UNITEDWORLD SCHOOL OF LAW

ECONOMICS ASSIGNMENT
ON

“ECONOMIC GROWTH REPORT ON SWITZERLAND”

For
Internal Evaluation
Submitted to
Prof. Dr. Malay Patel

Prepared by
BHANVI JUVEKAR
Roll No. 1006AL0018

PALAK KATTA
Roll No.-1006AL0067
BBA-LLB SEM-2
Batch-2019-2024
1
 DECLARATION

The text reported in the project is the outcome of our own efforts and no part of this project assignment has
been copied in any unauthorized manner and no part of it has been incorporated without due
acknowledgement.

BHANVI JUVEKAR
PALAK KATTA

2
 TABLE OF CONTENTS

DECLARATION..............................................................................................................................................2

TABLE OF CONTENTS.................................................................................................................................3

INTRODUCTION............................................................................................................................................4

ECONOMY OF SWITZERLAND.................................................................................................................4

Sectors............................................................................................................................................................5

SWITZERLAND’S DEMOGRAPHICS........................................................................................................8

Population of Switzerland (year 2020) ......................................................................................................8

Fertility in Switzerland................................................................................................................................8

Life Expectancy in Switzerland...................................................................................................................9

Infant Mortality Rate and Deaths of Children under 5 Years Old in Switzerland................................9

Switzerland Urban Population....................................................................................................................9

Population Density........................................................................................................................................9

HUMAN DEVELOPMENT INDEX..............................................................................................................9

THE CULTURE OF SWITZERLAND.......................................................................................................10

Swiss Cuisine...............................................................................................................................................10

Religions And Festivals Of Switzerland...................................................................................................10

SWITZERLAND EDUCATION SYSTEM.................................................................................................11

EASE OF DOING BUSINESS IN SWITZERLAND.................................................................................11

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 INTRODUCTION

Switzerland, officially the Swiss Confederation, is a country situated in the confluence of western, central,
and southern Europe. It is a federal republic composed of 26 cantons, with federal authorities seated in
Bern.1 Switzerland is bordered to the west by France, to the north by Germany, to the east
by Austria and Liechtenstein, and to the south by Italy. It extends about 135 miles (220 km) from north to
south and 220 miles (350 km) at its widest extent from west to east. Switzerland’s landscape is among the
world’s most unusual, and it has long had to contend with a variety of environmental problems that threaten
its integrity.2While the Alps occupy the greater part of the territory, the Swiss population of approximately
8.5 million is concentrated mostly on the plateau, where the largest cities are located, among them the two
global cities and economic centres of Zürich and Geneva.3

ECONOMY OF SWITZERLAND

The economy of Switzerland is one of the world's most stable economies. Its policy of long-term monetary
security and political stability has made Switzerland a safe haven for investors, creating an economy that is
increasingly dependent on a steady tide of foreign investment.

Because of the country's small size and high labour specialization, industry and trade are the keys to
Switzerland's economic livelihood. Switzerland has achieved one of the highest per capita incomes in the
world with low unemployment rates and a balanced budget. The service sector has also come to play a
1
https://en.wikipedia.org/wiki/Historical_Dictionary_of_Switzerland accessed on 14th march 2020
2
https://www.britannica.com/place/Switzerland accessed on 14th march 2020
3
https://en.wikipedia.org/wiki/Switzerland#cite_ref-188 accessed on 14th march 2020
4
significant economic role. The economy of Switzerland ranks first in the world in the 2015 Global
Innovation Index.4

Sectors
The Swiss economy follows the typical First World model with respect to the economic sectors. Only a
small minority of the workers are involved in the primary or agricultural sector while a larger minority is
involved in the secondary or manufacturing sector. The majority of the working population are involved in
the tertiary or services sector of the economy.5

Watches
Switzerland is one of the leaders in exports of high-end watches as well as clocks, Swiss watch making
companies produce most of the world's high-end watches, in 2011, the exports of Switzerland reached nearly
19.3 billion.6
In USD, Switzerland has an export, in 2011, of over USD$20 billion, making it the country with the highest
export value of watches.7

Manufacturing

Switzerland’s transformation into an industrial state began during the second half of the 19th century. The
survival of Swiss industry is based on a formula that has worked very well: build specialized products such
as motors, turbines, and watches; guarantee the delivery date; offer the necessary financing through an
efficient banking network; provide effective after-sales service; sell the product all over the world and thus
achieve economies of scale; and, where necessary, build local factories.8

Agriculture
Switzerland is extremely protective of its agricultural industry. High tariffs and extensive domestic
subsidisations encourage domestic production, which currently produces about 60% of the food consumed in
the country.90 to 100% of potatoes, vegetables, pork, veal, cattle and most milk products, are produced in
the country. Beyond that, Swiss agriculture meets sixty-five per cent of the domestic food demand.9

4
https://www.globaltenders.com/economy-of-switzerland.php accessed on 24th march 2020
5
https://www.britannica.com/place/Switzerland/Trade#ref256997 accessed on 27th march 2020
6
https://en.wikipedia.org/wiki/Economy_of_Switzerland accessed on 27th march 2020
7
https://www.britannica.com/place/Switzerland/Trade#ref256997 accessed on 27th march 2020
8
https://www.about.ch/economy/index.html#CH_Eco_Intro accessed on 27th march 2020
9
https://www.globaltenders.com/economy-of-switzerland.php accessed on 27th march 2020
5
Trade
Switzerland’s major exports are machinery and equipment, chemical-pharmaceutical products, watches, and
textiles and apparel. Raw materials, food, vegetable oils, and fuel account for about one-quarter of total
imports and are transported by rail, truck, and barge. Among other leading imports are manufactured goods,
motor vehicles, and chemical products.

Traditionally Switzerland has been among the forerunners in liberalizing and facilitating international trade,
upon which its economy is heavily dependent. Most of Switzerland’s trade is with the EU, with about three-
fourths of its imports coming from and three-fifths of its exports going to EU countries. Among its
individual trading partners, Germany is its leading market, receiving about one-fifth of Switzerland’s
exports and providing about one-fourth of its imports. Other leading export markets include France, Italy,
the United States, and the United Kingdom. Principal suppliers include France, Italy, and China.

10

10
https://www.britannica.com/place/Switzerland/Trade#ref256997 accessed on 27th march 2020
6
Tourism
Switzerland has a highly developed tourism infrastructure, especially in the mountainous regions and cities,
making it a good market for tourism-related equipment and services.11

Resources and power

Although Switzerland has few natural resources (salt is the only mined resource) and lacks indigenous
hydrocarbons to power its industries, high precipitation in the Alps, glaciated U-shaped valleys, the storage
of glacial meltwaters behind giant dams, and the great range of elevations provide an ideal environment for
the generation of hydroelectric power. The electrical industry has become an essential branch of the
country’s economy, with nearly 45 reservoirs and a few hundred large hydroelectric power plants in
operation.12

Services

Tourism is a significant source of revenue for Switzerland, with receipts slightly outpacing expenditures by
Swiss tourists abroad. Primary destinations for Swiss tourists include France, Spain, Italy, and Germany.
Among the principal foreign visitors to Switzerland are Germans, who account for more than one-fourth,
followed by Americans, Britons, and Japanese. A significant proportion of tourism receipts also come from
residents of Switzerland.13

Swiss Banks

Swiss banks contribute hugely to their economy. Swiss Banks are a huge success as they believe in banking
secrecy.

“ [Banking secrecy] is comparable to medical confidentiality ... [Switzerland] must absolutely respect the
private sphere ... [no one should] know what there is in your bank account. ”

— Ueli Maurer, former President of Switzerland in 2013

The banks create job opportunities. These are very sought after positions as they are highly specialised jobs.
By providing jobs and luring high profile clients from all over the world, they contribute to the economy in a
great manner and help stabilise it.

11
https://www.eda.admin.ch/aboutswitzerland/en/home/wirtschaft/uebersicht/wirtschaft---fakten-und-zahlen.html accessed on
27th march 2020
12
https://www.eda.admin.ch/aboutswitzerland/en/home/wirtschaft/uebersicht/wirtschaft---fakten-und-zahlen.html accessed on
27th march 2020
13
https://www.britannica.com/place/Switzerland/Trade#ref256997 accessed on 27th march 2020
7
A great portion of public sector financing is secured do to their tax contribution; and not to forget that they
are centres of innovation and drivers of value added thus generating momentum for the entire economy.
(Swiss Bankers Association, 2010)14

SWITZERLAND’S DEMOGRAPHICS

Population of Switzerland (year 2020) 15

 The current population of Switzerland is 8,637,987 as of Friday, March 27, 2020, based on

Worldometer elaboration of the latest United Nations data.

 Switzerland 2020 population is estimated at 8,654,622 people at mid year according to UN data.

 Switzerland population is equivalent to 0.11% of the total world population.

 Switzerland ranks number 101 in the list of countries (and dependencies) by population.

 The population density in Switzerland is 219 per Km2 (567 people per mi2).

 The total land area is 39,516 Km2 (15,257 sq. miles)

 74.1 % of the population is urban (6,408,840 people in 2020)

 The median age in Switzerland is 43.1 years.

 Yearly change- 0.74%

Fertility in Switzerland16

A Total Fertility Rate (TFR) the Replacement-Level Fertility: the average number of children per woman
needed for each generation to exactly replace itself without needing international immigration.

TOTAL FERTILIY RATE (TFR) = 1.5 (LIVE BIRTHS PER WOMAN, 2020)

Life Expectancy in Switzerland17

14
https://www.grin.com/document/172027 accessed on 11 April, 2020
15
https://www.worldometers.info/demographics/switzerland-demographics/ accessed on 27th march 2020
16
https://www.worldometers.info/demographics/switzerland-demographics/#tfr accessed on 27th march 2020
17
Ibid
8
BOTH SEXES = 84.3 years (life expectancy at birth, both sexes combined)

FEMALES = 86.0 years (life expectancy at birth, females)

MALES = 82.4 years (life expectancy at birth, males)

Infant Mortality Rate and Deaths of Children under 5 Years Old in Switzerland 18
 INFANT MORTALITY = 3.0 (infant deaths per 1,000 live births)
DEATHS UNDER AGE 5 = 3.4 (per 1,000 live births)

Switzerland Urban Population19

Currently, 74.0 % of the population of Switzerland is urban (6,357,099 people in 2019)

Population Density20
The 2019 population density in Switzerland is 217 people per Km2 (563 people per mi2), calculated on a
total land area of 39,516 Km2 (15,257 sq. miles).

Largest City in Switzerland is Zurich with 341,730 population.

HUMAN DEVELOPMENT INDEX

The HDI is a summary measure for assessing long-term progress in three basic dimensions of human
development: a long and healthy life, access to knowledge and a decent standard of living. A long and
healthy life is measured by life expectancy. Knowledge level is measured by mean years of schooling
among the adult population, which is the average number of years of schooling received in a life-time by
people aged 25 years and older; and access to learning and knowledge by expected years of schooling for
children of school-entry age, which is the total number of years of schooling a child of school-entry age can
expect to receive if prevailing patterns of age-specific enrolment rates stay the same throughout the child's
life. Standard of living is measured by Gross National Income (GNI) per capita.

Switzerland’s HDI value for 2018 was 0.946— which put the country in the very high human development
category—positioning it at 2 out of 189 countries and territories.21

18
https://www.worldometers.info/demographics/switzerland-demographics/#tfr accessed on 27th march 2020
19
ibid
20
ibid
21
http://hdr.undp.org/sites/all/themes/hdr_theme/country-notes/CHE.pdf accessed on 27th march 2020
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 THE CULTURE OF SWITZERLAND

The Swiss culture is heavily influenced by French, German, and Italian cultures.  This is evident in the fact
that the major languages of these three countries, namely, French, Italian, and German serve as three of the
four official languages of Switzerland (Romansh being the fourth one). The country also has 26 cantons,
each with their distinct set of customs and traditions. Chocolates, cheese, cowbell, watches, and the Swiss
Army knife are well-known symbols of Switzerland.22

Switzerland is one of the richest nations in the world with most of the citizens enjoying a high standard of
living in the country. There is a large affluent middle class in the country. However, 80% of the private
assets are owned by only 20% of the country’s richest people. Traditionally, the Swiss society has been a
patriarchal one whereby the roles of men and women were clearly defined..23 Female education and
empowerment are still not at par with that of men but the situation is gradually improving. Although
traditional Swiss households were large, modern households are nuclear in nature. Respect for the privacy of
an individual and a polite behavior during social interactions are expected in Swiss society.

Swiss Cuisine

Traditional Swiss dishes are made of simple ingredients and are regionally influenced by Italian, German,
and French cuisines. Potatoes and cheese are major ingredients of Swiss cuisine. Zürcher Geschnetzeltes is a
traditional Swiss dish..24

Religions And Festivals Of Switzerland

The federal state of Switzerland has no state religion. The majority of the population of the country are
Christians. However, adherence to churches has steadily declined over the years. Most cantons of the
country, however, recognize the Catholic Church or the Swiss Reformed Church. As of 2015, about 68% of
the country’s population are Christians, 23.9% are non-religious, and 5.0% Muslims, and the rest are
adherents of other religions.

Holidays and celebrations differ in the Swiss cantons. Christian holidays and festivals are celebrated with
great pomp and glory in the nation. The National Day, a secular holiday that is celebrated countrywide is
observed on August 1.25

22
https://www.worldatlas.com/articles/the-culture-of-switzerland.html accessed on 27th march 2020
23
ibid
24
https://www.everyculture.com/Sa-Th/Switzerland.html accessed on 27th march 2020
25
https://aspectfoundation.org/host/switzerland.html accessed on 27th march 2020
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 SWITZERLAND EDUCATION SYSTEM

Switzerland education system was ranked among the top three countries with the best education system
around the world besides the Scandinavian countries of Norway and Finland.
The main reason for this is their aim to increase and improve children’s involvement in extra curricular
activities as well as, vocational skills.
Public education is free in Switzerland.
The education system in Switzerland is very diverse, because the constitution of Switzerland delegates the
authority for the school system mainly to the cantons. The Swiss constitution sets the foundations, namely
that primary school is obligatory for every child and is free in public schools and that the confederation can
run or support universities.26
Due to these key features good quality education is accessible to all children in Switzerland. Training and
exposure to vocational skills gives their youth a higher chance at securing jobs.

EASE OF DOING BUSINESS IN SWITZERLAND

Ease of Doing Business in Switzerland is expected to reach 38.00 by the end of 2020, according to Trading
Economics global macro models and analysts expectations.27

While this rank is good, it could still be better:

1) It is very difficult to get funding to start a business in Switzerland easily. Starting a business in
Switzerland is more time-consuming and costly than the average for high income OECD countries,
the World Bank report says.28
2) It is considered as one of the most competitive countries but ease f doing business is still low. Paid-in
minimal capital required, meanwhile, is more than double, based on a percentage of per capita
income.29
3) Six procedures are required to start a business compared to 4.7 in other high-income nations, the
WEF report says.30 This makes starting a business a very taxing process.

While Switzerland excels in fields of education, health and development, considerable growth
potential can be recognised in the field of business.
26
https://en.wikipedia.org/wiki/Education_in_Switzerland
27
https://tradingeconomics.com/switzerland/ease-of-doing-business accessed on 11 April, 2020
28
https://www.thelocal.ch/20151028/doing-b accessed on 11 April, 2020
29
ibid
30
ibid
11
Switzerland’s tourism industry is also facing problems. With growing environmental pollution, many
naturally scenic tourist places perish. Many migratory irregularities are seen among animals which
has also affected seasonal tourist attractions.

12