Australia is a unique continent-country located in the Southern Hemisphere. It is the world's smallest continent but largest island, and is home to many endemic species found nowhere else. Most Australians live in cities along the coast, while the vast interior Outback region is sparsely populated and dominated by desert. Aboriginal people first arrived over 40,000 years ago, and European settlement began in the late 18th century as a British penal colony. Today Australia has a highly developed economy and is a democratic and multicultural society.