Switzerland: Confederation, Demography, Education Levels, and Political Environment

Country Profile Assignment: Switzerland
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Institutional Affiliation
Country Profile Assignment: Switzerland
1.0 Swiss Confederation and Switzerland
In 1291, the Swiss Confederation was founded as a strategical defensive alliance that comprised of three cantons of proximity. The boldness of this procedure became an enticing feature for the neighboring localities that felt compelled to join the original three. In 1499, the Holy Roman Empire vacated these shores highlighting the independence of the Swiss Confederation. It is until 1848 that the Confederation drafted its first constitution that was eventually modified in 1874. The result was a document that allowed voters, the country's citizens, to initiate or call for referenda on proposed laws. Also, the revised document established a centralized federal government abandoning the confederation.
Geographically positioned in South-Central Europe, Switzerland is a landlocked, mountainous country that serves as a great understudy for how it conducts its operations. It is bordered by Liechtenstein, Italy, Germany, France, and Austria. Switzerland is relatively smaller than the Netherlands with an area of 41,285km2, which is almost equivalent to “slightly less than twice the size of the United States state of New Jersey” (Nationsonline.org, n.d.) In almost every other way, the country’s social, political, and economic operations are unique and exclusive. The country has remained a neutral state for centuries, which has facilitated its political stability and consequently, its rise to among the world’s wealthiest countries. Switzerland has remained a neutral state for centuries implying that it never participates in armed conflict up to until when it is attacked. In this regard, its military is solely meant for self-defense and internal security.
This level of sovereignty and neutrality has been the backbone of the country's honor and respect from a global perspective. In this category lie the major European powers that would otherwise be perceived to have a superiority complex. However, the staunch stand taken by Switzerland to not participate in both World Wars has guaranteed respect among its European neighbors. On the other hand, over the past couple of decades, there has been an advanced level of integration, both politically and economically, of European countries. This process coupled with the country's collaboration with many United Nations and international organizations has raised Switzerland's relationship with its neighbors. Also, it is worth noting that Switzerland became an official United Nations member state in 2002 (BBC News, 2020). Even though the country is quite active in several United Nations’ and global organizations’ activities, Switzerland upholds its course on neutrality strongly.
2.0 Switzerland’s Demography
Current reports indicate that the country has a population of the figure of approximately 8,633,500. Its population growth has remained relatively stable over the years and thus, one can easily predict the country's population in the following years. The 2000 census report indicated that the population was at 7,452,075 and in 2011, this had risen to 7,952,600 as shown in Fig 1. Based on this precedent level of growth, 2020 estimations will reveal an 8.65 million number, which is close to the one mentioned earlier (World Population Review, 2020).
Fig 1 Switzerland Population (1950-2020) (Worldometer, 2020)
Even then, the country's population remains among the easiest to predict taking into account that the country encounters very few anomalies and in the event, there are any, they are very small ones. However, actual results can be ascertained when the country conducts its forthcoming national census. Regardless, it is right to ascertain that Switzerland is relatively densely populated considering that it is small in size. Nevertheless, Switzerland has maintained an equinox between genders in most of the age-groups as shown in Fig 2.
Fig 2 Switzerland Population Pyramid (World Population Review, 2020)
In Switzerland, the majority of people live in or around urban centers. An exciting phenomenon one will find is that rather than having a few larger cities, the country's urban escapade consists of many small cities. The topography could justify this position in some way. However, another interesting fact is that the country's cities are in proximity to natural sceneries or ski resorts. The banking center of Zurich constitutes the largest city in Switzerland. Population approximations in the city of Zurich are about 1.5 million people, but when the greater metro area is taken into account, this number could easily reach 2 million (World Population Review, 2020). Geneva is the second most populous metro area in Switzerland with about 200,000 residents. This side of the country consists highly of French-speaking individuals. Basel occupies the third position with 177,000 residents with Bern, which is the other capital city, comes in as the forth with a population of 133,000 residents. The fifth-largest city in Lausanne, which comprises of 130,000 residents. It is the last city with at least 100,000 residents.
The country has experienced immense external influences with its territories. This position arises considering the massive influence its neighbors have on the extensive European region. This influence coerced the government into adopting four official languages which include Romansch, Italian, French, and Swiss German in 1938 (Kuzelewska, 2016). For instance, German is the most spoken language in Zurich while in Geneva, this pattern changes to French. Further, a significant percentage of the population that lives in Switzerland comprises temporary outside residents and foreign workers.
3.0 Education Levels in Switzerland
Switzerland has one of the most unconventional education systems that is also compulsory to its citizens. The education system consists of private schools, local Swiss learning institutions, bilingual, and international schools. Despite the decentralization of the system in the 26 cantons, the State of Secretariat for Education, Research and Innovation (SERI) oversees the activities of these institutions where high education standards are expected (Ung-Kono, 2016). On the other hand, standards vary with the canton as each one of them is mandated with the creation and implementation of its standards. This emerging difference could disadvantage a family that is on the move probably from one locality of the country to another.
Nevertheless, the entire country follows a set structure in its education system beginning with primary education albeit the kindergarten where kids begin their primal socialization skills. Onwards, there is the lower and consequently, the uppers secondary education. The latter could consist of vocational training. Tertiary level education is the highest level in the land and comprises of university or higher education. As mentioned earlier, education is a compulsory activity, particularly, for children. It begins at 7 years or thereabout and ends when the kid reaches 15 years (EuroEducation.net, 2005). In this regard, homeschooling is regarded as illegal meaning that it is a very rare event in Switzerland. Children enrolled in local and international schools are free. However, this comes at a costly price for the parents who are required to pay high premiums in terms of taxes for the upkeep (Ung-Kono, 2016).
Education is an indispensable commodity in the country implying that its results reflect a similar position. The Organization for Economic Co-operation and Development (OECD) provides accurate and relevant data on the same. The authoritative source states that 89% of 25-34 year-olds and 86% of 25-64 year-olds have accomplished at least upper secondary education. Pre-vocational or vocational programs are predominant among this population with 65% of the students participating in either. 93% of those that chose vocational programs to combine their school and work-based elements (OECD, 2014). This situation is different from other OECD countries that stipulate that vocational education be school-based only. Also, most upper secondary graduates end up in tertiary-type B programs, unlike most OECD countries where students are expected to graduate tertiary-type A programs.
When it comes to expenditures, Switzerland is committing more of its resources to public education. This assertion arises concerning "spending per student and as a share of public expenditure" (OECD, 2014). The country is among the highest European nations with the greatest annual spending per student. According to OECD (2014), the nation commits $16,090 per student. This data reflects the situation of the public institutions only while on average, OECD countries spend $9,487. The annual spending on students in secondary school is $15,891 while for those in tertiary education is approximately $10,017 albeit research and development (R&D) (OECD, 2014). Despite the astronomical costs of education in this region, Switzerland is proud of hosting the greatest percentage of international tertiary students relative to the total in OECD countries. Most of the international students are enrolled in law programs, business, and social sciences. Following closely are science, construction, manufacturing, engineering courses, and finally, humanities and arts. Most of the students in this category are pursuing a bachelor's degree, a master's degree or else in advanced research programs. More than half of them are in advanced research programs.
On the other hand, an education system takes into account the teachers. The intensity of this system revokes the need to address the teachers’ role. Switzerland offers the best compensation packages to its teachers. They are among the highest paid in terms of their salaries in comparison to other OECD countries. A decade of experience compels a salary package of a salary average of about $61,279 for the primary teacher. This amount is double what their peers in OECD countries receive. For the OECD countries, their average teachers’ salaries are $36,846. A similar experience is reminiscent of the upper secondary level. After a decade's experience, Switzerland's teachers will earn an average of $80,956 while the OECD average is at a far-reaching $40,686 (OECD, 2014). When the education standards are at this level, it is quick to find reasons that justify the excellence Switzerland continues to maintain.
4.0 Income-related Information
In Switzerland, the Swiss franc (CHF) is the major and only official currency. Switzerland has never been a member of the European Union (EU) despite being surrounded by many member states. However, the EU allows it to be part of its single market (Gov.uk, n.d.). In this regard, several places in Switzerland would accept the Euro, but then certainly it is not everywhere. Places such as gas stations, rail stations, hotels, and many shops can receive such payments, particularly, when one is in transit or single night stays. However, small scales enterprises such as kiosks, market stalls, and smaller shops accept CHF only. In Switzerland, the Euro is a foreign currency and thus, could result in one incurring extra costs and risks. On a better note, CHF has been performing relatively great on the global marketplace. The latest market reports indicate a better performance against the dollar by 6.87% (MarketWatch, 2020). However, the British pound is strong against CHF by 2.1% (MarketWatch, 2020). This situation implies that investors in the global marketplace are confident with the currency.
The Federal Statistical Office is mandated to provide the public with important data concerning the masses. Income distribution is an important phase upon which the government seeks to establish the state of its citizens. The administrative function highlights that 10% of its citizens had an annual equivalized disposable income (EDI) that was less than CHF 27,004 in 2018. On the other end of the spectrum, a similar percentage had an annual EDI greater than CHF 93,087 in the same year (Federal Statistical Office, 2020). In calculating the EDI, compulsory transfer expenditure such as child maintenance, premiums for compulsory health insurance, taxes, and social insurance contributions are subtracted from the gross income. The result is divided by the equivalised household size as shown in Fig 3. This system guarantees that the analysis is projected from an individual rather than a household level. The median indicates that more than half of its citizens are an annual EDI of less than CHF 49,905 (Federal Statistical Office, 2020). When these adjustments are conducted relative to the price levels of other countries, Switzerland appears to be doing well. On the other hand, the country's household income per capita appears to be on the rise over the past decade and from an overall perspective.
Fig 3 Switzerland’s Household Income per Capita from 2006 to 2017 (Computer and Enterprise Investigations Conference, 2017)
The employment rate is another important case for consideration because it defines the income levels that people receive. According to OECD Better Life Index (2015), "80% of people aged 15 to 64 in Switzerland have a paid job," which fairs relatively well in comparison to the average employment rate in OECD countries, which is at 68%. Even then, men form the higher bracket of people who are paid with a prevalence of 84% while women were at 75% as shown in Fig 4. However, this a considerable level of circumstance considering that the level of income inequality in some countries.
Fig 4 Frequency distribution of the employees by wage level classes, 2016 (Federal Statistical Office, 2018)
The Gini coefficient is a mathematical tool used in comparing income inequality in various countries. Gini runs from 0 to 1 with o representing a case of perfect or complete equality and 1 being the case of perfect inequality. Comparisons between countries provide a metric upon which researchers can establish clarity on which countries have the highest and lowest gap. Income inequality is one of the most contentious and hotly debated issues in contemporary societal issues. Switzerland fairs relatively well in comparison to developed states such as the United States (U.S.), the United Kingdom (U.K.), Australia, Japan, and South Korea as shown in Fig 5 below.
5.0 Political Environment
Switzerland has one of the most unique yet effective political systems in the world. The nation's politics are conducted at three levels, which include the Confederation, the 26 cantons, and over 2,250 communes (The Federal Council, 2018). Even though it has 26 cantons, 6 of these are popularly known as half cantons as they only elect one member who is bound to represent them to the Council of States (Central Intelligence Agency, n.d.). Being half a canton disadvantages them during referendums that demand the majority of popular votes and subsequently when a substantial number of cantonal votes are required. On the other hand, each of these administrative levels possesses the autonomy to form decisions on specific issues. The level of authority on each one of them aligns with the principle of subsidiarity. In circumstances where a lower level lacks the power to facilitate a decision, then the matter is passed to a higher level. The Swiss political system holds federalism and direct democracy in high regard highlighting the unrivaled freedom of choice as well as self-determination in the country.
From a technical sense, Switzerland has no official capital city. However, Bern is the de facto capital city and is referred to as the 'federal city' because it is when the Swiss Parliament is located. The parliament elects the seven members who form the Federal Council. The Federal Assembly (Swiss Parliament) consists of 246 members elected by the people. The bicameral parliament comprises of 200 members from the National Council and 46 members from the Council of States. Although there are about 15 political parties in the Federal Assembly, it is only those that have the largest share of the popular vote that gain a seat on the Federal Council. Approximately 63% of the total population, which equates to 5.3 million citizens, are eligible voters at the federal level. It is a constitutional right to every Swiss national who attains the age of 18 (age of majority) (The Federal Council, 2018).
The Federal Supreme Court of Switzerland is the highest institution representing the judiciary. The rule of law is a major mantle for the country, which is enforced by the judiciary. In this regard, the law upholds a high degree of protection of property rights. Its citizens, as well as leaders, are convinced that a great economy is only attained through the institutionalization of an independent and fair judicial system. There is much respect for intellectual property rights unlike in the U.S. where there is much theft of tech ideas.
6.0 Level of Corruption
Corruption is a defining factor when it comes to the level of economic growth in a country. Its influence is phenomenal justifying the robust efforts placed to fight the vice. According to the 2019 Transparency International report, Switzerland appeared among the top seven least corrupt countries worldwide. It was the third consecutive appearance in the top seven rankings alongside Nordic nations – Norway, Sweden, Finland, and Denmark - plus Singapore and New Zealand (Transparency International, 2019). The rankings are based on the Corruption Perceptions Index (CPI) with these countries scoring between 84 and 88 points. A country that has no cases of corruption scores 100 points on the index. It is very difficult to attain the full marks, but then those that score highly have many enviable democratic attributes (Transparency International, 2019). Such attributes include exceptional levels of economic development, rule of law, and strong institutions. CPI takes into account metrics such as diversion of public funds, rates of bribery, conflicts of interest as well as other types of corruption as shown in Fig 6 below.
Fig 5 Switzerland Corruption Rank (Trading Economics, 2020)
Unfortunately, the CPI fails to take into account money laundering activities. If this step was to be achieved, it could have possibly affected Switzerland's ranking considering that it is a significant financial hub in global economics. Swiss banks facilitate the movement of large-scale money transactions implying that at any other point, it could be supporting global money-laundering and corruption schemes. There are a couple of examples that could help make a substantial case.
The Mozambique scandal is one of them where Credit Suisse was implicated in tuba bonds supplied to the Africans to bolster their fleet of fishing boats. Administrators found non-compliance as well as an overarching need for a few employees to enrich themselves. The bank was dishonest with its investors as their payments made to private entities. Moreover, the financial institution remained dumb-founded on the 2017 loans it had extended to Mozambique (Hody, 2019). Besides the case in the African continent, Swiss banks have been affiliated with corruption scandals in the Asian country of Malaysia. At the center of this escapade is the Swiss bank, Rothschild Bank AG which collaborated with Malaysian 1MDB to siphon billions of dollars from the sovereign wealth fund. Eventually, Malaysian corrupt officials were to benefit from the deal. The Swiss Financial Market Supervisory Authority (FINMA) had to intervene in appointing an auditor who would guarantee that the involved Swiss firms had overhauled their practices (Swissinfo.ch, 2018). Another mentionable case would be the one involving Swiss private bank PKB Privatbank SA Lugano and Brazilian groups Petrobras and Odebrecht (Revill & Shields, 2018). The attorney general argues that the Swiss firm had the opportunity to avert the commitment of possible crimes.
Apart from the cases mentioned above, Swiss administrators have established many other prosecutions in the quest to maintain credibility in its financial sector. The government acknowledges that corruption is a significant impediment development, public trust, and disappearance of crucial financial resources. Corruption promotes injustices and “a general sense of powerlessness” (The Federal Council, n.d.). It is a situation that benefits a few, particularly, the rich while the poor continue to languish in poverty and unable to receive public services. In retrospect, the Swiss Agency for Development and Cooperation (SDC) intervenes to combat this crime. Fighting corruption is central to Switzerland’s goal of establishing good governance. The SDC focuses on petty corruption because it impacts individuals' everyday lives. For instance, the issuance of bribes affects their ability to acquire medical care. Further, the SDC is keen to alleviate the works of powerful politicians who are keen to buy power through the dishing of cash to the voters.
The institution aims to tackle these issues using a two-pronged approach. First, it offers unrivaled support for precise anti-corruption programs. Secondly, the public institution incorporates anti-corruption measures into other areas of work. SDC recognizes that its participation through these methods will result in a more leveled playing field for everyone in the country. It addresses all elements of the vice ranging from unfair price-fixing, nepotism, embezzlement, fraud, bribery, and extortion. In the case of companies, the Swiss administration has made commendable progress to highlight the illegality of corruptive behaviors not only within domestic boundaries but also abroad.
In retrospect, the State Secretariat for Economic Affairs (SECO) issued a brochure, which was solely meant to help companies get acquainted with “the applicable regulations of the Swiss criminal law” (State SECO, 2017). The document stipulates the consequences corruption has on businesses and even better, it proposes steps that firms can undertake in preventing and combating the behavior. In the brochure, different real-life scenarios have been used to address the legal perspectives of those occurrences. The credibility of this document is very high considering that it is the collaborative efforts of various institutions. These include HTW Chur University of Applied Sciences, Transparency International Switzerland, ICC Switzerland, Economiesuisse, the Swiss Federal Department of Foreign Affairs, and the Swiss Federal Office of Justice. The zero-tolerance policy stipulates that in case SDC were infused with corruption, no payments would be discontinued until the completion of a legal investigation. In such circumstances, SDC makes concerted efforts to recover misappropriated funds.
7.0 Social and Economic Environment
7.1 Social Aspect
Swiss experience a relatively stable labor market whereas mentioned earlier has a very low unemployment rate. Moreover, the country's salaries are high above ordinary OECD or European standards. These situations imply that the country has a high level of gross domestic product (GDP) per capita. A significant amount of the income derived (about a third) is directed towards social services and progressive maintenance of health systems. These services are inclusive to the entire population that no one is left behind.
Cantons establish their jurisdictions, which means that compulsory health insurance premiums will differ across them. Some of the services that health insurance covers include follow-up checkups during pregnancy, birth, post-natal care, and breastfeeding advice. Moreover, there are no additional costs in that there are no deductibles, retention, or hospital fees (Ch.ch, n.d.). A maternity insurance scheme was introduced in 2005. These services are expensive, which justifies the country's health care system being among the costliest across the world. It dedicates 11.7% of its GDP on healthcare. In comparison, the OECD average is about 9%. Switzerland's health-care per capita costs come short to those of the U.S. only.
The obsession the administrative system has on its citizens implies that adverse circumstances such as strikes are rare. Moreover, employers and employees form a social partnership that is highly predicated on solving prevailing problems. Most of the employees in Switzerland are paid very high wages relative to other regions of the world. Nevertheless, these are offset by its extreme cost of living and under a similar microscope, these are significantly higher relative to other countries’ living standards. Even in these less impressive circumstances, households manage 10% of their income. The average outlook stipulates that Swiss citizens spend approximately a third of their income on health insurance, taxes, and social security contributions. This high expenditure translates to high-quality healthcare services. Also, the high expenditure on the social insurance system guarantees that none of the Swiss citizens are left behind in this aspect.
7.2 Economic Aspect
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