Andorra

Andorra is a nice quiet little micronation lodged in between Spain and France. Its people seem to have a lot going for them nowadays: employment rates are around 100%, as are its literacy rates.  Because of its status as a "free port" (i.e. low or no tariffs), Andorra has been a good place for citizens of the European Union to go and purchase cheap consumer goods, especially tobacco products. This has been due to the country's unique relationship to its neighbors. Being a sort of dependency of France and Spain meant that Andorra had open borders with them; not being in the E.U. meant that it didn't have to erect the same trade barriers as that large organization. This situation has been abetted by improved transportation routes through the Pyrenees which has led to increased numbers of tourists (hikers during the summer, skiers during the winter). It's status as a banking tax haven sure has helped its economy, too.

Andorrans, man

Andorra has managed to survive all of Europe's kerfuffles almost completely unscathed. Napoleon didn't even bother to annex it to France until 1812, and its not like it was all that far from Paris. During WW1, Andorra did its part for the war effort and dutifully declared war on Germany. But because nobody really cared, Andorra wasn't invited to participate in the signing of the Treaty of Versailles. This resulted in World War 1 finally ending in 1958 when someone finally noticed and peace between Andorra and West Germany broke out. On the positive side, Andorra served a conduit for people fleeing Nazi-occupied Europe during WW2 (easy to enter from France, easy to leave to Spain). It was essentially Andorra's age-old tradition of smuggling put to a good use. Good job, Andorra!