Economic development was spurred in the late 19th century with a railroad linkup to France and the opening of a casino. Since then, the principality's mild climate, splendid scenery, and gambling facilities have made Monaco world famous as a tourist and recreation center. Western Europe, bordering the Mediterranean Sea on the southern coast of France, near the border with Italy.

PEOPLE
In 2001, Monaco's population was estimated at 32,020, with an estimated average growth rate of 0.46%. French is the official language; English, Italian, and Monegasque (a blend of French and Italian) also are spoken. The literacy rate is 99%. Roman Catholicism is the official religion, with freedom of other religions guaranteed by the constitution.

HISTORY
Founded in 1215 as a colony of Genoa, Monaco has been ruled by the House of Grimaldi since 1297, except when under French control from 1789 to 1814. Designated as a protectorate of Sardinia from 1815 until 1860 by the Treaty of Vienna, Monaco's sovereignty was recognized by the Franco-Monegasque Treaty of 1861. The Prince of Monaco was an absolute ruler until a constitution was promulgated in 1911.

ECONOMY
Monaco, located on the Mediterranean coast, has an economy primarily geared toward finance, commerce, and tourism. Low taxes have drawn many foreign companies to Monaco and account for around 50% of the €593 million annual government income (2002). Similarly, tourism accounts for close to 25% of the annual revenue, as the Principality of Monaco also has been a major center for tourism ever since its famed casino was established in 1856.

U.S.-MONACO RELATIONS
The United States and Monaco enjoy excellent relations, which both countries seek to maintain and strengthen. From 1956 until her death in 1982, the American-born Grace Kelly was married to Prince Rainier III. The United States does not have a diplomatic mission located in Monaco. The U.S. Consul General in Marseille, France, under the authority of the U.S. Ambassador to France, is formally accredited to Monaco.

Full country name: Principality of Monaco
Area: 2 sq km
Population: 32,150
Capital City: Monaco
People: French 47%, Monégasque 16%, Italian 16%, other 21%
Language: French, Monegasque, Italian, English
Religion: Roman Catholic
Government: constitutional monarchy
Head of State: Prince Prince Rainier III
GDP: US$870 million
GDP per capita: US$27,000
Major Industries: Tourism
Member of EU: no