SWITZERLAND

Switzerland's democratic institutions are strong, with fair elections, constitutionally protected media independence, and strong adherence to direct-democracy decision processes.

Some discrimination against women and foreigners exists. Some political parties make openly xenophobic and racist statements.

A highly decentralized, pragmatic administrative culture sometimes reduces legal predictability.

Switzerland has maintained a very low unemployment rate, with a high degree of labor flexibility.

The business sector is torn between competitive export industries, and domestic producers seeking to maintain protectionist policies.

Taxes are generally low, but can vary substantially between municipalities and cantons.

Budget policy has been disciplined, with spending increases held in check by public referendums.

Overall government spending is low, allowing little opportunity for income redistribution or poverty reduction.

Mandatory health insurance allows for excellent care, but with a high cost.

Family policy, varying by canton, typically supports traditional gender roles. Women often find it difficult to combine parenting and a career.

The mixed pension system prevents old-age poverty, but will be stressed by demographic change.

Switzerland's security policy has long been based on the idea of armed neutrality. The country today participates in multilateral peacekeeping operations.

The country has a high proportion of foreign-born residents, but integration programs have only recently been implemented, and are relatively undeveloped.

Switzerland has a solid record on issues of sustainability.

Water pollution control and a high recycling rate are particular standouts, although control of CO2 emissions has been delayed.

Public promotion of research is strong, and private R&D well-developed.

Education policy falls to cantons, and thus varies regionally. However, schools are generally of high quality.

Strategic planning is difficult, due to a collegial governing style, strong regional government powers, and the influence of direct democracy.

Policy decisions are made collectively by the Federal Council.

A strong tradition of corporatism has been undermined only somewhat by conflicts associated with European integration.

An increasingly polarized politics has challenged governments' traditional internal cohesion.

Governments' ability to win parliamentary approval is relatively high.

In the period under review, 87 percent of government-sponsored bills were adopted by parliament.

The nation's most potent veto power rests in public referenda on legislation, which can be called by any group. As a result, wide-ranging compromises often precede legislative passage.

Although not an EU member, Switzerland has adapted many institutions to EU norms. Joining the EU's internal market has necessitated considerable reform.

Switzerland's engagement in international reform projects has been selective, with citizens reluctant to allow domestic policy to be defined on an international level.

Some self-monitoring occurs within the framework of the Swiss political process, but has not yet been institutionalized.

Institutional reform efforts are often met with resistance on the part of the Swiss public and cantons.

In part due to the system's heavy reliance on direct democracy, Swiss citizens are well-informed on policy issues.

The parliament plays an effective oversight role.

While most large parties produce plausible agendas, some parties are becoming polarized, and their proposals less coherent. Interest groups are largely pragmatic, and influential.