The Republic of Dubrovnik
As an independent republic from 1358 to 1808, Dubrovnik kept its freedom not through military power, but thanks to diplomatic cunning. Would-be aggressors, including Hungary and the Ottoman Turks, were paid an annual fee in return for peaceful relations, and Dubrovnik avoided involvement in international conflicts between Christians and Muslims, preferring to remain neutral.
The republic's economy was based on shipping and trading goods between Europe and the Middle East, and by the 16th century the republic had consulates in some 50 foreign ports, along with a merchant fleet of 200 ships on the Mediterranean. By this time its territory had also extended to include 120 km (75 miles) of mainland coast (from Neum to the Bay of Kotor) plus the islands of Lastovo and Mljet.
The chief citizen was the Rector, who had to be over 50; he was elected for only a month at a time to share management of the republic's business with the Great Council (composed of members of the local nobility) and the Senate (a consultative body made up of 45 "wise men," all over the age of 40). Most of the military and naval commands were held by members of the nobility, while lower-ranking soldiers were mercenaries from the regions that are now Germany and the Czech Republic. The increasingly prosperous middle class carried on trade. The Archbishop of Dubrovnik had to be a foreigner (usually an Italian), a law intended to keep politics and religion apart.
Outstandingly sophisticated for its time, Dubrovnik was very socially conscious: the first pharmacy opened in 1317; the first nursing home was founded in 1347; slave trading was abolished in 1418; and the first orphanage opened in 1432.