The study of the historical characteristics of the Swiss economy and its development up to the twenty-first century has not been thoroughly examined by either Soviet or Russian scholars and is highly topical due to the fact that the transformation of Switzerland from a backward economy to one of the most advanced and competitive countries is of considerable interest to the academic community. The goal is to examine and analyse the characteristics of the evolution of a multi-ethnic and multi-confessional union into a federal state, which have directly influenced the development of capitalist relations, the industrialisation of Switzerland, its particular niche specialisation and competitiveness. The author also draws the attention to the political and economic equilibration of the 'neutral' Confederation between the Central Powers led by Germany and Entente countries and Allies and the Axis during the two world wars, which allowed its economy to be safeguarded and successfully grown. A number of factors determining the country's main economic development trends are identified in the article. The conclusion is drawn that there is a linkage between Switzerland's national and regional historical development and its economic success. The Swiss peculiar approach to pragmatic exploitation of weaknesses and disadvantages, its particular identity and the mentality that has developed over a long historical period, have played a crucial role in the creation of the Swiss economic model.