Vatican City is an independent city-state
enclaved within Rome, Italy. Established with the Lateran Treaty
(1929), it is distinct from yet under "full ownership, exclusive
dominion, and sovereign authority and jurisdiction" of the Holy
See (Latin: Sancta Sedes). With an area of 44 hectares (110
acres), and a population of about 1,000, it is the smallest
state in the world by both area and population.
The Vatican City is an ecclesiastical or sacerdotal-monarchical
state (a type of theocracy) ruled by the pope who is,
religiously speaking, the bishop of Rome and head of the
Catholic Church. The highest state functionaries are all
Catholic clergy of various national origins. Since the return of
the popes from Avignon in 1377, they have generally resided at
the Apostolic Palace within what is now Vatican City, although
at times residing instead in the Quirinal Palace in Rome or
elsewhere.
The Holy See dates back to early Christianity, and is the
primate episcopal see of the Catholic Church, with 1.3 billion
Catholics around the world distributed in the Latin Church and
23 Eastern Catholic Churches. The independent Vatican
City-state, on the other hand, came into existence in 11
February 1929 by the Lateran Treaty between the Holy See and
Italy, which spoke of it as a new creation, not as a vestige of
the much larger Papal States (756–1870), which had previously
encompassed much of central Italy.
Within the Vatican City are religious and cultural sites such as
St. Peter's Basilica, the Sistine Chapel and the Vatican
Museums. They feature some of the world's most famous paintings
and sculptures. The unique economy of Vatican City is supported
financially by the sale of postage stamps and souvenirs, fees
for admission to museums, and sales of publications.