Luxembourg

FOUNDED IN 963, Luxembourg became an independent state under the Netherlands in 1815 and established itself as the Grand Duchy of Luxembourg. By 1867, Luxembourg had attained full independence. Despite taking a position of neutrality in World War I and World War II, the country was invaded by Germany in both wars. Luxembourg retreated from its position of neutrality after World War II and joined the Benelux Customs Union in 1948, followed by membership in the North Atlantic Treaty Organization in 1949. As one of the founding members of the European Community, now known as the European Union, Luxembourg maintains close economic ties with its European neighbors.

Luxembourg's economy is highly diversified within the service sector, and 86 percent of the labor force are involved in services. The financial sector provides around 22 percent of the Gross Domestic Product (GDP). Some 13 percent of the labor force are employed in industries that include steel, chemicals, and rubber. Out of a labor force of 293,700, some 105,000 workers commute daily from neighboring countries, chiefly France, Belgium, and Germany. Many of Luxembourg's largest banks are foreign-owned, and foreign investors play a major role in economic growth in Luxembourg. Around one percent of the labor force are employed on small family-owned farms.

With a per capita annual income of $58,900, Luxembourg is by far the richest nation in the world. Its closest contender for this position is the United States, with a per capita income of $40,100. Luxembourg's prosperity is a result of solid growth, low inflation (2.4 percent), and low unemployment (4.5 percent). Economic prosperity has allowed Luxembourg to provide a high standard of living for its population of 468,571. Nevertheless inequalities do exist. The poorest 20 percent of the population live on 8.4 percent of the nation's resources while the richest 20 percent claim 38.9 percent of resources. Luxembourg is ranked 30.8 on the Gini Index of Human Inequality.

After the government collected data to analyze social exclusion in 1989, new legislation was passed to guarantee a minimum income to all citizens. Initially 63 percent of social assistance recipients were female and 37 percent were male. In 2002, 57 percent of the recipients were female and 43 percent were male. Around 13 percent of single-parent families receive social assistance, and almost 96 percent of those families are headed by females.

Elderly women are also likely to need government aid because many of them accrued little or no benefits while raising children. In the total population, six percent earn less than 50 percent of the median income, and 0.3 percent live on less than $11 a day.

Life expectancy is high at 78.74 years. In general, women enjoy a projected life span (82.24) that is seven years longer than that of males (75.45). The median age is 38.51 years. Nearly 19 percent of the population are under the age of 14, and over 14 percent have reached the age of 65. All citizens have access to safe drinking water and improved sanitation. Healthcare is widely available, and there are 254 physicians for every 100,000 residents. From 95 to 100 percent of the population have access to affordable essential drugs.

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