Holy See
Although the Holy See is sometimes metonymically referred to as the "Vatican", the Vatican City State was distinctively established with the Lateran Treaty (1929) between the Holy See and Italy to ensure the temporal, diplomatic, and spiritual independence of the Papacy. As such, ambassadors are officially accredited to the Holy See and not the Vatican City State. Conversely, Papal nuncios to states and international organisations are recognised as representing the Holy See and the integrity of the Catholic Church along with its 1.3 billion members, not the Vatican City State, as prescribed also in the Canon law of the Catholic Church (1983). The "Holy See" thus refers to the See of Rome viewed as the central government of the Catholic Church. The Catholic Church, in turn, is the largest non-government provider of education and health care in the world, while the diplomatic status of the Holy See facilitates the access of its vast international network of charities.
Theocracy
Following the Capture of Rome on 20 September 1870, the Papal States including Rome with the Vatican were annexed by the Kingdom of Italy. In 1929, with the Lateran Treaty signed with the Italian Government, the new state of Vatican City (population 842) – with no connection with the former Papal States – was formally created and recognized as an independent state. The head of state of the Vatican is the pope, elected by the College of Cardinals, an assembly of Senatorial-princes of the Church. They are usually clerics, appointed as Ordinaries, but in the past have also included men who were not bishops nor clerics. A pope is elected for life, and either dies or may resign. The cardinals are appointed by the popes, who therefore choose the electors of their successors.