Government and Economy

The initial Government structure had an assembly known as Arengo consisting Heads of each family. In 1243, Capital Regents became the joint heads of the state. San Marino is now recognized as a Political entity and has signed treaties with Britain, Holland, Belgium and USA. Italy and San Marino signed a treaty of friendship and economic cooperation in 1862 (renewed and expanded several times).

Legislative power in San Marino is vested in the popularly elected grand council (Consiglio Grande e Generale), which is made up of 60 members elected to five-year terms; every six months the council appoints two regents (Capital Regents), who in conjunction with the 10-member council of state form the executive. San Marino became a member of the United Nations in 1992.

Textiles and clothing, Building Materials, Ceramics, Electronics and Food Products are the main manufactures. Tourism is the country's economic mainstay, and banking also plays a major role. The sale of postage stamps and duty-free consumer goods are also sources of income. Agricultural products include wheat and other grains, fruit, cheese, and olives. Cattle and hogs are raised. Building stone, textiles, leather goods, wine, and ceramics are exported. The country imports many manufactured goods and much of its food, mostly from Italy. The republic gets an annual subsidy from Italy in return for having renounced certain rights, such as establishing a broadcasting station and growing tobacco. Even though, San Marino mints its own coins, Italian and Vatican City currency is in general use. There are highway and rail connections with Italy.