Institutional Pillars of Switzerland’s Economic Resilience and Prosperity

Abstract

Switzerland has emerged as one of the world’s most prosperous and resilient economies despite its small size and limited natural resources. This article analyzes the institutional and theoretical foundations of the Swiss economic model, drawing on perspectives from institutional economics, ordoliberalism, and comparative capitalism. The study highlights five pillars underpinning Switzerland’s sustained performance: political neutrality and global integration, the independent monetary policy of the Swiss National Bank, federalist and direct-democratic governance, a dual vocational education system paired with flexible labor markets, and an innovation-driven industrial base. Each of these elements contributes individually to stability and competitiveness, while their complementarities produce a coherent framework that fosters resilience, productivity, and long-term growth. By conceptualizing Switzerland’s success as an outcome of institutional efficiency and complementarities, the article contributes to broader debates on the determinants of economic resilience in advanced economies. The findings suggest that Switzerland’s experience exemplifies how coherent institutional architectures can yield sustained prosperity without reliance on scale or resource abundance.