Press Officers, Michaelmas 2017

Jade CharlesGideon Benedyk

Press Officers, Michaelmas 2017

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Cambridge, 17 November 2018

The Prince of Liechtenstein

His Serene Highness Hans-Adam II

Human history is a history of war, persecution and destruction. In the 20th century, this reached its peak in the Two World Wars. One cannot avoid the possibility that human technology may destroy all forms of life on planet earth. However, humanity also has a huge opportunity to solve its problems.

First, a state model which prevents wars against and between states. Second, a state model that serves not only a privileged section of the population but the entire section. Third, a state model geared to the competition of the age of globalisation. Fourth, a state model based on democracy. This only works if the state serves for the people, not the other way around.

I introduced self-determination in a local way in Liechtenstein. Every locality in Liechtenstein has the right to decide to leave the Principality and to form an independent state. For very small units, it is not difficult to create a democratic state and to provide welfare to your citizens.

States cannot become too big: the Austro-Hungarian Empire is a case in point. In small localities (i.e. communities), minorities can find their feet. Foreign policy, law and order, finance should remain with the state. All other duties should be fulfilled by private enterprise or by communities.

Whoever wants to have democracy and the rule and law will see the maintenance of law and order is the most important task of the state, which is more important than all other tasks. It is the duty of the state to tell the citizens about the Constitution and the laws that I enforce. If the state issues laws that are contradictory, the state should be liable, not the taxpayer.

In 1990, the Government and Parliament decided unanimously to introduce a new tax law. 90% paid the same amount and 10% would pay higher. There was a referendum held in which the people decided to reject this proposal by 80% because they believed it would harm the competitive advantage of the economy. This shows that the power lies by the people. Furthermore, the citizens can decide to abolish the Monarchy provided more than half of the country’s population vote accordingly.

Education systems run by public authorities tend to become inefficient sooner rather than later. A voucher system should be adopted and education should be financed between business initiatives and local communities. Political resistance against voucher systems are organized by teacher associations. The authority to raise indirect taxes should reside with the state, and the authority to raise direct taxes should reside with the communities.

A state without debt, with constitutional powers, will become a responsible state. The surplus from the revenues of indirect taxation will flow to local communities, who in turn have power of direct taxation. For peoples and companies, tax rates are only one reason why peoples and companies move.

You might ask yourself how a Monarch can be interested in a democratic country. It is not easy to create democratic legitimation for the hereditary nature of the Monarchy. For this reason, I worked out in the Liechtenstein Constitution a clause where it is possible to remove the Monarchy with a simple majority.

The arsenal of nuclear, chemical and biological weapons has grown exponentially over the years because the cost of making them have deceased. This makes the rule of law so much more important in the modern age. Thank you.

Q: Why does democracy work in Liechtenstein but not in Britain?

A: In Liechtenstein, there was a strong support for the Monarchy. After the collapse of the USSR, I am confident of the growth of democracies in the world. In my opinion, you have to start from the bottom up.

Q: Do you think particular economic thinkers in the beginning of the 20th century have had an impact on your own thinking? A: My parents told me I had to study economics and law in Switzerland. I analysed the future of small states in the 1960s. At that time, ‘the bigger, the better’. At that time, Liechtenstein was a poor country but then it began to develop manufacturing companies. Free trade was made possible. I introduced an initiative at the United Nations to bring about self-determination, so that there could be a peaceful collapse of large states.

Q: How do you a healthcare system?

A: In Liechtenstein, we have compulsory insurance and we have agreements with hospitals. It is similar to the American system but poor people get a bad deal. People who cannot afford high insurance premiums.

Q: How would you fix the American healthcare system?

A: There are people badly insured in America.

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