The Grand Duchy of Luxembourg, just like Andorra, Lichtenstein, San Marino and the Channel Islands, belongs to the relics of European feudal system. Despite such genesis, at the same time Luxembourg remains a modern Western European country with a very high standard of living. The complex history of Luxembourg resulted in the fact, that the Grand Duchy is just a part of historical region of Luxembourg divided into four countries - Luxembourg, Germany, Belgium and France. The historical changes of the territorial shape of the Luxembourg as the separate country was describe in the paper. Luxembourg has always played a far more significant role, than it would result from its economic or territorial potential. Considering both, the area size and the number of inhabitants, the Grand Duchy qualifies as a very small country. It is also an inland country. It is ranked as the 172th largest territory and the 173th population in the world. Surrounded by two huge neighbours (France and Germany) and Belgium it has an extremely disadvantageous political pressure index. Such a modest position of Luxembourg in the ranking of countries' size is not reflected in other rankings. It has a GDP of 60.1 billion USD, which is a 73th result in the world. It is $111.2 thousand per capita and the highest score in the world. Other rankings also place Luxembourg relatively high. The standard of living measured in Human Development Index places Luxembourg as 21 th country in the world in front of Finland and USA. Considering the index of economic freedom, Luxembourg comes 21th. In all the rankings of economic, political or religious freedom, the Grand Duchy is in the leading group of absolutely free and fully democratic countries. Despite the fact, that the Luxembourgers are only a slight majority in their own country (immigrants constitute 44.5% of the total population) there is no such thing as xenophobia in Luxembourg. Luxembourg is also home to Kirchberg European Centre where different European administrative, political, scientific and economic entities hold meetings and conferences. Luxembourg also hosts the European Court of Justice, European Investment Bank and European Court of Auditors, as well as the Secretariat of the European Parliament and institutions of the European Commission. Luxembourg, being a historical region of the medieval Europe, has become a model example of a multicultural region of the united Europe.
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