The Principality is a constitutional, hereditary monarchy on a democratic and parliamentary basis; the power of the State is embodied in the Reigning Prince and the People. With an area of 160 sq. km/61.8 sq miles, Liechtenstein is the fourth smallest state in Europe. Despite its size, the country can look back on a very eventful history. It is a history of rapid development, from an agrarian country to a highly industrialized state. Liechtenstein has turned into one of the most attractive economic locations in Europe since the early 50s. As a modern hub of business, Liechtenstein stands for innovation, development and stability.