GNP per capita is the most widely accepted index for a country's financial success. Also referred to as Gross National Income, this much publicized statistic represents the total amount of money that a country's consumers spend on all goods and services in a year, divided by that country's population.
GNP per capita only counts consumption that can be measured in money. Therefore GNP statistics cannot capture the true quality of life in a country, nor do they necessarily define the best nations in the world. GNP per capita does tell a general story about a country's overall wealth - one that should be taken with a grain of salt and without stereotyping the living standard for all citizens.
Based on World Bank Development Indicators published in July 2006, here are the 10 richest countries in the world. GNP per capita for each country is shown in US dollars.
Luxembourg's high GNP per capita is due in part because a significant part of its workforce lives in neighbouring countries. Non-resident workers are not counted in Luxembourg's population which in turn raises the country's GNP per capita score. Bordered by Belgium, France and Germany, Luxembourg is strategically located close to its primary international trade partners particularly Belgium and the Netherlands. As a member of the European Union, Luxembourg also enjoys the advantages of the open European market.
Ten Richest Countries (based on 2004 GNP per capita in US$)
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Luxembourg is about half the size of Delaware. The Ardennes Mountains extend from Belgium into the northern section of Luxembourg. The rolling plateau of the fertile Bon Pays is in the south.
Constitutional monarchy.
Luxembourg, once part of Charlemagne's empire, became an independent state in 963, when Siegfried, count of Ardennes, became sovereign of Lucilinburhuc (“Little Fortress”). In 1060, Conrad, a descendant of Siegfried, took the title count of Luxembourg. From the 15th to the 18th century, Spain, France, and Austria held the duchy in turn. The Congress of Vienna in 1815 made it a grand duchy and gave it to William I, king of the Netherlands. In 1839, the Treaty of London ceded the western part of Luxembourg to Belgium. The eastern part, continuing in personal union with the Netherlands and a member of the German Confederation, became autonomous in 1848 and a neutral territory by decision of the London Conference of 1867, governed by its grand duke. Germany occupied the duchy in World Wars I and II. Allied troops liberated the enclave in 1944.
Luxembourg joined NATO in 1949, the Benelux Economic Union (with Belgium and the Netherlands) in 1948, and the European Economic Community (later the EU) in 1957. In 1961, Prince Jean, son and heir of Grand Duchess Charlotte, was made head of state, acting for his mother. She abdicated in 1964, and Prince Jean became grand duke. Grand Duchess Charlotte died in 1985. Luxembourg's parliament approved the Maastricht Accord, paving the way for the economic unity of the EU in July 1992. Crown Prince Henri was sworn in as grand duke in Oct. 2000, replacing his father, Jean, who had been head of state for 26 years.
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Norway is situated in the western part of the Scandinavian peninsula. It extends about 1,100 mi (1,770 km) from the North Sea along the Norwegian Sea to more than 300 mi (483 km) above the Arctic Circle, the farthest north of any European country. It is slightly larger than New Mexico. Nearly 70% of Norway is uninhabitable and covered by mountains, glaciers, moors, and rivers. The hundreds of deep fjords that cut into the coastline give Norway an overall oceanfront of more than 12,000 mi (19,312 km). Galdhø Peak, at 8,100 ft (2,469 m), is Norway's highest point and the Glåma (Glomma) is the principal river, at 372 mi (598 km) long.
Constitutional monarchy.
Norwegians, like the Danes and Swedes, are of Teutonic origin. The Norsemen, also known as Vikings, ravaged the coasts of northwest Europe from the 8th to the 11th century and were ruled by local chieftains. Olaf II Haraldsson became the first effective king of all Norway in 1015 and began converting the Norwegians to Christianity. After 1442, Norway was ruled by Danish kings until 1814, when it was united with Sweden—although retaining a degree of independence and receiving a new constitution—in an uneasy partnership. In 1905, the Norwegian parliament arranged a peaceful separation and invited a Danish prince to the Norwegian throne—King Haakon VII. A treaty with Sweden provided that all disputes be settled by arbitration and that no fortifications be erected on the common frontier.
When World War I broke out, Norway joined with Sweden and Denmark in a decision to remain neutral and to cooperate in the joint interest of the three countries. In World War II, Norway was invaded by the Germans on April 9, 1940. It resisted for two months before the Nazis took complete control. King Haakon and his government fled to London, where they established a government-in-exile. Maj. Vidkun Quisling, who served as Norway's prime minister during the war, was the most notorious of the Nazi collaborators. The word for traitor, quisling, bears his name. He was executed by the Norwegians on Oct. 24, 1945. Despite severe losses in the war, Norway recovered quickly as its economy expanded. It joined NATO in 1949.
In the late 20th century, the Labor Party and the Conservative Party seesawed for control, each sometimes having to lead minority governments. An important debate was over Norway's membership in the European Union. In an advisory referendum held in Nov. 1994, voters rejected seeking membership for their nation in the EU. The country became the second-largest oil exporter after Saudi Arabia in 1995. Norway continued to experience rapid economic growth into the new millennium.
In March 2000, Prime Minister Kjell Magne Bondevik resigned after parliament voted to build the country's first gas-fired power stations. Bondevik had objected to the project, asserting that the plants would emit too much carbon dioxide. Labor Party leader Jens Stoltenberg succeeded Bondevik. Stoltenberg and the Labor Party were defeated in Sept. 2001 elections, and no party emerged with a clear majority. After a month of talks, the Conservatives, the Christian People's Party, and the Liberals formed a coalition with Bondevik as prime minister. The governing coalition was backed by the far-right Progress Party. But in Sept. 2005 elections, the center-left Red-Green coalition gained a majority of seats, and Jens Stoltenberg of the Labor Party once again became prime minister.
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Switzerland, in central Europe, is the land of the Alps. Its tallest peak is the Dufourspitze at 15,203 ft (4,634 m) on the Swiss side of the Italian border, one of 10 summits of the Monte Rosa massif. The tallest peak in all of the Alps, Mont Blanc (15,771 ft; 4,807 m), is actually in France. Most of Switzerland is composed of a mountainous plateau bordered by the great bulk of the Alps on the south and by the Jura Mountains on the northwest. The country's largest lakes—Geneva, Constance (Bodensee), and Maggiore—straddle the French, German-Austrian, and Italian borders, respectively. The Rhine, navigable from Basel to the North Sea, is the principal inland waterway.
Federal republic.
Called Helvetia in ancient times, Switzerland in 1291 was a league of cantons in the Holy Roman Empire. Fashioned around the nucleus of three German forest districts of Schwyz, Uri, and Unterwalden, the Swiss Confederation slowly added new cantons. In 1648 the Treaty of Westphalia gave Switzerland its independence from the Holy Roman Empire.
French revolutionary troops occupied the country in 1798 and named it the Helvetic Republic, but Napoléon in 1803 restored its federal government. By 1815, the French- and Italian-speaking peoples of Switzerland had been granted political equality.
In 1815, the Congress of Vienna guaranteed the neutrality and recognized the independence of Switzerland. In the revolutionary period of 1847, the Catholic cantons seceded and organized a separate union called the Sonderbund, but they were defeated and rejoined the federation.
In 1848, the new Swiss constitution established a union modeled on that of the U.S. The federal constitution of 1874 established a strong central government while giving large powers of control to each canton. National unity and political conservatism grew as the country prospered from its neutrality. Its banking system became the world's leading repository for international accounts.
Strict neutrality was its policy in both world wars. Geneva was the seat of the League of Nations (later the European headquarters of the United Nations) and of a number of international organizations.
Allegations in the 1990s concerning secret assets of Jewish Holocaust victims deposited in Swiss banks led to international criticism and the establishment of a fund to reimburse the victims and their families.
Surprisingly, women were not given the right to vote or to hold office until 1971. Switzerland's first woman president—as well as the first Jew to assume the position—was Ruth Dreifuss in 1999.
In Sept. 2000, the Swiss voted against a plan to cut the number of foreigners in the country to 18% of the population (in 2000 foreigners made up 19.3%). Since 1970, four similar anti-immigration plans have failed.
On Sept 10, 2002, the Swiss abandoned their long-held neutrality to become the 190th member of the UN.
In Oct. 2003, Switzerland took a turn to the right when the far-right Swiss People's Party (SVP) had the strongest showing in parliamentary elections, garnering 28% of the vote. Its virulently anti-immigration, anti-EU leader, Christopher Blocher, was given a cabinet position.
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Federal republic.
The president is elected for a four-year term and may be reelected only once. The bicameral Congress consists of the 100-member Senate, elected to a six-year term with one-third of the seats becoming vacant every two years, and the 435-member House of Representatives, elected every two years. The minimum voting age is 18.
America's deficit in the year before "Operation Iraqi Freedom" invasion started on March 20, 2003 rose 64% to $767.5 billion in 2005 from $468.3 billion in 2002.
The good news is that the United States exported US$906 billion worth of goods & services to the rest of the world in 2005, up about 31% from $693.1 billion in 2002.
However, money outflows from U.S. to pay for imports increased at a faster rate over the same period, up 44% to $1.67 trillion from $1.16 trillion. In 2002 U.S. imports were already a much higher number than exports, giving the higher percentage growth rate for imports even more impact on America's growing deficit.
The lists below show the trading nations that bought the most American exports, sold the most imports to the U.S. and enjoyed the highest trade surpluses at Uncle Sam's expense.
Top 10 Countries for U.S. Exports (2005)
Canada ... US$211.9 billion (up 31.7% from 2002) Mexico ... $120.4 billion (up 23.5%) Japan ... $55.5 billion (up 7.8%) China ... $41.9 billion (up 89.6%) United Kingdom ...$38.6 billion (up 16.3%) Germany ... $34.2 billion (up 28.6%) South Korea ... $27.8 billion (up 23%) Netherlands ... $26.5 billion (up 44.8%) France ... $22.4 billion (up 17.9%) Taiwan ... $22.1 billion (up 20.1%)The top 4 trade partners for American exports - Canada, Mexico, Japan and China - consumed over 47% of U.S. exports in 2005.
Top 10 Countries U.S. Imports From (2005)
Canada ... US$290.4 billion (up 38.9% from 2002) China ... $243.5 billion (up 94.5%) Mexico ... $170.1 billion (up 26.4%) Japan ... $138 billion (up 13.7%) Germany ...$84.8 billion (up 35.7%) United Kingdom ... $51 billion (up 25.3%) South Korea ... $43.8 billion (up 23%) Taiwan ... $34.8 billion (up 8.4%) Venezuela ... $34 billion (up 125.2%) France ... $33.8 billion (up 19.9%)Canada, China, Japan and Mexico supplied more than half of U.S. imports in 2005. Oil-producer Venezuela showed the highest percentage gain in its exports to the U.S. However, China's exports to the U.S. almost doubled since 2002, and account for a much higher share of world exports to the U.S. when compared to the smaller number for Venezuelan exports.
The top 4 nations in the list below were responsible for some 54% of America's total deficit in 2005.
Top 10 Countries Contributing to U.S. Trade Deficit (2005)
China ... -$201.5 billion (up 95.4% from 2002) Japan ... -$82.5 billion (up 17.9%) Canada ... -$78.5 billion (up 62.9%) Germany ... -$50.6 billion (up 40.9%) Mexico ... -$49.7 billion (up 33.6%) Venezuela ... -$27.6 billion (up 157.9%) Malaysia ... -$23.2 billion (up 69.3%) Nigeria ... -$22.6 billion (up 361.2%) Saudi Arabia ... -$20.4 billion (up 142.9%) Italy ... -$19.5 billion (up 37.3%)With its formidable growth rate in its low-cost exports, China alone generated over a quarter of the U.S. deficit in 2005 (up from 22% of the deficit in 2002). The above list also shows the effects of higher oil prices since the Iraqi invasion, with oil-nations Venezuela, Nigeria and Saudi Arabia accounting for almost 10% of Uncle Sam's trade imbalance in 2005.
So how can the U.S. get back on the track for surpluses in international trade?
Increases in the exchange rate for the Chinese yen would make imports from China more expensive, slow American purchases of Chinese goods and make U.S. products more competitive at home and globally. Lower oil prices and alternative energy sources would also reduce what America pays for foreign fuel imports.
According to the traditional political script, American productivity increases can improve global competitiveness by increasing U.S. exports.
Yet perhaps the most prevalent trend in international trade is globalization. Specifically, American companies like McDonald's, Starbucks, Wal-Mart and Microsoft are expanding into high-growth countries around the world in their quests to boost cash inflows into the pockets of American companies while U.S. jobs are outsourced to the host nations.
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Smallest of the Scandinavian countries (half the size of Maine), Denmark occupies the Jutland peninsula, a lowland area. The country also consists of several islands in the Baltic Sea; the two largest are Sjælland, the site of Copenhagen, and Fyn.
Constitutional monarchy.
From 10,000 to 1500 B.C., the population of present-day Denmark evolved from a society of hunters and fishers into one of farmers. Called Jutland by the end of the 8th century, its mariners were among the Vikings, or Norsemen, who raided western Europe and the British Isles from the 9th to 11th century.
The country was Christianized by Saint Ansgar and Harald Blaatand (Bluetooth)—the first Christian king—in the 10th century. Harald's son, Sweyn, conquered England in 1013. Sweyn's son, Canute the Great, who reigned from 1014 to 1035, united Denmark, England, and Norway under his rule; the southern tip of Sweden was part of Denmark until the 17th century. On Canute's death, civil war tore apart the country until Waldemar I (1157–1182) reestablished Danish hegemony over the north.
In 1282, the nobles won the Great Charter, and Eric V was forced to share power with parliament and a Council of Nobles. Waldemar IV (1340–1375) restored Danish power, checked only by the Hanseatic League of north German cities allied with ports from Holland to Poland. Denmark, Norway, and Sweden united under the rule of his daughter Margrethe in 1397. But Sweden later achieved autonomy and in 1523, under Gustavus I, independence.
Denmark supported Napoléon, for which it was punished at the Congress of Vienna in 1815 by the loss of Norway to Sweden. In 1864, the Prussians under Bismarck and the Austrians made war on Denmark as an initial step in the unification of Germany. Denmark was neutral in World War I.
In 1940, Denmark was invaded by the Nazis. King Christian X reluctantly cautioned his fellow Danes to accept the occupation, but there was widespread resistance against the Nazis. Denmark was the only occupied country in World War II to save all its Jews from extermination, by smuggling them out of the country.
Beginning in 1944, Denmark's relationship with its territories changed substantially. In that year, Iceland declared its independence from Denmark, ending a union that had existed since 1380. In 1948, the Faroe Islands, which had also belonged to Denmark since 1380, were granted home rule, and in 1953, Greenland officially became a territory of Denmark.
In 2001, the dominant Social-Democrat Party lost to Anders Fogh Rasmussen of the center-right Liberal Party, which formed a coalition with the Conservative Party. Prime Minister Fogh Rasmussen, author of From Socialist to Minimalist State, is a strong proponent of privatization, deregulation, and limited government. Immigration to Denmark fell dramatically in 2002, after Fogh Rasmussen instituted Europe's most restrictive laws for asylum seekers. Because of Denmark's social welfare benefits, the country had become a much-sought-after haven for refugees. In Feb. 2005, Fogh Rasmussen won a second term as prime minister.
In Feb. 2006, the publication of political cartoons depicting the Islamic prophet Muhammad set off a series of outraged demonstrations and riots in a number of Muslim countries. At least a dozen died in the protests.
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Iceland, an island about the size of Kentucky, lies in the north Atlantic Ocean east of Greenland and just touches the Arctic Circle. It is one of the most volcanic regions in the world. More than 13% is covered by snowfields and glaciers, and most of the people live in the 7% of the island that is made up of fertile coastland. The Gulf Stream keeps Iceland's climate milder than one would expect from an island near the Arctic Circle.
Constitutional republic.
The earliest inhabitants of Iceland were Irish hermits, who left the island upon the arrival of the pagan Norse people in the late 9th century. A constitution drawn up c. 930 created a form of democracy and provided for an Althing, the world's oldest practicing legislative assembly. The island's early history was preserved in the Icelandic sagas of the 13th century.
In 1262–1264, Iceland came under Norwegian rule and passed to ultimate Danish control through the unification of the kingdoms of Norway, Sweden, and Denmark (the Kalmar Union) in 1397.
In 1874, Icelanders obtained their own constitution, and in 1918, Denmark recognized Iceland, via the Act of Union, as a separate state with unlimited sovereignty. It remained, however, nominally under the Danish monarchy.
During the German occupation of Denmark in World War II, British, then American, troops occupied Iceland and used it for a strategic air base. While officially neutral, Iceland cooperated with the Allies throughout the conflict. On June 17, 1944, after a popular referendum, the Althing proclaimed Iceland an independent republic.
The country joined the North Atlantic Treaty Organization in 1949 and subsequently received an American air force base in 1951. In 1970, it was admitted to the European Free Trade Association. Iceland unilaterally extended its territorial fishing limit from 3 to 200 nautical miles in 1972, precipitating a dispute with the UK known as the “cod wars,” which ended in 1976 when the UK recognized the new limits. In 1980, the Icelanders elected a woman to the office of the presidency, the first elected female chief of state (i.e., president as distinct from prime minister) in the world. After the recession of the early 1990s, Iceland's economy rebounded.
At the International Whaling Commission meeting in July 2001, Iceland refused to agree to the continuation of the moratorium on commercial whaling that had been in effect since 1986. In 2003, after a 14-year lull, the country began hunting whales for scientific research.
In May 2003, David Oddsson was reelected, making him the longest-serving prime minister in Europe. In 2004, in a prearranged agreement made between the two parties of the coalition government, Oddsson and Foreign Minister Halldór Ásgrímsson switched positions. In June 2006 Ásgrímsson resigned as prime minister after his party did badly in local elections. Economic troubles were cited as the main reason for the Progressive Party's poor showing. Geir Haarde, leader of Iceland's largest political party, the Independence Party, became prime minister and announced the implementation of more fiscally conservative measures.
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An archipelago in the Pacific, Japan is separated from the east coast of Asia by the Sea of Japan. It is approximately the size of Montana. Japan's four main islands are Honshu, Hokkaido, Kyushu, and Shikoku. The Ryukyu chain to the southwest was U.S.-occupied from 1945 to 1972, when it reverted to Japanese control, and the Kurils to the northeast are Russian-occupied.
Constitutional monarchy with a parliamentary government.
Legend attributes the creation of Japan to the sun goddess, from whom the emperors were descended. The first of them was Jimmu, supposed to have ascended the throne in 660 B.C., a tradition that constituted official doctrine until 1945.
Recorded Japanese history begins in approximately A.D. 400, when the Yamato clan, eventually based in Kyoto, managed to gain control of other family groups in central and western Japan. Contact with Korea introduced Buddhism to Japan at about this time. Through the 700s Japan was much influenced by China, and the Yamato clan set up an imperial court similar to that of China. In the ensuing centuries, the authority of the imperial court was undermined as powerful gentry families vied for control.
At the same time, warrior clans were rising to prominence as a distinct class known as samurai. In 1192, the Minamoto clan set up a military government under their leader, Yoritomo. He was designated shogun (military dictator). For the following 700 years, shoguns from a succession of clans ruled in Japan, while the imperial court existed in relative obscurity.
First contact with the West came in about 1542, when a Portuguese ship off course arrived in Japanese waters. Portuguese traders, Jesuit missionaries, and Spanish, Dutch, and English traders followed. Suspicious of Christianity and of Portuguese support of a local Japanese revolt, the shoguns of the Tokugawa period (1603–1867) prohibited all trade with foreign countries; only a Dutch trading post at Nagasaki was permitted. Western attempts to renew trading relations failed until 1853, when Commodore Matthew Perry sailed an American fleet into Tokyo Bay. Trade with the West was forced upon Japan under terms less than favorable to the Japanese. Strife caused by these actions brought down the feudal world of the shoguns. In 1868, the emperor Meiji came to the throne, and the shogun system was abolished.
Japan quickly made the transition from a medieval to a modern power. An imperial army was established with conscription, and parliamentary government was formed in 1889. The Japanese began to take steps to extend their empire. After a brief war with China in 1894–1895, Japan acquired Formosa (Taiwan), the Pescadores Islands, and part of southern Manchuria. China also recognized the independence of Korea (Chosen), which Japan later annexed (1910).
In 1904–1905, Japan defeated Russia in the Russo-Japanese War, gaining the territory of southern Sakhalin (Karafuto) and Russia's port and rail rights in Manchuria. In World War I, Japan seized Germany's Pacific islands and leased areas in China. The Treaty of Versailles then awarded Japan a mandate over the islands.
At the Washington Conference of 1921–1922, Japan agreed to respect Chinese national integrity, but, in 1931, it invaded Manchuria. The following year, Japan set up this area as a puppet state, “Manchukuo,” under Emperor Henry Pu-Yi, the last of China's Manchu dynasty. On Nov. 25, 1936, Japan joined the Axis. The invasion of China came the next year, followed by the Pearl Harbor attack on the U.S. on Dec. 7, 1941. Japan won its first military engagements during the war, extending its power over a vast area of the Pacific. Yet, after 1942, the Japanese were forced to retreat, island by island, to their own country. The dropping of atomic bombs on the cities of Hiroshima and Nagasaki in 1945 by the United States finally brought the government to admit defeat. Japan surrendered formally on Sept. 2, 1945, aboard the battleship Missouri in Tokyo Bay. Southern Sakhalin and the Kuril Islands reverted to the USSR, and Formosa (Taiwan) and Manchuria to China. The Pacific islands remained under U.S. occupation.
Gen. Douglas MacArthur was appointed supreme commander of the U.S. occupation of postwar Japan (1945–1952). In 1947, a new constitution took effect. The emperor became largely a symbolic head of state. The U.S. and Japan signed a security treaty in 1951, allowing for U.S. troops to be stationed in Japan. In 1952, Japan regained full sovereignty, and, in 1972, the U.S. returned to Japan the Ryuku Islands, including Okinawa.
Japan's postwar economic recovery was nothing short of remarkable. New technologies and manufacturing were undertaken with great success. A shrewd trade policy gave Japan larger shares in many Western markets, an imbalance that caused some tensions with the U.S. The close involvement of Japanese government in the country's banking and industry produced accusations of protectionism. Yet economic growth continued through the 1970s and 1980s, eventually making Japan the world's second-largest economy (after the U.S.).
During the 1990s, Japan suffered an economic downturn prompted by scandals involving government officials, bankers, and leaders of industry. Japan succumbed to the Asian economic crisis in 1998, experiencing its worst recession since World War II. These setbacks led to the resignation of Prime Minister Ryutaro Hashimoto in July 1998. He was replaced by Keizo Obuchi. In 1999, Japan seemed to make slight progress in an economic recovery. Prime Minister Obuchi died of a stroke in May 2000 and was succeeded by Yoshiro Mori, whose administration was dogged by scandal and blunders from the outset.
Despite attempts to revive the economy, fears that Japan would slide back into recession increased in early 2001. The embattled Mori resigned in April 2001 and was replaced by Liberal Democrat Junichiro Koizumi—the country's 11th prime minister in 13 years. Koizumi enjoyed fleeting popularity; after two years in office the economy remained in a slump and his attempts at reform were thwarted.
At an unprecedented summit meeting in North Korea in Sept. 2002, President Kim Jong Il apologized to Koizumi for North Korea's kidnapping of Japanese citizens during the 1970s and 1980s, and Koizumi pledged a generous aid package—both significant steps toward normalizing relations.
Koizumi was overwhelmingly reelected in Sept. 2003 and promised to push ahead with tough economic reforms.
In April 2005, China protested the publication of Japanese textbooks that whitewashed the atrocities committed by Japan during World War II. Prime Minister Koizumi apologized for Japan's abuses, admitting that “Japan, through its colonial rule and aggression, caused tremendous damage and suffering.”
In Aug. 2005, Koizumi called for early elections, when the upper house of parliament rejected his proposal to privatize the postal service—a reform he has long advocated. In addition to delivering mail, Japan's postal service also functions as a savings bank and has about $3 trillion in assets. Koizumi won a landslide victory in September, with his Liberal Democrat Party securing its biggest majority since 1986.
Princesss Kiko gave birth to a boy in September. The child's birth spares Japan a controversial debate over whether women should be allowed to ascend to the throne. The child is third in line to become emperor, behind Crown Prince Naruhito, who has one daughter, and the baby's father, Prince Akishino, who has two daughters.
In September, a week after becoming leader of the ruling Liberal Democratic Party, Shinzo Abe succeeded Junichiro Koizumi as prime minister. He promptly assembles a conservative cabinet and said he hoped to increase Japan's influence on global issues.
Abe faced international criticism in early 2007 for refusing to acknowledge the military's role in forcing as many as 200,000 Japanese women, known as comfort women, to provide sex to soldiers during World War II. In March, Abe did apologize to the women, but maintained his denial that the military was involved. "I express my sympathy for the hardships they suffered and offer my apology for the situation they found themselves in," he said.
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Sweden, which occupies the eastern part of the Scandinavian Peninsula, is the fourth-largest country in Europe and is one-tenth larger than California. The country slopes eastward and southward from the Kjólen Mountains along the Norwegian border, where the peak elevation is Kebnekaise at 6,965 ft (2,123 m) in Lapland. In the north are mountains and many lakes. To the south and east are central lowlands and south of them are fertile areas of forest, valley, and plain. Along Sweden's rocky coast, chopped up by bays and inlets, are many islands, the largest of which are Gotland and Öland.
Constitutional monarchy.
The earliest historical mention of Sweden is found in Tacitus's Germania, where reference is made to the powerful king and strong fleet of the Sviones. In the 11th century, Olaf Sköttkonung became the first Swedish king to be baptized as a Christian. Around 1400, an attempt was made to unite Sweden, Norway, and Denmark into one kingdom, but this led to bitter strife between the Danes and the Swedes. In 1520, the Danish king Christian II conquered Sweden and in the “Stockholm Bloodbath” put leading Swedish personages to death. Gustavus Vasa (1523–1560) broke away from Denmark and fashioned the modern Swedish state. He also confiscated property from the Roman Catholic Church in Sweden to pay Sweden's war debts. The king justified his actions on the basis of Martin Luther's doctrines, which were being accepted nationwide with royal encouragement. The Lutheran Swedish church was eventually adopted as the state church.
Sweden played a leading role in the second phase (1630–1635) of the Thirty Years' War (1618–1648). By the Treaty of Westphalia (1648), Sweden obtained western Pomerania and some neighboring territory on the Baltic. In 1700, a coalition of Russia, Poland, and Denmark united against Sweden and by the Peace of Nystad (1721) forced it to relinquish Livonia, Ingria, Estonia, and parts of Finland. Sweden emerged from the Napoleonic Wars with the acquisition of Norway from Denmark and with a new royal dynasty stemming from Marshal Jean Bernadotte of France, who became King Charles XIV (1818–1844). The artificial union between Sweden and Norway led to an uneasy relationship, and the union was finally dissolved in 1905. Sweden maintained a position of neutrality in both world wars.
An elaborate structure of welfare legislation, imitated by many larger nations, began with the establishment of old-age pensions in 1911. Economic prosperity based on its neutralist policy enabled Sweden, together with Norway, to pioneer in public health, housing, and job security programs. Forty-four years of Socialist government ended in 1976 with the election of a Conservative coalition headed by Thorbjörn Fälldin. The Socialists were returned to power in the election of 1982, but Prime Minister Olof Palme, a Socialist, was assassinated by a gunman on Feb. 28, 1986, leaving Sweden stunned. Palme's Socialist domestic policies were carried out by his successor, Ingvar Carlsson. Elections in Sept. 1991 ousted the Social Democrats (Socialists) from power. The new coalition of four conservative parties pledged to reduce taxes and the welfare state but not alter Sweden's traditional neutrality. In Sept. 1994 the Social Democrats emerged again after three years as the opposition party.
In a 1994 referendum voters approved joining the European Union. Although supportive of a European monetary union, Sweden decided not to adopt the euro when it debuted in 1999 and rejected it again overwhelmingly in a referendum in Sept. 2003.
The Social Democrat Party and its leader, Prime Minister Göran Persson, easily won reelection in Sept. 2002. The center-left Social Democrats had run the government for six out of the last seven decades. That changed when a center-right alliance led by conservative Fredrik Reinfeldt, leader of the Moderate Party, won the election in Sept. 2006.
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Ireland is situated in the Atlantic Ocean and separated from Great Britain by the Irish Sea. Half the size of Arkansas, it occupies the entire island except for the six counties that make up Northern Ireland. Ireland resembles a basin—a central plain rimmed with mountains, except in the Dublin region. The mountains are low, with the highest peak, Carrantuohill in County Kerry, rising to 3,415 ft (1,041 m). The principal river is the Shannon, which begins in the north-central area, flows south and southwest for about 240 mi (386 km), and empties into the Atlantic.
Republic.
In the Stone and Bronze Ages, Ireland was inhabited by Picts in the north and a people called the Erainn in the south, the same stock, apparently, as in all the isles before the Anglo-Saxon invasion of Britain. About the 4th century B.C., tall, red-haired Celts arrived from Gaul or Galicia. They subdued and assimilated the inhabitants and established a Gaelic civilization. By the beginning of the Christian Era, Ireland was divided into five kingdoms—Ulster, Connacht, Leinster, Meath, and Munster. Saint Patrick introduced Christianity in 432, and the country developed into a center of Gaelic and Latin learning. Irish monasteries, the equivalent of universities, attracted intellectuals as well as the pious and sent out missionaries to many parts of Europe and, some believe, to North America.
Norse depredations along the coasts, starting in 795, ended in 1014 with Norse defeat at the Battle of Clontarf by forces under Brian Boru. In the 12th century, the pope gave all of Ireland to the English Crown as a papal fief. In 1171, Henry II of England was acknowledged “Lord of Ireland,” but local sectional rule continued for centuries, and English control over the whole island was not reasonably absolute until the 17th century. In the Battle of the Boyne (1690), the Catholic King James II and his French supporters were defeated by the Protestant King William III (of Orange). An era of Protestant political and economic supremacy began.
By the Act of Union (1801), Great Britain and Ireland became the “United Kingdom of Great Britain and Ireland.” A steady decline in the Irish economy followed in the next decades. The population had reached 8.25 million when the great potato famine of 1846–1848 took many lives and drove more than 2 million people to immigrate to North America.
In the meantime, anti-British agitation continued along with demands for Irish home rule. The advent of World War I delayed the institution of home rule and resulted in the Easter Rebellion in Dublin (April 24–29, 1916), in which Irish nationalists unsuccessfully attempted to throw off British rule. Guerrilla warfare against British forces followed proclamation of a republic by the rebels in 1919. The Irish Free State was established as a dominion on Dec. 6, 1922, with six northern counties remaining as part of the United Kingdom. A civil war ensued between those supporting the Anglo-Irish Treaty that established the Irish Free State and those repudiating it because it led to the partitioning of the island. The Irish Republican Army (IRA), led by Eamon de Valera, fought against the partition but lost. De Valera joined the government in 1927 and became prime minister in 1932. In 1937 a new constitution changed the nation's name to Éire. Ireland remained neutral in World War II.
In 1948, De Valera was defeated by John A. Costello, who demanded final independence from Britain. The Republic of Ireland was proclaimed on April 18, 1949, and withdrew from the Commonwealth. From the 1960s onward two antagonistic currents dominated Irish politics. One sought to bind the wounds of the rebellion and civil war. The other was the effort of the outlawed Irish Republican Army and more moderate groups to bring Northern Ireland into the republic. The “troubles”—the violence and terrorist acts between Republicans and Unionists in both the Republic of Ireland and Northern Ireland—would plague the island for the remainder of the century and beyond.
Under the First Programme for Economic Expansion (1958–1963), economic protection was dismantled and foreign investment encouraged. This prosperity brought profound social and cultural changes to what had been one of the poorest and least technologically advanced countries in Europe. Ireland joined the European Economic Community (now the EU) in 1973. In the 1990 presidential election, Mary Robinson was elected the republic's first woman president. The election of a candidate with socialist and feminist sympathies was regarded as a watershed in Irish political life, reflecting the changes taking place in Irish society. Irish voters approved the Maastricht Treaty, which paved the way for the establishment of the EU, by a large majority in a referendum held in 1992. In 1993, the Irish and British governments signed a joint peace initiative (the Downing Street Declaration), which affirmed Northern Ireland's right to self-determination. A referendum on allowing divorce under certain conditions—hitherto constitutionally forbidden—was narrowly passed in Nov. 1995.
In 1998 hope for a solution to the troubles in Northern Ireland seemed palpable. A landmark settlement, the Good Friday Agreement of April 10, 1998, called for Protestants to share political power with the minority Catholics and gave the Republic of Ireland a voice in the affairs of Northern Ireland. The resounding commitment to the settlement was demonstrated in a dual referendum on May 22: the North approved the accord by a vote of 71% to 29%, and in the Irish Republic 94% favored it. After numerous stops and starts, the new government in Northern Ireland was formed on Dec. 2, 2000, but it has been suspended four times since then (and has remained suspended since Oct. 2002) primarily because of Sinn Fein's reluctance to disarm its military wing, the IRA. In 2005, however, the IRA renounced armed struggle, and peace again seemed possible.
Despite a number of recent corruption and bribery scandals, most of which involved the centrist Fianna Fáil Party of Prime Minister Bertie Ahern, the party won 81 of 166 seats in May 2002. Ahern became the first Irish prime minister in 33 years to be elected to a second successive term.
Once a country plagued with high unemployment, high inflation, slow growth, and a large public debt, Ireland has undergone an extraordinary economic transformation in the last 15 years. Formerly an agriculture-based economy, the “Celtic Tiger” has become a leader in high-tech industries. In some recent years its economy has grown as much as 10%.
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The United Kingdom, consisting of Great Britain (England, Wales, and Scotland) and Northern Ireland, is twice the size of New York State. England, in the southeast part of the British Isles, is separated from Scotland on the north by the granite Cheviot Hills; from them the Pennine chain of uplands extends south through the center of England, reaching its highest point in the Lake District in the northwest. To the west along the border of Wales—a land of steep hills and valleys—are the Cambrian Mountains, while the Cotswolds, a range of hills in Gloucestershire, extend into the surrounding shires.
Important rivers flowing into the North Sea are the Thames, Humber, Tees, and Tyne. In the west are the Severn and Wye, which empty into the Bristol Channel and are navigable, as are the Mersey and Ribble.
The United Kingdom is a constitutional monarchy and parliamentary democracy, with a queen and a parliament that has two houses: the House of Lords, with 574 life peers, 92 hereditary peers, and 26 bishops; and the House of Commons, which has 651 popularly elected members. Supreme legislative power is vested in parliament, which sits for five years unless dissolved sooner. The House of Lords was stripped of most of its power in 1911, and now its main function is to revise legislation. In Nov. 1999 hundreds of hereditary peers were expelled in an effort to make the body more democratic. The executive power of the Crown is exercised by the cabinet, headed by the prime minister.
England has existed as a unified entity since the 10th century; the union between England and Wales, begun in 1284 with the Statute of Rhuddlan, was not formalized until 1536 with an Act of Union; in another Act of Union in 1707, England and Scotland agreed to permanently join as Great Britain; the legislative union of Great Britain and Ireland was implemented in 1801, with the adoption of the name the United Kingdom of Great Britain and Ireland; the Anglo-Irish treaty of 1921 formalized a partition of Ireland; six northern Irish counties remained part of the United Kingdom as Northern Ireland and the current name of the country, the United Kingdom of Great Britain and Northern Ireland, was adopted in 1927.
Stonehenge and other examples of prehistoric culture are all that remain of the earliest inhabitants of Britain. Celtic peoples followed. Roman invasions of the 1st century B.C. brought Britain into contact with continental Europe. When the Roman legions withdrew in the 5th century A.D., Britain fell easy prey to the invading hordes of Angles, Saxons, and Jutes from Scandinavia and the Low Countries. The invasions had little effect on the Celtic peoples of Wales and Scotland. Seven large Anglo-Saxon kingdoms were established, and the original Britons were forced into Wales and Scotland. It was not until the 10th century that the country finally became united under the kings of Wessex. Following the death of Edward the Confessor (1066), a dispute about the succession arose, and William, Duke of Normandy, invaded England, defeating the Saxon king, Harold II, at the Battle of Hastings (1066). The Norman conquest introduced Norman French law and feudalism.
The reign of Henry II (1154–1189), first of the Plantagenets, saw an increasing centralization of royal power at the expense of the nobles, but in 1215 King John (1199–1216) was forced to sign the Magna Carta, which awarded the people, especially the nobles, certain basic rights. Edward I (1272–1307) continued the conquest of Ireland, reduced Wales to subjection, and made some gains in Scotland. In 1314, however, English forces led by Edward II were ousted from Scotland after the Battle of Bannockburn. The late 13th and early 14th centuries saw the development of a separate House of Commons with tax-raising powers. Edward III's claim to the throne of France led to the Hundred Years' War (1338–1453) and the loss of almost all the large English territory in France. In England, the great poverty and discontent caused by the war were intensified by the Black Death, a plague that reduced the population by about one-third. The Wars of the Roses (1455–1485), a struggle for the throne between the House of York and the House of Lancaster, ended in the victory of Henry Tudor (Henry VII) at Bosworth Field (1485).
During the reign of Henry VIII (1509–1547), the church in England asserted its independence from the Roman Catholic Church. Under Edward VI and Mary, the two extremes of religious fanaticism were reached, and it remained for Henry's daughter, Elizabeth I (1558–1603), to set up the Church of England on a moderate basis. In 1588, the Spanish Armada, a fleet sent out by Catholic King Philip II of Spain, was defeated by the English and destroyed during a storm. During Elizabeth's reign, England became a world power. Elizabeth's heir was a Stuart—James VI of Scotland—who joined the two crowns as James I (1603–1625). The Stuart kings incurred large debts and were forced either to depend on parliament for taxes or to raise money by illegal means. In 1642, war broke out between Charles I and a large segment of the parliament; Charles was defeated and executed in 1649, and the monarchy was then abolished. After the death in 1658 of Oliver Cromwell, the lord protector, the Puritan Commonwealth fell to pieces and Charles II was placed on the throne in 1660. The struggle between the king and parliament continued, but Charles II knew when to compromise. His brother, James II (1685–1688), possessed none of Charles II's ability and was ousted by the Revolution of 1688, which confirmed the primacy of parliament. James's daughter, Mary, and her husband, William of Orange, then became the rulers.
Queen Anne's reign (1702–1714) was marked by the Duke of Marlborough's victories over France at Blenheim, Oudenarde, and Malplaquet in the War of the Spanish Succession. England and Scotland meanwhile were joined by the Act of Union (1707). Upon the death of Anne, the distant claims of the elector of Hanover were recognized, and he became king of Great Britain and Ireland as George I. The unwillingness of the Hanoverian kings to rule resulted in the formation by the royal ministers of a cabinet, headed by a prime minister, which directed all public business. Abroad, the constant wars with France expanded the British Empire all over the globe, particularly in North America and India. This imperial growth was checked by the revolt of the American colonies (1775–1781). Struggles with France broke out again in 1793 and during the Napoleonic Wars, which ended at Waterloo in 1815.
The Victorian era, named after Queen Victoria (1837–1901), saw the growth of a democratic system of government that had begun with the Reform Bill of 1832. The two important wars in Victoria's reign were the Crimean War against Russia (1854–1856) and the Boer War (1899–1902), the latter enormously extending Britain's influence in Africa. Increasing uneasiness at home and abroad marked the reign of Edward VII (1901–1910). Within four years after the accession of George V in 1910, Britain entered World War I when Germany invaded Belgium. The nation was led by coalition cabinets, headed first by Herbert Asquith and then, starting in 1916, by the Welsh statesman David Lloyd George. Postwar labor unrest culminated in the general strike of 1926.
King Edward VIII succeeded to the throne on Jan. 20, 1936, at his father's death, but he abdicated on Dec. 11, 1936 (in order to marry an American divorcée, Wallis Warfield Simpson), in favor of his brother, who became George VI.
The efforts of Prime Minister Neville Chamberlain to stem the rising threat of Nazism in Germany failed with the German invasion of Poland on Sept. 1, 1939, which was followed by Britain's entry into World War II on Sept. 3. Allied reverses in the spring of 1940 led to Chamberlain's resignation and the formation of another coalition war cabinet by the Conservative leader, Winston Churchill, who led Britain through most of World War II. Churchill resigned shortly after V-E Day, May 8, 1945, but then formed a “caretaker” government that remained in office until after the parliamentary elections in July, which the Labour Party won overwhelmingly. The new government, formed by Clement R. Attlee, began a moderate socialist program.
(For details of World War II, see Headline History, World War II.)
In 1951, Churchill again became prime minister at the head of a Conservative government. George VI died on Feb. 6, 1952, and was succeeded by his daughter, Elizabeth II. Churchill stepped down in 1955 in favor of Sir Anthony Eden, who resigned on grounds of ill health in 1957 and was succeeded by Harold Macmillan and Sir Alec Douglas-Home. In 1964, Harold Wilson led the Labour Party to victory. A lagging economy brought the Conservatives back to power in 1970. Prime Minister Edward Heath won Britain's admission to the European Community. Margaret Thatcher became Britain's first woman prime minister as the Conservatives won 339 seats on May 3, 1979.
An Argentine invasion of the Falkland Islands on April 2, 1982, involved Britain in a war 8,000 mi from the home islands. Argentina had long claimed the Falklands, known as the Malvinas in Spanish, which had been occupied by the British since 1832. Britain won a decisive victory within six weeks when more than 11,000 Argentine troops on the Falklands surrendered on June 14, 1982.
Although there were continuing economic problems and foreign policy disputes, an upswing in the economy in 1986–1987 led Thatcher to call elections in June, and she won a near-unprecedented third consecutive term. The unpopularity of Thatcher's poll tax together with an uncompromising position toward further European integration eroded support within her own party. When John Major won the Conservative Party leadership in November, Thatcher resigned, paving the way for Major to form a government.
Eighteen years of Conservative rule ended in May 1997 when Tony Blair and the Labour Party triumphed in the British elections. Blair has been compared to former U.S. president Bill Clinton for his youthful, telegenic personality and centrist views. He produced constitutional reform that partially decentralized the UK, leading to the formation of separate parliaments in Wales and Scotland by 1999. Britain turned over its colony Hong Kong to China in July 1997.
Blair's controversial meeting in Oct. 1997 with Sinn Fein's president, Gerry Adams, was the first meeting in 76 years between a British prime minister and a Sinn Fein leader. It infuriated numerous factions but was a symbolic gesture in support of the nascent peace talks in Northern Ireland. In 1998 the Good Friday Agreement, strongly supported by Tony Blair, led to the first promise of peace between Catholics and Protestants since the beginning of the so-called Troubles.
Along with the U.S., Britain launched air strikes against Iraq in Dec. 1998 after Saddam Hussein expelled UN arms inspectors. In the spring of 1999, Britain spearheaded the NATO operation in Kosovo, which resulted in Yugoslavian president Slobodan Milosevic's withdrawal from the territory.
In Feb. 2001, foot-and-mouth disease broke out among British livestock, prompting other nations to ban British meat imports and forcing the slaughter of thousands of cattle, pigs, and sheep in an effort to stem the highly contagious disease.
In June 2001, Blair won a second landslide victory, with the Labour Party capturing 413 seats in parliament.
Britain became the staunchest ally of the U.S. after the Sept. 11 attacks. British troops joined the U.S. in the bombing campaign against Afghanistan in Oct. 2001, after the Taliban-led government refused to turn over the prime suspect in the terrorist attacks, Osama bin Laden.
Blair again proved himself to be the strongest international supporter of the U.S. in Sept. 2002, becoming President Bush's major ally in calling for a war against Iraq. Blair maintained that military action was justified because Iraq was developing weapons of mass destruction that were a direct threat. He supported the Bush administration's hawkish policies despite significant opposition in his own party and the British public. In March 2003, a London Times newspaper poll indicated that only 19% of respondents approved of military action without a UN mandate. As the inevitability of the U.S. strike on Iraq grew nearer, Blair announced that he would join the U.S. in fighting Iraq with or without a second UN resolution. Three of his ministers resigned as a result. Britain entered the war on March 20, supplying 45,000 troops.
In the aftermath of the war, Blair came under fire from government officials for allegedly exaggerating Iraq's possession of weapons of mass destruction. In July 2003 Blair announced that “history would forgive” the UK and U.S. “if we are wrong” and that the end to the “inhuman carnage and suffering” caused by Saddam Hussein was justification enough for the war. The arguments about the war grew so vociferous between the Blair government and the BBC that a prominent weapons scientist, David Kelly, who was caught in the middle, committed suicide. In Jan. 2004, the Hutton Report asserted that the Blair administration had not “sexed-up” the intelligence dossier, an accusation put forth by BBC reporter Andrew Gilligan. The report strongly criticized the BBC for its “defective” editorial policies, and as a consequence, the BBC's top management resigned. In July 2004, the Butler Report on pre–Iraq war British intelligence was released. It echoed the findings of the U.S. Senate Intelligence Committee of the week before that the intelligence had vastly exaggerated Saddam Hussein's threat. The famous claim that Iraq's chemical and biological weapons “are deployable within 45 minutes of an order to use them” was especially singled out as highly misleading. But like the U.S. report, it cleared the government of any role in manipulating the intelligence.
On May 5, 2005, Blair won a historic third term as the country's prime minister. Despite this victory, Blair's party was severely hurt in the elections. The Labour Party won just 36% of the national vote, the lowest percentage by a ruling party in British history. The Conservative Party won 33%, and the Liberal Democrats 22%. Blair acknowledged that the reason for the poor showing was Britain's involvement in the war in Iraq. A number of political analysts believe Blair will not serve out his new five-year term. Many expect him to resign in the next several years and turn over the reins of the Labour Party to Gordon Brown, the chancellor of the exchequer, whose policies many credit in creating Britain's strong and stable economy.
On July 7, 2005, London suffered a terrorist bombing, Britain's worst attack since World War II. Four bombs exploded in three subway stations and on one double-decker bus during the morning rush hour, killing 52 and wounding more than 700. Four Muslim men, three of them British-born, were identified as the suicide bombers. On July 21, terrorists attempted another attack on the transit system, but the bombs failed to explode. A leaked document by a top British government official warned Prime Minister Blair more than a year before the bombings that Britain's engagement in Iraq was fueling Islamic extremism, but Blair has repeatedly denied such a link, contending that the bombings were the result of an “evil ideology” that had taken root before the Iraq war. Blair proposed legislation that would toughen the country's antiterrorism measures, and he suffered his first major political defeat as prime minister in November, when his proposal that terrorist suspects could be held without charge for up to 90 days was rejected.
In April 2006, the Blair government weathered a major scandal when it was revealed that since 1999 it had released 1,023 foreign convicts—among them murderers and rapists—into British society instead of deporting them to their countries of origin.
In Aug. 2006, London police foiled a major terrorist plot to destroy several airplanes traveling from Britain to the U.S. Intelligence sources asserted that the plan was close to execution, and had it succeeded, it would have been the deadliest terrorist attack since Sept. 11. A number of young men, most of whom are Britons of Pakistani descent, have been arrested in connection with the plot.
After intensive pressure from his party, Tony Blair announced in August that he would resign as prime minister within 12 months. Blair announced in Feb. 2007 that as many as 1,600 of the 7,100 troops stationed in southern Iraq would leave in the next few months. “What all this means is not that Basra is how we want it to be, but it does mean that the next chapter in Basra's history can be written by Iraqis,” Blair said.
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