For a country that occupies only 0.5 percent of Europe’s land mass, Switzerland is one of the world’s most competitive in economic terms.

The Swiss economy has always been based on free trade, relying on most of its business beyond its borders. Switzerland’s foremost trading partner is the EU, followed by the United States. Japan is Switzerland’s third largest trading partner with a 150-year history.

According to the Swiss Federal Councillor, Joseph Deiss: “Switzerland’s most important asset is its people. If you have no raw materials you have to push education and research to be a leader in all fields of progress.”

Amid the worldwide economic slowdown, Deiss is working on different levels to keep Switzerland as competitive as possible. He points to biotech and nanotechnology as future major growth industries for Switzerland.

The Federal Palace in Bern illuminated with the flags of Switzerland's 26 cantons on National Day on Aug. 1.

Nearly 70 percent of Switzerland’s workforce belongs to the service sector — which operates world wide. The Swiss banking and financial services industry is a main player. One of the oldest and largest private Swiss banks is the family-owned and operated Pictet & Cie, which also has a subsidiary in Japan. The Swiss watch making industry carries perhaps the most weight — exporting 95 percent of its output. Producers range from rare watch manufacturers such as Antoine Preziuso to the popular Swatch Group.

Even Switzerland’s current non-membership in the European Union (EU) is not perceived as problematic. “Our economy is already largely integrated with the EU,” explains Deiss. “For 30 years now we have had free trade agreements with the EU, and we are continuing on this path with a series of bilateral agreements in a variety of sectors of economic cooperation.”

Micheline Calmy-Rey, Swiss minister of foreign affairs, points out that another of Switzerland’s greatest assets is its form of direct democracy. “This is democracy in its purest form,” she says. In its spirit, every law that is passed in Switzerland is voted on by its citizens. “With 700 years of experience in democracy, we are still using the direct democracy principle and that gives us great credibility. We could be a model for the development of Europe,” she adds. Another aspect of Switzerland that is key to its success is the quality of life its people enjoy. Any visitor to Switzerland will immediately recognize the attractiveness of its cities and towns — the fresh air, high standard of living and breathtaking mountain vistas.

Micheline Calmy-Rey, Switzerland's minister of foreign affairs

Japanese ambassador to Switzerland, Yuji Nakamura is proud to represent Japan. He is just one of the 6,000 Japanese nationals living in Switzerland, and he notes that the public is very enthusiastic about Japanese culture — with museums and organizations commonly supporting Japanese events. “With the large proportion of non-Swiss living in Switzerland, the people have become very open and welcoming for people from abroad,” he declares.

He is aware that many people around the world think of only chocolate and watches when considering Switzerland. “Please don’t think you know everything about Switzerland,” he counters. “Switzerland is unique, and there are always new things to discover. Come visit and keep learning about the possibilities abundant in Switzerland.”