SwitzerlandHistorical, politic and economic system

By Sulistyowati

The history

With the opening of a new important north-south trade route across the Alps in the early 13th century, the Empire's rulers began to attach more importance to the remote Swiss mountain valleys, which were granted some degree of autonomy under direct imperial rule.

Fearful of the popular disturbances flaring up following the death of the Holy Roman Emperor in 1291, the ruling families from Uri, Schwyz, and Unterwalden signed a charter to keep public peace and pledging mutual support in upholding autonomous administrative and judicial rule. The anniversary of the charter's signature (August 1, 1291) today is celebrated as Switzerland's National Day.

The politics of

Switzerland The politics of Switzerland take place in the framework

of a multi-party federal directorial democratic republic,

whereby the Federal Council of Switzerland is the

collective head of government and head of state

The Federal Council is the seven-member executive

council which constitutes the federal government

of Switzerland and serves as the collective head of

government and state of Switzerland.

Referendum

Switzerland is the closest state in the world to a

direct democracy. For any change in the

constitution, a referendum is mandatory

(mandatory referendum); for any change in a law,

a referendum can be requested (optional

referendum). Through referenda, citizens may

challenge any law voted by federal parliament and

through federal popular initiative introduce

amendments to the federal constitution.

Capitalism

The economy of Switzerland is one of the world's most stable economies.

Because of the country's small size and high labor specialization, industry and trade are the keys to Switzerland's economic livelihood.

Switzerland has achieved one of the highest per capita incomes in the world with low unemployment rates and a balanced budget.

The service sector has also come to play a significant economic role.