Andorra

I

Introduction

Andorra (in French, Andorre), officially Principality of Andorra, parliamentary principality, south-western Europe, situated high in the eastern Pyrenees mountains, bordered on the north and east by France, and on the south and west by Spain. Also called Valleys of Andorra, the country is one of the smallest in the world with an area of about 468 sq km (181 sq mi) and a population of 72,413 (2008 estimate). The overall population density in 2008 was about 155 people per sq km (401 per sq mi); 90 per cent of the population is urban. The capital is Andorra la Vella (population, 2004 estimate, 22,035).

II

Land and Resources

Andorra is a region of narrow valleys and steep mountain peaks; the highest point is Coma Pedrosa (2,946 m/9,665 ft). The many streams meet to form the River Valira, which flows south into Spain. Water, used to generate hydroelectricity, is one of Andorra’s few significant natural resources. There are small iron and lead deposits and marble quarries, but the principality depends heavily on imported raw materials. Most food is also imported as only 4 per cent of the land can be cultivated. The rest is given over to pine and birch forests, and, in low-lying areas, pastureland where sheep are grazed. Deforestation is an issue in Andorra, and overgrazing is causing soil erosion in the mountain meadows. In 2004 the Madriu-Perafita-Claror Valley was inscribed on the UNESCO World Heritage List on account of its living tradition of mountain pastoral farming and culture.

III

Population

Native-born Andorrans, who are Catalan in ancestry and language, today comprise about 30 per cent of the entire population. Spanish and French immigrants, allowed residence under a strict quota system, make up the majority of the remainder. Roman Catholicism, the religion of over 85 per cent of Andorrans, still heavily influences social and cultural life; for example, divorce is not allowed. The official language is Catalan, which is spoken by around 60 per cent of the population as a first language. Spanish is also spoken, by over half of the population. A small percentage of the population speaks French as a mother tongue. English and Portuguese are also used by some, but they are not indigenous languages.

IV

Economy

In 1994 national revenue totalled just over US$1,000 million, equivalent to US$15,805 per head. Andorra’s economy was formerly based on pastoral farming and the processing of tobacco and timber. Tourism has boomed since the 1950s and now dominates the principality’s economic life, with an estimated 12 million visitors a year. Tourists are drawn by the winter skiing facilities, the Alpine climate, and the availability of duty-free goods. Andorra has no railways or airport but possesses an excellent road system. Financial services emerged in the 1990s as the new growth area in the economy, helped by strict laws on banking secrecy and low rates of taxation. In early 2002, Andorra refused to sign up to an Organization for Economic Cooperation and Development (OECD) agreement on tax evasion, which would have compelled the country to share information about potential tax evasion and make transparent its own banking arrangements. The Andorran government collects revenue through a small number of taxes and the sale of postage stamps. The French franc and the Spanish peseta were formerly both in use, but in January 2002, alongside both France and Spain, Andorra adopted the Euro. As at early 2008, 0.68 Euros equalled US$1. Television broadcasting in Andorra is run by Andorra Televisió. Radio Nacional d’Andorra runs Radio Andorra and the music station Andorra Música. There is also a commercial station—Radio Valira. The country has two major newspapers: el Periódico, published in Catalan and Spanish, and Diari d’Andorra.