Switzerland is actually a pretty incredible little country from what I've heard. Correct me if I'm wrong, but I don't think they've fought any wars in the past couple centuries... yet they have 2 years of compulsory military service for everyone, at which point everyone is permitted to keep their rifle. They also handle much of the world's money. The money makes them powerful, and the 2 years of compulsory military service says "don't ____ with us!"
If there was ever an example that should inspire more flexibility in Civilization, it's Switzerland.