Requirements of independent country or state status

There are eight accepted criteria used to determine whether a place is an independent country (also known as a State with a capital "s") or not.

1.Has space or territory that has internationally recognized boundaries (boundary disputes are OK).
2.Has people who live there on an ongoing basis.
3.Has economic activity and an organized economy. A country regulates foreign and domestic trade and issues money.
4.Has the power of social engineering, such as education.
5.Has a transportation system for moving goods and people.
6.Has a government that provides public services and police power.
7.Has sovereignty. No other State should have power over the country's territory.
8.Has external recognition. A country has been "voted into the club" by other countries.

source: About.com-Geography