Switzerland

SWITZERLAND IS A landlocked country in central Europe known for its political neutrality, discreet banking system, and high standard of living. Bordered by Austria, France, Italy, Liechtenstein, and Germany, the country supports German, French, and Italian as official languages. The capital city is Bern and the total population approximately 7.5 million. Annual Gross Domestic Product (GDP) per capita exceeds $33,000 on the purchasing power parity method. Switzerland is home to the international Red Cross and Red Crescent organizations, which are humanitarian organizations involved with disaster relief and developmental programs. The Red Cross was the creation of Henri Dunant, a Swiss man who organized emergency aid to the soldiers of both sides at the Battle of Solferino in 1859. The Geneva Convention of 1864 represented the first multilateral agreement on the treatment of wounded of any side during wartime and has been updated with further agreements specifying acceptable wartime behavior and treatment of civilians.

The reputation the Swiss have achieved for managerial efficiency is enhanced by the location of United Nations institutions in that country. Switzerland has maintained a stance of neutrality since the Treaty of Westphalia in 1648, and this has allowed it to escape the depredations of the two world wars. The confidentiality of its banking system has encouraged the development of international banking, although the lack of transparency has fueled fears of money laundering and asset hiding.

Despite the high level of income enjoyed by Swiss, there is still some inequality and poverty, with people falling into the new poor category. At the turn of the century, approximately 120,000 children were adjudged to be living in poverty in Switzerland, and more than 20 percent of single people were in receipt of income support. There was no central system of maternity leave, and child support levels varied considerably by region (canton). Aging of the population has also emerged as a significant problem. These are manifestations of the concept of the new poor, which involves categories of largely urban people who suffer from unanticipated gaps in public services.

The Swiss people generally have a strong interest in poverty reduction and international partnerships with developing nations. The private response to the Indian Ocean tsunami of December 26, 2004, for example, amounted to $225 million. Official Development Assistance (ODA) reached $1.55 billion in 2004, although it is likely to miss meeting its obligations to the United Nations in this respect. Nevertheless, a strong, centralized system infused by humanitarian principles has proved effective in delivering poverty reduction solutions internationally. One-third of ODA is distributed to Swiss nongovernmental organizations (NGOs), one-third to the International Red Cross and Red Crescent organizations, and the remainder is divided among United Nations agencies. Improvements have been suggested in terms of decentralizing authority to field managers and allocation procedures being restructured.

Human Development Index Rank: 7

Human Poverty Index Rank: 7 (HPI-2)