Perched on the slopes of Mount Titano in the Italian Appennines, tiny San Marino is the world's oldest republic; it has maintained its independence since the 4th century. The territory is divided into nine castles, or districts. One-third of Sammarinesi live in the northern town of Serravalle. Today San Marino makes its living through agriculture, tourism, and limited industry. Italy effectively controls most of its affairs.

Citizenship requires 30 years' residence; it is no longer transmissible by marriage. Women gained the vote in 1960, but could not stand for public office until 1973. Around 20,000 live abroad, mainly in Italy. Some Sammarinesi speak a distinct regional dialect.

Strengths

Tourism, providing 60% of government revenue. Light industry, notably mechanical engineering and clothing, with emphasis on sportswear and high-quality prestige lines. Philately.

Weaknesses

Need to import all raw materials.

San Marino is a parliamentary democracy, headed by two captains-regent elected every six months. Although the PDCS is the largest single party, it is not guaranteed a place in the ever-shifting coalitions.The most recent government, formed in 2002, is headed by the PSS.

Foreign affairs are effectively decided by Italy, on which San Marino is entirely dependent. In 1992, San Marino acquired a seat at the UN.

San Marino has a small territorial army and fortification guards. There is no compulsory military service, but males aged 16–55 may be called up in a national emergency.

San Marino has to import all its energy from Italy. It has no exploitable mineral resources now that the stone quarry on Mount Titano has been exhausted.

Mount Titano is a unique limestone outcrop in the surrounding Italian plain and so has a very localized ecosystem.

The 24-km (15-mile) highway to Rimini, which has the nearest airport, is San Marino's most important link. Congestion is a major problem, especially during the annual Mille Miglia car rally. A funicular railroad climbs the east side of Mount Titano. The railroad to Rimini has been closed since the Second World War.

Health care is free and available to all. There is a hospital, but those requiring difficult operations normally go to Rimini for treatment.

All teachers are trained abroad, mostly in Italy. Secondary school pupils can go on to Italian universities.

San Marino has a low crime rate. Justice is mainly administered in Italy. Until mid-1997 homosexuality was illegal.

Living standards are similar to those of northern Italy, while the unemployment rate is well below the Italian average.

Tourism is the mainstay of San Marino's economy, contributing more than half of government revenue and employment for almost 20% of the workforce. Earnings from tourism are the largest share of GDP. Every year half a million overnight visitors, and a further 2.5 million day visitors, are drawn by its mild climate and contrasting scenery, and come to sample its folklore and museums. The fortresses of Mount Titano – la Rocca, la Cesta, and Montale – built during the Middle Ages, command superb views and are the main attractions, along with the medieval city of San Marino itself. Many visitors to San Marino are day-trippers from Italy, although tourism is also boosted by the close proximity of the international airport at Rimini.

The San Marino tourist bureau also attracts thousands of sports enthusiasts to the republic by hosting a series of top international sporting events. In March, both the Rimini–San Marino marathon and the Mille Miglia veteran car meeting are held. May heralds the San Marino Grand Prix, when thousands of Formula One fans descend on the country. June, meanwhile, attracts more motor-racing fans for the World Motocross Championships. A renowned crossbow competition is held to mark San Marino's national day, 3 September.

Efforts have been made to attract business meetings and conferences by means of extensive publicity in the Italian media.

Founded in the 4th century, the Republic of San Marino became one of many medieval Italian city states. It refused to join the unified Italian state created between 1860 and 1871.

• 1862 San Marino signs friendship treaty with Italy.
• 1914–1918 San Marino fights for Italy in World War I.
• 1940 Supports Axis powers and declares war on the Allies.
• 1943 Declares neutrality shortly before Italy surrenders.
• 1960 Women obtain vote.
• 1978 Coalition of San Marino Communist Party (PCS) and PSS – sole communist-led government in Western Europe.
• 1986 Financial scandals lead to a new PDCS/PCS government.
• 1988 Joins Council of Europe.
• 1990 PCS renames itself the PPDS.
• 1992 Joins UN. Collapse of communism in Europe sees PDCS/PPDS alliance replaced by a PDCS/PSS coalition government.
• 2002 Adoption of euro.