Kingdom of the Netherlands
CAPITAL: Constitutional capital: Amsterdam. Seat of government: The Hague ('S Gravenhage; Den Haag)FLAG: The national flag, standardized in 1937, is a tricolor of red, white, and blue horizontal stripes.
ANTHEM: Wilhelmus van Nassouwen (William of Nassau).
MONETARY UNIT: The guilder was replaced by the euro as official currency as of 2002. The euro is divided into 100 cents. There are coins in denominations of 1, 2, 5, 10, 20, and 50 cents and 1 euro and 2 euros. There are notes of 5, 10, 20, 50, 100, 200, and 500 euros. €1 = $1.25475 (or $1 = €0.79697) as of 2005.
WEIGHTS AND MEASURES: The metric system is the legal standard.
HOLIDAYS: New Year's Day, 1 January; Queen's Day, 30 April; National Liberation Day, 5 May; Christmas, 25–26 December. Movable religious holidays include Good Friday, Holy Saturday, Easter Monday, Ascension, and Whitmonday.
TIME: 1 pm = noon GMT.
LOCATION, SIZE, AND EXTENT
Situated in northwestern Europe, the Netherlands has a total area of 41,526 sq km (16,033 sq mi), of which inland water accounts for more than 7,643 sq km (2,951 sq mi). The land area is 33,883 sq km (13,082 sq mi). Comparatively, the area occupied by the Netherlands is slightly less than twice the size of the state of New Jersey. The Netherlands extends 312 km (194 mi) n–s and 264 km (164 mi) e–w. The land area increases slightly each year as a result of continuous land reclamation and drainage. The Netherlands is bounded on the e by Germany on the s by Belgium, and on the w and n by the North Sea, with a total boundary length of 1,478 km (918 mi), of which 451 km (280 mi) is coastline.The capital city of the Netherlands, Amsterdam, is in the western part of the country.
TOPOGRAPHY
The country falls into three natural topographical divisions: the dunes, the lowlands or "polders" (low-lying land reclaimed from the sea and from lakes and protected by dikes), and the higher eastern section of the country. About 27% of the land lies below sea level. A long range of sand dunes on the western coast protects the low alluvial land to the east from the high tides of the North Sea, and farther east and southeast are found diluvial sand and gravel soil. The highest point of land, the Vaalserberg, is situated in the extreme south and is 321 m (1,053 ft) above sea level; the lowest point, 7 m (23 ft) below sea level, is Prins Alexanderpolder, an area of reclaimed land situated northeast of Rotterdam. The most extensive polder is that of East Flevoland in the province of Flevoland; it has an area of nearly 55,000 hectares (136,000 acres). Many dikes have been constructed along the lower Rhine and Meuse (Maas) rivers, as well as on a portion of the North Sea coast and along nearly the whole of the coast of the former Zuider Zee (formally called the Ijsselmeer since its enclosure by a dike in 1932). There are many canals in the country, most of which have numerous locks.CLIMATE
The Netherlands has a maritime climate, with cool summers and mild winters. The average temperature is 2°c (36°f) in January and 19°c (66°f) in July, with an annual average of about 10°c (50°f). Clouds generally appear every day, and in the winter months fog often abounds, while rainfall occurs frequently. Average annual rainfall is about 76.5 cm (30 in). The mild, damp climate is ideal for dairying and livestock raising, but the limited sunshine restricts the growing of food crops.FLORA AND FAUNA
Plants and animals that thrive in temperate climates are found in the Netherlands. The most common trees are oak, elm, pine, linden, and beech. The country is famous for its flowers, both cultivated varieties (best known among them the Dutch tulip) and wild flowers such as daisies, buttercups, and the purple heather that blooms on the heaths in September. Birds are those characteristic of Western and Central Europe, with large numbers of seagulls swarming over the coastal areas from time to time. Many kinds of fish abound along the North Sea coast and in the lakes and rivers. Wild or large animals are practically nonexistent. As of 2002, there were at least 55 species of mammals, 192 species of birds, and over 1,200 species of plants throughout the country.ENVIRONMENT
In recent years, as a result of rapid population and economic growth, the government has placed increased emphasis on preservation of the natural environment. One key concern is the pressure put on the countryside, traditionally the domain of the smallholder, by the demands of modern mechanized agriculture and the needs of a large urban population for recreational areas and waste disposal. To help solve this environmental problem, the government has instituted comprehensive land-use planning by means of a system of zoning that indicates the priorities for land use in each zone. Air and water pollution are significant environmental problems in the Netherlands.The nation has one of the world's highest levels of industrial carbon dioxide emissions, which totaled 155 million metric tons in 1996. Efforts at controlling air pollution reduced sulphur dioxide emissions between 1980 and 1990 from 490,000 tons to 240,000 tons. In 2000, the total of carbon dioxide emissions was at 138.9 million metric tons. Severe pollution of the country's rivers results from industrial and agricultural pollution, including heavy metals, organic compounds, nitrates, and phosphates.
The Netherlands has about 11 cu km of renewable water resources, of which 61% of the annual withdrawal is used for industrial purposes. Solid waste in the nation's cities has been reported at an average of 7.6 million tons yearly. Aggravating the situation are the prevailing southwesterly winds, which carry the pollutants from coastal industries inland, and the great rivers that carry pollution into the Netherlands from originating countries farther inland.
In 1971, the Ministry of Health and Environment was established; a countrywide system of air pollution monitoring by the National Institute of Public Health has been in place since 1975. Since the mid-1970s, discharges of heavy metals into industrial wastewater and emissions of most major air pollutants from industrial use of fossil fuels have been substantially reduced. Progress has also been recorded in reducing automotive emissions. An excise tax surcharge on gasoline and diesel fuel was imposed for pollution abatement in 1981.
As of 2003, 14.2% of the country's total land area was protected, including 49 Ramsar wetland sites. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), threatened species included 9 types of mammals, 11 species of birds, 7 species of fish, 1 type of mollusk, and 6 species of other invertebrates. Endangered species include Atlantic sturgeon, slender-billed curlew, Atlantic ridley, and Spengler's freshwater mussel.
POPULATION
The population of Netherlands in 2005 was estimated by the United Nations (UN) at 16,296,000, which placed it at number 59 in population among the 193 nations of the world. In 2005, approximately 14% of the population was over 65 years of age, with another 19% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 0.4%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 16,934,000. The population density was 399 per sq km (1,033 per sq mi), with over 45% of the population concentrated in the three most densely populated provinces: Utrecht, North Holland, and South Holland.The UN estimated that 62% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 1.04%. The constitutional capital, Amsterdam, had a population of 705,000 in that year. The Rotterdam metropolitan area had 1,112,000 inhabitants. Other major cities and their estimated populations include The Hague ('s Gravenhage; Den Haag), which is the seat of government, 472,087; Utrecht, 275,362; Eindhoven, 209,286; Tilburg, 200,251; Groningen, 181,020; and Haarlem, 150,213.
MIGRATION
In the past although the government encouraged emigration to curb overpopulation, more people migrated to the Netherlands than have left the country. Rapid economic growth in the 1960s drew many unskilled laborers from Mediterranean countries, and during the 1970s many people left Suriname for the Netherlands when the former Dutch colony became independent. At first both groups settled mainly in the western region, but after 1970 the pattern of internal migration changed, as increasing numbers left the western provinces to settle in the east and south. The traditional pattern of migration from the countryside to the cities has likewise been altered, and since the 1970s the trend has been largely from the larger cities to small towns and villages. By 2003 it was becoming harder for asylum migrants to find work. In addition, in 2004, employer groups asked for the streamline of admissions for skilled foreigner workers.In 1990, some 57,344 persons left the Netherlands, of which 36,749 were Dutch nationals. In the same year, 81,264 immigrants arrived in the Netherlands, representing an increase of 24% over 1989. In 2002 the top 10 migrant-sending countries were Turkey, the Netherlands Antilles and Aruba, Morocco, Germany, the United Kingdom, China (excluding Taiwan), Angola, Suriname, and the United States. However, in 2003 for the first time since 1982, there were more emigrants (104,800) than immigrants (104,500). In that same year, the percent of foreign-born broke down as follows: 17.6% from Africa (mainly Morocco); 21.2% from the Americas (mainly from the Netherlands Antilles and South America); 34.3% from Asia (mainly from Indonesia); and 26.1% from Europe (with Germans the largest group). However, the large numbers of migrants from the Antilles has been decreasing, while emigration to these countries has increased. The number of Turks and Moroccans returning to their country of origin has been increasing between 2000 and 2004.
Since the election of a conservative government in 2002, the Dutch integration policy of multiculturalism (where all cultures were considered of equal value and there was no need for foreigners to integrate into Dutch society) was being eroded with new policies requiring immigrants to pass a test of Dutch language and culture. After the death of filmmaker Theo Van Gogh in 2004 at the hands of a Dutch-born man of Moroccan descent, a law was passed that made being a member of a "terrorist" organization a crime. By 2005, new policies included integration exams for foreign residents under age 65 with less than eight years of schooling in the Netherlands. In 2004, about 5.7% of Dutch residents were Muslim. According to Migration News, in 2005 Moroccan and Turkish groups created a working group, "Genoeg is genoeg" (Enough is enough), to coordinate a campaign against these hard-hitting immigration and integration policies.
At the beginning of 1996, there were 72,000 recognized refugees and 23,000 applications for asylum. By 1998, as many as 45,217 asylum applications were submitted. In 1999, 4,060 people were evacuated from Macedonia to the Netherlands. Following the trend in the 25 countries of the European Union, the Netherlands in 2004 had the lowest number of asylum seekers since 1988. In 2004, the United Nations High Commissioner for Refugees (UNHCR) had a total of 155,257 persons of concern in the Netherlands: 126,805 refugees and 28,452 asylum seekers. The main countries of origin for refugees were Iraq (28,640), Afghanistan (26,437), Bosnia and Herzegovina (19,943), and Somalia(13,046).
In 2005, the net migration rate was an estimated 2.8 migrants per 1,000 population.
ETHNIC GROUPS
The Dutch are an ethnically homogeneous people descended from Frankish, Saxon, and Frisian tribes. Ethnic homogeneity slightly changed as a result of the arrival of some 300,000 repatriates and immigrants from Indonesia, mostly Eurasian, and more than 140,000 from Suriname. The influx of Turks and other workers from the Mediterranean area has further added to the ethnic mix. The most recent estimates indicate that about 80% of the total population are Dutch; the principal minority groups are Turkish, Moroccan, Surinamese, and Antillean.LANGUAGES
Dutch and Frisian are the official languages. Frisian, the native language of about 300,000 persons, is closely related to the AngloSaxon tongue but has many points in common with Dutch, which belongs to the Germanic language group. There are six Dutch dialects. Many Netherlanders speak and understand English, French, and German, which are taught in secondary schools.RELIGIONS
Dutch society is becoming increasingly secular. According to the Social Cultural Planning Bureau, church membership has steadily declined from 76% in 1958 to 41% in 1995. Only about 26% of those claiming a religious affiliation are active in their religious community. According to a 2004 report, an estimated 31% of the population were nominally Roman Catholics, 14% were Dutch Reformed, 6% were Muslim, 6% were Calvinist Reformist, 3% were non-Christian (Hindu, Jewish, or Buddhist); and about 40% were atheist or agnostic.The Dutch Reformed Church, whose membership has declined by more than 60% since 1950, is the largest Protestant denomination. The Calvinist Reformed Church is the second-largest Protestant group. Other Protestant denominations include Baptist, Lutheran, and Remonstrant. The Jewish community has less than 25,000 members. The Muslim community is primarily of the Sunni branch. Many of them are migrant workers from Morocco and Turkey or immigrants from other countries such as Iraq, Somalia, and Bosnia. There are about 95,000 Hindus, primarily from Suriname. The Hindu based movements of Ramakrishna, Hare Krishna, Sai Baba, and Osho are also represented. About 17,000 people are Buddhist.
TRANSPORTATION
Merchant shipping has always been of great economic importance to the seagoing Dutch. The Netherlands Maritime Institute is internationally famous, and the Dutch ship-testing station at Wageningen is known for its research in marine engineering. The Dutch merchant marine had 558 ships (of 1,000 GRT or over) totaling 4,796,460 GRT in 2005. Emphasis has been placed on the development of new vessels suitable for container transport and on improving the Dutch tanker fleet. Rotterdam is the Netherlands' chief port and the world's largest. There are also ports and harbors at Amsterdam, Delfzijl, Dordrecht, Eemshaven, Groningen, Haarlem, Ijmuiden, Maastricht, Terneuzen, and Utrecht.In 2004, there were 5,046 km (3,136 mi) of navigable waterways of which 3,745 km (2,327 mi) are canals and are capable of handling vessels of up to 50 tons.
The railway system in 2004 consisted of 2,808 km (1,744 mi) of standard gauge rail lines, of which 2,061 km (1,280 mi) was electrified. Passenger transport on railways is subsidized as part of the national policy for promoting public transport. Public transport is provided for urban areas by municipal and regional transport companies, and minibus service in rural areas has ensured public transport for all towns with 1,000 residents or more. Also in 2001, there were 116,500 km (72,393 mi) of roadways, of which 104,850 km (65,153 mi) were paved, including 2,235 km (1,389 mi) of expressways. In 2003 there were 7,151,000 passenger cars and 1,080,000 commercial vehicles in use. The state subsidizes the construction of urban and rural cycle paths.
In 2004, there were an estimated 28 airports. In 2005 a total of 20 had paved runways, and there was also one heliport. Principal airports include Schiphol at Amsterdam, Reina Beatrix at Aruba, and Hato at Curacao. The world's first airline from the standpoint of continuous corporate existence and operation is Royal Dutch Airlines (Koninklijke Luchtvaart Maatschappij-KLM), which began regularly scheduled operations in 1920. The Netherlands government owns a large part of the outstanding capital stock. KLM serves some 115 cities in 70 countries. Also in 2003, about 23.455 million passengers were carried on domestic and international flights.
HISTORY
When, in about 55 bc, Julius Caesar conquered a large part of the lowlands near the mouths of the Rhine and Meuse (Maas) rivers, this region was populated by Celtic and Germanic tribes. To the north of the Rhine delta, several Germanic tribes had settled, among which the Batavi and the Frisians were the most important. The Batavi served with the Roman legions until they rebelled in ad 70, but even after the revolt was quelled, Batavian soldiers fought for Rome. About 300 years later, successive waves of powerful Germanic tribes, such as the Salic or West Franks, invaded this region, called the Low Countries, and gradually pushed the Frisians back to the east coast of the North Sea, except in the extreme northern section of the mainland where Saxons had settled. By the time of Charlemagne (742–814), the Saxons and Frisians had been completely conquered by the West Franks, and the Frankish language had replaced the languages of the Germanic tribes.Soon after the death of Charlemagne and the disintegration of his realm, several duchies and counties were founded in the Low Countries by local leaders. With the coming of the Middle Ages, Holland (now the North and South Holland provinces) became the most important region and extended its power and territory under Count Floris V (r.1256–96). The ancient bishopric of Utrecht was another important principality. As the Middle Ages drew to a close, individual cities such as Amsterdam, Haarlem, and Groningen rose to eminence, together with the Duchy of Gelderland. In the 15th century, the dukes of Burgundy acquired, by various means, most of the Low Countries. Upon the extinction of the male line of the Burgundian dynasty and the marriage of Mary of Burgundy and Archduke (later Emperor) Maximilian I in 1477, however, the Austrian house of Habsburg fell heir to the lands.
The Habsburgs
Mary's son, Philip of Habsburg, married Joanna of Castile, heiress to the Spanish throne, and their son, Charles, became King Charles I of Spain in 1516 and Holy Roman Emperor Charles V in 1519. In 1547, he decreed the formal union of the Netherlands and Austria, and in 1549, the union of the Netherlands and Spain. By the end of his reign in 1555, he was master of the Low Countries. His son, Philip II, concentrated his efforts on the aggrandizement of Spain. To bring the Low Countries under his direct control, he tried to stamp out the rising force of Protestantism and suppressed the political, economic, and religious liberties long cherished by the population. As a result, both Roman Catholics and Protestants rebelled against him under the leadership of William the Silent, prince of Orange, who by marriage had acquired large properties in the Netherlands.
For 10 years, the 17 provinces comprising the Low Countries united in a common revolt. Much of the area was freed in 1577, with William as the acknowledged ruler, but not even his moderation and statesmanship sufficed to keep the northern and southern provinces united. In 1578, the southern region (now Belgium) began to turn against William. In 1579, the northern provinces concluded the Union of Utrecht, in which the province of Holland was the most prominent. The Union, or United Provinces, carried on the fight against Spain, and William was the soul of the resistance until his death by assassination in 1584. William's son Maurits, governor (stadtholder) of the republic from 1584 to 1624, carried on a successful campaign against Spain, but final recognition of Dutch independence by the Spanish government was not obtained until the end of the Eighty Years' War with the Treaty of Westphalia (1648). Meanwhile, the southern provinces remained loyal to Spain and to the Roman Catholic Church, and were thereafter known as the Spanish Netherlands.
Independence brought mixed success in the 17th century for the United Provinces. Dutch prosperity was nourished by settlements and colonies in the East Indies, India, South Africa, the West Indies, South America, and elsewhere. The government was oligarchic but based on republican and federative principles. The Dutch were noted for their religious freedom, welcoming religious refugees—Spanish and Portuguese Jews, French Huguenots, and English Pilgrims.
While they became a leading commercial and maritime power, controversy over the leadership, and external economic and military threats complicated political and economic stability. Trade and territory disagreements with England resulted in the First Anglo-Dutch War that began in 1652 but ended with the Treaty of Westminster in 1654. The English were quick to attack again, beginning the Second Anglo-Dutch War, which ended with successful Dutch attacks, but also in the loss of colonial possession in North America—of the area that now surrounds New York City—via a trade-off under the 1667 Treaty of Breda.
Arts, sciences, literature, and philosophy flourished alongside trade and banking during the Dutch "golden era." In 1672, however, England declared war on the Republic, igniting the Third Anglo-Dutch War; France, Münster, and Cologne soon followed in their own attack. The new stadtholder William III rose out of what is known as the "Disastrous Year" to triumphantly end the war with England in 1674 and lead a coalition against the aggressive France of Louis XIV. William III (r.1672–1702), great-grandson of William the Silent and grandson of the English King Charles I and his English wife, Mary, were invited by the English Parliament to occupy the British throne in 1688, but they continued to take keen interest in Dutch affairs. The Dutch republic of which William had been governor survived for nearly a century after his death. Its position was continually threatened, however, by intense rivalries among and within the provinces. Four naval wars with Britain from the middle of the 17th century to the end of the 18th also sapped Dutch strength. In 1795, a much-weakened republic was overrun by revolutionary French armies.
After the brief Napoleonic occupation, the great powers of Europe at the Congress of Vienna (1814–15) set up a new kingdom of the Netherlands, composed of the former United Provinces and the former Spanish or Austrian Netherlands, and installed a prince of the house of Orange as King William I. The constitution that was founded in 1814 was last revised in 1983. In 1830, a revolt by the southern provinces resulted in the establishment of the kingdom of Belgium. Thereafter, the much-reduced kingdom was mainly concerned with domestic problems, such as the school conflict over secular versus religious instruction, social problems stemming from the industrialization of the country, and electoral reforms.
In foreign affairs, relations with Belgium were gradually improved after a decade of war and tension following Belgian independence, and Dutch claims to the principality of Luxembourg ended with the death of William III in 1890.
The World Wars to the Present
Foreign policies based on neutrality successfully met their test in World War I. Although the Netherlands mobilized their army, they remained neutral, even as the Germans invaded Belgium and all the surrounding states were at war.
The Netherlands again declared their neutrality when World War II erupted in 1939. Neutrality was preserved until the German World War II war machine overran the country in May 1940. Queen Wilhelmina (r.1890–1948) refused to surrender to the Germans, and instead fled to Britain with other officials of her government. Although Dutch resistance lasted only five days, destruction was widespread; nearly the whole of downtown Rotterdam was wiped out, and the cities of Arnhem and Nijmegen suffered great damage. In addition, Dutch factory equipment was carried away to Germany, bridges and railroads were blown up or removed, cattle were stolen, and part of the land was flooded. The Dutch withstood severe repression until their liberation by Allied forces in May 1945. Wilhelmina abdicated in 1948 and was succeeded by her daughter, Juliana (r.1948–80).
The East Indies, most of which had been under Dutch rule for over 300 years, were invaded by Japanese forces in January 1942. After Japanese troops continued through the territory, the Dutch surrendered in March when Japanese arrived on Java. In 1945, a group of Indonesians proclaimed an independent republic and resisted Dutch reoccupation. After four years of hostilities and following UN intervention, the Netherlands recognized the independence of Indonesia in December 1949. Suriname (formerly Dutch Guiana), controlled by the Netherlands since 1815, became an independent nation on 25 November 1975. This Dutch colonial legacy was the root cause of several violent outbreaks during the late 1970s, as a group of South Moluccans, a few of the 40,000 Moluccans living in the Netherlands, used terrorism on Dutch soil to dramatize their demand for the independence of the South Molucca Islands from Indonesia. The Netherlands Antilles and Aruba continue to be dependent areas.
As for many western countries, the 1960s and 1970s brought extensive cultural and social change. Traditional class and religious lines that had supported separate education and social status were erased, leading to significant change for women's rights, sexuality, economic, and environmental issues.
Reform of the social security system was the major political issue in the 1990s, along with efforts to reduce public spending. Years of administrative tinkering with the social security system has reduced the number of claimants, increased labor force participation, and generated a central government budget surplus of 1% of GDP in 2000. The budget surplus prompted heated cabinet discussions as the Labor Party wished to use the extra money for redistribution while the neo-liberal conservatives hoped to lower tax rates. Buyant growth rates of more than 3% in the period 1996–2001 brought down the official unemployment level to 2.7%. However, the global economic downturn that began in 2001 was one cause of the Netherlands' shrinking economy in late 2002 and early 2003. The government also passed a number of radical social measures that received parliamentary approval in recent years including conditions for administering euthanasia, legalization of prostitution, legalization of gay marriages, and laws banning discrimination.
A founder of the European Coal and Steel Community, the Netherlands became part of the Economic and Monetary Union and strongly supports an independent European central bank, low inflation, and stable currency. It hosted two different intergovernmental conferences of the European Union and chaired the finalization of the Treaty of European Union (Maastricht Treaty) in 1991 and the Amsterdam Treaty in 1997.
In May 2002, Pim Fortuyn, an anti-immigration leader of his own political party, was assassinated by a single gunman. His party, List Pim Fortuyn, came in second in the 15 May 2002 parliamentary elections. The conservative Christian Democrats, led by Jan Peter Balkenende, came in first, and Balkenende became prime minister of a center-right coalition government. In October, Balkenende's government collapsed following disagreements within the List Pim Fortuyn Party. Elections were held on 22 January 2003, and the Christian Democrats narrowly defeated the Labor Party in the Second Chamber. After 125 days, a coalition government was formed comprising the Christian Democrats, the free-market liberal People's Party for Freedom and Democracy, and the socially liberal Democrats.
The Netherlands gave political support to the military action taken by the United States and United Kingdom against Saddam Hussein's regime in Iraq in 2003. Although the Netherlands has a history of open immigration and integration, the increased controversies in Europe surrounding Islamic fundamentalism and immigration have plagued it as well. On 2 November 2004, filmmaker and publicist Theo van Gogh was assassinated reportedly by a Dutch-Moroccan Islamic youth group.
Queen Juliana abdicated in 1980 in favor of her daughter, Beatrix. Juliana died 20 March 2004. In 1966, Beatrix had married Claus von Amsberg, a German diplomat, and his title remained that of Prince of the Netherlands when Beatrix became Queen. Their firstborn son, and Crown Prince, Willem-Alexander was born in 1967. Beatrix and Claus von Amsberg had two other sons, Johan Friso and Constantijn, before Prince Claus's death in 2002. Prince Willem-Alexander has two daughters with his wife, Princess Máxima: Princess Catharina-Amalia was born 7 June 2003, and Princess Alexia was born 26 June 2005.
GOVERNMENT
The Netherlands is a constitutional monarchy, under the house of Orange-Nassau. The monarch and the Council of Ministers together are called the Crown, and is the center of executive power. The prime minister is the active head of government, is a member of the Council of Ministers, the head of the cabinet, and usually the leader of the largest party within the ruling party coalition. Executive power is also shared with the cabinet, which must have the support of a majority in the parliament. Cabinet ministers may not be members of the parliament. The Council of State, instituted as an advisory body for the government in 1532, is appointed by and presided over by the monarch. It is composed of a vice president, councilors (28 maximum), and honorary members (25 maximum). The council considers all legislation proposed by the sovereign or the cabinet before it is submitted to the parliament. While functioning in an advisory capacity, the council has executive powers when it implements orders of the sovereign and it has judiciary powers when it acts in disputes and citizen appeals concerning the government.Legislative power is exercised jointly by the crown and the States-General (Staten-Generaal), a bicameral parliament. The upper house (Eerste Kamer) consists of 75 members elected for four years by the provincial representative councils on the basis of proportional representation. The lower house (Tweede Kamer) has 150 members elected for four years directly by the people, also on the basis of proportional representation. Only the lower house has the right to introduce bills and to move amendments, but the upper house can accept or reject bills passed by the other chamber.
All Dutch citizens who have reached the age of 18 years and reside within the Netherlands have the right to vote. All citizens who have reached the age of 18 years are eligible for election to the States-General.
Every year on the third Tuesday in September, the session of the States-General is opened at the Hague by the monarch. In the speech from the throne, the government's program for the year is announced. The monarch acts as an adviser to the cabinet, may propose bills, and signs all bills approved by the legislature. Theoretically she could refuse to sign a bill, but this never occurs in practice because the cabinet is responsible for the actions of the ruler. Thus, if the queen should refuse to sign a bill, the cabinet must resign and she must then find a new cabinet acceptable to the parliament.
Immediately following elections, the monarch appoints a formateur to advise on the program and composition of the new cabinet, and form the Council of Ministers. If he fails to bring together a new ministry, a new formateur is appointed, and so on until a new cabinet has been formed.
JUDICIAL SYSTEM
The judiciary is independent and the judges irremovable except for malfeasance or incapacity. Roman law still is basic, but the judicial system is largely patterned on that of France. There is no jury system, and the state rather than the individual acts as initiator of legal proceedings. Administrative justice is separate from civil and criminal justice and not uniform in dispensation.The supreme judiciary body is the Supreme Court of the Netherlands (Court of Cassation). As of 2005 it was staffed by 24 justices. Its principal task is to supervise administration of justice and to review the judgments of lower courts. There are five courts of appeal (gerechtshoven), which act as courts of first instance only in fiscal matters. They are divided into chambers of three justices each. The 19 district courts (arrondissementsrechtsbanken) deal as courts of first instance with criminal cases and civil cases not handled by the 62 subdistrict courts. Most of these courts are manned by single magistrates. In 2002, the subdistrict courts were incorporated administratively into the district courts; a subdistrict court section is now formed at these courts. There also are juvenile courts and special arbitration courts (for such institutions as the Stock Exchange Association and professional organizations).
Normally appointed for life, judges are usually retired at age 70.
ARMED FORCES
In 2005 there were 53,130 active personnel in the Netherlands' armed forces, with reserves numbering 54,400. The army numbered 23,150. Equipment included 283 main battle tanks, 569 armored infantry fighting vehicles, 94 armored personnel carriers, and 407 artillery pieces. The navy had 17,130 personnel including 3,100 marines. Its fleet included four tactical submarines and 14 surface combatants (six destroyers and eight frigates). The naval aviation unit of 950 was equipped with 10 maritime patrol aircraft and 21 antisubmarine/search and rescue helicopters. The air force has 11,050 active personnel plus 5,000 reservists subject to immediate recall. The air force had 108 combat capable aircraft and 30 attack helicopters. A paramilitary force known as the Royal Military Constabulary numbered 6,800 persons. The United States stationed about 303 personnel in the Netherlands. The Netherlands maintained forces abroad in Germany, Iceland, Italy and the Netherlands Antilles. The nation also participated in UN and peacekeeping missions in five other countries including Iraq and Afghanistan. The military budget in 2005 totaled $9.7 billion.INTERNATIONAL COOPERATION
The Netherlands is a founding member of the United Nations, having joined on 10 December 1945. It participates in ECE, ECLAC, ESCAP, and several nonregional specialized agencies, such as the FAO, the World Bank, IAEA, ILO, UNESCO, UNHCR, UNIDO, and the WHO. In addition, the Netherlands is a member of the WTO, the Asian Development Bank, the African Development Bank, the Council of Europe, the Euro-Atlantic Partnership Council, G-10 (Paris Club), the Western European Union, the European Union, NATO, OSCE, and OECD. The Netherlands is a permanent observer at OAS. The Netherlands is the home site of the International Court of Justice, Eurojust, Europol, the Organization for the Prohibition of Chemical Weapons, and the International Criminal Court.On 1 January 1948, Belgium, the Netherlands, and Luxembourg established a joint customs union, Benelux; since that time, the three countries have freed nearly all of their mutual imports from quantitative restrictions. On 3 February 1958, the Benelux Economic Union was established to make it possible for each participating country to apply itself more intensively to the production for which it is best suited as well as to extend the total market for the member countries.
The Netherlands is a part of the Australia Group, the Zangger Committee, the European Organization for Nuclear Research (CERN), the Nuclear Suppliers Group (London Group), the Organization for the Prohibition of Chemical Weapons, and the Nuclear Energy Agency. In environmental cooperation, the Netherlands is part of the Antarctic Treaty; the Basel Convention; Conventions on Biological Diversity, Whaling, and Air Pollution; Ramsar; CITES; the London Convention; International Tropical Timber Agreements; the Kyoto Protocol; the Montréal Protocol; MARPOL; the Nuclear Test Ban Treaty; and the UN Conventions on the Law of the Sea, Climate Change and Desertification.
ECONOMY
The Netherlands has an advanced economy, which combines high per capita income with a fairly even income distribution. An industrial nation with limited natural resources, the Netherlands bases its economy on the importation of raw materials for processing into finished products for export. Food processing, metallurgy, chemicals, manufacturing, and oil refining are the principal industries. Agriculture is particularly important to the economy, as about 60% of total agricultural production is exported.Because of its geographic position on the sea, outstanding harbor facilities, and numerous internal waterways, the Netherlands became a trading, transporting, and brokerage nation. A major role in the economy has always been played by the service industries, such as banks, trading companies, shipping enterprises, and brokerage and supply firms. The economy, being involved in international trade, is sharply affected by economic developments abroad—including fluctuations in prices of primary goods—over which the Netherlands has little or no control.
Growth in GDP averaged just under 3% per year during 1988–95 with exceptionally strong growth occurring in 1989 (4.8%) and particularly slow growth in 1993 (1.8%). Inflation was low, averaging about 2% a year between 1986 and 1998. The unemployment rate fell from 10.5% in 1985 to 8.4% in 1995, and has continued to fall steadily, reaching an estimated 6% in 2004. For the four years 1997 to 2000, real GDP growth averaged 4%, well ahead of most of Europe. Growth slowed due to the global economic slowdown of 2001 to 2.8% and was brought close to a standstill in 2002, with estimated growth of 0.3%. Real GDP growth averaged 1.2% over the 2000–04 period. GDP growth was estimated at 0.5% in 2005, but was forecast to pick up to 2% in 2006 and to 2.7% in 2007. Inflation jumped from 2.2% in 1999 and 2.6% in 2000 to a yearly average of 4.5% in 2001 due mainly to a hike in the VAT rate, and increases in gasoline and food prices. The inflation rate averaged 2.7% over the 2000–04 period. The inflation rate in 2005 was estimated at 1.6%; it was forecast to remain at that rate in 2006.
INCOME
The US Central Intelligence Agency (CIA) reports that in 2005 the Netherlands's gross domestic product (GDP) was estimated at $500.0 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $30,500. The annual growth rate of GDP was estimated at 0.6%. The average inflation rate in 2005 was 1.6%. It was estimated that agriculture accounted for 2.1% of GDP, industry 24.4%, and services 73.5%.According to the World Bank, in 2003 remittances from citizens working abroad totaled $767 million or about $47 per capita and accounted for approximately 0.1% of GDP.
The World Bank reports that in 2003 household consumption in Netherlands totaled $208.63 billion or about $12,878 per capita based on a GDP of $511.5 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 2.8%. In 2001 it was estimated that approximately 17% of household consumption was spent on food, 7% on fuel, 2% on health care, and 13% on education.
LABOR
As of 2005, the Netherlands' labor force numbered an estimated 7.53 million. In 2002 (the latest year for which data was available), 74.1% were employed in services, 20.3% in manufacturing, 4% in agriculture, and the remainder in undefined occupations. The unemployed represented about 6.7% of the workforce in 2005, compared with 1.2% in 1970, and 13% in 1985.As of 2005, workers in the Netherlands were allowed to organize and join unions, engage in collective bargaining and to exercise the right to strike. However, strikes are rare. Labor unions in 2005 accounted for about 25% of the country's workforce. However, collective bargaining agreements cover about 86% of the labor force. Antiunion discrimination is prohibited.
The law stipulates a 40-hour workweek, but in 2005 the average workweek was 30.6 hours (20 hours for part-time employees and 38.7 hours for full-time employees). The five-day workweek has been generally adopted. Workers receive workers' compensation, unemployment insurance, sick pay, payment for legal holidays, and paid vacations. The employment of women and adolescents for night work is forbidden. The minimum wage for adults in 2005 was $1,517 per month, and was capable of providing a worker and family with a decent living standard. However, most workers earn more. There is a reduced minimum wage for workers under 23, which uses a sliding scale ranging from 35% of the adult minimum wage for a 16-year-old to 85% for those 22 years of age. The minimum age for employment is 16 years. These laws are effectively enforced.
AGRICULTURE
More than 27% of the total land area of the Netherlands is under seasonal or permanent crop production. Grasslands account for about 54% of all agricultural lands. Most farms are effectively managed and worked intensively with mechanical equipment. The many cooperatives have added to the efficiency of production and distribution.Although agricultural production has decreased in recent years, labor productivity in Dutch agricultural and horticultural industries has risen sharply. The number of holdings declined by over 17% from the mid-1970s to the mid-1980s; in 2002 there were 89,580 agricultural holdings, of which 45% were smaller than 10 hectares (25 acres). In 2003 there were 108,230 full-time and 153,250 part-time workers in the agricultural labor force. The crop output in 2003 was valued at almost €10.6 billion, fifth highest in the EU after France, Italy, Spain, and Germany.
Much of the soil in the east and southeast is poor. Moreover, large regions are so moist because of their low altitude that only grass can be grown profitably, a condition that has led to the enormous development of the dairy industry. The best land is found in reclaimed polders. Principal crops and output in 2004 (in thousands of tons) were sugar beets, 6,292; potatoes, 7,488; wheat, 1,224; barley, 288; rye, 17; and triticale, 19.
The Netherlands is famous for its bulbs grown for export, principally tulip, hyacinth, daffodil, narcissus, and crocus. Flower growing is centered at Aalsmeer (near Amsterdam), and nurseries are situated mainly at Boskoop. Bulb growing, done principally at Lisse and Hillegom, between Haarlem and Leiden, has been extended in recent years to areas of North Holland. In 2002, there were 11,793 horticultural holdings and land area for growing bulbs totaled 17,139 hectares (42,350 acres).
Since the beginning of the 20th century, the government has been helping the agrarian sector through extension services, the promotion of scientific research, and the creation of specific types of agricultural education. In the 1930s, an extensive system of governmental controls of agricultural production was introduced, and after World War II (1939–45), an even more active policy was initiated, which evolved into integrated planning covering practically every aspect of rural life. In recent years, the government has actively encouraged the consolidation of small landholdings into larger, more efficient units.
ANIMAL HUSBANDRY
World-renowned Dutch dairy products outrank all other agricultural produce, and livestock provides two-thirds of total agricultural value. In 2005 there were 3.86 million head of cattle, 11.1 million pigs, 1.2 million sheep, and 86 million chickens. Milk production in 2005 totaled 10.5 million tons. Meat production in 2005 was 2.35 million tons (including pork, 1,299,000; beef and veal, 388,000; and poultry, 646,000). Butter production was 102,000 tons; cheese, 671,000 tons.Friesland is the most important region for the production of milk and butter. Excellent grazing lands and a long growing season have greatly helped the Frisian dairy industry, whose main support is the famed Frisian strain of cows. The making of cheese is connected with such famous brands as those named for Edam and Gouda, towns in the province of South Holland, and Alkmaar in North Holland.
In 2003, the value of animal products was €7.61 billion. The output of animal products has gradually been falling since 1996, when production was valued at €9.37 billion. The Netherlands regularly imports calves from the United Kingdom. In 1995, the Dutch Ministry of Agriculture, in response to the possible connection of bovine spongiform encephalopathy (BSE) in cattle to Creutzfeldt-Jakob disease in humans, responded with a program to destroy all imported UK veal calves. The total slaughter amounted to 64,000 calves and led to losses of approximately $32 million to the livestock industry.
FISHING
Although no longer as important as it was in the 16th and 17th centuries, fishing still contributes substantially to the food supply. Annual fish consumption in the Netherlands is 21.9 kg (32.2 lb) per person. In 2003 the Dutch fishing fleet had 393 cutters, 17 trawlers, and 69 mussel dredgers; the total capacity of the fishing fleet that year was 195,307 gross tons. About half of the fish catch is landed at the ports of Scheveningen and Ijmuiden. The Dutch fishing industry faces declining fish stocks and quota cuts from the EU that make profitability difficult because of excess capacity. In 2003, Dutch imports of fish products totaled $1.7 billion and exports exceeded $2.18 billion.The total catch in 2003 was 593,305 tons, consisting primarily of mackerel, mussels, sardines, herring, plaice, and whiting. Shrimp, oysters, sole, and other saltwater fish were also caught.
FORESTRY
One of the least forested countries in Europe, the Netherlands produces only about 8% of its wood requirements. Woodland, chiefly pine, covers about 375,000 hectares (927,000 acres), or only 11.1% of the total land area, of which state forest areas comprise some 37%; private owners, 31%; provincial and local governments, 14%; and nature conservation organizations, 18%. Productive woodlands total about 230,000 hectares (580,000 acres); output of timber was approximately 1,026,000 cu m (36.2 million cu ft) in 2004. The Netherlands imports about 95% of its softwood lumber needs, mostly from Sweden, Finland, and Russia. Domestic sources of temperate hardwood lumber usually meet 20–30% of annual demand; production totaled 80,000 cu m (2.8 million cu ft) in 2004.The Dutch wood industry is focused on the furniture, construction, packing, and pulp and paper sectors. The total turnover of the Dutch furniture sector in 2004 was almost €2 billion; the turnover in the Dutch pulp and paper industry was also around €2 billion. The Netherlands is the ninth biggest European producer of pulp and paper, annually producing 3.3 million tons of paper and paperboard at 27 sites, with over 70% exported to neighboring countries.
Afforestation has not kept pace with increasing consumption. The Dutch government would like to become at least 25% self-sufficient in wood fiber by 2025. In order to meet this goal, some 3.9 million cu m (137.7 million cu ft) of fiber would need to be produced annually (assuming current consumption trends). Currently, Dutch wood fiber production is only 1.2 million cu m (42 million cu ft). During 1990–2000, only 1,000 hectares (2,500 acres) of forest were planted. The government established a goal in 1994 of increasing forested land by 3,000 hectares (7,400 acres) annually until 2020.
MINING
The Netherlands was an important regional producer of natural gas and petroleum and played a major role as a transshipment center for mineral materials entering and leaving Europe—Rotterdam was the world's largest container port. The only other mineral of commercial importance was salt, and the only other mining operations left in the country were involved in the extraction of limestone, peat, and sand and gravel. The production of salt from the mines at Hengelo and Delfzijl was one of the oldest industries in the country; an estimated 5.0 million tons was produced in 2003 (various types), unchanged since 1999. Akzo Nobel Salt BV was the leading producer of salt. Magnesium chloride and oxide were produced in a plant at Veendam from extracted salt brines. Also produced in 2003 were hydraulic cement, nitrogen, industrial sand, sodium compounds, and sulfur. No metals were mined, but an estimated 3 million tons of iron ore was sintered from imported ore in 2003, unchanged from 2000. Coal was mined in Limburg until 1974. Among the country's leading industries in 2003 were metal products, chemicals, petroleum, and construction, and chemicals and fuels were top export commodities.ENERGY AND POWER
The Netherlands, which has little waterpower, depends mostly on natural gas and petroleum as energy sources.
Natural gas is The Netherlands' most abundant fossil fuel, with major fields located in the North Sea. As of August 2005, the North Sea region contained 169.8 trillion cu ft of natural gas, of which Norway and the Netherlands account for more than 75%. As of 1 January 2002, the Netherlands had proven natural gas reserves of 1.693 trillion cu m. In 2003, production of natural gas totaled 2.6 trillion cu ft. However, natural gas output has fallen as a result of government policy. The country's Natural Gas Law caps production at 2.68 trillion cu ft annually, between 2003 and 2007. From 2008 through 2013, production will be further limited to 2.47 trillion cu ft per year. This policy was instituted so that the country's natural gas reserves will be maintained for future use. In 2002, domestic consumption of natural gas totaled 1.764 trillion cu ft.
The Netherlands' second principal energy source is oil. As of 1 January 2002, the country's proven reserves of oil totaled 88.06 million barrels. In 2002, total oil production included 46,330 barrels per day of crude oil. Although oil output was up from 2000 at 89,000 barrels per day, the nation was still dependent on imported petroleum. In 2002, imports of crude and refined oil products averaged 2,266,990 barrels per day. Consumption of refined petroleum products in that year averaged 899,170 barrels per day. Exports of all petroleum products that year averaged 1,421,620 barrels per day. The Netherlands also re-exports two-thirds of all its imported petroleum in the form of refined oil products. Refinery output in 2002 averaged 1,723,250 barrels per day.
The Netherlands's demand for coal came to 14,803,000 short tons in 2002, all of it imported. Imports that year totaled 24,586,000 short tons; 10,210,000 short tons were re-exported.
Production of electric power in 2002 totaled 91.117 billion kWh, of which thermal power plants using oil and coal as fuel supplied 90% of the power generated. Nuclear power plants accounted for 4%, and other alternative sources 5.4%. Hydropower accounted for less than 1%. Nuclear generating capacity is provided chiefly by a 450 MW station in Borssele, Zeeland. As of 2002, the Netherlands was one of five European Union (EU) countries that had declared a moratorium on building new nuclear facilities. Consumption of electricity in 2002 was 101.138 billion kWh. Installed capacity in 2002 was 20.378 million kW.
INDUSTRY
Because of World War II and its consequences (the high rate of population increase and the severing of economic ties with Indonesia), drastic structural changes took place in the Dutch economy, and the further development of industry became important. Industry increased to such an extent that it produced 32% of GDP in 1990. Since then, however, industrial production has declined, accounting for 24.5% of GDP in 2004.Since World War II, the metallurgical industry in particular has made tremendous progress. Philips, the Dutch electronics giant, has become the greatest electrical products firm in Europe as well as one of the world's major exporters of electric bulbs and appliances. Unilever, the British-Dutch consumer products company, has grown to become one of the world's largest corporations. The Heineken brewing company is one of the world's largest brewing companies in terms of sales volume and profitability. More phenomenal has been the success of Royal Dutch/Shell, which began as a small concern in 1890 and grew to become one of the world's largest income producers. Rotterdam's suburb of Pernis has the largest oil refinery in Europe. Akzo Nobel produces healthcare products, coatings, and chemicals. DSM produces nutritional and pharma ingredients, performance materials, and industrial chemicals.
Pig iron is exported, produced from imported ore at the Velsen-Ijmuiden plant, situated where the canal from Amsterdam reaches the North Sea. The chemical industry has grown increasingly important, but the once prosperous textile industry in Enschede has declined because of foreign competition.
Industrial products include petroleum, metal and engineering products, and pharmaceutical products. The Netherlands produces electrical machinery and equipment (including computers and computer parts), and microelectronics. Agroindustries are important: the Netherlands is one of the world's three largest exporters of agricultural produce. Dairy farming and market gardening are the major agricultural industries. The Netherlands also produces cigarettes, beer, canned fish, cocoa and cocoa products, coffee, tea, sugar, candies, biscuits, and potato flour.
SCIENCE AND TECHNOLOGY
Advanced scientific research and development (R&D) has provided the technological impetus for the Netherlands' economic recovery since World War II. Dutch universities have traditionally carried out fundamental scientific research, and the government has promoted research activities through the Netherlands Organization for Scientific Research, established in 1988, and the Netherlands Organization for Applied Scientific Research, established in 1930. It also has supported scientific organizations such as the Energy Development Corp. and Energy Research Foundation, Aerospace Development Agency, National Aerospace Laboratory, and Netherlands Maritime Institute.
The highly developed electrotechnical industry produces computers, telecommunications systems, electronic measurement and control equipment, electric switching gear and transformers, and medical and scientific instruments. Dutch firms designed and constructed the Netherlands' astronomical satellites and play a major role in the European Space Agency. The important aerospace industry is led by the world-famous firm of Fokker, which produced Europe's bestselling passenger jet aircraft, the F-27 Friendship, and has been active in the consortium that developed the European Airbus. In 2002, high-tech exports were valued at $33.667 billion and accounted for 28% of manufactured exports.
Expenditures on scientific R&D in 2001 totaled $8.6 trillion, or 1.89% of GDP. Of that amount, 51.8% came from the business sector, followed by government sources at 36.2%. Foreign sources accounted for 11%, with higher education at 1.1%. In that same year, there were 2,826 scientists and engineers and 1,424 technicians per million people that were engaged in R&D.
Among the Netherlands' 39 scientific and technical learned societies, the most prominent is the Royal Netherlands Academy of Sciences, founded in 1808. The country also has 37 scientific and technical research institutes. In Leiden are located the National Museum of Natural History and the National Museum of History of Science and Medicine. The Netherlands has 16 universities offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 39% of university enrollment. In 2002, of all bachelor's degrees awarded, 16.4% were in the sciences (natural, mathematics and computers, engineering).
The highly developed electrotechnical industry produces computers, telecommunications systems, electronic measurement and control equipment, electric switching gear and transformers, and medical and scientific instruments. Dutch firms designed and constructed the Netherlands' astronomical satellites and play a major role in the European Space Agency. The important aerospace industry is led by the world-famous firm of Fokker, which produced Europe's bestselling passenger jet aircraft, the F-27 Friendship, and has been active in the consortium that developed the European Airbus. In 2002, high-tech exports were valued at $33.667 billion and accounted for 28% of manufactured exports.
Expenditures on scientific R&D in 2001 totaled $8.6 trillion, or 1.89% of GDP. Of that amount, 51.8% came from the business sector, followed by government sources at 36.2%. Foreign sources accounted for 11%, with higher education at 1.1%. In that same year, there were 2,826 scientists and engineers and 1,424 technicians per million people that were engaged in R&D.
Among the Netherlands' 39 scientific and technical learned societies, the most prominent is the Royal Netherlands Academy of Sciences, founded in 1808. The country also has 37 scientific and technical research institutes. In Leiden are located the National Museum of Natural History and the National Museum of History of Science and Medicine. The Netherlands has 16 universities offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 39% of university enrollment. In 2002, of all bachelor's degrees awarded, 16.4% were in the sciences (natural, mathematics and computers, engineering).
DOMESTIC TRADE
A considerable but declining part of Dutch retail business is still conducted by small enterprises, which are usually owner operated. Some of the larger department stores in the cities have branches in small towns, and there are several nationwide supermarket chains. Cooperatives and associations are important in both purchasing and producing.Amsterdam is the chief center for commerce and trade, with Rotterdam and The Hague next. Many companies use the Netherlands as a distribution center for European markets. Terms of sale usually call for payment within 90 days. A value-added tax of 19% applies to most goods.
Business offices are generally open from 9 am to 5 pm on weekdays and are closed Saturdays. Retail stores usually open between 8 and 9 am and close between 6 and 7 pm Tuesday through Friday. On Mondays, many shops are closed in the mornings. Most cities have late-night shopping (until 9 pm) on Thursdays or Fridays. In the main cities, many shops are open on Sunday from 12 to 5 pm.
The country's most important trade fair is held at Utrecht, twice each year, in the spring and fall.
FOREIGN TRADE
The Dutch have traditionally been a powerful force in international trade. The Netherlands is the world's eighth-largest exporting nation. As exports and imports of goods and services both accountCountry Exports Imports BalanceWorld 227,344.0 208,995.3 18,348.7
Germany 51,891.7 38,186.2 13,705.5
Belgium 24,153.4 21,667.0 2,486.4
United Kingdom 23,243.6 14,453.5 8,790.1
France-Monaco 22,220.0 10,993.0 11,227.0
Italy-San Marino-Holy See 13,256.7 4,977.9 8,278.8
United States 12,082.0 17,743.6 -5,661.6
Spain 8,591.8 4,180.4 4,411.4
Sweden 4,356.7 4,105.3 251.4
Switzerland-Liechtenstein 3,912.3 2,823.7 1,088.6
Austria 3,410.5 … 3,410.5
(…) data not available or not significant.
For well over 60% of GDP, the backbone of Dutch prosperity is foreign trade. Rotterdam is Europe's largest port (and third in the world in 2005, after Shanghai and Singapore), handling twice as much cargo as its nearest European rival, Antwerp. The Netherlands' geographical position as a key hub of Europe's transportation system and the small size of its domestic market have made the Dutch economy one of the most open and outward-looking in the world.
Principal Dutch exports in the early 2000s were manufactured goods, machines, electronics, chemicals, petroleum products, natural gas, and foods. Chief imports are manufactured products, machines, crude petroleum, chemicals, and clothing. From 1981 through 2005, the Netherlands experienced trade surpluses each year.
BALANCE OF PAYMENTS
Dutch merchandise and services exports have grown to represent more than 60% of GDP, making the Dutch economy one of the most internationally oriented in the world. Economic expansion of the Netherlands in the period immediately after World War II paralleled a generally favorable balance of payments. After occasional and minor deficits on current accounts during the mid-1960s, a major deficit occurred in 1970. Since then, the current-accounts balance has generally registered a surplus, despite increased costs of oil imports during the 1970s and beginning in 2005. The Netherlands' reliance upon exports that are resistant to recessions (such as some food and agricultural products, and semifinished products such as chemicals) has protected the Dutch economy from weaker demand from Germany and other EU countries during recessions. In 2004, exports totaled $311.2 billion and imports $280.5 billion, resulting in a trade surplus of $30.7 billion. The current account surplus was $13.5 billion.
BANKING AND SECURITIES
The Netherlands Bank, nationalized in 1948, is the central bank. It issues the currency and supervises the privately owned banks. Since the 1950s, the Netherlands Bank had used reserve regulations and the central bank discount rate as instruments of monetary policy, but with the introduction of the European Central Bank, those responsibilities are now more centralized for all of the EU. The Dutch financial services industry has a long and distinguished history and has introduced many banking innovations to the world. Since the late 1980s, the sector has undergone a revolution. A common strategic desire to expand and to gain more financial strength, combined with deregulation of the financial market, prompted several bank mergers and the formation of financial conglomerates of banks and insurance groups. As a result, the number of dominant participants in the market has diminished to a handful, each providing the full range of financial services. The Netherlands Middenstands-bank (NMB) and the state-owned Postbank merged to form the NMB Postbank in 1989, which in turn merged again with the Nationale Nederlanden insurance group to form the International Nederlanden Groep (ING) in 1991. The large ABN and Amro commercial banking groups joined up to form ABN-Amro in 1990. VSB-bank, a conglomerate of savings banks, teamed up with the Ameu insurance group and Belgium's AG insurance group in 1990 to form the DutchBelgian Fortis group. Rabobank, a large cooperative group whichCurrent Account 16,405.0
Balance on goods 26,648.0
Imports -225,733.0
Exports 252,380.0
Balance on services -1,186.0
Balance on income -1,244.0
Current transfers -7,813.0
Capital Account -2,028.0
Financial Account -23,088.0
Direct investment abroad -35,204.0
Direct investment in Netherlands 15,695.0
Portfolio investment assets -57,001.0
Portfolio investment liabilities 82,000.0
Financial derivatives -468.0
Other investment assets -63,605.0
Other investment liabilities 35,494.0
Net Errors and Omissions 7,791.0
Reserves and Related Items 920.0
(…) data not available or not significant.
Specializes in the provision of agricultural credits and mortgage facilities but has been rapidly expanding its product portfolio in recent years, took a 50% share in the Robeco investment group in 1996. The robust nature of the Dutch banking industry came to the fore once again in December 1999. Although it ultimately failed, ING made headlines through its attempted takeover of the French Crédit Commercial de France (CCF). Had ING's bid succeeded, it would have been the first successful merger of a French bank with another European financial institution.
The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $145.3 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $409.3 billion.
The Netherlands has the oldest stock exchange in the world, the Amsterdam Stock Exchange (ASE); founded in the early 17th century, it is now one of the largest stock exchanges in operation. The issuance of new securities on the exchange is supervised by the Netherlands Bank, acting in cooperation with the commercial banks and stockbrokers.
The comparatively large share of foreign security listings and capital supply gives the ASE an international importance disproportionate to its size. Its strong international orientation is also reflected in the fact that its share of Europe's total market capitalization far outweighs the relative importance of the Dutch economy. The multinational nature of the major Dutch companies, which has led to their shares being quoted on a number of international stock markets, means that stock price levels on the ASE are heavily influenced by developments elsewhere. The three largest companies, Royal Dutch Shell, Unilever, and ING, account for around 50% of total stock market capitalization.
In order to enhance the international competitiveness of the ASE, many reform measures have been taken in the past few years, with varying degrees of success. These include the introduction of a new electronic trading system open to foreign-based brokers, a division of the market into a wholesale and a retail segment, and a revamp of the exchange's organizational structure. Moreover, in early 1996, under pressure from the government, the stock exchange introduced an arrangement that aims to reduce the influence of the wide range of anti-takeover devices quoted corporations are permitted, which has long been considered as one of the exchange's most important shortcomings. Under the new arrangement, a prospective buyer who has gained 70% of a company's shares can turn to the Amsterdam Court of Justice after a period of 12 months.
On 1 January 1997, the Amsterdam Exchanges (AEX) was formed by the merger of the Amsterdam Stock Exchange (ASE) and the city's European Options Exchange (EDE). From approximately 680 at the end of January, the AEX index of 25 leading shares rose to 700 on 11 February 1997 and sped on to almost 775 by mid-March before suffering a correction prompted by the release of disappointing financial results by a brewing company, Grolsch, and fears of interest rate increases in the United States. In 1998 the world capitalization rankings placed the equity market eighth in the world, while the volume of options contracts at the options market ranked fourth. By early 2003, however, the AEX index had dropped to 303.21, down 39% from the previous year. As of 2004, a total of 177 companies were listed on the EURONEXT Amsterdam exchange, which had a market capitalization of $622.284 billion. In 2004, the AEX rose 3.1% from the previous year to 348.1.
INSURANCE
There are two sectors of the insurance industry in the Netherlands: the companies operating under control laws set down by the EC and supervised by the government, and the companies (mutuals, reinsurance, marine and aviation) not under official supervision. Compulsory third-party motor insurance has been in effect since 1935. In addition, insurance for workers, hunters, nuclear facilities, and pensions are compulsory. In 2003, the value of all direct insurance premiums written totaled $50.266 billion, of which life insurance premiums accounted for $25.371 billion. In 2002, the top nonlife insurer was Achmea Zorg, which had gross written nonlife premiums of $1,196.1 million, while the leading life insurer that same year was Nationale Nederlanden Leven, with gross written life insurance premiums of $4,236.9 million.PUBLIC FINANCE
The government has gradually cut the deficit from 10% of GDP in 1983 to 2.75% in 1996, slightly below the 3% Maastricht criteria for European Economic and Monetary Union (EMU) in 1999. The deficit is largely financed by government bonds. Financing is also covered by issuing Dutch Treasury Certificates, which replaced a standing credit facility for short-term deficit financing with the Netherlands Central Bank. Under the Maastricht Treaty, the Netherlands Central Bank was abolished in 1994. Although the private sector is the cornerstone of the economy, the government plays a vital role in the Netherlands' economy. It decides microeconomic policy and tax laws, as well as working toward structural and regulatoryRevenue and Grants 184,341 100.0%
Tax revenue 103,128 55.9%
Social contributions 67,918 36.8%
Grants 412 0.2%
Other revenue 12,883 7.0%
Expenditures 197,864 100.0%
General public services 43,780 22.1%
Defense 7,182 3.6%
Public order and safety 7,334 3.7%
Economic affairs 11,810 6.0%
Environmental protection 739 0.4%
Housing and community amenities 1,082 0.5%
Health 20,562 10.4%
Recreational, culture, and religion 1,745 0.9%
Education 21,443 10.8%
Social protection 82,187 41.5%
(…) data not available or not significant.
Reforms. Public spending, however, had dropped to 46% of GDP as of 2000 as privatization and deregulation continued.
The US Central Intelligence Agency (CIA) estimated that in 2005 the Netherlands's central government took in revenues of approximately $291.8 billion and had expenditures of $303.7 billion. Revenues minus expenditures totaled approximately -$11.9 billion. Public debt in 2005 amounted to 56.2% of GDP. Total external debt was $1.645 trillion.
The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were €184,341 million and expenditures were €197,864 million. The value of revenues was us$208,060 million and expenditures us$222,489 million, based on a market exchange rate for 2003 of us$1 = €.8860 as reported by the IMF. Government outlays by function were as follows: general public services, 22.1%; defense, 3.6%; public order and safety, 3.7%; economic affairs, 6.0%; environmental protection, 0.4%; housing and community amenities, 0.5%; health, 10.4%; recreation, culture, and religion, 0.9%; education, 10.8%; and social protection, 41.5%.
TAXATION
Principal taxes raised by the central government are income and profits taxes levied on individuals and companies, a value-added tax (VAT) on goods and services, and a tax on enterprises of public bodies (except agricultural enterprises). There is a wealth tax of 0.7% also levied on nonexempt taxable capital of individuals. Provinces and municipalities are not authorized to impose income taxes, and may impose other taxes only to a limited extent. The most important tax levied by municipalities is a real estate tax paid partly by owners and partly by occupants. Residents are taxed on both their local and foreign incomes, but nonresidents pay taxes only on income earned in the Netherlands.The tax on the net profits of corporations in 2005 was 27% for annual profits up to €22,689 and 31.5% on the increment of profits above that. Depreciation and other business deductions are permitted. Capital gains were taxed at the same rates, although some capital gains were tax-exempt. Withholding taxes up to a maximum of 25% were applied to dividends, although there is no withholding if the dividends are being paid by a subsidiary to a nonresident parent company, owning more than 25% of the payer. Companies can qualify for tax exemptions and tax reductions under investment incentive regimes. Branches of foreign companies are treated the same as Dutch companies in accordance with the fiscal regime under which they qualify.
Incomes are taxed on a graduated scale, with a top rate of 52%. There are also liberal deductions for dependents. Taxes are withheld by the state on the incomes of wage earners. In the tax reforms of 2001 marginal income tax rates were set in a course of increases in the lower rates, and decreases in the higher ones. The progressive schedule consists of four brackets, not counting a tax-exempt base for each individual taxpayer. Gift and inheritance taxes range from 5–68% depending on the family relationship of the donor or deceased.
The Netherlands' main indirect tax is its VAT introduced 1 January 1969 with a standard rate of 12% and a reduced rate of 4% on basics. Effective 1 January 2001, the standard rate was increased from 17.5% to 19% with a reduced rate of 6%, the latter applied to basic foodstuffs, books, newspapers and periodicals, public ground and sea transport, water supplies, sports centers, and pharmaceuticals. Exempted from VAT are exported goods, medical, cultural, and educational services, and credit and insurance transactions. Other taxes include excise taxes, energy taxes and taxes on legal transactions and on motor vehicles.
CUSTOMS AND DUTIES
The Dutch government has a traditionally liberal policy on tariffs and its membership in the Benelux Economic Union, the European Union, and other international trade organizations has resulted in comparatively low import duties. Tariffs on imports from the dollar area have also been liberalized and about 90% of imports from the United States are unrestricted quantitatively. Manufactured goods from the United States are generally subject to a duty ranging from 5–8% based on the cost, insurance and freight (CIF) value of the goods. Raw materials are usually not subject to import duties.Imports are subject to EU customs regulations and tariff rates, plus VAT and other charges levied at entry through customs.
FOREIGN INVESTMENT
The Netherlands has favorable tax structures for investors, which has made the country one of the top recipients of foreign direct investment in the European Union. The Netherlands has consistently been ranked as one of the most attractive destinations for FDI in the world, ranking sixth among the ten largest foreign investors in the world, as well as the sixth-largest global recipient of FDI (2004). The government has encouraged foreign corporations to set up branch plants in the Netherlands and to establish joint ventures with Dutch companies in order to benefit from the introduction of new production techniques and improved methods of management that outside firms often bring. The government does not discriminate between foreign and domestic companies; foreign entrepreneurs have the same business privileges and obligations as Dutch businessmen and women. As a result, foreign companies operate in virtually all industries, including high-technology electronics, chemicals, metals, electrical equipment, textiles, and food processing. The labor force is largely well-educated and multilingual.The corporation tax is 34.5%, but the corporate taxation regime is expected to be reformed in 2006–07. The Corporation Tax Act provides for a participation exemption, applicable to both foreign and domestic shareholdings, thus preventing double taxation when the profits of a subsidiary are distributed to its parent company. Although income taxes were lowered in 2001, the basic rate of the value-added tax was raised from 17.5% to 19%.
Annual foreign direct investment (FDI) inflows were $11 billion in 1997, down from $16.6 billion in 1996, but then soared to $37.6 billion in 1998. The peak was reached in 2000 and 2001, when total inflows reached $52 billion and $50 billion, respectively. However, in 2002, FDI inflow fell to an estimated $30 billion, and to $19.3 billion in 2003. By 2004, the total stock of FDI had reached $387 billion, about 75% of GDP.
Overall, the United States, the United Kingdom, Germany, Belgium, and France are the primary sources of and destinations for FDI with the Netherlands.
Foreign companies established in the Netherlands account for roughly one-third of industrial production and employment in industry. At the end of 2004, an estimated 31.5% of foreign establishments in the Netherlands came from the United States, 19.5% from Germany, 14% from the United Kingdom, 7% from Scandinavia, 17% from the rest of Europe, 9% from Asia, and the remaining 2% from other non-OECD and non-EU countries.
ECONOMIC DEVELOPMENT
For nearly four decades after World War II Dutch governments aimed at increased industrialization. During the 1990s, however, industrial growth slowed, while the service sector continued to expand. In this regard, the Netherlands has made the transition to a more liberalized high technology economy quite successfully.In an effort to encourage industrialization after the Second World War, the maintenance of internal monetary equilibrium was vitally important, and the government has largely succeeded in this task. Successive governments pursued a policy of easy credits and a "soft" currency, but after the Netherlands had fully recovered from the war by the mid-1950s, a harder currency and credit policy came into effect. In the social sphere, stable relationships were maintained by a deliberate governmental social policy seeking to bridge major differences between management and labor. The organized collaboration of workers and employers in the Labor Foundation has contributed in no small measure to the success of this policy, and as a result, strikes are rare.
Successive wage increases helped bring the overall wage level in the Netherlands up to that of other EC countries by 1968. The Dutch government's policy, meanwhile, was directed toward controlling inflation while seeking to maintain high employment. In 1966, the government raised indirect taxes to help finance rising expenditures, particularly in the fields of education, public transportation, and public health. Further attempts to cope with inflation and other economic problems involved increased government control over the economy. Wage and price controls were imposed in 1970–71, and the States-General approved a measure granting the government power to control wages, rents, dividends, health and insurance costs, and job layoffs during 1974.
During the mid-1980s, the nation experienced modest recovery from recession; the government's goal was to expand recovery and reduce high unemployment, while cutting down the size of the annual budget deficit. The government generally sought to foster a climate favorable to private industrial investment through such measures as preparing industrial sites, subsidizing or permitting allowances for industrial construction and equipment, assisting in the creation of new markets, granting subsidies for establishing industries in distressed areas, and establishing schools for adult training. In 1978, the government began, by means of a selective investment levy, to discourage investment in the western region (Randstad), while encouraging industrial development in the southern province of Limburg and the northern provinces of Drenthe, Friesland, and Groningen.
The Netherlands' largest economic development projects have involved the reclamation of land from the sea by construction of dikes and dams and by the drainage of lakes to create polders for additional agricultural land. The Zuider Zee project closed off the sea and created the freshwater Ijsselmeer by means of a 30 km (19 mi) barrier dam in 1932, and subsequently drained four polders enclosing about 165,000 hectares (408,000 acres). After a storm washed away dikes on islands in Zeeland and South Holland in 1953, killing some 1,800 people, the Delta project was begun. Th is project, designed to close estuaries between the islands with massive dams, was officially inaugurated in 1986; the cost was $2.4 billion. The Delta works include a storm-surge barrier with 62 steel gates, each weighing 500 tons that are usually left open to allow normal tidal flow in order to protect the natural environment. Another major engineering project was construction of a bridge and tunnel across the Western Schelde estuary in the south to connect Zeeland Flanders more directly with the rest of the country.
Beginning in the 1980s, Dutch governments began stressing fiscal discipline by reversing the growth of the welfare state and ending a policy of inflation-based wage indexing. The latter policy represented a spirit of consensus among labor and management. At a time when other labor unions fought losing battles with management, Dutch unions agreed to a compromise on this cherished issue in return for a business promise to emphasize job creation. By the late 1990s, these reforms had paid off as Dutch unemployment plummeted to below 5%. As of the early 2000s, the Netherlands had among the lowest unemployment rates in the industrialized world. As of 2005, the Dutch economy was being heralded around the world for its combination of strong employment growth, low inflation, falling public budget deficits, low inequality, and strong social welfare policies.
In January 2004, the government launched its Innovation Partnerships Grant Program, to promote cooperation in research and development. The program encourages businesses and public-sector knowledge institutes to study and launch national and international partnerships. Some 5,000 Dutch companies are conducting research to develop new products and to boost quality and efficiency. The country's five largest multinationals—Philips, Shell, Akzo Nobel, DSM, and Unilever—are at the forefront of industrial research and development.
The Netherlands' commitment to the project of further European integration, however, was stalled in 2005, when on 1 June Dutch voters rejected the EU constitution by a wide margin (62% to 38%). This vote followed directly upon the heels of the French rejection of the constitution. Many Dutch "no" voters, however, said they were pro-European, but feared that small countries were losing influence in an EU dominated by larger ones. The Dutch treasure their sound money and liberal social policies, and do not want to see these eroded.
SOCIAL DEVELOPMENT
A widespread system of social insurance and assistance is in effect. The first laws were implemented in 1901. All residents are provided with old-age and survivorship benefits. Disability pensions are available to all employees, self-employed workers, students, and those disabled since childhood. Unemployment, accidents, illness, and disability are covered by insurance, which is compulsory for most employees and voluntary for self-employed persons. Maternity grants and full insurance for the worker's family are also provided, as are family allowances for children. The government covers the total cost for family allowances. Women receive one month of maternity leave with full pay. Exceptional medical expenses are covered for all residents.Legislation mandates equal pay for equal work and prohibits dismissal due to marriage, pregnancy, or motherhood. However, cultural factors and lack of day care discourages women from employment. Many women work in part-time positions and are underemployed, and on average women earn less than men. Sexual harassment in the workplace is an issue, and in 2004, the government funded an awareness campaign to combat the problem. Domestic violence is an issue, especially among ethnic minorities. The government provides programs to reduce and prevent violence against women.
Human rights are fully respected in the Netherlands. There were incidents of discrimination against religious minorities and some immigrant groups.
HEALTH
The Netherlands has a social insurance system similar to Germany's. About two-thirds of workers are covered by the social insurance program; the remainder are covered by private insurance. Under the Health Insurance Act, everyone with earned income of less than 50,900 guilders per year pays a monthly contribution in return for which they receive medical, pharmaceutical, and dental treatment and hospitalization. People who earn more than this have to take out private medical insurance. The state also pays for preventive medicine including vaccinations for children, school dental services, medical research, and the training of health workers. Preventive care emphasizes education, a clean environment, and regular exams and screenings. As of 2004, there were an estimated 329 physicians, 1,334 nurses, 47 dentists and 20 pharmacists per 100,000 people.The general health situation has been excellent over a long period, as is shown by an estimated general mortality rate of 8.7 per 1,000 as of 2002 and an infant mortality of only 5.04 per 1,000 live births in 2005, down markedly from the 12.7 rate in 1970. The maternal mortality rate was 7 per 100,000 live births. These low rates are attributed to a rise in the standard of living; improvements in nutrition, hygiene, housing, and working conditions; and the expansion of public health measures. In 2005, average life expectancy was 78.81 years.
Most doctors and hospitals operate privately. A system of hospital budgeting, which was introduced in 1983, has helped contain costs. In 1990, a proposal to increase competition among insurers, eliminating the distinction between public and private insurers, was developed. A reference price system—to control pharmaceuticals especially—was introduced in 1991. Total health care expenditure was estimated at 8.7% of GDP.
The Ministry of Public Health and Environment is entrusted with matters relating to health care, but health services are not centrally organized. There are numerous local and regional health centers and hospitals, many of which are maintained by religious groups.
In 2002, the estimated birth rate was 11.6 per 1,000 people; 75% of married women (ages 15 to 49) used contraception. The total fertility rate was 1.7 children for each woman living throughout childbearing years. Immunization rates for children up to one year old were as follows: diphtheria, pertussis, and tetanus, 95%; polio, 97%; and measles, 96%.
Major causes of death were attributed to cardiovascular problems and cancer. The HIV/AIDS prevalence was 0.20 per 100 adults in 2003. As of 2004, there were approximately 19,000 people living with HIV/AIDS in the country. There were an estimated 100 deaths from AIDS in 2003.
HOUSING
During World War II, more than 25% of the nation's two million dwellings were damaged: 95,000 dwellings were completely destroyed, 55,000 were seriously damaged, and 520,000 were slightly damaged. The housing shortage remained acute until 1950, when an accelerated program of housing construction began, and in 1953 the government decided to increase the house-building program to a level of 65,000 dwellings a year. Since then, the production rate has far exceeded both the prewar rate and yearly forecasts. From 1945 to 1985, nearly four million dwellings were built. In 1985 alone, 98,131 dwellings were built, bringing the total housing stock to 5,384,100 units by the end of the year. Most of the new units were subsidized by the national government. Subsidies are granted to municipalities, building societies, and housing associations, which generally build low-income multiple dwellings. Government regulations, which are considerable, are laid down in the Housing Act of 1965 and the Rental Act of 1979.The government determines on an annual basis the scope of the construction program. On the basis of national estimates, each municipality is allocated a permissible volume of construction. Within this allocation, the municipalities must follow certain guidelines; central government approval is required for all construction projects exceeding a specific cost. All construction must conform to technical and aesthetic requirements, as established by the government.
In 2005, the number of dwellings was at about 6,861, with an average of 2.3 residents per dwelling. The number of residents per dwelling has nearly halved since WWII. Approximately 71,609 new dwellings were constructed in 2004. About 76% of the dwellings built in 2004 were owner occupied.
EDUCATION
The present Dutch education system has its origins in the Batavian Republic which was constituted after the French Revolution. The role of education gained importance in the Civil and Constitutional Regulations of 1789, and the first legislation on education was passed in 1801. After 1848, the municipalities, supported by state funds, were responsible for managing the schools. Private schools were not originally supported by the government. However, after 1917, private and state schools received equal state funding.School attendance between the ages of 5 and 18 is compulsory. Apart from play groups and crèches (which do not come under the Ministry of Education), there are no schools for children below the age of four. Children may, however, attend primary school from the age of four. Primary school covers eight years of study. Secondary school is comprised of three types: (1) general secondary school, with two options, the four-year junior general secondary school (MAVO) and the five-year senior general secondary school (HAVO); (2) preuniversity—the athenaeum or the gymnasium—both lasting for six years in preparation for university education; and (3) vocational secondary schools with four-year programs. Special education is provided to children with physical, mental, or social disabilities at special primary and secondary schools. Whenever possible, these children are later transferred into mainstream schools for continued education. The academic year runs from September to June.
Primary school enrollment in 2003 was estimated at about 99% of age-eligible students. The same year, secondary school enrollment was about 89% of age-eligible students. It is estimated that about 98.4% of all students complete their primary education. In 2003, private schools accounted for about 68.7% of primary school enrollment and 83.3% of secondary enrollment.
Facilities have been opened in various municipalities for adult education. Open schools and open universities have also been introduced. Vocational and university education is provided at the eight universities and five institutes (Hogescholen), which are equivalent to universities. These are funded entirely by the government. There are also seven theological colleges. In 2003, about 58% of the tertiary age population were enrolled in some type of higher education program. The adult literacy rate for 2000 was estimated at about 99%.
As of 2003, public expenditure on education was estimated at 5.1% of GDP, or 10.7% of total government expenditures.
LIBRARIES AND MUSEUMS
The largest public library is the Royal Library at The Hague, which has about 2.2 million volumes; this also serves as the national library. Outstanding libraries are found in the universities: Amsterdam, with over 2.6 million volumes; Leiden, 2.7 million volumes; Utrecht, two million volumes; Groningen, 2.7 million volumes; and Erasmus of Rotterdam, 800,000 volumes. The technical universities at Delft, Wageningen, and Tilburg also have excellent collections. Libraries of importance are found in some provincial capitals, such as Hertogenbosch, Leeuwarden, Middelburg, and Maastricht. Also noteworthy are the International Institute of Social History at Amsterdam, which houses important collections of historical letters and documents, such as the Marx-Engels Archives; and the Institute of the Netherlands Economic-Historical Archive, which has its library in Amsterdam and its collection of old trade archives at the Hague. There are about 500 public libraries across the country. The Netherlands Public Library Association was founded in 1972.Among Amsterdam's many museums, particularly outstanding are the Rijksmuseum (1800), the Stedelijk Museum (1895) with special collections of modern art, the Van Gogh Museum (1979), the Museum of the Royal Tropical Institute (1910), and the Jewish Historical Museum (1932). Among Amsterdam's newest museums are the Huis Marseille (1999), which has historic and modern photography exhibits, the hands-on New Metropolis Interactive Science and Technology Museum (1997), and the Tattso Museum (1996). The Boymans–Van Beuningen Museum in Rotterdam has older paintings as well as modern works and a fine collection of minor arts. The Hague's Mauritshuis and the Frans Hals Museum at Haarlem have world-renowned collections of old masters. Other collections of national interest are in the Central Museum in Utrecht, the National Museum of Natural History in Leiden, Teyler's Museum in Haarlem, and the Folklore Museum in Arnhem. In the past, the most important art museums were found mainly in the large population centers of western Holland, but there are now museums of interest in such provincial capitals as Groningen, Leeuwarden, Arnhem, and Maastricht. The government stimulates the spread of artistic culture by providing art objects on loan and by granting subsidies to a number of privately owned museums. There are dozens of museums dedicated to the work of individual Dutch artists.
MEDIA
The post office, telegraph, and telephone systems are operated by the government. The state's monopoly on postal services is confined to delivery of letters and postcards; about half of other deliveries are handled by private firms. Significant improvements in the phone systems began in 2001 through the introduction of the third generation of the Global System for Mobile Communications. In 2003, there were an estimated 614 mainline telephones for every 1,000 people. The same year, there were approximately 768 mobile phones in use for every 1,000 people.There are several radio networks. The Netherlands Broadcasting Foundation, a joint foundation, maintains and makes available all studios, technical equipment, record and music libraries, orchestras, and other facilities. Broadcasting to other countries is carried on by the Netherlands World Broadcasting Service, which is managed by a board of governors appointed by the minister of cultural affairs. As of 2004 there were 4 AM and 246 FM stations. There were also about 21 television stations. Shortwave programs are transmitted in Dutch, Afrikaans, Arabic, English, French, Indonesian, Portuguese, and Spanish. Annual license fees are charged to radio and television set owners. Commercial advertising was introduced in 1967–68 and limited to fixed times before and after news broadcasts. In 2003, there were an estimated 980 radios and 648 television sets for every 1,000 people. About 401.4 of every 1,000 people were cable subscribers. Also in 2003, there were 466.6 personal computers for every 1,000 people and 522 of every 1,000 people had access to the Internet. There were 3,779 secure Internet servers in the country in 2004.
The Dutch were among the first to issue regular daily newspapers. The oldest newspaper, the Oprechte Haarlemsche Courant, was founded in 1656 and is published today as the Haarlemsche Courant. The Dutch press is largely a subscription press, depending for two-thirds of its income on advertising. Editorial boards, however, are usually completely independent of the commercial management.
In 2004, the largest national and regional newspapers, with daily circulations, were: De Telegraaf(Amsterdam), 776,000; De Volkskrant (Amsterdam), 323,000; Algemeen Dagblad (Amsterdan), 303,000; NRC Handelsblad (Rotterdam), 262,000; De Gelderlander (Gelderland), 193,000; Dagblad van het Noorden(Groningen), 173,000; Apeldoornse Courant (Apeldoorn), 159,000; Noordhollands Dagblad (Alkmaar), 155,000; Brabants Dagblad (North Brabant), 153,300; De Stem (Breda), 140,000; Dagblad Tubantia(Enschede), 136,000; Haagsche Courant (The Hague), 117,000; and Trouw (Amsterdam), 117,000.
Complete freedom of speech and press is guaranteed by the constitution, and the government is said to fully support free expression in practice.
ORGANIZATIONS
Associations established on the basis of economic interests include the Federation of Netherlands Industries, the Netherlands Society for the Promotion of Industry and Commerce, the Federation of Christian Employers in the Netherlands, the National Bankers Association, and chambers of commerce in Amsterdam, Rotterdam, The Hague, and other cities.Learned societies include the Royal Netherlands Academy of Arts and Sciences, the Royal Antiquarian Society, the Netherlands Anthropological Society, the Historical Association, the Royal Netherlands Geographical Society, and similar bodies in the fields of botany, zoology, philology, mathematics, chemistry, and other sciences. The Royal Netherlands Association for the Advancement of Medicine, the General Netherlands Society for Social Medicine and Public Health, the Royal Dutch Medical Association, and the Netherlands Association for Psychiatry and Neurology are some of the organizations active in the field of medicine. The International Statistical Institute is based in the Netherlands. The International Esperanto Institute and the International Montessori Association are also located in the country.
In the arts, there are such groupings as the Society for the Preservation of Cultural and Natural Beauty in the Netherlands, the Society of Netherlands Literature, the St. Luke Association, the Society for the Advancement of Music, the Royal Netherlands Association of Musicians, Holland Society of Arts and Sciences, and national societies of painters, sculptors, and architects. The Netherlands Center of the International Association of Playwrights, Editors, Essayists and Novelists (PEN), the Netherlands Branch of the International Law Association, and the Netherlands Foundation for International Cooperation are among the organizations active internationally in their fields.
National youth organizations include the Evangelical Students of the Netherlands, Dutch United Nations Student Association, Junior Chamber, Youth Organization for Freedom and Democracy, The Netherlands Scouting Association, and YMCA/YWCA. There are numerous sports associations for all ages. The Netherlands is home to the International Korfball Federation. Women's organizations include Netherlands Association for Women's Interests, Women's Work and Equal Citizenship and the Netherlands Council of Women.
International organizations with national chapters include Amnesty International, Defence for Children International, Greenpeace International, Habitat for Humanity, and the Red Cross.
TOURISM, TRAVEL, AND RECREATION
Travel in the Netherlands by public railway, bus, and inland-waterway boat service is frequent and efficient. Principal tourist attractions include the great cities of Amsterdam, Rotterdam, and the Hague, with their famous monuments and museums, particularly the Rijksmuseum in Amsterdam; the flower gardens and bulb fields of the countryside; and North Sea beach resorts. Modern hotels and large conference halls in the large cities are the sites of numerous international congresses, trade shows, and other exhibitions.
Recreational opportunities include theaters, music halls, opera houses, cinemas, zoos, and amusement parks. Popular sports include football (soccer), swimming, cycling, sailing, and hockey. Foreign visitors need only a valid passport for stays of up to 90 days. Proof of sufficient funds, health insurance coverage, return/onward ticket, and lodging reservations may be required upon arrival. Within eight days of arrival, visitors staying long term must register with the local police
In 2003, approximately 6,930,500 tourists visited the Netherlands, of whom 22% were from the United Kingdom. There were 88,146 hotel rooms with 180,158 beds and an occupancy rate of 43%. Travelers stayed an average of two nights. Tourism expenditure receipts totaled $11.7 billion in 2002.
In 2005, the US Department of State estimated the daily cost of staying in Amsterdam at $328; the Hague, $258; and in Rotterdam, $339.
Recreational opportunities include theaters, music halls, opera houses, cinemas, zoos, and amusement parks. Popular sports include football (soccer), swimming, cycling, sailing, and hockey. Foreign visitors need only a valid passport for stays of up to 90 days. Proof of sufficient funds, health insurance coverage, return/onward ticket, and lodging reservations may be required upon arrival. Within eight days of arrival, visitors staying long term must register with the local police
In 2003, approximately 6,930,500 tourists visited the Netherlands, of whom 22% were from the United Kingdom. There were 88,146 hotel rooms with 180,158 beds and an occupancy rate of 43%. Travelers stayed an average of two nights. Tourism expenditure receipts totaled $11.7 billion in 2002.
In 2005, the US Department of State estimated the daily cost of staying in Amsterdam at $328; the Hague, $258; and in Rotterdam, $339.
FAMOUS NETHERLANDERS
The Imitation of Christ, usually attributed to the German Thomas à Kempis, is sometimes credited to the Dutch Gerhard Groote (1340–84); written in Latin, it has gone through more than 6,000 editions in about 100 languages. Outstanding Dutch humanists were Wessel Gansfort (1420?–89), precursor of the Reformation; Rodolphus Agricola (Roelof Huysman, 1443–85); and the greatest of Renaissancehumanists, Desiderius Erasmus (Gerhard Gerhards, 1466?–1536). Baruch (Benedict de) Spinoza (1632–77), the influential pantheistic philosopher, was born in Amsterdam.The composers Jacob Obrecht (1453–1505) and Jan Pieterszoon Sweelinck (1562–1621) were renowned throughout Europe; later composers of more local importance were Julius Röntgen (1855–1932), Alfons Diepenbrock (1862–1921), and Cornelis Dopper (1870–1939). Bernard van Dieren (1887–1936), a composer of highly complex music of distinct individuality, settled in London. Henk Badings (b.Bandung, Java, 1907–87) was a prolific composer of international repute. Outstanding conductors of the Amsterdam Concertgebouw Orchestra include Willem Mengelberg (1871–1951), Eduard van Beinum (1901–59), and Bernard Haitink (b.1929), who also was principal conductor of the London Philharmonic from 1967 to 1979, music director of the Royal Opera House, Covent Garden, from 1987–2002, and principal conductor of the Dresden Staatskapelle from 2002.
Hieronymus Bosch van Aken (1450?–1516) was a famous painter. Dutch painting reached its greatest heights in the 17th century, when Rembrandt van Rijn (1606–69) and Jan Vermeer (1632–75) painted their masterpieces. Other great painters of the period were Frans Hals (1580–1666), Jan Steen (1626–69), Jacob van Ruisdael (1628–82), and Meindert Hobbema (1638–1709). Two more recent painters, Vincent van Gogh (1853–90) and Piet Mondrian (1872–1944), represent two widely divergent artistic styles and attitudes. Maurits C. Escher (1898–1972) was a skilled and imaginative graphic artist.
Hugo Grotius (Huig de Groot, 1583–1645), who is often regarded as the founder of international law, is famous for his great book, On the Law of War and Peace. The outstanding figure in Dutch literature was Joost van den Vondel (1587–1679), poet and playwright. Another noted poet and playwright was Constantijn Huygens (1596–1687), father of the scientist Christian. Popular for several centuries were the poems of Jacob Cats (1577–1660). Distinguished historians include Johan Huizinga (1872–1945) and Pieter Geyl (1887–1966). Anne Frank (b.Germany, 1929–45) became the most famous victim of the Holocaust with the publication of the diary and other material that she had written while hiding from the Nazis in Amsterdam.
Jan Pieterszoon Coen (1587–1630), greatest of Dutch empire builders, founded the city of Batavia in the Malay Archipelago (now Jakarta, the capital of Indonesia). Two Dutch naval heroes, Maarten Harpertszoon Tromp (1597–1653) and Michel Adriaanszoon de Ruyter (1607–76), led the Dutch nation in triumphs in sea wars with France, England, and Sweden. Peter Minuit (Minnewit, 1580–1638) founded the colonies of New Amsterdam (now New York City) and New Sweden (now Delaware). Peter Stuyvesant (1592–1672) took over New Sweden from the Swedish and lost New Netherland (now New York State) to the British.
Leading scientists include the mathematician Simon Stevinus (1548–1620); Christian Huygens (1629–95), mathematician, physicist, and astronomer; Anton van Leeuwenhoek (1632–1723), developer of the microscope; Jan Swammerdam (1637–80), authority on insects; and Hermann Boerhaave (1668–1738), physician, botanist, and chemist. Among more recent scientists are a group of Nobel Prize winners: Johannes Diderik van der Waals (1837–1923), authority on gases and fluids, who received the award for physics in 1910; Jacobus Hendricus van 't Hoff (1852–1911), chemistry, 1901; Hendrik Antoon Lorentz (1853–1928) and Pieter Zeeman (1865–1943), who shared the 1902 award for physics; Heike Kamerlingh Onnes (1853–1926), physics, 1913; Willem Einthoven (1860–1927), physiology, 1924; Christiaan Eijkman (1858–1930), physiology, 1929; Petrus Josephus Wilhelmus Debye (1884–1966), chemistry, 1936; Frits Zernike (1888–1966), physics, 1953; Jan Tinbergen (1903–94), economic science, 1969; Dutch-born Tjalling Koopmans (1910–85), who shared the 1975 prize for economic science; Simon van der Meer (b.1925), cowinner of the physics prize in 1984; Paul J. Crutzen (b.1933), who shared the 1995 chemistry prize; and Gerardus 't Hooft (b.1946) and Martinus J.G. Veltman (b.1931), who shared the 1999 physics prize. The 1911 Nobel Prize for peace was awarded to Tobias Michael Carel Asser (1838–1913).
The head of state since 1980 has been Queen Beatrix (b.1938).
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