

The Monte Carlo seashore scheme, also government-financed, involved the relocation of railroad tracks underground in order to create a man-made beach, with a boardwalk and other tourist attractions. The beach lies between two other land reclamation projects: the Larvotto, a sports complex financed by SBM, and the Portier, an entertainment complex developed by the government.

Near the Larvotto the government has reserved a zone for the construction of residential and tourist accommodations. In the 1980s, Monaco concentrated on the development of business tourism, with the construction of the Monte Carlo Convention Center and the International Conference Center.

SOCIAL DEVELOPMENT

The social insurance system provides old age, survivorship and disability pensions. It is funded through employee and employer contributions. Sickness and maternity benefits are available to all employed persons with a special program for the self-employed. Workers and their dependents are reimbursed for medical expenses including primary and specialized care, pharmaceuticals, hospitalization, transportation, dental care and appliances. Employers are required to provide workers' compensation through private insurance plans. Unemployment benefits are provided through the French system. There is also a family allowance, a prenatal allowance and an education grant.

Women have become increasingly visible in public life, and are well represented in the professions. Equal pay for equal work is prevalent, although women are underrepresented in business. Reports of violence against women are rare, and domestic abuse is a criminal offense. Human rights are respected in Monaco.

HEALTH

In 2004, Monaco had the third most physicians per capita in the world. There were an estimated 586 physicians per 100,000 people in the country, as well as 1,430 nurses, 107 dentists, and 192 pharmacists per 100,000 people. The entire population has access to safe water and sanitation.

As of 2002, the crude birth rate and overall mortality rate were estimated at, respectively, 9.6 and 12.9 per 1,000 people. In 2005, the infant mortality rate was estimated at 5.43 per 1,000 live births. Life expectancy for that year was 79.57. The immunization rates for children under one year of age were as follows: diphtheria, tetanus, and whooping cough, 99%; polio, 99%; measles, 98%; and tuberculosis, 90%.

AIDS cases, although present, are not considered a major problem.

HOUSING

In 2000, there were about 18,396 housing units in the nation. About 31% of the housing stock was built 191561; another 26% was built 196881. About 21% of the housing stock was built 19822000. About 25% of all dwellings are owner occupied. In recent years, the government has stressed the construction of luxury housing. All new construction or alteration of existing buildings requires government approval.

EDUCATION

Education is offered in Monaco from the preschool to the secondary and technical levels and is compulsory from age 6 to 16. There are five years of primary school and seven years of secondary school. Attendance is 90%, and virtually all adults are literate. In 2003, approximately 5.1% of total government expenditure was allocated to education.

In 2001, there were about 2,000 students enrolled in primary schools and 3,000 enrolled in secondary schools. The pupil-teacher ratio at the primary level was estimated at 15 to 1 in 2000; the ratio for secondary school was 8 to 1. In 2003, private schools accounted for about 30% of primary school enrollment and 24.7% of secondary enrollment.

The University of Southern Europe was renamed the International University of Monaco in 2002. The university offers degrees in business and business administration. Students may travel abroad for higher education. The adult literacy rate has been estimated at about 99%. In 2003, public expenditure on education was estimated 5.1% of total government expenditures.

LIBRARIES AND MUSEUMS

The palace archives include the private collections of the princes of Monaco, as well as a collection of money minted since 1640. The Louis Notari Library in Monaco (1909) has a collection of over 285,000 volumes. There is a Princess Grace Irish Library in Monaco featuring 1,500 pieces of Irish folk music and personal papers of Princess Grace and Prince Rainier.

The Oceanographic Museum in Monaco-Ville, founded in 1910 by Prince Albert I and previously directed by the noted Jacques-Yves Cousteau, contains a library of 50,000 volumes, an aquarium, and displays of rare marine specimens. In addition to the museum, the Oceanographic Institute conducts research in various marine areas, including the effects of radiation on the sea and its life forms.

The Exotic Gardens include thousands of varieties of cacti and tropical plants. The National Museum in Monte Carlo was established 1972. There is a Museum of Prehistoric Anthropology in Monte Carlo and a Wax Museum of the Princes of Monaco. There is a Napoleonic Museum in Monaco-Ville. The Museum of Stamps and Coins opened in 1996 to display the private collection of Prince Rainier.

MEDIA

Postal and telegraphic services are operated by France, but Monaco issues its own postage stamps. Local telephone service is controlled by Monaco, while France is responsible for international service. In 2002, there were 33,700 mainline phones and 19,300 mobile phones in use nationwide.

Radio Monte Carlo and Télé Monte Carlo provide radio and television services and have had broadcast programs since 1954. Radio Monte Carlo's home service is broadcast in French. The system also provides overseas service in 12 foreign languages and is majority owner of the Cyprus-based Radio Monte Carlo relay station, a privately funded religious broadcasting service in 35 languages under the name Trans World Radio. As of 1999, Monaco had 3 AM and 4 FM radio stations and 5 television stations. In 1997, there were 34,000 radios and 25,000 television sets throughout the country. In 2002, there were 16,000 Internet users in the country.

Two dailies in Nice, Nice-Matin and L'Espoir, publish special editions for Monaco. International publications are readily available. The Journal de Monaco, an official publication, appears once a week, and the Tribune de Monaco is published biweekly.

Freedom of expression is legally guaranteed. However, there is a Penal Code prohibition on public denunciations of the ruling family. Otherwise, the government is said to uphold free speech and a free press.

ORGANIZATIONS

Monaco is the seat of the International Academy of Tourism, which was founded in 1951 by Prince Rainier III. The academy publishes a quarterly, Revue Technique du Tourisme, and, in several languages, an international dictionary of tourism.

The International Hydrographic Bureau, which sponsors international conferences in its field, has its headquarters in Monaco. The following international organizations also have their headquarters in Monaco: International Commission for Scientific Exploration of the Mediterranean Sea, International Center for Studies of Human Problems, and the International Commission for Legal-Medical Problems.

National youth organizations include the Association of Scouts and Guides of Monaco, the Princess Stephanie Youth Center, and Catholic Youth of Monaco. There are several sports associations in Monaco; the country is home to the International Association of Athletics Federations.

Other organizations include the Monégasque Red Cross, Caritas, the St. Vincent de Paul Society, the Society of Monégasque Traditions, the Commission for the Monégasque language (established 1985), and the Union of French Interests.

TOURISM, TRAVEL, AND RECREATION

Monaco has been famous for attracting wealth and titled tourists since its gambling casino was established at Monte Carlo in 1856. In 2005, gambling accounted for almost 25% of the annual revenue. Among the many attractions are the Louis II Stadium, the many museums and gardens, and the beach. The Monte Carlo opera house was the site of many world premiere performances, including Massenet's Le Jongleur de Notre Dame (1902) and Don Quichotte (1910), Fauré's Pénélope (1913), and Ravel's L'Enfant et les sortilèges (1925). It was also the home of Serge Diaghilev's Russian Ballet (founded in 1911), later known as the Ballet Russe de Monte Carlo.

The principality has excellent sports facilities. The Monte Carlo Rally, a world-famous driving championship, ends with a finish line in Monaco.

No restriction is placed on the entrance of French nationals into Monaco. A valid passport is required for citizens of other countries who visit. Visas are not required for tourist/business stays of up to 90 days.

About 235,000 visitors arrived in Monaco in 2003, about 25% of whom came from Italy. Hotel rooms numbered 2,191 in 2002 with an occupancy rate of 63%. The average length of stay that year was three nights.

In 2005, the US Department of State estimated the cost of staying in Monaco at $247 per day.

FAMOUS MONEGASQUES

Prince Albert (18481922), who reigned from 1889 to 1922, was famous as an oceanographer. In 1956, his great-grandson Rainier III (19232005), reigning monarch from 19492005, married Grace Patricia Kelly (192982), a US motion picture actress, whose death on 14 September 1982 following an automobile accident was mourned throughout Monaco. Their son, Prince Albert (b.1958) became Prince Albert II upon his father's death; Princess Caroline (b.1957) and Princess Stéphanie (b.1965) are the daughters of Rainier III and Grace.

DEPENDENCIES

Monaco has no territories or colonies.

BIBLIOGRAPHY

Annesley, Claire (ed.). A Political and Economic Dictionary of Western Europe. Philadelphia: Routledge/Taylor and Francis, 2005.

Duursma, Jorri. Self-Determination, Statehood, and International Relations of Micro-States: The Cases of Liechtenstein, San Marino, Monaco, Andorra, and the Vatican City. New York: Cambridge University Press, 1996.

Taraborrelli, J. Randy. Once Upon a Time: Behind the Fairy Tale of Princess Grace and Prince Rainier. New York: Warner Books, 2003.

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Monaco

MONACO

Principality of Monaco

Principauté de Monaco

COUNTRY OVERVIEW

LOCATION AND SIZE.

Monaco, a small independent hereditary principality in Western Europe, is located on the Mediterranean Sea along the southern coast of France, which is also known as the French Riviera or Côte d'Azur. Monaco is 18 kilometers (11 miles) east of the French city of Nice, near the border with Italy. The second smallest independent state in the world (after Vatican City), and almost entirely urban, it forms an enclave in southeastern France, surrounded on the north, east, and west by the French département (administrative division, or region) of Alpes-Maritimes. The country is only 1.95 square kilometers (0.75 square miles) in area, or about 3 times the size of the Mall in Washington, D.C. The terrain is hilly, rugged, and rocky, but very highly urbanized. The principality, a famous maritime resort, is composed of 4 quartiers (quarters): Monaco-Ville, the capital (an ancient fortified town located on a rocky promontory extending into the Mediterranean); La Condamine (the section along the port); Monte Carlo (the principal residential and resort area); and Fontvieille (a newly constructed industrial park reclaimed from the sea). The name "Monaco," derived from the ancient Greek Monoikos (meaning "of the old town"), is usually associated with the mythical hero, Hercules.

POPULATION.

The population of Monaco was estimated at 31,693 in July 2000, with an average growth rate of 0.48 percent in the same year. The 2000 birth rate was estimated at 9.94 births per 1,000 population, the death rate at 13.06 deaths per 1,000 population, and the net migration rate was approximately 7.89 immigrants per 1,000 population.

With high life expectancy at birth, the Monegasque population is among the oldest populations in the world. The average life expectancy was 74.88 for men and 83 for women in 2000, indicating an overall life expectancy of 78.84. The total fertility rate in 2000 was 1.76 children born per woman. Approximately 15 percent of the population is younger than 15 years of age and 23 percent is age 65 or older. Monaco has also one of the highest population densities in the world, at 16,428 persons per square kilometer (42,549 per square mile).

Monegasques represented a mere 16 percent of the population in 2000. Other ethnic groups include the French (47 percent), Italian (16 percent), and other nationalities (21 percent). French is the official language; English, Italian, and Monegasque (a blend of French and Italian) are also widely spoken. The traditional Monegasque language is used by the older people and is taught in the schools. The economy of Monaco offers more than 30,000 jobs. Immigrant labor, especially from France and Italy, is heavily relied upon because the number of jobs available outnumbers the number of citizens in the labor force . Many affluent Americans, as well as French, Britons, Swiss, Belgians, and other Europeans, live in the principality. The prevailing religion is Roman Catholicism, accounting for 95 percent of the population. Roman Catholicism also is the official religion, though freedom of religion is guaranteed by the constitution. Education is free and compulsory for children ages 6 to 16.

OVERVIEW OF ECONOMY

Renowned as a tax haven for the rich, Monaco is thought to have one of the most affluent and liberal economies in the world, though the government does not publish economic figures or other relevant statistics. A tiny territory with few natural resourcesin some places stretching no more than 180 meters (600 feet) inland from the Mediterraneanthe Monegasque economy is primarily geared toward tourism, modern manufacturing, finance, and commerce. From the end of the 19th century, the government of Monaco has very actively encouraged economic growth and provided the framework for the development of private enterprise. It has successfully sought to diversify into services and small, high value-added , nonpolluting industries.

Low corporate taxes (and no personal income or other direct taxes ) have drawn many foreign "letter box" companies, which operate overseas but have established their head offices nominally in Monaco because of the more favorable tax treatment. These types of companies account for about 50 percent of the $586 million annual government revenue in 1997. The residential real estate market also provides some considerable income for the principality; many wealthy aliens are actively pursuing Monegasque permanent residence and/or citizenship for tax purposes and are in constant need of local property for that matter. Similarly, tourism accounts for close to 25 percent of the principality's annual income, and Monaco has been a major tourist center ever since its famed gambling casino was established in 1856. The tourist industry is still considered the economic foundation of the state. The sale of picturesque postage stamps and tobacco, the banking and insurance sectors, and the manufacture of pharmaceuticals, chemicals, electronic equipment, cosmetics, paper, textiles, and plastic goods are also of economic importance. Customs, postal services, telecommunications, and banking in Monaco are governed by the economic, monetary, and customs union with France and European Union (EU) rules. Although not an EU member, Monaco is closely associated with the economic structures of the EU. Some 1999 estimates placed the per capita gross domestic product (GDP) at about US$27,000, one of the highest in the world. The total turnover of the principality rose from the estimated 3.25 billion French francs in 1975 to 21.3 billion in 1988, 25.4 billion in 1989, 29 billion in 1990, 31 billion in 1991, 32.4 billion in 1992, and 33.2 billion in 1993.

POLITICS, GOVERNMENT, AND TAXATION

Monaco has been governed as a constitutional monarchy since 1911, with the hereditary prince (presently, Prince Rainier III) as the head of state. Unlike other European monarchies, the Monegasque sovereign is the actual, and not symbolic, head of state. In the constitution of 1962, it is clearly stated that the executive power is responsible to the supreme authority of the reigning prince. The succession to the throne passes to the direct descendants of the prince under the principle of primogeniture (inheritance of the first born), with male descendants taking precedence over female descendants of the same degree of kin. The sovereign represents Monaco in its relations with foreign powers and signs and ratifies treaties. In 1956, Rainier III married American film star Grace Kelly, who died in a car crash in 1982. They have 2 daughters and a son, who is the heir apparent to the throne.

The executive branch consists of a minister of state (head of government, presently Michel Leveque), who presides over a 4-member cabinet, the Council of Government. The minister is primarily responsible for foreign relations and is traditionally a French citizen appointed by the prince for a 3-year term from among several candidates proposed by the French government. As the prince's representative, the minister also directs the executive services, commands the police, and presides (with voting powers) over the Council of Government. The 3 other members of the Council are locals, responsible for financial and economic affairs, internal affairs, and public works and social affairs, respectively.

Monaco is a parliamentary monarchy ruled according to its 1962 constitution, which stipulates that the hereditary prince shares his power with the unicameral National Council. There are 18 members of this legislative body, elected by universal suffrage (by citizens over age 21) for 5-year terms. They usually meet twice annually to vote on the budget and endorse laws proposed by the prince. If the prince dissolves the National Council, new elections must be held within 3 months. Ordinances passed by the National Council are debated in the Council of Government, as are the ministerial decrees signed by the Minister of State. Once approved by the Council, the ordinances are submitted to the prince within 80 days for his approval. Once approved, the ordinances become legally valid. If no opposition is voiced on his behalf within 10 days of receipt, they become enforceable.

Legal power is also vested in the monarch, who delegates all legal procedures to the courts dispensing justice in his name. The independence of the judges, however, is guaranteed by the 1962 constitution. Monaco's legal system is closely related to the French system and is designed after the French Napoleonic Code. Local affairsthe administration of the 4 quartersare directed by the Communal Council, which consists of 15 elected members and is presided over by a mayor. Monaco has its own local political groups that are not a part of the French political system and include the National and Democratic Union (UND), the Campora List, and the Medecin List.

The most crucial political issue in Monaco is, understandably, its bilateral relation with France. The geographical situation of Monaco as an enclave within France justifies the traditional customs and monetary union between the 2 countries, which dates back to 1861. Two major treaties in 1918 and 1919 established a reciprocal contractual basis for the relations between the 2 independent states (France recognized Monaco as a sovereign entity and undertook to build its relations on an equal footing with a limited protection over the principality). Under these arrangements, France is obligated to defend the independence and sovereignty of the principality and the integrity of Monegasque territory. In return, the government of Monaco is obligated to exercise its rights only in conformity with French interests. New bilateral agreements were signed in 1945, 1951, and 1963 with the aim of amending the earlier provisions in order to adapt them to the new economic and social conditions. Further changes and amendments arose from the development of European integration and the decision made by France in 1999 to adopt the single European currency, the euro.

Although small in size, Monaco actively participates in the United Nations (UN), which it joined in 1993, and maintains a permanent mission to the UN in New York. Monaco also is a member of many other international and intergovernmental organizations. The International Hydrographic Bureau (IHB) is headquartered in the principality. The country has 10 diplomatic missions in Europe and maintains honorary consulates in 106 cities in 45 countries. Sixty-one countries have consulates general, consulates, or honorary consulates in or accredited to Monaco.

The government's role in the economy has been traditionally one of active promotion of private enterprise and creating the necessary infrastructure for development. The state and the ruling Grimaldi family personally own considerable real estate assets and equity in the economy. Monaco's tax policies concerning its citizens are among the most liberal ones in the world, as there is no direct taxation for local residents. In 1869, land tax, personal and goods taxes, and the business tax were abolished. Since that time, Monegasque citizens or foreigners residing in the principality have not been subject to any tax on their personal income, whatever its origin. For French citizens moving to the principality after 1962, an exception was introduced in 1963 under pressure from the French government. Under the new arrangement, French nationals who moved their residence to Monaco, or who could not prove 5 years of residence in Monaco before October 1962, were subject to French taxes under the same conditions as if they had their residence in France. Since 1963, companies of any type are required to pay a corporate tax rate of 33.33 percent on profits when at least 25 percent of their turnover comes from operations outside Monegasque territory. A value-added tax (VAT) of 5.5 percent and a real estate added value tax of 20.6 percent were also introduced, along with some special arrangements concerning banking and financial activities and indirect taxes .

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Monaco, as a small, highly urbanized enclave in the French territory, is part of the well-developed French infrastructure. Electricity is provided almost entirely by France. There are 1.7 kilometers (1.1 miles) of railroads

Communications
Country Telephones a Telephones, Mobile/Cellular a Radio Stations b Radios a TV Stations a Televisions a Internet Service Providers c Internet Users c
Monaco 31,027 (1995) N/A AM 1; FM NA; shortwave 8 34,000 5 (1998) 25,000 2 N/A
United States 194 M 69.209 M (1998) AM 4,762; FM 5,542; shortwave 18 575 M 1,500 219 M 7,800 148 M
France 34.86 M (1998) 11.078 M (1998) AM 41; FM about 3,500; shortwave 2 55.3 M 584 (1995) 34.8 M 62 9 M
San Marino 18,000 (1998) 3,010 (1998) AM 0; FM 3; shortwave 0 16,000 1 9,000 2 N/A
aData is for 1997 unless otherwise noted.
bData is for 1998 unless otherwise noted.
cData is for 2000 unless otherwise noted.
SOURCE: CIA World Factbook 2001 [Online].

and 50 kilometers (31 miles) of paved roads, including the highway and railroad connecting southern France with Italy along the Mediterranean. There are 2 ports, including a busy merchant harbor and several tourist marinas, although the principality has no merchant fleet of its own. There is also a helicopter shuttle line between the heliport at Fontvieille and the nearby international airport in Nice, France. Telecommunications are incorporated within the French telephone system, and there were 9 radio stations and 5 television stations in 1997, while 4 Internet service providers were offering customers their services in 1999. The access to cellular phones and to the Internet was similar in numbers and quality of service to that of French urban areas. The cable television services were comparable to the highest western European standards.

ECONOMIC SECTORS

The backbone of the Monegasque economy is formed by high-end tourism and the services related to it, construction and the real estate market, small-scale industrial and consumer products manufacturing (chemicals, food products, plastics, precision instruments, cosmetics, and ceramics), and international trade. Of the 32,691 employed, as estimated in 1999, the private sector was responsible for 29,311 and the public sector for 3,380. Approximately 46 percent of the labor force was in services (other than tourism), 7 percent in banking, 17 percent in tourism and hotels, 12 percent in retail , 7 percent in construction and public works, and 11 percent in industry. No official data as to the distribution of GDP were available.

AGRICULTURE

There are no arable lands or other agriculturally suited areas in the principality; virtually 100 percent of the Monaco territory is heavily urbanized. Accordingly, there is no commercial agriculture in the country. All foods are imported and some of them are further processed and exported.

INDUSTRY

Industrial activity, often little known in Monaco, is an area that has undergone considerable development over the past century. From 1906, when the state financed the construction of the first industrial platform in Fontvieille, industrial firms such as the Monaco Brewery and companies involved in flour milling and the manufacture of chocolate began to develop. Currently, the chemical-pharmaceutical-cosmetics manufacturing sector appears to be the most widespread, but companies working in the areas of plastic materials processing and the manufacture of electrical and electronic equipment are also present. Other sectors, while not on the same scale as these, are the manufactures of mechanical engineering, packaging, printing, and clothing. Since 1980, nearly 1,859 square meters (20,000 square feet) of new industrial floor-space has been built, mostly on areas reclaimed from the sea. The lack of space has led to the establishment of industrial premises in buildings that rise up to 13 floors. The government of the principality has adopted an industrial policy that operates in favor of the institution of enterprises having a high capital gain factor but that do not create any pollution. Industrial activity occupies about 4,000 members of the workforce. In 1993, they represented approximately 11.6 percent (excluding the construction and public works industry) of the total revenue in the principality.

SERVICES

The service sector has undergone spectacular growth in recent decades. It produced 49.1 percent of the total revenue of the country in 1993 and included banking, insurance, consulting agencies (technical, commercial, and financial), auxiliary services, and commercial middlemen. Banking and financial activities and business services, including those associated with the establishment of head offices and offices of non-financial companies of international size, are growing in importance in Monaco. The retail sector includes small, privately held stores, luxury boutiques, and international retail chains. Retail contributed approximately 21 percent to the principality's total revenue in 1993. The banking and retail sectors are closely integrated with the French economy through the monetary union between the 2 countries and the local branches of large French and international banks, insurance firms, and stock markets. Despite the increased competition resulting from the liberalization of financial services in the EU, the introduction of the single currency, and the revolution in information technology, the economic relationship between France and Monaco remains strong. Real estate activity plays a very important role in the economy, justifying the principality's extensive research and decision-making process in the field of city planning.

TOURISM.

Monaco is a popular world luxury resort, attracting affluent tourists to its casino, rich cultural schedule, and pleasant climate. Situated in the heart of the Rivierathe narrow coastal strip extending along the Mediterranean from Hyeres, France, to La Spezia, Italy it benefits from the proximity of the renowned French resorts of Saint Tropez, Antibes, Cannes, Nice, and Menton. The latter 2 cities are connected by 3 scenic highways, which run through or near the Monaco territory and its chief tourist quarter of Monte Carlo along the sheer cliffs of the Maritime Alps. Both private and business tourism are thriving in the principality, and there are about 2,500 hotel rooms, most of which are in the 4-star category or higher. In 1993, 601,111 rooms were occupied overnight, resulting in an average annual occupation rate of 48.3 percent. For several years, the government has been making considerable efforts to attract more business tourists in order to increase hotel occupation, since occupation by the private clientele is essentially seasonal. Among the points of interest in Monaco are a cathedral, a palace in the medieval and Renaissance styles, and a world-renowned oceanographic museum established in 1910. A major source of revenue is the famous gambling casino. The Monte Carlo Opera and Philharmonic Orchestra offer ballet and music events, and the museums, spas, beaches, flower gardens, marinas, fine dining spots, luxury boutiques, and vistas all contribute to the attractions of the principality. The Monaco Grand Prix and the Rally Monte Carlo are popular annual automobile-racing events. The Societe des Bains de Mer, a company partly owned by the government, operates the casino and most of the hotels, clubs, beaches, and other places of entertainment. There are also notable foreign direct investments in the Monaco tourist industry.

INTERNATIONAL TRADE

Monaco is a hub of international commerce, importing and exporting products and services from all over the world. It is in full customs integration with France, which collects and rebates Monegasque trade duties . Monaco participates in the EU market system through France. No recent trade statistics for the principality have been made available.

MONEY

As an integral part of the French monetary and banking system, the country has a balanced budget with revenues of US$518 million and expenditures of US$531 million, including capital expenditures (1995 est.).

Recent exchange rates for the euro per US$1 are 1.1 (February 2001), 1.20 (November 2000), 0.99 (January 2000), and 0.94 (1999). French francs (F) were exchanged at a rate of F7.22 (August 1999), 6.16 (1999 average), 5.65 (January 1999), 5.8995 (1998), 5.8367 (1997), 5.1155 (1996), and 4.9915 (1995) per US$1.

POVERTY AND WEALTH

Living standards in Monaco are high, comparable to those in the most prosperous French urban areas. Since one of the principality's priorities is to attract wealthy individuals from all over the world to acquire real estate and live and spend in the country, the government constantly uses its economic advantages to improve the quality of life and to combine work and leisure. Indeed, many of the world's rich buy property in Monaco to take advantage of Monaco's tax regime, although they seldom abide by the legal requirement to live 6 months of every year in the country, and often hire locals to maintain their

Exchange rates: Monaco
euros per US$1
Jan 2001 1.0659
2000 1.0854
1999 0.9386
1998 5.8995
1997 5.8367
1996 5.1155
Note: Rates prior to 1999 are in French francs per US$.
SOURCE: CIA World Factbook 2001 [ONLINE].
GDP per Capita (US$)
Country 1996 1997 1998 1999 2000
Monaco 5,000 N/A N/A 27,000 N/A
United States 28,600 30,200 31,500 33,900 36,200
France 20,900 22,700 22,600 23,300 24,400
San Marino N/A 20,000 N/A N/A 32,000
Note: Data are estimates.
SOURCE: Handbook of the Nations, 17th,18th, 19th and 20theditions for 1996, 1997, 1998 and 1999 data; CIA World Factbook 2001 [Online] for 2000 data.

property instead. There are many large local private fortunes in the principality as well and extreme poverty is virtually non-existent. The number of jobs in the country (32,691 in 1999; 29,311 in the private sector) outnumbers its total population (31,693 in 2000), and the majority of the workers, particularly in the lower-paying jobs, commute daily from neighboring France and Italy. Their scale of pay and benefits are commensurable with the ones in France, and the French workforce is reckoned to be among the most privileged in the world.

WORKING CONDITIONS

Economic prosperity and the proportionally large number of jobs available, along with the government's sensitivity to safety and environmental protection, create favorable working conditions in the principality. The unemployment rate, compared to French and EU standards, is very low at 3.1 percent in 1998. No major labor unrest has been reported recently.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

1215. Monaco is founded as a colony of the Italian trade and seafaring city, Genoa.

1297. The Grimmaldi family of Genoa and their supporters establish their rule over Monaco. A thriving economy based on trade develops.

1489. King Charles VIII of France recognizes the independence of Monaco.

1789-1814. During the French Revolution, Monaco is attached to the territory of the French Republic under the name of Fort Hercules. It becomes the chief town of the canton of Alpes-Maritimes.

1815. Monaco is made a protectorate of the Italian Kingdom of Sardinia.

1861. Monaco's sovereignty is recognized by a Franco-Monegasque Treaty.

1863. The Seabath Company is founded, which establishes a casino and several hotels in the quarter of the Spelugues, known as Monte-Carlo since 1866. Economic development is boosted in the late 19th century with a railroad link to France.

1911. Absolute monarchy gives way to the first constitution.

1918. A new treaty with France provides for limited French protection over Monaco. New agreements with France are signed in 1945, 1951, and 1963.

1962. Adoption of the current, more liberal constitution.

1993. Monaco joins the United Nations.

1999. Monaco and France both join the Euro Monetary Zone (EMZ).

FUTURE TRENDS

The Monegasque economy is closely related to that of the French, and therefore is dependent on the development trends of the EU. The liberalization of commerce, financial, and other services in the EU, the introduction of the single European currency, and the revolution in information technology will gradually increase competition, but the increasing wealth and dynamism of the EU economies will also boost demand for Monaco's unique services. Due to its size, the country is limited in its opportunities for extensive growth, but its strong ties to high-class tourism, services, and modern technology make it unlikely to endure any major negative changes in the near future. It is likely that the principality will preserve its sound economy, particularly in the areas of tourism, services, commerce, and modern manufacturing. The maintenance of its high living standards will continue to attract foreign companies, investment, and affluent tourists and residents in the foreseeable future.

DEPENDENCIES

Monaco has no territories or colonies.

BIBLIOGRAPHY

Global Investment Business Center, Inc. Monaco: A Country Study Guide. USA International Business Publications, February 2000.

U.S. Central Intelligence Agency. World Factbook 2000. <http://www.odci.gov/cia/publications/factbook/index.html>. Accessed January 2001.

U.S. Department of State. Background Notes: Europe: Monaco. <http://www.state.gov/www/background_notes/eurbgnhp.html>. Accessed January 2001.

Valentin Hadjiyski

CAPITAL:

Monaco-Ville.

MONETARY UNIT:

French franc (F). One French franc equals 100 centimes. The franc comes in bank notes of 20, 50, 100, 200, and 500-franc denominations. There are coins of 1, 2, 5, 10, and 20 francs and 5, 10, 20, and 50 centimes. Monegasque coins, having the same value as the French coins, are also minted and circulated. Monaco is scheduled to switch to the new European currency, the euro, in January 2002.

CHIEF EXPORTS:

Cosmetics, pharmaceuticals, glassware, precision instruments, fine processed foods, cards and postal stamps, and various re-exported commodities (estimate, no official statistics are published).

CHIEF IMPORTS:

Energy, automobiles, equipment, and consumer goods (estimate, no official statistics are published).

GROSS DOMESTIC PRODUCT:

US$870 million (1999 est., no official statistics are published).

BALANCE OF TRADE:

Exports: US$415,272 (1999 est.). Imports: US$415,272 (1999 est.). [Estimate by Monegasque government sources; no official statistics are published.]

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Monaco

Monaco (mŏn´əkō, mōnä´kō, Fr. mônäkō´), officially Principality of Monaco, independent principality (2005 est. pop. 32,400), c.370 acres (150 hectares), on the Mediterranean Sea, an enclave within Alpes-Maritimes dept., SE France, near the Italian border. It consists of four adjoining quarters—La Condamine, the business district; Monte Carlo, the site of the famous casino; Monaco-Ville, the capital, atop a rocky promontory; and Fontvieille, an area of light industry built largely on reclaimed land.

Land and People

Monaco's beautiful location, natural harbor, exceptionally mild climate, and gambling tables in Monte Carlo make it one of the best-known resorts of the Riviera. Almost half of the mainly Roman Catholic population are French, while about 16% are citizens of Monaco and an equal number are Italian. French is the official language, but English, Italian, and Monegasque (a Romance dialect similar to Provençal) are also widely spoken.

The casino contains a theater, which houses the Monte Carlo Opera. Monaco has a 16th-century palace, a 19th-century cathedral in the Byzantine style, and a noted oceanographic museum, founded in 1910 by Prince Albert I. Auto racing is popular, and Monaco is home to both the Monte Carlo Rally and the Monaco Grand Prix. The Monte Carlo Open is a major professional tennis tournament.

Economy

Monaco has a customs union with France, and its currency is interchangeable with the French. Excise, stamp, transfer, and estate taxes are an important source of state revenue. Contrary to popular belief, the gambling casino (which is managed as a concession by a private corporation) accounts for only a small portion of government revenue, although it contributes greatly to the economy by attracting tourists. In addition to tourism and the foreign businesses attracted to Monaco by low corporate taxes, shipping and the manufacture of perfumes, pharmaceuticals, processed food, and precision instruments are also important.

Government

Monaco is governed under the constitution of 1962. The heredity monarch is the head of state. The minister of state, selected by the monarch from three candidates nominated by France, is the head of goverment. The unicameral legislature is the National Council, which is elected by universal suffrage every five years. The monarch may initiate legislation, but all laws must be approved by the National Council.

By a treaty of 1918, the succession to the throne must be approved by the French government. A law had long stipulated that should the throne become vacant for any reason, including the death of a Grimaldi ruler without a direct blood heir, Monaco would become an autonomous state under French protection. In 2002 the constitution was amended so that any sibling of a ruler who died without issue could inherit the throne.

History

Probably settled by Phoenicians in ancient times, Monaco was annexed by Marseilles and Christianized in the 1st cent. AD In the 7th cent. it was part of the kingdom of the Lombards, and in the 8th cent. of the kingdom of Arles. It was under Muslim domination (8th cent.) after the Saracens invaded France.

Monaco was ruled by the Genovese Grimaldi family from the 13th cent. In 1731 the male line died out, but the French Goyon-Matignon family, which succeeded by marriage, assumed the name Grimaldi. Monaco was under Spanish protection from 1542 to 1641, under French protection from 1641 to 1793, annexed to France in 1793, and under Sardinian protection from 1815 to 1861. The districts of Menton and Roquebrune (long part of Monaco) were incorporated (1848) into Sardinia, which in turn ceded them to France in 1860.

Monaco again came under French protection in 1861. In the late 1800s income from gambling by very wealthy visitors became Monaco's primary source of revenue. Until 1911, when the first constitution was promulgated, the prince was an absolute ruler. Rainier III, succeeded his grandfather, Louis II, as ruler of Monaco in 1949. In 1956, Rainier married Grace Kelly (1929–82), an American motion-picture actress, and a male heir, Albert, was born in 1958. Rainier worked to diversify Monaco's economy and make Monaco attractive to middle-class tourists.

In 1962 serious economic disagreements arose between France and Monaco, and new fiscal agreements (1963) severely curtailed the right of French citizens to use Monaco as a tax haven. The Monaco government also came into conflict with Aristotle Onassis, who owned majority interests in most businesses there; Monaco purchased his interests in 1967. Relations with France again became acrimonious in 2000 when Monaco was accused of being a center for money-laundering and France threatened to force the principality to tighten the regulation of its banks. Rainier died in 2005 and was succeeded as ruler by his son, Albert II.

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Monaco

Monaco

Official name: Principality of Monaco

Area: 1.9 square kilometers (0.7 square miles)

Highest point on mainland: Mont Agel (140 meters/459 feet)

Lowest point on land: Sea level

Hemispheres: Northern and Eastern

Time zone: 1 p.m. = noon GMT

Longest distances: 3.18 kilometers (1.98 miles) from east to west; 1.10 kilometers (0.68 miles) from north to south

Land boundaries: 4.4 kilometers (2.7 miles) total boundary length, all with France

Coastline: 4.1 kilometers (2.5 miles)

Territorial sea limits: 22 kilometers (12 nautical miles)

1 LOCATION AND SIZE

An enclave lying entirely within the French department of Alpes-Mari-times, Monaco is the world's second-smallest country; only the Vatican is smaller. The entire principality occupies about three times the area of the Mall in Washington, D.C.

2 TERRITORIES AND DEPENDENCIES

Monaco has no territories or dependencies.

3 CLIMATE

Monaco's winters are mild, with temperatures rarely falling below freezing; January's average temperature is 8°C (46°F). The summer heat is comfortable because of the cooling breezes from the bordering Mediterranean Sea. The average high temperature in July and August is 26°C (79°F). Sea breezes moderate the summer heat. Monaco has a sunny climate, with only about sixty days of rain per year. On average, the sun shines for seven hours a day. Rainfall averages about 77 centimeters (30 inches) per year.

4 TOPOGRAPHIC REGIONS

There is little geographic variation in this tiny country, but it is often divided into four regions based on economic activities: Monte Carlo is the northern entertainment district, site of the famous casino. La Condamine is the business district on the western side of the country's central bay. South of the bay, Monaco-Ville, the historic old city and site of the principality's lavish palace, is situated on a rocky projection about 60 meters (200 feet) above sea level. Fontvieille to the southwest is an industrial and port area that was developed on reclaimed land.

5 OCEANS AND SEAS

The Mediterranean Sea lies to the east and south of Monaco.

Coastal Features

Monaco's coastline contains several cliffs as well as the Monte Carlo and Larvotto beaches in Monte Carlo. The Port of Monaco is located off the central coast, and the Port of Fontvieille is in the south; the two ports are separated by the small peninsula on which Monaco-Ville is located.

6 INLAND LAKES

There are no lakes in Monaco.

7 RIVERS AND WATERFALLS

No rivers flow through Monaco.

8 DESERTS

There are no deserts in Monaco.

9 FLAT AND ROLLING TERRAIN

Much of Monaco is situated on thickly clustered hills.

10 MOUNTAINS AND VOLCANOES

Monaco's terrain includes rugged cliffs overlooking the Mediterranean Sea. The surrounding French countryside is mountainous.

11 CANYONS AND CAVES

There are caves in the rocky limestone cliffs on Monaco's coast.

12 PLATEAUS AND MONOLITHS

There are no plateaus or monoliths in Monaco.

13 MAN-MADE FEATURES

The Port of Fontvieille is built on land that was reclaimed from the sea between 1966 and 1973. The project enlarged the principality by 22 hectares (54 acres) and involved moving 7.5 million cubic meters (264.8 cubic feet) of rock and earth. The reclaimed land supports not only the port itself but also an industrial zone and retail and tourist facilities.

14 FURTHER READING

Books

Campbell, Siri. Inside Monaco. Glen Ellyn, IL: MCI, 1996.

Edwards, Anne. The Grimaldis of Monaco. New York: Morrow, 1992.

Hopkins, Adams. Essential French Riviera. Lincolnwood, IL: Passport Books, 1994.

Web Sites

"Monaco." LonelyPlanet. http://www.lonelyplanet.com/destinations/europe/monaco/ (accessed April 24, 2003).

Monte-Carlo Online. http://www.monte-carlo.mc/principalitymonaco/index.html (accessed April 24, 2003).

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"Monaco." Junior Worldmark Encyclopedia of Physical Geography. 2003. Encyclopedia.com. 30 May. 2016 <http://www.encyclopedia.com>.

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Monaco

Monaco

Basic Data

Official Country Name: Principality of Monaco
Region (Map name): Europe
Population: 31,693
Language(s): French, English, Italian, Monegasque
Literacy rate: 99%

When infighting forced the Grimaldi family to leave the Holy Roman Empire in the late thirteenth century, they fled to a tiny patch of land along the French Mediterranean coast called Monaco. Francois Grimaldi became the first monarch, and his descendants have ruled the country ever since. Now a constitutional monarchy, the government is headed by a Minister of State, who presides over a unicameral, 18-seat National Council. The official language is French, but English and Italian are also widely spoken. Some older residents speak the native language, Montegasque, which is a mixture of French Provençal and Italian Ligurian. Approximately 35,000 people live within the country's single square mile. The famous casinos of capital Monte Carlo, combined with beautiful scenery and a mild climate, have made Monaco a popular destination, and tourism accounts for about 25 percent of its gross national product. Banking is also an important sector of the economy, employing approximately 5 percent of the workforce. Monaco levies no income tax and business taxes are low, making it a haven for individuals and companies, but also a magnet for money laundering and organized crime. English writer Somerset Maugham once called it "a sunny place for shady people."

Freedom of expression is guaranteed by the Montagasque constitution, but its penal code prohibits denunciations of the Grimaldi family. The Centre de Presse is the official, state-run distribution point for information and photographs. It also handles press credentials for journalists. Monaco's daily newspaper is the Nice-Matin. Al-though it is published in Nice, France, it dedicates two pages to news coverage in Monaco. It is available online. The Ministry of State publishes a weekly government journal called the Journal de Monaco. It was founded in 1898 and provides information about legislation.

There are no FM radio stations in Monaco, but there is one AM station serving the country's 34,000 radios. There are five television stations, 25,000 televisions and two Internet service providers.

Bibliography

"Country Profile," Worldinformation.com (2002). Available from http://www.worldinformation.com.

"Monaco," CIA World Fact Book (2001). Available from http://www.cia.gov.

"Monaco," Freedom House (2000). Available from http://www.freedomhouse.org.

Nice-Matin. (n.d.). Home Page. Available from http://www.nicematin.fr.

"Travel Guide-Europe-Monaco," Americanexpress.ca (2001). Available from www.americanexpress.canada.travel-guides.com.

Jenny B. Davis

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Davis, Jenny B.. "Monaco." World Press Encyclopedia. 2003. Encyclopedia.com. 30 May. 2016 <http://www.encyclopedia.com>.

Davis, Jenny B.. "Monaco." World Press Encyclopedia. 2003. Encyclopedia.com. (May 30, 2016). http://www.encyclopedia.com/doc/1G2-3409900146.html

Davis, Jenny B.. "Monaco." World Press Encyclopedia. 2003. Retrieved May 30, 2016 from Encyclopedia.com: http://www.encyclopedia.com/doc/1G2-3409900146.html

Monaco

Monaco

Basic Data
Official Country Name: Principality of Monaco
Region: Europe
Population: 31,693
Language(s): French, English, Italian, Monegasque
Literacy Rate: 99%


The nation of Monaco is a constitutional hereditary monarchy with close ties, by treaty and geography, with France. Monaco is only 1.95 square kilometers in total area with a population of 31,693 Monegasques, according to a 2000 estimate. The country has a literacy rate of 99 percent for the total population, including many well-trained workers from other countries who have come to work in a multitude of professions. Various economic interests (including tourism, technology, banking, and chemicals) have a direct impact on the principality's curriculum.

National Education, which is overseen by the government's Councilor for the Interior, is compulsory for all children in Monaco from the ages of 6 to 16. The course syllabi are identical to those used in France; this conforms to the deep relationship Monaco has with France, which extends to issues like trade and military protection. In addition, their curriculum covers the history of Monaco and the native Monegasque language. The three main languages in Monaco are French, Italian, and the indigenous tongue.

There are four public schools and two secondary schools in the principality. The secondary and higher education institutions more directly reflect the needs of Monaco's economy. The Lycée Albert I emphasizes secretarial studies and accounting, while the Technical Lycée of Monte Carlo centers on hotel management and hospitality, business, and specialized education. Charles III College and the privately run University of Southern Europe-Monaco (USE-M) offer undergraduate and graduate programs in Business Administration. USE-M has provided special programs for international students to study in Monaco and for students from the Monegasque region to study overseas, such as in the United States. Four other institutions with specialized missions are the Nursing School at the Princess Grace Hospital Complex, the Rainier III Academy of Music, the Princess Grace Academy of Classical Dance, and the Municipal School of Plastic Arts.

Bibliography

The Central Intelligence Agency (CIA). The World Fact-book 2000. Directorate of Intelligence, 1 January 2000. Available from http://www.cia.gov/.


Michael W. Young

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Monaco

Monaco

Culture Name

Monegasque; Monacan

Orientation

Identification. Officially known as the Principality of Monaco, or the Principaute de Monaco.

Location and Geography. This small country is 0.8 square miles (1.95 square kilometers) in size, or approximately the same size as Central Park in New York City. It is the smallest state in the world after Vatican City. Located on the Mediterranean Sea, Monaco is surrounded by France on three sides. Nice, France, is the nearest large city at a distance of 11 miles (18 kilometers). Monaco is rocky and situated on steep hills that drop off into the Mediterranean. Part of the Côte d'Azur, Monaco's terrain and geography are typical of the northwestern area of the Mediterranean. The climate is mild year-round, with an average low temperature of 47 degrees Fahrenheit (8 degrees Celsius) and an average maximum high of 78 degrees Fahrenheit (26 degrees Celsius). Monaco is divided into four neighborhoods: Monaco-Ville, the old original city, which is on a rocky promontory extending into the sea; La Condamine, along the port; Monte-Carlo, the main resort, residential and tourist area; and Fontvieille, a newly constructed area on land reclaimed from the sea.

Demography. Recent surveys place the permanent population of Monaco at about 30,744. Approximately 22 percent are native Monegasque, 35 percent French, 18 percent Italian, and another 25 percent consist of various other nationalities. Roman Catholicism is the main religion, practiced by 95 percent of the population.

Linguistic Affiliation. French is the official language, but Italian and English are also spoken frequently. Monegasque, a language derived from both French and Italian, is spoken by native residents of Monaco, although only about 22 percent of the population claims direct Monegasque descent.

Symbolism. The Monegasque flag consists of two equal horizontal bands of red and white: red on top, white beneath. The state seal and emblem of the House of Grimaldi is made up of a shield with red and white diamonds flanked by two monks holding swords pointed upward, with a crown draped with red cloth in the background. The monks represent the legend of François Grimaldi, and who supposedly seized control of Monaco by disguising himself as a Franciscan monk, entering the fortress unnoticed during the night.

History and Ethnic Relations

Emergence of the Nation. The first inhabitants of Monaco were the Ligurians, an ancient Indo-European tribe. Monaco was located near an important coastal path that stretched from Spain through southern France and into Italy. The peoples living in this area were eventually absorbed into the Roman Empire and became part of the province of Maritime Alps. With the fall of the Roman Empire, Monaco and the surrounding coastal areas were perpetually attacked by various invaders, including the Saracens, and the native population fled inland. It was only after the final expulsion of the Saracens in about 1000 c.e., that people returned to living on the coast.

Monaco's recorded history began in 1215 when the Ghibellines of Genoa, led by Fulco del Cassello, colonized it after receiving sovereignty over the area from Emperor Henry VI. Attracted by Monaco's strategic location and harbor, the Genoese immediately began to construct a fortress, known as the Rock of Monaco, and a walled city. To attract permanent residents, the Genoese granted land and tax exemptions. As a result, Monaco quickly became an important city and over the next three centuries was frequently contested by rival political factions. In 1297 François Grimaldi, who was originally from a powerful Guelph family in Genoa, and a small army seized control of the Rock of Monaco. Although the Grimaldis were expelled in 1301, they returned thirty years later, and the House of Grimaldi has ruled Monaco uninterrupted (except from 1789 to 1814, when it fell under French rule) since then.

Charles Grimaldi, known as Charles I, succeeded in reinstating the House of Grimaldi on 12 September 1331 and is considered the founder of the principality. However, it was not until 1489 that Monaco gained complete autonomy from French control when Lambert Grimaldi convinced King Charles VIII of France to grant the principality its independence. Monaco's sovereignty was officially recognized in 1512 by Louis XII in a signed document that also declared a perpetual alliance with the king of France. In 1524 Monaco was placed under the protection of Spain for political reasons. This caused long-term financial difficulties for Monaco, since the occupying Spanish military force was entirely supported by the Monegasques. In the early 1600s Monaco once again flourished, under the reign of Honoré II, who strengthened his country's alliance with France. Over the next two hundred years Monaco prospered under France's protection. In 1861,with the Treaty of 2 February, Charles III ceded Monaco's authority over the towns of Menton and Roquebrune to France in exchange for total independence from French political influence. However, in July 1919, after the end of World War I, Monaco was placed once again under limited French protection according to the Treaty of Versailles, a relationship that still exists today.

National Identity. The native Monegasques are proud of their country's unique history and position in the world. The name Monaco is believed to derive from the word "monoikos" associated both with the ancient Greeks and the Ligurians. The Ligurians settled along the Mediterranean coast, from Spain to Italy, before the age of the Roman Empire. The coastal road used by the Ligurians later came to be known as "The Road of Hercules." In Greek, Hercules was often called "Heracles Monoikos," or "Hercules Along" but it is possible that "monoikos" derives from an older Ligurian word. The Monegasque have managed to maintain their traditions, institutions, and dialect through the centuries despite the influence of their much-larger neighbors. This cultural identity is reflected in many of the local festivals and in Monaco's world prominence, which is disproportionate to the principality's size. However, only a small part of the population, less that 20 percent, can claim direct Monegasque heritage. The majority of the principality's citizens are French or of French descent (47 percent). People of Italian origin make up about 16 percent with the rest of the population consisting of a variety of nationalities.

Ethnic Relations. Monaco has close ethnic ties with France and Italy, and nationals of these countries account for more than half of the population. Some one-quarter of the population consists of people from a variety of other nationalities, reflecting a tolerance of different ethnic groups. However, immigration is very limited due to the principality's size, and citizenship is not easy to acquire.

Urbanism, Architecture, and the Use of Space

The steep, rocky hills and narrow coastline have influenced architecture and urban planning in Monaco. Streets are narrow and steep, and buildings must be constructed into the hills in limited amounts of space. The architecture in general reflects a Mediterranean influence, and local materials, including granite, marble, and terra-cotta tiles, are common. Recent-twentieth-century residential construction included numerous high-rise apartment buildings. Like many Mediterranean communities, Monaco has public squares, and its mild climate is favorable to outdoor living. Many buildings have balconies or terraces that face the sea. Some medieval structures survive in the old fortified city of Monaco-Ville on the Rock, where the royal palace is located. Monaco's most famous building is the Casino in Monte Carlo, built in 1866 and designed by French architect Charles Garnier.

Food and Economy

Food in Daily Life. Access to fresh, local produce and the sea has led to the development of a local cuisine and appreciation for good food. Monaco has many restaurants, and seafood is featured in many dishes. Daily eating habits reflect a Mediterranean heritage, and both French and Italian influences can be found in the local recipes. Breakfast is very small, but lunch and dinner often have several courses.

Food Customs at Ceremonial Occasions. Holidays such as Christmas, Holy Week before Easter, and Carnival before Lent are occasions for special food. Some traditional Monegasque dishes include brandamincium, salt cod pounded with garlic, oil, and cream surrounded by cardoons, edible Mediterranean plants, in white sauce; barba-Giuan, or "Uncle John," stuffed fritters; and fougasses, flat, crunchy biscuits sprinkled with sugared anise seeds and flavored with rum and orange-flower water.

Basic Economy. Tourism and related businesses are the main components of the Monegasque economy today. The tourist industry began when the famous casino was opened in Monte Carlo. Banking and financial activities are the second most important part of the economy. The industrial sector is small but significant and includes pharmaceuticals, cosmetics, flour-milling, and food products. Investment in real estate and business services make up the fourth most important sector of the economy. Foreign companies receive special investment incentives that have led many to open offices in the principality. Monaco does not impose an income tax on its residents and consequently has attracted corporate and individual investment. A significant financial services industry has developed as a result.

Land Tenure and Property. Due to Monaco's small size, the availability of land and private space has always been limited. Significant economic growth and an increase in population since 1950 have greatly augmented this problem, forcing developers to build multistoried structures very close together. An increase in tourism and the necessity for hotels have put an added strain on available space. Property is expensive both to buy and maintain, but Monaco's real estate business continues to thrive. To create additional space, the Monegasque government has had to find innovative ways to satisfy the demand for construction: the use of land reclaimed from the sea. The most recent of these is the neighborhood of Fontvieille.

Commercial Activities. Business related to tourism accounts for the majority of commercial activities. Hotels, restaurants, shops, gambling, and services related to Monaco's port provide both employment and revenue for the principality. The real estate business has also become an important commercial concern since 1970.

Major Industries. Industry did not begin to significantly develop until the 1950s, and consists entirely of light industry, with no obvious adverse effects on other parts of the economy or Monegasque society. The first industries, which developed at the beginning of the twentieth century, included a brewery, a chocolate factory, and a flour mill. The chemical, pharmaceutical, parapharmaceutical, and cosmetics industries all developed after World War II and today consist of twenty-three separate businessesmany of which are leaders in their sectors in Europe. Plastics, electronics, printing, textiles, and construction also are significant industries.

Trade. Recent figures place the estimated value of Monegasque imports at U.S. $415,300 and exports at approximately the same figure. Monaco does not publish economic figures including gross domestic product, although recent estimates put it at about U.S. $800 million. Exports include a variety of Monegasque products, and imports include agricultural products and manufactured and consumer goods. Some of Monaco's most important exports include: cosmetics, pharmaceuticals, clothing, small electronics, and paper products.

Division of Labor. Of the estimated thirty thousand jobs existing in Monaco, two-thirds of them are held by workers commuting from neighboring French or Italian towns along the coast. Seasonal tourist work also accounts for an increase in non-native Monegasque workers to the principality, including workers who have immigrated to Europe from other parts of the world. Women make up slightly less than half the workforce, and recent statistics place unemployment at about 3.2 percent.

Social Stratification

Classes and Castes. Monaco's high average income and individual wealth, as well as its very small size, make it a country with minimal class distinctions. The principality's status as a tax haven make it an attractive place to establish residence for wealthy people from all over the world. A significant number of residents are from a variety of nationalities, and several are celebrities, helping to make Monaco synonymous with wealth, power and prestige the world over.

Symbols of Social Stratification. Overall Monaco has one of the highest standards of living in the world. Differences in social stratification are not immediately obvious. The principality's popularity as an exclusive resort and tax haven has led to the development of a very wealthy social class. Material symbols of wealth such as luxury goods, expensive cars, and exclusive shops are visible everywhere. Monaco's coastal position has also made it a popular port for luxury yachts. The tourist industry necessitates a large workforce, as do Monaco's light industrial concerns, but more than half the people employed in these sectors do not live in Monaco.

Political Life

Government. Until 1910, the Principality of Monaco was governed by an absolute monarchy. In 1911 Prince Albert I promulgated the first constitution, which was modified in 1917. It was modified again in 1933 by Prince Louis II, and other reforms were made by Prince Rainier III in 1962. Monaco's refusal to impost tax on its residents and international businesses led to a severe crisis with France in 1962. This crisis led to a compromise in which it was agreed that French citizens with less than five years of residence in Monaco would be taxed at French rates and companies doing more than 25 percent of their business outside the principality. Another result of the crisis was the creation of a new, more liberal constitution ad the restoration of the National Council. The constitution provides that executive power is under the authority of the reigning prince. Succession to the throne passes to the direct and legitimate descendants of the prince, with male descendants taking precedence over female. The prince represents Monaco in its foreign relations and signs and ratifies treaties. The prince nominates a Council of Government, consisting of a minister of state and three government councilors, one each for finance and economy, the interior, and public works and social affairs. The Minister of State is a French Citizen, appointed by the prince, and selected for a three-year term a from a group of senior French civil servants selected by the French government. The Minister of State is in charge of foreign relations and, as the prince's representative, directs executive services, the police and the Council of Government. Under the Council of Government's authority is the eighteen-member National Council. Members of the National Council are elected for five years by direct vote based on a system of proportional representation. Eligible voters must be over the age of twenty-one and hold Monegasque citizenship for more than five years. The new constitution of 1962 gave the right to vote to women, established a Supreme Court to guarantee fundamental rights, and abolished the death penalty.

Leadership and Political Officials. Local affairs are directed by the Communal Council which administers the principality's four quarters: Monaco-Ville, La Condamine, Monte Carlo, and Fontvieille. The Council of the Crown consists of seven members holding Monégasque nationality who are nominated by the prince. The president and three members are selected by the sovereign: the others are selected by the national Council. Current government officials include: the Chief of State, Prince Rainier III; the Minister of State, Michel Leveque; the Council of Government, ministers for: the Interior, Finance, and Economic Affairs, Public Works and Social Affairs, National Council President, President of the Supreme Court, and the Director of Judicial Services.

Social Problems and Control. Due to its small population and unique economic situation, Monaco does not face many of the social problems that larger countries must deal with, such as violent crime and poverty. After going through a period of economic growth and industrial development following World War II, a primary concern is the principality's ability to sustain its economy, attract new investments, and maintain the quality of life for its citizens. Current social problems include managing industrial growth and tourism, environmental concerns, and maintaining the quality of life. Alcoholism and illegal drug abuse are present but not widespread. Monaco has a very low crime rate, in part due to the high number of law enforcement officials in relation to the total population and the high standard of living. Widespread use of security cameras throughout the principality also further discourage open criminal activity. Excluding private security, there are around 400 permanent police officers, 95 percent of whom are French. Legal power belongs to the Sovereign, presently Prince Rainier III, who delegates full exercise of it to the courts and tribunals. The independence of the judges is guaranteed by the constitution. Monaco's legal organization includes all degrees of jurisdiction: a Court of First Instance, a Court of Appeal, a Higher Court of Appeal and a Criminal Court. There are also tribunals with specific competence, such as the Work Tribunal, the Rent Arbitration Commission, and the Higher Arbitration Court, for collective work disputes. The Supreme Court is at the top of the principality's legal organization.

Military Activity. Monaco does not have a military, although it does have a small police force. The French government is responsible for Monaco's defense.

Social Welfare and Change Programs

The government efficiently manages several social welfare and change programs. Some current programs include creating more affordable housing for workers by reclaiming land from the sea for new construction and promotion of Monegasque culture, brought about by a revived interest in the principality's history. Consequently, Monegasque language classes have now been instituted in all elementary schools. The Monegasque government also ensures generous pensions, maternity leave, vacation time, and welfare programs for all citizens.

Nongovernmental Organizations and Other Associations

Monaco has many nongovernmental organizations and cultural, academic, and professional associations. Among these are the Permanent International Association of Navigation Conventions, the International Committee of Military Medicine and Pharmacy, the Scientific Community for Oceanic Research, the International Music Council, the International Union for the Conservation of Nature, and the International Union of the History and Philosophy of Sciences. Monaco joined the United Nations in 1993 and is an active participant. Other intergovernmental organizations of which Monaco is a member include Interpol, UNESCO, and WHO. The International Hydrographic Bureau has its headquarters in Monaco.

Gender Roles and Statuses

Monaco has a Mediterranean, Roman Catholic culture emphasizing the family. Until the second half of the twentieth century, women's roles revolved principally around family and household. Women were not active in politics until the 1960s when they first received the vote. Although fewer women than men are employed outside the home, Monegasque women work in a variety of fields and are politically active.

Marriage, Family, and Kinship

Not withstanding its status as a cosmopolitan resort, Monegasque society is based on centuries-old traditions. Immediate and extended family are the basic social units. Marriage is considered an important family event and the divorce rate is low, with less than a quarter of marriages ending in divorce.

Marriage. Marriage is an important family event, Church weddings, held according to Roman Catholic traditions, are popular. A civil ceremony, held at the city hall, is also required even when a religious ceremony is organized. Some couples choose only to have the civil ceremony.

Domestic Unit. The domestic unit consists of immediate family members. Before industrialization after World War II, the domestic unit also included extended family such as grandparents and other elderly relatives. The low divorce rate and general affluence help contribute to a stable average domestic unit in Monaco. Monegasque social activities frequently revolve around family events and gatherings.

Inheritance. Inheritance laws are based on those of France.

Socialization

Infant Care. Monaco provides excellent maternity and infant care. Women are guaranteed several months of maternity leave and there are high quality, low cost day care centers and nurseries available. National health and education programs ensure that Monegasque families have complete early childhood support and care.

Child Rearing and Education. A national health service and an excellent public education system provide Monegasque children with high-quality, low-cost education and with health care from infancy through adolescence. Monaco's small size, unique history, and high standard of living have helped the principality avoid many of the child social problems that face larger countries. The traditional Monegasque culture, based on family and kinship ties, has changed with twentieth-century industrialization and growth, but child welfare remains important. Grandparents often help in caring for young children, particularly when both parents work.

Education is compulsory from ages of six to sixteen. School curricula are identical to those of France but also include the study of Monegasque history, the institutions of the principality, and the Monegasque language. There are four public primary schools for study up to age fourteen and three specialized high schools: Lycée Albert I, the Technical Lycée of Monte Carlo, and the Charles II College. There are also four private schools through the high school level.

Higher Education. Monaco does not have a university, although there are several specialized institutions of higher learning, including the Rainier III Academy of Music and the Nursing School at the Princess Grace Hospital Complex. Monaco's literacy rate is 99 percent.

Etiquette

Etiquette in Monaco is influenced by the country's unusual blending of roles as an international tax haven, exclusive resort destination in combination with the Monegasque traditions. The Monegasque are proud of the country's history and residents strive to maintain the quality of life that exists there. The principality attracts people from a variety of nationalities who are nevertheless united by a high level of personal wealth. The rules of etiquette are much like those found in France with an emphasis on respect for privacy. The royal family of Monaco, the Grimaldi, frequently attract the attention of the press. Monaco's royal family became a popular subject of tabloid journalism when the American actress Grace Kelly married Prince Rainier III. Discretion and privacy are still emphasized in Monaco.

Religion

Religious Beliefs. Roman Catholicism is the state religion, although freedom of worship is guaranteed by Article 23 of the Constitution. However, 95 percent of the population claims to be Roman Catholic.

Religious Practitioners. Most Monegasque are Roman Catholic and the church plays an important role in Monegasque traditions, particularly on feast days and special holidays. Church attendance is not as high as a century ago and it is difficult to estimate the exact number of practicing Catholics.

Rituals and Holy Places. There are several traditional festivals and rituals in Monaco. Saint Devote, the patron saint of Monaco, is venerated in a ritual held on 27 January every year. A torchlight procession, a religious ceremony and blessing mark the day that Saint Dévoe is believed to have arrived in Monaco. Other religious rituals and ceremonies are held during Holy Week before Easter, and on the feast days of Saint Roman, 9 August, Saint John, 23 June and Saint Blaise.

Death and the Afterlife. Monegasque beliefs about death and the afterlife are in accordance with the teachings of the Roman Catholic church.

Medicine and Health Care

Monaco has a government-supported health system that provides high-quality medical care to all its citizens. Life expectancy is placed at 74 years for males and 81 for females. Infant mortality rate is approximately 7 per 1000 births. Monaco's birth-rate exceeds the number of deaths per year. For specialized care of serious care of serious health problems Monaco's residents may seek care in larger medical centers, such as the hospital in Nice.

Secular Celebrations

National Day, 19 November, celebrates Monaco's independence as a principality. A parade, a thanksgiving Mass held in the cathedral, and special events are organized. Other important celebrations have religious origins. The Feast of Saint Devote, the patron saint of Monaco, is celebrated on 27 January. The festival of Saint John, on 24 June, is another important Monegasque holiday. Religious holidays are celebrated with the closing of businesses, special church services, and traditional customs. The National Committee of Monegasque Traditions, established in 1924, is dedicated to the preservation and revival of Monegasque folk traditions and festivals.

The Arts and Humanities

Support for the Arts. The Monegasque government actively supports the arts, cultural institutions, and the humanities through a variety of programs and events. The Prince Pierre Foundation was founded to encourage culture in the letters and the arts, by the creation and awarding of prizes. These awards include the Grand Literary Prize, created in 1951; the Prince Rainier III Prize for Musical Composition, founded in 1960; and the International Contemporary Art Prize, awarded for the first time in 1965. The Princess Grace Foundation was established in 1964 with the aim of promoting charitable activities and provides support for the Princess Grace Dance Academy. Recent investments in the arts and humanities include the creation of a Cultural and Exhibition Center, which will contain an auditorium and other performance and event areas on the site of the old Centenary Hall. The Monte Carlo Ballet and the Monte Carlo Opera are world-renowned. The Monte Carlo Ballet gained international fame in the 1920s when the choreographer Sergey Diaghilev was based there with his Ballets Russes. Monaco is also home to the International Circus Festival held every February and the International Fireworks held in July. The Grand Prix de Monaco, a Formula 1 car race held in the streets of Monte Carlo, is one of the principality's most famous cultural events and attracts thousands of spectators.

Literature. The Great Literary Prize recognizes outstanding literary works annually. The Princess Grace Irish Library was established recently to hold a collection of over 8,000 volumes related to Irish history, culture and writing, in both Irish and English languages.

Graphic Arts. The Prince Pierre Foundation annually awards the International Prize for Art, established in 1965, to recognize outstanding achievement in the visual arts. The Municipal School of Decorative Arts provides education in the visual arts.

Performance Arts. The Monte Carlo Philharmonic Orchestra was established in 1863 and found its permanent home in the Garnier Palace in 1879. The Monte Carlo Ballet and the Monte Carlo Opera are internationally acclaimed. Since 1892 the Monte Carlo Opera has occupied Garnier Hall, named after its architect, who also designed the Paris Opera House. Many premier performances have been staged at the Monte Carlo Opera, including Sergei Diaghilev's Ballets Russes in the 1920s. The International Circus Festival is also held annually in Monaco.

The State of Physical and Social Sciences

Monaco is particularly well known for its activity in the marine science field. The Oceanographic Museum, formerly directed by Jacques Cousteau, is the most famous institution devoted to marine science in the world. The Scientific Community for Oceanic Research is based in Monaco, and numerous other scientific and academic societies also have branch offices in the principality. Monaco's history of supporting oceanic and scientific studies dates to the 1860s when Prince Albert pursued his scientific interests by conducting numerous maritime expeditions. Throughout the twentieth century, Monaco has promoted scientific research. The Prehistory and Speleological Association was formed in 1951 and in 1960 Prince Rainier III inaugurated the Museum of Prehistoric Anthropology. Prince Rainier is also the president of the International Commission for the Scientific Exploration of the Mediterranean. The Scientific Center of Monaco is host to a variety of activities including seismological, meteorological, and radioactivity studies. The Monaco Underwater Reserve, consisting of almost 50 hectares, was established by the Monégasque Association for the Protection of Nature to provide a protected environment for a wide variety of marine life. In 1971 the "Albert I of Monaco" Prize for Oceanography was created to recognize outstanding research.

Bibliography

Campbell, Siri. Inside Monaco, 2000.

Doyle, Stanton, and Ewing, Debra; Kelly, Robert; and Youngblood, Denise, ed. Country Review: Monaco 19981999, 1998.

The Magic Principality, 1994.

Rogatnick, Joseph H. "Little States in a World of Power: A Study of the Conduct of Foreign Affairs by Andorra, Liechtenstein, Monaco, and San Marino." Ph.D. dissertation, University of Pennsylvania, 1976.

Web Sites

Monaco Government Tourist Office. www.monaco.mc

United States Department of State, Bureau of European Affairs. "Background Notes, Monaco." www.state.gov

M. Cameron Arnold

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Monaco

Monaco Principality in s Europe, on the Mediterranean coast, forming an enclave in French territory near the border with Italy; the capital is Monaco-Ville. Ruled by the Grimaldi family from the end of the 13th century, it came under French protection in 1860. The chief source of income is tourism, attracted by the casinos of Monte Carlo. There is some light industry, including printing, textiles and postage stamps. Area: 1.5sq km (0.6sq mi). Pop. (2000) 30,000.

http://www.monaco.mc

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Monaco

Monaco

MONÉGASQUES … 33

The people of Monaco are called Monégasques. The native-born population is about 15 percent of the total. Foreign-born residents include French (more than 50 percent) and Italians (about 17 percent).

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Monaco

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