Liechtenstein-Alaska

**Liechtenstein-Alaska** (lɪçtn̩ʃtaɪn əˈlæskə), officially the **Grand Principality of Liechtenstein-Alaska** (German: Großfürstentum Liechtenstein-Alaska and Yiddish: גרויס פּרינסיפּאַליטי פון ליכטנשטיין-אַלאַסקאַ, tr. Groys Prinsipaliti fun Likhtnshteyn-Alaska), is a small transcontinental country in the northwest extremity of North America and in Central Europe. It’s American part consists of some 1,132 islands, mainly the Alexander and Kodiak archipelagos, while its European territory consists of a tiny mountainous area in the Alps. It shares maritime borders with both the  United Commonwealths and  Vostok in North America, where the Pacific Ocean lies to the south and west, whereas in Europe it borders  Switzerland to the west and  Germany to the east.

Liechtenstein-Alaska is both the smallest and least populous North American country, covering an area of 49,050 km2 and around 840,000 people. Most of the grand principality‘s territory is located in North America and it’s European part only makes up 0.3% and 4.5% of its total territory and population respectively. Liechtenstein-Alaska‘s capital and largest city is New Vaduz which is situated on the west side of Fürst Johann Island and the south half of Fürst Franz Josef Island. New Vaduz contains approximately half of the country‘s residents. Additionally, around 20% of the Liechtenstein-Alaskans live in the country’s second largest city New Vienna, situated on Kodiak Island.

The  Russian Empire was the first to actively colonize the area beginning in the 18th century, eventually establishing  Russian America, which spanned most of the current state. The expense and logistical difficulty of maintaining this distant possession prompted its sale to Prince Johann II of  Liechtenstein in 1861 for US$7.2 million (equivalent to UC$140 million in 2021). The small principality was unable to colonize, defend or maintain a large colony that spanned 1,717,856 km2, prompting them to rely on funding by the  New Confederation and defense by  Austria-Hungary. This caused Alaska, now renamed to  Franz-Joseph-Land in honor of Austrian Emperor Franz Joseph, to be a de facto Austrian colony. The Klondike Gold Rush and the discovery of abundant natural resources made Alaska an attractive target for mainly Austro-Bavarian and Hungarian settlers. On 11 May 1912, Alaska became a principality equal in rank to European Liechtenstein and in personal union under Prince Johann II. After  Austria-Hungary was dissolved in the Paris Peace Conference, Johann II fled from Vienna to New Vaduz and created the real union Grand Principality of Liechtenstein-Alaska which was centered in North America instead of Europe.

Following the Japanese capture of Alaska in 1942, Prince Franz Josef II, who thought that the war situation was hopeless, sold Alaska to the allied Romanov dynasty which was in US exile since 1917. The Americans deemed the purchase to be invalid and annexed Alaska following the successful Canadian-American Operation Aurora. To appease the Romanovs, who were seen as a possible ally by the Long Administration,  Vostok was given control over a vast part of Alaska which was considered worthless by the  United States, while Liechtenstein was compensated by retaining control over the Alexander and Kodiak archipelagos. Antisemitic violence and economic exploitation prompted many European and American Jews to seek refuge in Liechtenstein-Alaska, regarded as a sanctuary for Jewish people in the late 1930s and 1940s. This made Liechtenstein-Alaska have the highest percentage of Jews after  Israel and their culture heavily influenced by Ashkenazi traditions, reflected in Yiddish being an official language and the prominence of kosher foods.

Economically, Liechtenstein has the highest GDP per capita in the world. The country has a strong financial sector centered in Europe. It is famously known as a billionaire tax haven, but is no longer on any official blacklists of uncooperative tax haven countries. Liechtenstein-Alaska is a founding member of the  United Nations, the  Non-Aligned Movement, the  Liberty Zone and the Rio Pact. Although not a member of the  European Union, as it was not designed with microstates in mind, European Liechtenstein participates in the Schengen Area. Because of its membership in the Liberty Zone, it has a customs union and a monetary union with the  United Commonwealths.