In a new book titled ‘Why Switzerland Became Rich: Facts and Myths of an Economic Miracle,’ its author, Swiss historian Markus Somm, outlines the factors that have contributed to the country’s impressive wealth.
Several reasons are commonly cited to explain why Switzerland is so rich.
Experts have attributed this development to “prudent economic and social policies, diligence and ingenious innovation,” as well as “political stability which made Switzerland attractive for foreign assets.”
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All of these are true, Stomm said, but he has dug deeper into various historical contexts to further explain, in an interview with Tribune de Genève, how and why Switzerland, a country with no raw materials to speak of, amassed such wealth.
One thing that clearly emerges is this: the country did not become rich overnight; instead, the first foundations were laid hundreds of years ago.
First: neutrality
Because of its longtime stance of non-interference in other nations’ affairs or armed conflicts, throughout history “Switzerland has been able to conclude trade agreements with countries all over the world – whether Venice, the Habsburgs, France, Spain, and so on,” Stomm pointed out.
This is because these countries “were more inclined to grant certain privileges to Switzerland, as they did not consider it a political and military threat.”
Neutrality, however, proved to be a double-edged sword, Stomm said.
This was the case during WWII, when Switzerland “did maintain its neutrality in trade, but it was blocked by the Allies. We had no choice but to trade with the Nazis, because otherwise the Swiss population would simply have starved to death.”
This may put a longtime claim that the Swiss were willingly selling gold to Germany during the war in a different perspective.
Second: Geography
“We are located in the very heart of Europe, on the border between Germanic and Latin Europe,” Stomm noted.
In the past centuries, this was of a considerable advantage to Switzerland, as Italy was by far the richest country in Europe for a thousand years.
Then as now, “we have always maintained close ties with Italy,” Stomm said.
Also, all the main trade routes have crossed Switzerland from north to south – a geographical advantage which still plays a role in the country’s prosperity today.
Third: Immigration
In centuries past, as today, immigration of foreigners to Swiss cities – particularly Geneva, Basel, and Zurich – played a “significant role” in their early development.
Just as present-day immigrants are essential to the country’s economic success, in old days people from neighbour states also emigrated and came to Switzerland, enriching the country in different ways in the process, he said.
READ MORE: How immigrants in Switzerland make a positive contribution
