About the CBI
October 2005
Background Note: San Marino

Flag of San Marino is two equal horizontal bands of white (top) and light
blue with the national coat of arms superimposed in the center; the coat of
arms has a shield (featuring three towers on three peaks) flanked by a
wreath, below a crown and above a scroll bearing the word LIBERTAS (Liberty).

PROFILE

OFFICIAL NAME:
Republic of San Marino

Geography
Area: 60 sq. km.; about one-third the size of Washington, DC.
Cities: Capital--San Marino (pop. 4,482). Other cities--Serravalle, Borgo
Maggiore, Domagnano.
Terrain: Rugged mountains.
Climate: Mediterranean; mild to cool winters; warm, sunny summers.

People
Nationality: Noun and adjective--Sammarinese.
Population (12-31-2002): 28,753
Ethnic groups: Sammarinese, Italian.
Religion: Roman Catholic.
Language: Italian.
Education: Literacy--96%.
Health: Infant mortality rate-3.3/1,000 live birth rates (2004). Life
expectancy-78.6 for men and 84.9 for women (2004).
Work force: approx 18,000.

Government
Type: Republic. Constitution: October 8, 1600, electoral law of 1926 and
manuscript of rights (1974) serve some of the functions of the Constitution.
Branches: Executive--Captains Regent (co-chiefs of state), Congress of State
(cabinet) elected by the Great and General Council, Secretary of State for
Foreign and Political Affairs (head of government). Legislative--unicameral
parliament: 60-member Great and General Council. Judicial--Council of Twelve.
Administrative divisions: 9 municipalities.
Political parties: Christian Democratic Party, Democratic Progressive Party,
San Marino Socialist Party, National Alliance, Popular Alliance, Communist
Refoundation.
Suffrage: Universal over 18.

Economy
GDP (2002): Euros 935 million.
Per capita income (2002 est): Euros 24,054.
GDP growth (2004 est): 2%.
Natural resources: Building stone.
Agriculture: Products--wheat, grapes, maize, olives, cattle, pigs, horses,
meat, cheese, hides.
Industry: Types--tourism, textiles, electronics, ceramics, cement, wine.
Trade: Exports Euros 1,705 million (2001). 85% to Italy. Imports Euros 1,744
million (2001) manufactured goods, food. Partners--Italy, Western Europe,
Eastern Europe, South America, China, Taiwan.

PEOPLE AND HISTORY
The population of San Marino is comprised of native Sammarinese and Italian
citizens. Crop farming, sheep farming, and the working of stone from the
quarries formed the early backbone of San Marino's economy. It has no mineral
resources, and today most of the land is cultivated or covered by woods.

According to tradition, San Marino was founded in AD 301 when a Christian
stonemason named Marinus the Dalmatian fled to the island of Arbe to escape
the anti-Christian Roman Emperor Diocletian. Marinus hid on the peak of Mount
Titano and founded a small community of people following their Christian
beliefs. It is certain that the area had been inhabited since prehistoric
times, although evidence of existence on Mount Titano only dates back to the
Middle Ages. In memory of the stonecutter, the land was renamed "Land of San
Marino" and was finally changed to its present-day name, "Republic of San
Marino."

The original government structure was composed of a self-governed assembly
known as the Arengo, which consisted of the heads of each family. In 1243,
the positions of Captains Regent (Capitani Reggenti) were established to be
the joint heads of state.

The land area of San Marino consisted only of Mount Titano until 1463, at
which time the republic entered into an alliance against Sigismondo Pandolfo
Malatesta, Lord of Rimini, who was later defeated. As a result, Pope Pius II
Piccolomini gave San Marino the towns of Fiorentino, Montegiardino, and
Serravalle. Later that year, the town of Faetano joined the republic on its
own accord. Since then, the size of San Marino has remained unchanged.

San Marino has been occupied by foreign militaries twice in its history, both
for only short periods of time. In 1503, Cesare Borgia, known as Valentino,
occupied the republic until his death several months later. In 1739, Cardinal
Alberoni used military force to occupy the country. Civil disobedience was
used to protest his occupation, and clandestine notes sent to the Pope to
obtain justice were answered by the Pope's recognition of San Marino's rights
and restoration of San Marino's independence.

GOVERNMENT
The Arengo, initially formed with the heads of each family, relinquished its
power to the Great and General Council. In 1243, the first two Captains
Regent were nominated by the Council, and this method of nomination is still
in use today. The Council is composed of 60 members who are elected every 5
years under a proportional representation system in all nine administrative
districts. These districts (Townships) correspond to the old parishes of the
Republic, and each one is ruled by a Council, which is chaired by a Captain
elected every 5 years. The Great and General Council approves the budget, as
well as the nominations of Captains Regent and heads of the Executive.

Every 6 months, the Council elects two Captains Regent to be the heads of
state. The Regents are chosen from opposing parties so they can keep an eye
on each other. They serve a 6-month term. The investiture of the Captains
Regent takes place on April 1 and October 1 in every year. Once this term is
over, citizens have 3 days in which to file complaints about the previous
Regents' activities. If they warrant it, judicial proceedings against the
former head(s) of state can be initiated.

The State Congress, composed of 10 Secretaries, wields executive power. The
10 Secretaries are (1) Secretary of State for Foreign and Political Affairs;
(2) Secretary of State for Internal Affairs and Civil Defense; (3) Secretary
of State for Finance, Budget and Programming, Information and Relations with
the State Philatelic and Numismatic Office; (4) Secretary of State for
Education, Culture, University and Justice; (5) Secretary of State for
Territory, Environment and Agriculture; (6) Secretary of State for Health and
Social Security; (7) Secretary of State for Trade and Relations with the Town
Council; (8) Secretary of State for Communication, Transport, Relations with
the Azienda Autonoma di Stato for Services, Tourism, and Sport; (9) Secretary
of State for Industry and Crafts; and (10) Secretary of State for Labor and
Cooperation.

The Great and General Council elects the Council of Twelve for the duration
of the Legislature and serves a jurisdictional body that also acts as a third
instance Court of Appeals. Two government inspectors represent the State in
financial and patrimonial questions.

The Legislative body consists of the Great and General Council, the
parliament, and a unicameral Chamber. The members of parliament are usually
elected every five years and are in charge of legislation, justice, and the
administration of jurisdiction. In addition, they are tasked with electing
the Captains Regent, the State Congress, the Council of Twelve, the Advising
Commission, and the Government Unions once the Council nominates them.
Parliament also has the power to ratify contracts with other countries. The
parliament is divided into five different Advising Commissions consisting of
15 councils which examine, propose, and discuss the implementation of new
laws that are on being submitted to the Great and General Council.

The judicial system of San Marino is entrusted to foreign executives, both
for historical and social reasons. The only native judges are the Justices of
the Peace, who only handle civil cases where sums involved do not exceed 25
million lire. The Council of Twelve serves as an appeals court in the third
instance.

Principal Government Officials
Captains Regent--Claudio MUCCIOLI and Antonello BACCIOCCHI (Ocober 1,
2005-March 31, 2006)
Secretary of State for Foreign and Political Affairs--Fabio Berardi

San Marino has honorary Consulates General in Washington, DC and New York and
honorary Consulates in Detroit and Honolulu. The honorary Consulate General
in Washington, DC is located at 1899 L Street NW, Suite 500, Washington, DC
20036.

The Republic of San Marino's Web Site provides information on politics,
trade, and events in San Marino.

POLITICAL CONDITIONS
San Marino is a multi-party democratic republic. The three main parties are
the Democratic Christian Party of San Marino (PDCS), the Socialist Party of
San Marino (PSS), and the Progressive Democratic Party of San Marino (PPDS),
in addition to several other smaller parties. Due to the small size and low
population of San Marino, it is difficult for any party to gain a pure
majority, and most of the time the government is run by a coalition.
Following a period of political instability after the June 2001 elections, in
December 2003 the three largest parties formed a coalition government with a
view to reforming the electoral law and subsequently calling for early
elections.

Because tourism accounts for more than 50% of the economic sector, the
government relies not only on taxes and customs for revenue but also the sale
of coins and postage stamps to collectors throughout the world. In addition,
the Italian Government pays San Marino an annual budget subsidy provided
under the terms of the Basic Treaty with Italy. In recent years banking has
also become an important economic activity.

Harmonization of statutes and policies with the EU is a major domestic and
foreign policy priority of the republic. Another priority issue will be to
increase the transparency and efficiency in parliament and in relations among
parliament, cabinet, and the Captains Regent.

ECONOMY
San Marino's per capita GNP in 2002 stood at 24,054 Euros with more than 50%
coming from the tourism industry, which draws about 3 million people
annually. One of the greatest sources of income from tourism comes from the
sale of historic coins and stamps. In 1894, San Marino issued its first
commemorative stamps, which produced government revenue for the republic. All
10 of the Post Offices of San Marino sell these stamps and collectable coins,
including "Legal Tender Gold Coins."

Traditional economic activities in San Marino were food crops, sheep farming,
and stone quarrying. Today farming activities focus on grain, vines, and
orchards, as well as animal husbandry (cattle and swine). Besides the tourism
industry, San Marino makes most of its income from the banking industry and
from the manufacture and export of ceramics, tiles, furniture, clothing,
paints, fabrics, and spirits/wines. The per capita level of output and
standard of living in San Marino are comparable to those of Italy. In
addition, San Marino maintains the lowest unemployment rate in Europe and no
national debt.

FOREIGN RELATIONS
San Marino is an active player in the international community. Currently, the
Republic has diplomatic relations with over 70 countries. Italy is the only
country represented by an ambassador resident in San Marino. The Papal
Nuncio, based in Rome, is the dean of San Marino's diplomatic corps.

San Marino is a full member of the United Nations, International Court of
Justice, United Nations Educational, Scientific and Cultural Organization
(UNESCO), International Monetary Fund (IMF), World Health Organization (WHO),
World Tourism Organization (WTO), Council of Europe, International Red Cross
Organization, and the International Institution for the Unification of
Private Law (UNIDROIIT), among others. It also cooperates with UNICEF and the
United Nations High Commission for Refugees and has official relations with
the European Union. From May 10 until November 6, 1990, San Marino held the
semi-annual presidency of the Committee of Ministers of the Council of
Europe, headquartered in Strasbourg, France.

U.S.-SAN MARINO RELATIONS
The United States and San Marino enjoy friendly diplomatic relations. San
Marino consistently supports U.S. foreign policy positions, as well as U.S.
candidates to international organizations. The two countries are on excellent
terms. The United States Consul General in Florence also serves as the U.S.
diplomatic representative to San Marino. For consular purposes, the republic
is within the jurisdiction of the Florence consular district. Consulate
officials regularly visit San Marino to carry out diplomatic demarches,
represent U.S. interests, and administer consular services.

Principal U.S. Official
U.S. Consul General--Nora Dempsey

The U.S. Consulate General is at Lungarno Amerigo Vespucci, 38, 50123
Firenze, Italy (tel. (39) (055) 226-951).