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Essay on Economics Example: Switzerland

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When and How Did Switzerland Become So Rich?

Switzerland (or Helvetia, the original name of the state) is one of the most amazing and unique countries in the world. Despite of its small territory and low international political activity, it has very high level of life and is well-known all around the world.

If you ask somebody what he or she knows about Switzerland, you would probably get such kind of answer: reliable banks, expensive watches, knifes, tasty chocolate and cheese, prosperity, stability. If you try to find something negative in news about this country, you would likely fail, because Swiss Republic never takes part in wars and has very low level of criminality. So how did Switzerland manage to get such a high status? To answer this question we should turn to history and geography of this distinctive country.

Let’s start with geographical position of Switzerland – this country is situated in the centre of Western Europe, contains Alps, a lot of forests, lakes and waterfalls, has temperate continental climate. All these factors positively affect the attractiveness of Switzerland for tourists and as a consequence, the economical growth of the state.

Now let’s figure out what was the key point of the history of Helvetia. In 1815 the main decision in the history of country was made – Vienna Congress confirmed the neutrality of Switzerland. Since that time Switzerland never took part in any war, though it always had arms to protect itself, and none of its banks was robbed. Security of costs and keeping of banking secrecy made Switzerland the most popular state among foreigners for keeping their money. As a matter of fact, Switzerland gets a huge amounts of costs from banking fees (money that bank clients have to pay for keeping their funds).


So the answer for question “when and how did Switzerland become so rich?” is – having favorable geographical position and accepting neutrality in 1815. These two factors led to growth and prosperity of modern Helvetia.

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