Vatican Power: How the Tiny Theocracy Runs the Catholic World

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TEMPO.CO, Jakarta - Recognized as the smallest country in the world, the Vatican spans just 0.44 square kilometers but holds immense spiritual and administrative significance as the center of the Roman Catholic Church.

Located in the heart of Rome, this city-state drew renewed global attention following the death of Pope Francis and the election of Pope Leo XIV on May 8, 2025.

Encircled by medieval and Renaissance walls, the Vatican’s southern gate opens into St. Peter’s Square, a global gathering place for Catholic worshipers. With an estimated population of only 764 (as of 2023), it functions as the hub of Catholic liturgy and religious diplomacy.

A Unique Theocracy

The Vatican’s sovereignty was formalized through the 1929 Lateran Treaty between the Holy See and Italy under Mussolini.

It remains the only absolute theocratic state, with the Pope serving as both head of state and spiritual leader. The Roman Curia, a governing body of congregations and councils, supports the Pope in overseeing both internal and global affairs.

Small Yet Fully Equipped

Despite its tiny size, the Vatican boasts complete state facilities. Its centerpiece is St. Peter’s Basilica, built on the believed burial site of the Apostle Peter. Adjacent lies the Apostolic Palace, the Pope’s residence and the administrative seat of the Holy See.

The Vatican also houses lush gardens, a historic library, an observatory, its own bank (IOR), and media institutions including a radio station and newspaper. The Swiss Guard, in service since 1506, protects the Pope and ensures security.

Historical and Diplomatic Weight

Vatican history traces back to the martyrdom of St. Peter and the establishment of St. Peter’s Basilica by Emperor Constantine in the 4th century. The Pope’s temporal influence grew with the Papal States, until their annexation by Italy in 1870. Tensions between the Church and state eased with the Lateran Treaty, restoring papal sovereignty.

The Second Vatican Council (1962–1965), initiated by Pope John XXIII, ushered in major reforms such as using local languages in mass and empowering lay participation, marking the Church’s modernization and openness to interfaith dialogue.

Today, the Vatican maintains diplomatic ties with over 180 countries and participates in many international organizations. Its revenue comes from global Catholic donations and the sale of stamps, coins, and souvenirs.

Although it is not part of the European Union, the Vatican mints its own euro coins and runs without a typical economy or tax system, serving instead as a global symbol of spiritual leadership for more than 1.3 billion Catholics.

Myesha Fatina Rachman contributed to the writing of this article.

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