Size: 0.8 sq. mi. (1.96 km²)
Population: 35,657 (2006 estimate)
Location: French Riviera on the Mediterranean
Monaco is the second smallest country on Earth (it's
roughly the size of New York's Central Park), yet it's the most densely
populated (23,660 people per km²). Actually, Monaco used to be much smaller
than it is now - about 100 acres were reclaimed from the sea and added to its
land size. At the narrowest, Monaco is only 382 yards wide!
The Principality of Monaco, its formal name, means that the
territory is ruled by a prince. For the last seven centuries, Monaco was ruled
by princes of the Grimaldi family from Genoa. (The whole thing started one
night in 1297 when François Grimaldi disguised himself as a monk and led a
small army to conquer the fortress guarding the Rock of Monaco. The coat of
arms of the Grimaldi bears the image of monks with swords!) Now, the Prince
shares legislative authority with a National Council. In 1861, Monaco
relinquished half of its territory to France in exchange for cash and
independence. When the reigning prince realized that most of Monaco's natural
resources were on the land that got bartered away, he decided to bet the whole
economy on … what else, gambling (see, casinos aren't only for American
Indians, it's a time-tested, universal solution!) And so began Monte Carlo, a
region of Monaco well known for its glamorous casinos (a setting for Ian
Fleming's first James Bond Novel Casino Royale) and its Formula One Grand Prix.
In 1918, Monaco entered a treaty with France for military
protection - the treaty, however, also stipulated that Monaco would lose its
independence (and become French) should the reigning Grimaldi prince died
without leaving a male heir! When Prince Rainier III took over, he was a
bachelor and most Monegasques (that means people of Monaco) were gloomy about
the country's future. However, he ended up marrying Hollywood actress Grace
Kelly - the marriage not only produced a male heir, it also helped burnish
Monaco's image as a glamorous place to be for the wealthy. (Monaco can rest
easy now, a new treaty with France stated that the Principality will remain
independent even without a male heir). For a long time, Monaco had no income
taxes and was a tax haven for wealthy foreigners and international
corporations. This caused a unique thing about Monaco's population: most of its
residents are not native - in fact, only about 1 in 5 people are native
Monegasques. After a long dispute with France, Monaco started to impose income
taxes on all of its residents who are not born there. Its natural citizens are
forbidden from entering casinos, but to make up for it, they do not have to pay
any income taxes.