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This is CBS Eye on the World. Here's John Bachelorette.

Lichtenstein, 38,000 people, 160 square kilometers in Europe, and I learned from an essay at Defense and Foreign Affairs,

the editor and publisher, Gregory Coppley, is here to help me understand.

Lichtenstein is a combination of monarchy, oligarchy, and democracy, and the people of Lichtenstein do very well.

Thank you very much. Once upon a time in a grurian base, now as civilized and as advanced as any place on the planet earth,

very comfortable with its hereditary monarchy, and the fact that the monarchy is not outside of the political process,

can intervene if needed be, although that happens very rarely.

Gregory, I start with Lichtenstein because I've often heard about it, and I puzzle how it prospers in the midst of the European Union's

momentum towards democracy, transparency, and what we know to be the confusion of coalition governments.

How does Lichtenstein do it? Is it the population is well educated? Is it the benevolence of the monarchs? Good evening to you.

Good evening, John. Well, Lichtenstein is a wonderful little country which borders, of course, on Switzerland and Germany and Austria.

It is not a member of the European Union, so it's much more free from the populist politics of the European Union.

It developed literally from a personal grant, literally made it an absolute monarchy in its origins coming out of the Holy Roman Empire,

but because it was a family affair, it gradually developed this form of governance which is working extremely well.

It's a small population, 38,000, as you mentioned. So the population and the ruling prince, who's currently Hans Adam II,

there's a familial approach to governance there and a sense that everybody is looking out for everybody else.

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