SAN-MARINO

NATURAL ENVIRONMENT: San Marino is located in the central Apennines, east of Florence, Italy. The highest point, the three-peaked Mount Titano, commands a wide view of the Adriatic shore located 19 km away. Most of the republic lies in the basin of the Marecchia River, which empties into the Adriatic. The climate is mild with an average annual precipitation of 690 mm. Because tourism is San Marino’s main economic activity, environmental pressures are not serious. Existing problems are generally related to air pollution from automobile traffic and acid rain produced by industries outside San Marino.
ECONOMY: San Marino is a prosperous country whose citizens enjoy a high standard of living, exceptionally low unemployment, and extensive social welfare benefits. The economy is so strong that thousands of Italian residents commute into San Marino each day to work. Tourism drives the economy. More than 3 million people visit the country each year to see its rugged, picturesque beauty and ancient fortifications, many of which have been restored. Tourism accounts for more than half of all revenue generated in San Marino. During the 1990s, San Marino developed a dynamic and profitable finance sector. The country’s political stability and low taxes have driven much of this growth. San Marino’s finely printed postage stamps and unique coins are coveted by collectors and provide another important source of revenue. Traditionally, most San Marinese made a living by growing food crops, grazing livestock, and quarrying stone. The quarries are largely exhausted, but agriculture remains a visible part of life in San Marino, especially cattle rearing and the production of cereal grains, olives, and grapes. Since World War II, San Marino has developed some light industries, include textiles and clothing, wine and cheese, leather goods, cement, synthetic rubber products, and ceramics. San Marino belongs in a customs union with Italy. Under the terms of the union, San Marino pays customs duties on goods that pass through Italy to reach San Marino. In addition, the union prohibits San Marino from opening gambling houses and allows Italy to preserve monopolies on sales of tobacco and other goods. In exchange, San Marino receives an annual subsidy from Italy called the Canone Doganale. Like Italy, San Marino uses the euro, the currency of the European Union (EU), although San Marino is not an EU member. San Marino mints its own coins, but no paper currency. Previously, the republic minted the San Marinese lira, which could be exchanged at face value for the Italian lira. San Marino received permission to issue a limited number of its own euro coins, allowing it to preserve a specialty market for its coins. A highway links San Marino to Rimini on the Adriatic coast. San Marino has no internal railroads, apart from a short cable-operated line connecting Borgo Maggiore and the capital city, but it has over 100 km of good roads. The closest airport and railroad terminus is in Rimini. Regular bus service runs connect Rimini and San Marino.