When we think of a sovereign country, certain characteristics usually come to mind—permanent citizens, an independent economy, a legal system, a cultural identity, and internationally recognized borders.
But at the fringes of international diplomacy, sovereignty becomes a spectrum rather than a binary concept. There are entities like Northern Cyprus and South Ossetia, which declare themselves independent but receive little to no recognition. Then there are cases like Palestine, which exhibits most traits of statehood yet lacks universal recognition.
And then, sitting in a category entirely of its own, is the Vatican City.
The Vatican defies conventional notions of statehood. It lacks a permanent population, a traditional economy, a legal system of its own, and even a national identity—yet it is one of the most universally recognized sovereign states in the world. Despite its diminutive size and unconventional government structure, it holds a seat at international diplomatic tables, influences global policies, and maintains official relations with 183 countries.
So how did this tiny religious enclave—the only elected absolute monarchy in the world—become a global diplomatic power?
A State Without Citizens
One of the most defining aspects of a sovereign state is its permanent population. Yet, the Vatican has no native citizens.
Vatican citizenship is not inherited. No one is born a citizen of the Vatican, nor can it be passed down through generations. Instead, it is granted only to those working for the Vatican, such as members of the clergy, Swiss Guards, and high-ranking officials. Once their tenure ends, their citizenship is revoked.
Because of this, there is no demonym—no universally recognized word for a person from the Vatican. Unlike French, Japanese, or American people, Vatican citizens are simply Italian, Argentine, Polish, or whatever their birth nationality is.
As a result, there is no distinct Vatican identity, culture, or people, making it perhaps the most unusual country in the world.
A State Without an Economy
Most nations rely on trade, natural resources, or industrial output to sustain their economy. The Vatican, however, has no exports, no agricultural or industrial production, and no financial markets.
Instead, its primary source of revenue comes from museum ticket sales and donations. Tourists visiting the Vatican Museums, the Sistine Chapel, and St. Peter’s Basilica generate millions of euros annually, which help sustain the operations of the Holy See.
Beyond tourism, the Vatican also benefits from contributions from Catholic churches worldwide, known as Peter’s Pence, as well as investment portfolios and real estate holdings.
But for all practical purposes, the Vatican relies on Italy for many essential services:
- Healthcare: Vatican residents use hospitals in Rome.
- Law Enforcement: Serious crimes are prosecuted under Italian law and convicted criminals serve sentences in Italian prisons.
- Commerce: The Vatican has a single grocery store, and beyond that, residents rely on Italy for shopping and basic goods.
Unlike traditional states, the Vatican is not self-sufficient, making its sovereignty even more unique.
The Vatican’s Unusual Government: The Only Elected Absolute Monarchy
The Vatican is the only absolute monarchy where the ruler is elected. The Pope, the head of the Catholic Church, also serves as the supreme authority over the Vatican City State.
While monarchies like Saudi Arabia and the UK have hereditary rulers, and elected governments like the US and France have democratic leaders, the Vatican is a strange hybrid.
- The Pope is elected by the College of Cardinals through the famed conclave process.
- Once elected, he holds absolute power over legislative, executive, and judicial matters.
- Unlike traditional monarchies, he does not pass down power to an heir—instead, a new Pope is elected upon his death or resignation.
In practice, however, the Pope delegates most government functions to a governing body called the Holy See.
The Holy See: The Vatican’s True Diplomatic Power
The Holy See is both the governing body of the Vatican and the international representative of the Catholic Church. This means that, unlike other governments, the Vatican’s governing structure does not distinguish between religion and state—they are one and the same.
The Roman Curia, the Vatican’s administration, is composed of various departments (dicasteries), the most important being the Secretariat of State, which acts as the Vatican’s foreign ministry.
Unlike other small nations, the Vatican punches well above its weight in diplomacy. It maintains 117 Apostolic Nunciatures, which function like embassies, but do not represent the Vatican City itself—they represent the Holy See.
This small distinction makes a big difference. It allows the Vatican to engage in international diplomacy not just as a state, but as a religious institution.
Why Is the Vatican Recognized as a Sovereign State?
Despite its unconventional characteristics, the Vatican enjoys universal diplomatic recognition. But why?
Some argue that the 1929 Lateran Treaty—which officially granted the Vatican sovereignty—cemented its statehood. But this explanation is incomplete.
From 1870 to 1929, the Vatican had no physical territory, yet it was still recognized as a sovereign entity and engaged in diplomatic relations. In reality, the Vatican’s sovereignty is rooted in historical precedent and international consensus.
Simply put: the Vatican has always been treated as a sovereign entity, so it remains one.
The Vatican’s Role in Global Diplomacy
Despite its small size, the Vatican has influenced major global events through soft power diplomacy.
1. The Vatican and the UN
The Holy See is one of only two non-member observer states at the UN (the other being Palestine). This means it can participate in debates, propose policies, and offer moral guidance—but it does not vote.
The Vatican’s influence at the UN is ideological rather than political. In 2005, for example, it successfully lobbied for a broad ban on human cloning, arguing that all human life is sacred.
2. The Vatican’s Role in the Cuban Thaw
In 2014, the Vatican played a critical role in negotiating the restoration of US-Cuba relations. Pope Francis personally urged President Barack Obama and Cuban President Raúl Castro to compromise, leading to a historic diplomatic breakthrough.
3. The Vatican as a Middle Eastern Mediator
The Vatican has long maintained diplomatic ties with Syria, Lebanon, and Palestine, allowing it to act as a neutral peace broker.
- In 2012, during the Syrian Civil War, the Vatican was seen as one of the last remaining peace negotiators between Muslim factions.
- In 2024, Pope Francis visited Indonesia to advocate for Christian minority rights in the Muslim-majority nation.
Unlike other states, the Vatican has no military or economic leverage—but it wields moral authority, making it a unique force in global politics.
Conclusion: The Smallest State with Outsized Influence
The Vatican is a state unlike any other. It lacks citizens, a real economy, a legal system, or even a distinct national identity, yet it enjoys universal recognition and plays a pivotal role in international diplomacy.
While its sovereignty is unusual and largely symbolic, its influence is very real. Through moral authority and diplomatic engagement, the Vatican continues to shape global policies, mediate conflicts, and act as the voice of the Catholic Church on the world stage.
In the end, the Vatican proves that sovereignty is not just about territory, economy, or military power—but about recognition, history, and influence.
FAQs
🔹 Is the Vatican really a country?
Yes, despite its unusual characteristics, it is recognized as a sovereign state.
🔹 Does the Vatican have citizens?
No, Vatican citizenship is temporary and tied to employment.
🔹 Why does the Vatican have diplomatic relations?
Because the Holy See (the Vatican’s government) has historically been treated as a sovereign entity.
🔹 Does the Vatican have a military?
No, but it has the Swiss Guard, which acts as the Pope’s personal security force.
