Monaco

Two square kilometres on the Mediterranean, governed by the same family since 1297, and largely built on a casino. The Grimaldis took the fortress by a trick that year - by tradition a Guelph partisan disguised as a monk gained entry and opened the gate, which is why two sword-carrying monks appear on the coat of arms. The principality was under Spanish and then French protection, annexed during the revolution, restored in 1814, and lost most of its territory in 1861 when Menton and Roquebrune broke away, leaving it about a twentieth of its former size. Nearly bankrupt, Charles III authorised a casino, and the Societe des Bains de Mer opened at Monte Carlo in 1863 - within twenty years gambling revenue was so large that residents were exempted from income tax, which they still are. Citizens themselves are barred from the casino. The Grand Prix has run through the streets since 1929. Land has been reclaimed from the sea repeatedly to create space. Around three-quarters of residents are foreign nationals, and it has the highest density of any country. France handles its defence. The country has about 39 thousand people on about two square kilometres, the second smallest state in the world. French is official and Monegasque, a Ligurian dialect, is taught in schools. The Oceanographic Museum was directed for decades by Jacques Cousteau. Around a fifth of the territory has been reclaimed from the sea. Residents live longer on average than anywhere else measured. The principality has no income tax for most residents and no natural resources at all.

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