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Perched around the slopes of Monte Titano in the Italian Appennines, tiny San Marino is the world's oldest republic and claims a lineage dating back to the 4th century. The territory is divided into nine castles, or districts. One-third of Sammarinesi live in the northern town of Serravalle. Today San Marino makes its living through agriculture, tourism, philately, and limited industry. Italy effectively controls most of its affairs.