microstate

Microstate is a term used in political science and international relations to describe a sovereign state with a comparatively small population and/or territory. There is no universal legal threshold; the term is descriptive rather than formal, and lists of microstates vary. What typically defines a microstate is full sovereignty coupled with a very small size that shapes policy options and external relations.

Microstates often have limited natural resources and small domestic markets. Economies tend to rely on specialized services such as finance, tourism, or cross-border commerce, and they frequently depend on agreements with larger states or international institutions for security, monetary policy, and economic support. Their small size can facilitate nimble governance but also exposes them to external shocks and external influence. Diplomacy tends to emphasize recognition, treaty-based security arrangements, and participation in international organizations to safeguard independence.

Common examples include Vatican City, Monaco, San Marino, Liechtenstein, Andorra, Nauru, and Tuvalu. Some lists also include Kiribati or the Federated States of Micronesia, depending on whether population, land area, or both are used as the criterion. Many microstates maintain unique monetary or currency arrangements, such as Liechtenstein using the Swiss franc; Monaco, Andorra, and San Marino using the euro in practice under formal agreements; and Vatican City also engaging with euro-related arrangements.

Climate vulnerability and economic diversification pose particular challenges for island microstates, while landlocked or resource-poor microstates often rely more heavily on external aid and international diplomacy. See also small states, city-state, sovereignty, international law.