The economy of the Netherlands: features, characteristics and structure

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:46

The features of the Dutch economy are largely determined by its location. The Netherlands is considered one of the most developed countries in the European Union. This article will discuss the features and composition of the economy of this state.

General characteristics of the economic sector

Due to its geographical location in the center of Western Europe, the country has a strategically convenient initial location.

Giving a brief description of the economy of the Netherlands, it can be noted that the economic sphere of this state is aimed mainly at the export of products. Transportation and sales are considered significant business activities.

Due to the favorable location of the state, a large number of industrial facilities (concerns, plants, factories, etc.) have been created here. Many gigantic world productions have their distributors for the Old World in this country. In addition, organizations are often created in the Netherlands that are dependent on the transport of large volumes of materials by water (to the relevant areasactivities can be attributed to the petrochemical industry).

The Netherlands is of interest to many industrial associations due to the following opportunities:

• well-developed transport sector;
• comfortable environment for merchants and a labor market with competent workers.

The above country's performance was highly rated by TNCs and economic research centers.

Composition of the economic industry in the Netherlands

The Netherlands is an advanced industrial state with a rapidly developing agrarian sector. They consistently hold a position in the top ten countries of Western Europe in terms of industrial development.

Recently, the Dutch GDP has risen above 0.55 trillion guilders (local currency), contributing to above-average profits per average inhabitant throughout the Old World.

Despite the fact that the citizens of the Netherlands make up only 4.5% of all inhabitants of Europe, the GDP of this state accounts for 5.1% of the total gross domestic product of the Old World.

Indicator of price growth in the country is among the lowest in the European Union: in 1993-1994. it was no more than three percent. This suggests that the economic sphere of the Netherlands has adequately survived the consequences of the economic crisis at the beginning of the last decade of the last century.

If we briefly characterize the economy of the Netherlands, we can safely say that the great importance in the economic sphere of the statehave agriculture, fishing, industry, shipping, export and capital outflow.

Agroclimatic resources

Now broad-leaved forests, which in previous centuries grew on most of the territory of the state, mainly remained on the estates of the ruler of the country and on state natural sites. On the slopes of the valleys you can find beech, oak. In the neighborhood are elm, ash, poplar, and in the lowlands - alder. The nature of the Netherlands is distinguished by a large variety of flowers and berries. Birch and oak grow on sandy surfaces, mixed with swamps and moorlands. The latter have an abundance of shrubs (such as juniper or gorse).

The fauna of the Netherlands is by no means so diverse. Basically, those species of animals have been preserved, the range of which covers damp meadows, channels and reservoirs. Of the 180 species of birds that lived in this state, approximately 2/5 live on or near the water.

The situation of the economic sphere in the Netherlands in the XVI century

Starting from 1555, the Netherlands was an integral part of the Spanish state. The economy of the country of the Netherlands was distinguished by we alth and development. However, not all lands here had an equal degree of development. Commercial and industrial (linen and wool) industries were predominantly developed in Brabant and Flanders.

In the 1590s, the first enterprises (manufactories) appeared with the involvement of hired workers. There was a trend towards the formation of capitalism. In competition withby such enterprises, workshop production lost and degenerated.

In the industrial sector, the production of metal, carpets and glass was actively developing. In Liege they produced weapons, in Antwerp - granulated sugar, cloth (cloth) and soap, and Brussels was famous for its carpets. Shipbuilding was actively developing in Saadam and the center of Holland. Wool production was strong in Utrecht, Rotterdam and Leiden.

The center of trade until 1576 in the Netherlands was Antwerp. After losing to Spain, he was replaced by Amsterdam.

In the agricultural sector, thanks to the construction of dams, cattle breeding became possible, as well as agriculture (flax and wheat were grown). Produced meat and dairy products already played a big role in the economy.

Political and economic oppression by the Spaniards led to a revolutionary uprising that ended with the Netherlands gaining independence from Madrid in 1609.

The situation in the economic sector of the Netherlands in the XVII century

At the turn of the 16th and 17th centuries, the economy of the Netherlands began to focus on domestic trade and exports. The latter played a key role. The state conquered lands (mainly in Indonesia). The Netherlands created their own commercial representative offices (factories), became monopolists in the supply of spicy and oriental products, carried out coastal transportation (from one seaport of the state to another). They took an example from Portugal. Gradually, the Netherlands turned into a metropolis. The center of trade, including maritime, remained the central city of Holland.

In the 17th century. financial institutions began to appear, which issued loans at interest. Loans and debts penetrated the market sphere. Promissory notes (bills) became popular. In 1698, the Insurance Chamber was established. Such a policy of the Netherlands led to serious rivalry, and in the 1630s their trade structure in the Old World collapsed.

Fishing also played a significant role, which became one of the factors in the development of commerce, shipbuilding, canvas manufacturing, and so on. The Netherlands was able to come out on top in shipbuilding worldwide.

In Haarlem and Leiden there was a textile manufacturing industry, the products of which were in great demand not only domestically, but also abroad.

The agricultural sector did not lag behind in development. It was distinguished by modern technical equipment at that time, the commodification of agricultural products, many farms and active gardening (Dutch tulips are still world famous).

The Netherlands the whole XVII century. remained leaders in the global economy. It was a "golden age" in the history of the Dutch economy. But in the early 1700s, they began to lose out to Great Britain, which came out on top. The reason for this was a poorly developed industrial base, a lack of attention to the industrial sector of the economy, as well as constant wars with France.

The situation in the economic sphere of the Netherlands in the second half of the XX-XXI centuries

After the Great Patriotic War, the Netherlands was in ruins. In 1945, the economic sphere of the country was only28% of the volume that was at the end of the 30s. During the war, the Nazis destroyed up to 60% of the transport system.

America allocated more than 1,000,000,000 USD for the restoration of the state. By 1953, the Dutch authorities were sending funds to build 65,000 residential buildings annually.

The development of the Dutch economy is also due to the collapse of the colonial system. The state lost control of its main colony in 1949. This was the impetus for the development of other industries, whereas before the war with Germany, trade played a key role in the economic sphere.

Interval 1950–1970 is considered the "golden period" of the formation of the Dutch economy. Gross domestic product on average increased by 4-5% every year. Such a serious economic development made it possible for the country's leadership and merchants to increase the wages of hired workers over time, avoiding major disagreements with the workers themselves and organizations representing their interests.

Since the 1960s, shipbuilding, the chemical industry and interstate trade relations have come to the fore in the economic sector, although the agricultural sector still played an important role.

In the 1970s, the Dutch found "black gold" in the North Sea, which crippled the country. The fact is that oil production began to lead in the economic sphere, which was to the detriment of the industrial sphere. Global competition in industry has led to the loss of the former high positions of the Netherlands even in those areas where they were traditionally considered strong (for example, inshipbuilding).

In the 1980s. a number of state organizations were transferred to private hands, which reduced the country's costs.

In the 1990s, the situation in the Dutch economy returned to normal. However, the increase in earnings caused a serious rise in prices and led to the fact that investors began to withdraw their capital from the country.

In 2009–2013 The economic crisis in the European Union de alt a serious blow to the economic sphere. To save two large banks (“ING Group” and “ABN Amro”) from collapse, the Dutch Ministry of Economy had to resort to financial assistance from the EU, which totaled 40 billion €.

In 2013, the ruler of the Netherlands publicly announced the end of the "welfare country".

Industrial sector

The industrial sector of the state is focused on the production of first-class and competitive goods. The leading sectors of the industrial sector are the processing of raw materials, the extraction of "black gold" and "blue fuel", electronics, chemistry, and metal processing. Of the former types, shipbuilding, pulp and paper, woodworking and food industries play a significant role. In the production of fabrics, shoes, tailoring, there is a decrease in production rates.

Energy is one of the key sectors of the Dutch economy. Most of the electrical energy is generated by thermal power plants. There are currently 2 nuclear power plants in Dodeward and Borssel.

"Black gold" accounts for 25% of all deliveries abroad. Oil is used as an energy carrier and raw material forpetrochemical and chemical industries.

Ferrous metals are in the development stage. Eileiden is the center of the iron and steel industry in the Netherlands. The processing of non-ferrous metals is concentrated in Roermond, Hogesand, Frissingham and a number of other cities.

The situation with mechanical engineering is not bad either. The Philips company has long gained worldwide popularity. Dutch enterprises create technical equipment for various types of industry.

Transport system

The absence of mountains in the state creates a comfortable environment for the development of the road communication system, but the large number of reservoirs causes some difficulties and dangers in this area. Here is the data on the total length of the paths:

• railways - 2,753 km;
• motorways – km 111,891;
• waterways - 5,052 km.

Maritime communication is of great importance in the economy of the Netherlands. The state handles a large share of shipping in the Old World. Aviation firm KLM serves many interstate air transportations.

At the same time, the world transit importance of the Netherlands has increased. Thanks to the Netherlands, this country began to occupy the 4th position in size among the transport states of the globe. The largest port in the Netherlands is Rotterdam.

Fishing

Fishing retains its significant position in the structure of the Dutch economy. Fishing in this state is divided according to the types of catch and types of vessels.to:

• shrimp fishing in small tenders on the shores of the Netherlands, Germany and Denmark;
• fishing for cod, herring, mackerel in the north and center of the North Sea, on the coasts of Ireland and the United Kingdom;
• catch shellfish with special ships;
• fishing of flounder species of fish (directly flounder, kosorot) by large tenders, mainly in the south and in the center of the North Sea.

To save fish, the European Union has imposed limits on fishing, including herring.

Agriculture

Agriculture is of great importance for the economy of a country like the Netherlands. Flowers and vegetables (€12,000,000,000) and dairy products (€5,000,000,000) dominate in the goods that the Netherlands exports to other countries.

Agricultural land makes up 65% of the total area of the Netherlands. The number of pastures is constantly decreasing, and in the period 1995-2005. their number decreased by 8.2%, which is largely due to the construction of houses. The soil in the state is carefully fertilized.

Flower cultivation dominates in some regions of the Netherlands. The population also grows potatoes, cereals, sugar beet.

The country is ranked 5th in the Old World for butter production and 4th for cheese production.

In terms of territory adapted for greenhouses, the state is the undisputed leader on the planet. In the period 1994–2005 the area devoted to greenhouse farming increased from 13,000 ha to 15,000 ha. Most of the protected soil (3/5 of the total area)adapted for growing flowers.

The scale of the agricultural industry

The state is on the 10th position on the planet in the manufacture of dairy products and is considered the largest supplier of cheese. Dairy production in the Netherlands is concentrated in Friesland.

The highly productive agricultural sector is of considerable importance. Livestock provides approximately 70 percent of the output. Beef cattle breeding is aimed at export. The state is considered one of the leading exporters of eggs. In terms of egg production, hens from the Netherlands are superior to all others - 260 eggs per laying hen. Horses and sheep are bred in the country, but the number of such livestock is decreasing over time.