When a state promises not to enter into military alliances (unless for defense purposes) and does not assume obligations which may indirectly involve it in warfare, it is defined as a neutral country. A neutral country can either maintain its non-combatant status during a specific war or can permanently stay neutral toward all future conflicts. This status is not determined by self-proclamation; de facto permanent neutrality requires formal international recognition. For example, the status of Turkmenistanas a permanent neutral state, the only one in Asia, is recognized by the United Nations. Switzerland’s status as a permanently neutral country was also made official by the Congress of Vienna.
One of the best perks of being a permanently neutral country is that a state can stay out of military conflicts, and this in turn ensures stability for better economic development. Switzerland is the best example of this case. Additionally, countries with neutral status have great appeal to international organizations or financial institutions when selecting a location for setting up its operations and make an ideal location for multinational summits which provide an excellent opportunity to maintain good ties with key powers.