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Vatican City
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Vatican City
1. Country Name
Vatican City
Conventional long form: The Holy See (State of the Vatican City).
Local long form: La Santa Sede (Stato della Cittá del Vaticano).
See (Old French sied, Latin sedes), historically a seat, especially a throne. The term now
designates the center of a bishop's authority, usually named after some town or city. A See may
be residential or titular. The term Holy (or Apostolic) See denotes the aggregation of the
authority, jurisdiction, and sovereignty exercised by the Pope and his counselors (the complex
bureaucracy that assists him) to direct the worldwide Roman Catholic (RC) Church. Holy See
As the "central government" of the RC Church the Holy See has a legal personality that allows
it to enter into treaties as the juridical equal of a state and to send and receive diplomatic
representatives.
The Vatican City is a state that provides the Holy See and its central institutions with sovereign
territory from which they may operate independently of any other national state.
2. Capital
Vatican City
3. Location and Size
Vatican City is the world's smallest fully independent state. The size and
the location of the country and its capital and the only city coincide.
Outside the Vatican City there are 13 buildings in Rome and Castel
Gandolfo (the Pope's summer residence). The rights and legislation of the
Vatican City State are extended over these properties making them in legal
It occupies the total area of 0.44 sq. km (0.169884 sq. miles) on the west
bank of the Tiber River. In comparative terms it is about 0.7 times the size
of The Mall in Washington, DC. The length of the country’s border formed
Square (Piazza San Pietro), totals 3.2 km. Italy is the only bordering
country. The terrain is low hill with the elevation extremes of 19 m in the
lowest point and 75 m in the highest point. All the territory is used as an
urban area.
4. Population
(July 2000). The population growth rate is estimated at 1.15%. The birth
rate is extremely low due to the fact that the families are mostly made up of
the population statistics are not applicable to the Vatican City because of
its size and political regime. One of the difficulties is related to the
constitutional law of the Vatican City but the state is able to confer its
acquisition are no longer fulfilled. As a matter of fact most people who live
and work in the Vatican City retain their original nationality while
becoming the Vatican citizens for the period of their employment. Thus, its
The citizenship of the Vatican City, as numerous other aspects of this state,
has many paradoxes. For example there are fewer holders of Vatican City
passports than citizens and there are passport holders who do not have
citizenship. Most of the passports are issued by the Vatican on behalf of the
diplomatic passport however does not make its holder a permanent citizen
of the city-state or give the right to enter, or reside there.
The official language of the Vatican City is Italian. The official acts of the
Holy See are drawn up in Latin. Various other languages are also in use.
domestic, trade and service jobs. Some of them dwell in the territory of the
Vatican but the majority, approximately 3,000 employees, live outside the
Vatican.
5. Monetary Unit
lira is at par with the Italian lira. Vatican coins are similar in value, size and
from that of Italy. The value of annually issued Vatican coins is restricted
tender in Italy and San Marino, another tiny city-state in the territory of
Italy. Italian notes and coins are legal tender in the Vatican City. []
6. Chief Exports
N/A
7. Chief Imports
Almost all supplies, including food, water, electricity and gas must be
In 1999 the State of the Vatican City had the GDP of $US 21 million and
GDP per capita of $US 21,198. On the basis of the total sum of GDP it
occupies the penultimate place among the states included by the UN in its
country statistics. While being the smallest of all the countries by the size
of its population, in terms of GDP per capita the Vatican City enjoys a very
9. Balance of Trade
N/A
See insert.
The wealth of the Vatican is primary that of the Church. The economy of
throughout the world, as well as the sale of postage stamps and tourist
mementos, coins issues, the sale of publications and fees for admission to
daily.
The country receives interests on investments worldwide. The City has its
own telephone system, post office, gardens, astronomical observatory,
radio station, banking system, and pharmacy. The Vatican produces little
else than religious artifacts. Its material requirements are largely met from
Italian sources.
projects. There are also plans to set up a chain of theme stores around the
practically the only one. Peter’s Pence in the present meaning of the word is an entirely
voluntary contribution of the faithful to the successor of Peter according to their wealth,
generosity, piety. The Pope and his collaborators distribute the offerings as the need for
financial assistance, including charities, arises. As a regular organized way of collecting money
Peter’s Pence has an Anglo-Saxon origin. After the conversion to Christianity, many
Englishmen started making pilgrimage to Rome. As the number of English pilgrims had
gradually increased by the end of the eighth century, a sort of pilgrims’ home was founded in a
district close to St Peter’s in order to give the English pilgrims in Rome financial help. Peter’s
Pence was officially born when a yearly tax of one penny on every family living in the kingdom
of Wessex was enforced. The tax became known as Romescot - the scot to be paid to Rome.
The habit of collecting money for the Church in Rome gradually spread to other countries.
Vatican has a special office to administer donations flowing from all over the world. Today
Peter’s Pence is organized in the following way. Every year on a certain day in all the Catholic
churches in the world a collection is held for the Pope. Usually the day is the 29th of June, Saint
Peter’s day. However, in many dioceses it is done on another day, usually the closest Sunday.
Individuals also sent cheques and small banknotes to the Pope personally. The biggest
contributor to the Peter’s Pence is the Catholics living in the US. Because of the irregular way
the money comes and the way it is administered it is practically impossible to assess the
amounts involved.
operates in the manner of elected monarchy and also is the seat of the RC
the College of Cardinals, is the chief of the state as well as the head of the
Church. The current Pope is John Paul II (Karol Wojtila) since 16 October
1978. The Pope has supreme executive, legislative and judicial power over
the Vatican City and holds his office for life. As the head of the universal
church the Roman pontiff also exercises executive, legislative and judicial
power within the Church. Given the scope of his authority, an intricate and
known as the Roman Curia. Its members are appointed and granted
The Vatican City as a state is recognized under international law and enters
into international agreements. Unlike the Holy See, [which operates the
civil, national state but rather a headquarters of the RC church. The state
constitution, the Vatican City is an absolute monarchy. The role of the head
functions are usually handled by Italy. The legal system is based on canon,
or ecclesiastical law. If canon law is not applicable, the laws of the city of
Rome are invoked. Suffrage is limited to cardinals who are less then 80
years old. There are no political parties or army in the country. Defense is
only, although they are responsible for personal safety of the Pope since
Civil Guard.
income tax and no customs duty on petrol or goods that they buy at the
Vatican has a heliport (to transfer foreign visitors from the airport in
Rome) and 862m (about half a mile) of rail tracks, connected to Italy's
network at Rome's Saint Peter's station, which are used for carrying freight.
telephony. Regular telephone services within the Vatican State began after
telephones in various Vatican offices and residences linked via the Roman
later extended to 3,000. In June 1992 the Vatican State's third central
thus qualifying the State of Vatican City amongst the first to have a
numeric switch for operator call management and it is linked via radio to
another source of financial inflow. The sale of stamps, in particular the sale
of special series to stamp dealers and collectors, has turned into quite a big
business. Vatican stamps have great appeal and increase in value rapidly
within weeks of their issue. Only a limited amount of sets of each series is
sold to private stamp dealers and collectors on the basis of advance
booking. The rest is sold to religious orders and other church institutions,
which in turn sell them to stamp dealers with a quite handsome margin of
profit. Thus not only the Vatican but also the church as a whole derives a
by itself, as it possesses priceless cultural values: the largest and the most
15. Agriculture
N/A
16. Industry
N/A
17. Services
N/A.
N/A
19. Money
The budget of the Holy See is not entirely transparent. It consists of the
nearly fifty separate budgets with some raising funds from such
expenditures have been reported publicly only since early 1980s. The RC
church has developed own structures to retain full control over its property,
cash flows and other assets. It does not admit accountability to the laity for
its funds, which are managed by church own bureaucracy. There is a strong
The Pope, whose head appears on the Vatican coins, carries no money but
president of the Prefecture for the Economic Affairs of the Holy See, who
acts as the pope’s treasurer. This report makes public only the finances of
the administrations of the Holy See. This partial disclosure does not allow
to speculate on other accounts, among which are the Vatican Bank (Istituto
Vatican City State and other entities. Their financial statements are not
made public. Although it is known then about half of the budget incomes of
the Vatican City State are used to help finance the Holy See.
The Holy See’s income comes primarily from investments and donations.
Among the] main source of Vatican’s income is the IOR. The recipient of
the profits made by this bank is the Holy See. [Besides making operational
profit the bank provides banking services (checking and saving accounts,
Institute of Religious Works was founded in 1887 to help to manage church finances after
the Papal States had become a part of Italy. It] operates like any other bank. What makes it
different is its clientele – a very select group. The clients are residents of the Vatican City
State, Vatican offices, diplomats accredited to the Holy See, members of the Curia, heads of
the religious orders, religious agencies and institutions (schools, hospitals), and a very few
Italian citizens to whom the privilege was granted because of their business relations with
Vatican or their good work on behalf of the Church. The advantage of banking with Vatican,
apart from the prestige, is that it is completely free of currency regulation and a client can
transfer money to any part of the world with maximum ease. Keeping money in the Vatican
bank protects Catholic institutions from having their money frozen or confiscated by
unfriendly governments. The Popes current account is reported to bear the number 16/16.
The Institute itself regularly receives lump sums (usually ten per cent of the
the Patrimony of the Holy See (APSA), which manages the Holy See’s
cash and investments, including its patrimony and pension fund.
invested in Italy.
The main fields of the investment activity of the Holy See’s entities are
of flour and spaghetti. Vatican tends to invest in companies that cater for
basic human needs and thus are fundamentally sound. Overall Vatican has
debentures (titoli and obbligazioni). The State derives some income from
the real estate (rent from apartments and shops) as well. Furthermore,
building sites, in particular in the vicinity of Rome. Vatican has some gold
There is no poverty in the Vatican City. Health and pension provisions are
good. It is not known how much personal wealth its citizens have.
the city of Rome. No inhabitant may posses land property within the
borders of the Vatican City, as the land is the private domain of the Holy
See.
for Vatican are exempt from military service. Swiss Guards have relatively
low pay, but those enlisted are usually young men with private incomes.
Civil Guards have higher salaries plus family allowances. The highest paid
Vatican officials are the Cardinals of the Curia. By tradition out of the first
Plate - the Cardinal’s salary is called a “plate” from the days when it was made up of heavy
Rome and served as the capital of the Papal States. Popes in their secular
role ruled much of the Italian peninsula, including Rome, for more than a
thousand years. After the unification of Italy in the late-19th century, the
1929 Vatican City's sovereignty and Papal jurisdiction within the City
the 11th of February, which with two other pacts, “Concordat” and
Papal States) and Italy regarding the status of the Vatican City, granted
Roman Catholicism the position of state religion in Italy and brought the
Holy Sea 750 million lire in cash and one billion lire in government bonds
the process of unification. The Lateran Accords became a part of the 1948
Holy See is especially active within the framework of the United Nations.
It has permanent observer status at the United Nations in New York, the
and Cultural Organization in Paris. The Holy See also has a member
Despite the importance of the papacy for the Catholic Church and despite
its role in international affairs, Vatican’s internal workings are little known
result of the secretive nature of the Vatican, which sees little advantage in
letting others know its internal operations. At the same time general
state with its unusual laws, structures, goals, procedures, personnel, and
culture. Present concerns of the Holy See include the failing health of Pope
John Paul II, who turns 80 on 20 May 2000, inter-religious dialogue and
order to achieve its spiritual and temporal goals, the Vatican must operate
in the real world. It has to buy equipment and office supplies, pay salaries
and other expenses. Limits on funds mean limits on activities. The Vatican
Bull, George. Inside Vatican. London: Hutchinson & Co. Ltd., 1982.
Tully, S. The Vatican's Finances. Fortune, 1987 December 21, pp. 18-26.
Web site:
http://www.photius.com/wfb2000/countries/holy_see/holy_see_introducti
January 2001.
Olga Kuznetsova