The characteristics of the Dutch economy are largely determined by its location. The Netherlands is considered one of the most developed countries in the European Union. This article will discuss the features and composition of the economy of this state.
General characteristics of the business sector
Due to its geographical location in the center of Western Europe, the country has a strategically convenient initial location.
Giving a brief description of the economy of the Netherlands, it can be noted that the economic sphere of this state is mainly aimed at exporting products. Transport and sales are considered significant business areas.
Due to the advantageous location of the state, a large number of industrial facilities (concerns, factories, factories, etc.) have been created here. Many giant global manufactures have their distributors for the Old World in this country. In addition, in the Netherlands, organizations are often created that are dependent on the transport of a large volume of materials by water (the petrochemical industry can be attributed to the relevant areas of activity).
The Netherlands is interesting to many production associations due to the following features:
- well-developed transport sector;
- comfortable environment for businessmen and a labor market with competent employees.
The above indicators of the country were highly rated by TNCs and economic research centers.
Composition of the Dutch business sector
The Netherlands is an advanced industrial state with an actively developing agricultural sector. They steadily hold a position in the top ten states of Western Europe in terms of industrial development.
Recently, the Netherlands’s GDP has become more than 0.55 trillion guilders (local currency), which contributes to the profit per average citizen above the average throughout the Old World.
Despite the fact that Dutch citizens make up only 4.5% of all Europeans, the country's GDP accounts for 5.1% of the total gross domestic product of the Old World.
The indicator of price growth in the country is among the lowest in the European Union: in 1993-1994. he was no more than three percent. This suggests that the Dutch economic sector worthily survived the effects of the economic crisis at the beginning of the last decade of the last century.
If you briefly describe the economy of the Netherlands, we can safely say that agriculture, fishing, industry, shipping, export and export of capital are of great importance in the economic sphere of the state.
Agroclimatic resources
Now broad-leaved forests, which in previous centuries grew on most of the territory of the state, mainly remained on the estates of the ruler of the country and on state natural sites. On the slopes of the valleys you can find beech, oak. Elm, ash, and poplar are located in the neighborhood, and alder is in the lowlands. The nature of the Netherlands is characterized by a wide variety of flowers and berries. Birch and oak grow on sandy surfaces, interspersed with swamps and moorlands. In the latter, an abundance of shrubs (such as juniper or gorse) comes across.
The fauna of the Netherlands is by no means so diverse. In general, those varieties of animals have survived, the range of which covers raw meadows, channels and water bodies. Of the 180 species of birds that lived in this state, approximately 2/5 live on or near water.
The situation of the economic sphere in the Netherlands in the 16th century
Since 1555, the Netherlands has been an integral part of the Spanish state. The Netherlands economy was rich and developed. However, not all lands here had an equal degree of development. The trading and industrial (manufacturing of linen and wool) industries were mainly developed in Brabant and Flanders.
In the 1590s, the first enterprises (manufactories) appeared involving hired workers. There are tendencies towards the formation of capitalism. In rivalry with such enterprises, workshop production lost and degenerated.
In the industrial sphere, the manufacture of metal, carpets and glasses was actively developing. Weapons were produced in Liege, granulated sugar, cloth (cloth) and soap in Antwerp, and Brussels was famous for its carpets. Shipbuilding was actively developing in Saadam and the center of Holland. Wool production was notable for its intensity in Utrecht, Rotterdam and Leiden.
The center of trade until 1576 in the Netherlands was Antwerp. After the defeat from Spain, he was replaced by Amsterdam.
In the agricultural sector, thanks to the construction of dams, cattle breeding and farming (flax, wheat) were made possible. Produced meat and dairy products already played a large role in the economy.
Political and economic oppression by the Spaniards led to a revolutionary uprising, which ended in the fact that in 1609 the Netherlands gained independence from Madrid.
The situation in the economic sector of the Netherlands in the XVII century
At the turn of the 16-17th centuries, the Dutch economy began to focus on domestic trade and export. The latter played a key role. The state conquered the land (mainly in Indonesia). The Netherlands created their commercial representative offices (factories), became monopolists in the supply of spicy and oriental products, carried out coastal transportation (from one state seaport to another). They took the example from Portugal. Gradually, the Netherlands turned into a metropolis. The center of trade, including maritime, remained the central city of Holland.
In the XVII century. financial institutions began to arise that issued loans at interest. Loans and debts penetrated the market. Debt obligations (bills of exchange) began to be popular. In 1698, the Insurance Chamber was established. This policy of the Netherlands led to serious rivalry, and their trade structure in the Old World crashed in the 1630s.
A significant role was also played by fishing, which became one of the factors in the development of commerce, shipbuilding, the manufacture of canvas, and so on. The Netherlands was able to take first place in shipbuilding worldwide.
In Haarlem and Leiden, there was a textile manufactory, the products of which were in great demand not only domestically but also abroad.
The agricultural sector did not lag behind in development. It was distinguished by modern technical equipment at that time, commodification of agricultural products, many farms and active gardening (Dutch tulips are still world famous).
The Netherlands throughout the 17th century remained leaders in the global economy. It was a "golden age" in the history of the Dutch economy. But in the early 1700s, they began to lose to Britain, which came in first place. The reason for this was a poorly developed industrial base, lack of attention to the industrial sphere of the economy, as well as constant wars with France.
The situation in the economic sphere of the Netherlands in the second half of the XX – XXI centuries
After World War II, the Netherlands was in ruins. In 1945, the country's economic sector amounted to only 28% of the volume that was in the late 30s. During the war, the Nazis destroyed up to 60% of the transport system.
America has allocated more than 1,000,000,000 USD to rebuild the state. By 1953, Dutch authorities allocated funds for the construction of 65,000 residential buildings annually.
The development of the Dutch economy is also due to the collapse of the colonial system. The state lost control of its main colony in 1949. This was the impetus for the development of other industrial sectors, whereas before the war with Germany, trade played a key role in the economic sphere.
The interval 1950-1970. considered the "golden period" of the formation of the economy of the Netherlands. The gross domestic product on average increased by 4-5% every year. Such a serious economic development made it possible for the country's leadership and businessmen to increase wages for wage workers over time, avoiding major disagreements with the workers themselves and organizations representing their interests.
Since the 1960s, shipbuilding, the chemical industry, and interstate trade relations have come to the fore in the economic sector, although the agricultural sector still played an important role.
In the 1970s, the Netherlands found "black gold" in the North Sea, which harmed the country. The fact is that oil production has become a leader in the economic sphere, which was detrimental to the industrial sphere. World competition in industry has led the Netherlands to lose its former high positions even in those areas where they have traditionally been considered strong (for example, in shipbuilding).
In the 1980s a number of state organizations were transferred to private hands, which allowed to reduce the country's costs.
In the 1990s, the situation in the Dutch economy returned to normal. However, the increase in earnings caused a serious increase in prices and led investors to withdraw their capital from the country.
In 2009–2013 The economic crisis in the European Union caused a serious blow to the economic sphere. To save from the collapse of two large banks (“ING Group” and “ABN Amro”), the Dutch Ministry of Economy had to resort to financial assistance from the EU, which totaled € 40 billion.
In 2013, the ruler of the Netherlands publicly announced the end of the “welfare country”.
Industry
The industrial sector of the state is focused on the manufacture of first-class and competitive products. The leading sectors of the industrial sector are the processing of raw materials, the extraction of "black gold" and "blue fuel", electronics, chemistry, and metal processing. Of the previous species, shipbuilding, pulp and paper, woodworking and food industries play a significant role. In the production of fabrics, shoes, tailoring, a decrease in the pace of production is noted.
Key areas of the Dutch economy include energy. Thermal power plants generate most of the electric energy. 2 nuclear power plants are currently operating in Dodevard and Borssel.
Black Gold accounts for 25% of all shipments abroad. Oil is used as an energy carrier and raw material for the petrochemical and chemical industries.
Ferrous metals are undergoing a developmental stage. The center of ferrous metallurgy in the Netherlands is Eileiden. Non-ferrous metal processing is concentrated in Roermond, Hogezand, Frissingham and several other cities.
Not bad with engineering. The Philips company has long won worldwide popularity. The Dutch enterprises create technical equipment for various types of industries.
Transport system
The absence of mountains in the state creates a comfortable environment for the development of the road communication system, but the large number of reservoirs causes some difficulties and dangers in this area. Here are the data on the total length of the paths:
- railways - 2 753 km;
- motorways - 111,891 km;
- waterways - 5,052 km.
Of great importance in the economy of the Netherlands is maritime traffic. The state handles a large share of shipping in the Old World. KLM Aviation Company serves many interstate air transportation.
At the same time, the world transit value of the Netherlands increased. Thanks to Holland, this country began to occupy the 4th largest position among the transport states of the globe. The largest port in the Netherlands is Rotterdam.
Fishing
Fishing retains its significant position in the structure of the Dutch economy. Fishing in this state is divided by catch species and types of vessels into:
- shrimp fishing in small tenders on the shores of the Netherlands, Germany and Denmark;
- catching cod, herring, mackerel in the north and in the center of the North Sea, on the coasts of Ireland and the United Kingdom;
- catch mollusks with special ships;
- the production of flatfish species of fish (directly flounder, short flank) by large tenders, mainly in the south and in the center of the North Sea.
To preserve fish, the European Union has imposed fishing limits, including herring.
Agricultural industry
The agricultural sector is of great importance for the economy of a country such as the Netherlands. The composition of the goods that the Netherlands supplies to other countries is dominated by flowers and vegetables (12,000,000,000 €), dairy products (5,000,000,000 €).
Agricultural land accounts for 65% of the total area of the Netherlands. The number of pastures is constantly decreasing, and in the period 1995–2005. their number decreased by 8.2%, which is largely due to the construction of houses. Soil in the state is carefully fertilized.
In some regions of the Netherlands, flower growing dominates. The population also breeds potatoes, cereals, sugar beets.
The country is in 5th place in the Old World for the manufacture of butter and 4th in the manufacture of cheese.
In a territory adapted for greenhouses, the state is the undisputed leader on the planet. In the period 1994–2005 the territory given to the greenhouse economy increased from 13,000 ha to 15,000 ha. Most of the protected soil (3/5 of the total area) is adapted for growing flowers.
The scale of the agricultural industry
The state ranks 10th on the planet for the production of dairy products and is considered the largest supplier of cheese. Netherlands dairy production is concentrated in Friesland.
Highly productive agricultural industry is of considerable importance. Livestock provides approximately 70 percent of the production. Beef cattle is exported. The state is considered one of the leading exporters of eggs. In terms of egg laying, chickens from the Netherlands surpass all others - 260 eggs per hen. Horses and sheep are raised in the country, but the number of such cattle decreases over time.