Why is Switzerland's “small-state” economy stronger, than the economics of “big” countries?

A highly efficient economy, aimed at continuous innovative renewal, is in particularly intensive contact with Switzerland's political field. So how do specialties of the Swiss political system, and in particular federalism, push the economic development of the Confederation?

The economy of such a small state as Switzerland needs favorable conditions to work out. It includes liberal economic legislation, as much as possible a moderate degree of government intervention in business, low taxes and a flexible system for their collection, well-developed infrastructure, as well as social and political stability. The Swiss economy initially developed in the face of a lack of natural resources. However, it was this adverse circumstance that became the factor that very early turned Switzerland into one of the most industrialized countries in the world. The lack of natural and other resources, human and intellectual have an ambiguous effect on the logic of economic behavior of economic entities.

The lack of its resources and the narrowness of the domestic market forced it to establish contacts with its "neighboring countries". Internal natural and landscape diversity, as well as the necessity of maintaining close exchange contacts with neighboring countries, have led to the emergence and strengthening of a decentralized economic system in Switzerland.

As a politically and geographically "small state", Switzerland has a globally significant economy. The "imbalance" between the small state and global concerns brings an additional dimension to the logic and nature of the functioning of the national federalism system. Autonomy cannot be completely destroyed, since it is a supporting element of the entire system of federalism, to the business both domestic and foreign.

Pierre Maudet, a famous politician from Geneva, expressed an opinion on federalism. How crisis-resistant is Swiss federalism? Most conference participants recognized that federalism is by no means an impeccable system without any problems. Its inertness, as well as the fact that there are several levels of bureaucracy at once, can have a severe inhibitory effect on the industry.

Specialists on this conference came to the conclusion that the political self-sufficiency of a small state is much more dependent on a strong economy than any "great power." In addition to economics, the high European power also has, as you know, two allies: the army and navy. In Switzerland, however, in the first place is precisely the regionally diversified industry, which plays the role of the backbone of the "small" European nation, which allows it to maintain a firm distance with the European Union.

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