Andorra’s economy was formerly based on pastoral farming and the processing of tobacco and timber. Tourism has boomed since the 1950s and now dominates the principality’s economic life. Tourists are drawn by the winter ski facilities, the cool summer climate, and the availability of duty-free goods. The Andorran government collects revenue through a small number of taxes and the sale of postage stamps. Immigration and investment have been promoted by low tax rates.
Tourism, the mainstay of Andorra's tiny, well-to-do economy, accounts for roughly 80% of GDP. An around 9 million tourists visit annually, attracted by Andorra's duty-free status and by its summer and winter resorts. Andorra's comparative advantage has newly eroded as the economies of neighboring France and Spain have been opened up, providing broader availability of goods and lower tariffs. The banking sector, with its "tax haven" status, also contributes substantially to the economy. Agricultural production is limited by a scarcity of arable land, and most food has to be imported. The principal farm animal activity is sheep raising. Manufacturing output consists mainly of cigarettes, cigars, and furniture. Andorra is a member of the EU Customs Union and is treated as an EU member for trade in manufactured goods (no tariffs) and as a non-EU member for agricultural products.
Until newly, Andorra's political system had no clear division of power among administrator, legislative, and judicial branches. A Constitution ratified and approved in 1993 changed this, however. The Constitution establishes Andorra as a sovereign parliamentary democracy that retains the two Co-princes as its heads of state.
The fundamental impetus for this political transformation was a recommendation by the Council of Europe in 1990 that, if Andorra wished to attain full integration into the European Union (EU), it should adopt a modern Constitution that guarantees the rights of those living and working there.
Under the 1993 Constitution, the Co-princes continue as heads of state, but the head of government retains administrator power. The two Co-princes serve equally with limited powers that do not include veto over government acts. They are described in Andorra by a delegate. Each Co-prince, the President of France and the Bishop of Seu d'Urgell, maintain supreme authority in approval of all international treaties with France and Spain, as well as those dealing with internal security, defense, Andorran territory, diplomatic representation, and judicial or penal cooperation.
Andorra's main legislative body is the 28-member General Council. The president, the vicepresident, and the members of the Council are elected in the general elections held every 4 years. The Council meets throughout the year on certain dates set by tradition or as required. The most recent general elections took place in March 2001.
A president and a vicepresident are chosen by the General Council to implement its decisions. They serve 4-year terms and may be reappointed once. They obtain an annual salary. president have virtually no discretionary powers, and all policy decisions must be approved by the Council as a whole. Every 4 years, after the general elections, the General Council elects the head of government who, in turn, chooses the other members of the administrator Council. The current council has 10 ministers.
The judicial system is independent. Courts apply the customary laws of Andorra, supplemented with Roman law and customary Catalan law. Civil cases are first heard by the batlles court--a group of four judges, two chosen by each Co-prince. Appeals are heard in the Court of Appeals. The highest body is the five-member Superior Council of Justice.
Andorra is the last independent survivor of the March states, a number of buffer states created by Charlemagne to keep the Muslim Moors from advancing into Christian France. Tradition holds that Charlemagne granted a charter to the Andorran people in return for their fighting the Moors. In the 800s, Charlemagne's grandson, Charles the Bald, named the Count of Urgell Overlord of Andorra. A descendant of the Count later gave the lands to the diocese headed by Bishop of Seu d'Urgell.
In the 11th century, fearing military action by neighboring lords, the bishop placed himself under the protection of the Lord of Caboet, a Spanish nobleman. Later, the Count of Foix, a French noble, became heir to Lord Caboet through marriage, and a dispute arose between the French Count and the Spanish bishop over Andorra.
In 1278, the conflict was resolved by the signing of a pareage, a feudal institution recognizing the principle of equality of rights shared by two rulers. This pareage provided that Andorra's sovereignty would be shared between the Count of Foix and the Bishop of Seu d'Urgell of Spain. The pareage gave the small state its territory and political form. Given its relative isolation, Andorra has existed outside the mainstream of European history, with few ties to countries other than France and Spain. In recent times, its thriving tourist industry along with developments in diplomatic activity, transportation, and communications have removed the nation from its isolation.
Officially Principality of Andorra, parliamentary principality, south-western Europe, situated high in the eastern Pyrenees mountains, bordered on the north and east by France, and on the south and west by Spain. Also called Valleys of Andorra, the nation is one of the smallest in the world with an area of about 468 sq km and a population of 66,210. The overall population density in 1995 was about 137 people per sq km; over 60 per cent of the population is urban. The capital is Andorra la Vella.
Official Name- Principality of Andorra
Capital City -Andorra la Vella
Languages- Catalan (official), French
Official Currency- Spanish Peseta
Religions -Catholic
Population- 66,210
Land Area -468 sq km
N/A
Legal system: based on French and Spanish civil codes; no judicial review of legislative acts; has not accepted compulsory ICJ jurisdiction
vote: 18 years of age; universal
Administrator branch: chief of state: French Coprince Jacques CHIRAC (since 17 May 1995), described by Frederic de SAINT-SERNIN (since NA); Spanish Coprince Episcopal Monseigneur Joan MARTI Alanis (since 31 January 1971), described by Nemesi MARQUES OSTE (since NA)
Head of government: administrator Council President Marc FORNE Molne (since 21 December 1994)
Cabinet: administrator Council or Govern designated by the administrator Council president
Judicial branch: Tribunal of Judges or Tribunal de Batlles; Tribunal of the Courts or Tribunal de Corts; Supreme Court of Justice of Andorra or Tribunal Superior de Justicia d'Andorra; Supreme Council of Justice or Consell Superior de la Justicia; Fiscal Ministry or Ministeri Fiscal; Constitutional Tribunal or Tribunal Constitucional
International organization Member
CCC, CE, ECE, ICAO, ICRM, IFRCS, Interpol, IOC, ITU, OSCE, UN, UNESCO, WHO, WIPO, WToO, WTrO
Andorrans live in seven valleys that form Andorra's political districts between France and northeast Spain. Andorrans are a minority in their own nation; Spanish, French, and Portuguese citizens make up 64.01% of the population. The national language is Catalan, a romance language related to the Provencal group. French and Spanish also are spoken.
Liberal Union or UL [Marc Forne MOLNE] (renamed Liberal Party of Andorra or PLA); National Democratic Group or AND [Ladislau BARO SOLA]; National Democratic Initiative or IDN [Vincenc MATEU Zamora]; New Democracy or ND [Jaume BARTOMEU Cassany]; Union of the People of Ordino (Unio Parroquial d'Ordino) or UPO [Simo DURO Coma]
7 parishes (parroquies, singular - parroquia); Andorra la Vella, Canillo, Encamp, La Massana, Escaldes-Engordany, Ordino, Sant Julia de Loria
