According to cheeroutdoor, the Netherlands is one of the highly developed industrial countries. The total GDP is 427 billion euros, per capita – 26.3 thousand euros (2002). In 2001, the proportion of the Netherlands in world GDP was 1% (in the GDP of developed countries 1.89%); in industrial production 1.98% (1.69%); in world trade 2.45%. In the 1990s The Dutch economy developed successfully: an average annual economic growth rate of 3%, incl. in 1996-2000 3.9%. In the beginning. 21st century due to the deterioration of the world economic situation and the accompanying sharp drop in world trade, GDP growth fell to 1.3% in 2001 and 0.3% in 2002. The growth rate of industrial production in 2002 fell to 2% (1996-2000 – 2.9 %). Recently, there has been an increase in inflation: the consumer price index, which in 1996-2000 was only 2.3%, in 2001 reached 4.5%; decreased slightly in 2002 (3.5%), but still exceeded the level of con. 1990s The increase in employment observed earlier has also practically stopped (0.75% in 2002). Unemployment, since ser. 1990s decreased from 7.0 to 2.5%, began to grow (2002 – 3.75%). Until ser. 20th century The “face” of the Netherlands in the international division of labor was determined by their characteristics as a colonial power, as well as one of the largest trade and transport hubs in Europe (due to its exceptionally advantageous geographical position). The development of industry took place at a slow pace, especially in comparison with the industrial neighbors – Germany and Belgium. After the 2nd World War, when reliance on traditional areas of economic activity ceased to meet the needs of the development of the Dutch economy, the latter was quickly reoriented in an industrial direction. This was facilitated by comparative advantages (geographical location and cheap labor), as well as an institutional factor: the activities in the Netherlands of the three largest international concerns “born” here: Royal Dutch Shell, Philips and Unilever. Thanks to these circumstances, the dynamism of Dutch entrepreneurs, the effective economic policy of the state, the backlog in the field of industrial development was eliminated in the first post-war decades. To con. 1960s The Netherlands has turned from an industrial-agrarian country into an industrial one, and from the beginning. 1980s are actively moving towards a service economy. During 1982-2002, the share of agriculture in GDP decreased from 4.5 to 3%, industry – from 34 to 25%, services – increased from 61.5 to 72%. Similar changes took place in the structure of employment, where the share of the main branches of production is 25.5%, and services – 74.5% (2002). The industry of the Netherlands, like other small Western European countries, is distinguished by a pronounced specialization – the concentration of resources in a small number of industries, the products of which account for a significant part of national production and commodity exports. The specialized branches of the Dutch manufacturing industry are food, petrochemical and oil refining, electronic engineering. The leading industry is the food industry (21.7% of the value added of the manufacturing industry and 20.2% of merchandise exports). It is deployed on the basis of highly developed Dutch agriculture and is focused primarily on the production of processed products of national dairy farming. Production of dairy products (cheeses, butter, milk powder, etc.) The Netherlands is one of the leading countries in the world. Important areas of the industry are the production of sugar, the processing of fruits and vegetables, as well as the production of cocoa, chocolate, and tea that has survived from colonial times. The Netherlands ranks 3rd in the world in beer production and is one of the world’s largest producers of soft drinks. 14.3% of the value added of the manufacturing industry and 18% of commodity exports come from oil refining and petrochemistry. 20% of all oil imported into Western Europe is imported through the port of Rotterdam, around which in the 1960s. large oil refineries were created (5th place in the world in terms of capacity). The petrochemical industry uses this raw material base, as well as its own natural gas. Organic synthesis products and plastics are widely represented in this industry (in terms of their production, the Netherlands is in the top ten world manufacturers; their share in world trade in these products is 16.8%). The production of synthetic detergents and the paint and varnish industry are also developed (the Netherlands is the world’s largest producer of varnishes and paints); The pharmaceutical industry has grown rapidly in the last decade. The electronics industry, which accounts for approximately 45% of the Dutch engineering output, accounts for 12.4% of industrial value added and 18.9% of merchandise exports. The main directions are the production of office equipment and computers, audio and video equipment, medical equipment. A distinctive feature of the Dutch industry is the rather high importance of the extractive industry for a developed country (5.3% of industrial output). Its basis is gas production (73 billion m3 in 2002). The rapid development of gas production in the 1960-80s. not only ensured the diversification of the raw material base for petrochemistry, but also provided a powerful resource for national energy and agriculture. In the energy balance, gas accounts for 70%, coal for 23%, and the rest for nuclear power and non-traditional energy sources (wind, etc.). Agriculture generates a very small part of GDP and employs less than 5% of the population, but its real significance for the national economy as a supplier of raw materials for the food industry and an important export item is very large. This industry is highly intensive. The soil is well cared for there are no undeveloped (waste) lands. All farms are electrified, many of them use computers and automation systems. In terms of the use of mineral fertilizers, the Netherlands ranks first in the world and one of the first in terms of growth in agricultural production. The average area of a peasant farm in the Netherlands is small – 23 hectares. There are 107 thousand households in the country; OK. 75% – with an area of 10 hectares, incl. 11% – 50 hectares or more. They use approx. 140 thousand tractors. The most important direction in the development of the agricultural sector is dairy farming on a powerful natural forage base, determined by favorable natural resources. In addition, active selection and breeding work is carried out, aimed at increasing the productivity of livestock. The Netherlands accounts for 3.4% of the cattle population of the EU member states (4.07 million heads, including 1.5 million dairy cows) and 9% of milk production. Breeds of Dutch cattle are distinguished by very high productivity (average milk yield – over 9 thousand liters). A substantial part of the milk is processed by the cheese-making and butter-making industries and is used for the production of powdered and condensed milk. In meat animal husbandry, pig breeding (13.1 million heads) and poultry farming (106 million broiler chickens) predominate. The value of sheep breeding is preserved (1.3 million heads). Crop production is represented by cereals (sown area – 806 thousand hectares), winter wheat and spring oats are grown. Corn is also grown for silage as a fodder base for animal husbandry, sugar beets, potatoes, and onions. Almost 25% of agricultural production is provided by horticulture, floriculture, and horticulture. In total, 52.2 thousand hectares are occupied under them, incl. ten, 1 thousand hectares – under greenhouses heated by local natural gas (in terms of greenhouse area – 1st place in the world). Vegetable products are very diverse: cauliflower and Brussels sprouts, chicory, carrots, various salads; in greenhouses – tomatoes, cucumbers, peppers, mushrooms. 60% of greenhouse areas are occupied by flowers. From 16 wholesale flower auctions, cut flowers are sent to many countries in Europe, including the Russian Federation. Flower bulbs of various varieties are sold in almost every country in the world. Transport plays a very important role in the Dutch economy. It produces 5.6% of the Dutch GDP and employs 5.2% of the employed. The Netherlands is one of the major European transport powers: its 783 ships with a total displacement of 4965 thousand tons transported 425 million tons of cargo in 2001. The main part of imported goods is oil (100 million tons) and oil products (30 million tons). 85% of maritime freight traffic is in Rotterdam, Europe’s largest port, 10% in Amsterdam and 5% in IJmuiden. OK. 1/3 of incoming cargo moves from coastal areas to the interior of the Netherlands and to other countries of Western Europe by water (river) way: to Germany and France – along the Rhine and its tributaries, to France and Belgium – along the Meuse, Scheldt and canals. Inland waterways, navigable for ships with a carrying capacity of more than 50 tons, have a length of over 5 thousand km. The Netherlands has a developed network of roads – 120 thousand km, of which 2100 km are expressways, 2300 km are highways. Cargo is transported by 1.1 million trucks; 18% of transportations are combined. The volume of Dutch air transport in 2001 amounted to 73.5 million passengers/km and 12.9 tkm of freight. The main part falls on the international airport Schiphol (Amsterdam). The length of the railway network is approx. 3000 km; approximately 77% electrified. The railways of the Netherlands carry out mainly passenger transportation (in 2002 – 16,400 million passenger / km and 4,200 million tkm of cargo). In 2000, the construction of the Amsterdam-Brussels high-speed line began. Trade accounts for 15.4% of GDP and 18% of the employed. The ratio of the shares of retail and wholesale trade in GDP is 1:2. The reason is that wholesale trade, according to statistics, includes large re-export operations (especially in the field of trade in oil and oil products). In employment, on the contrary, retail trade prevails (respectively 10.6%). It is characterized by the rapid growth of large retail space from ser. 1980s, although still approx. 20% of the turnover falls on small retail outlets, mainly food outlets. Over the past 15-20 years, the service sector has been developing exceptionally rapidly in the Netherlands, where (excluding trade and transport) 51% of GDP is generated. Most of them are business services. In 1996-2001, the dynamics of services was more than twice the average annual growth rate of production in the manufacturing industry (5.9% and 2.9%, respectively). Particularly distinguished in this respect were the sectors of computer services and communication services (18.2% and 15.0% on average annually). The shifts were driven by a surge in mobile telephony (77% of the population by the end of 2001) and an increase in the number of Internet users (52%). It is assumed that both markets are already largely saturated and further growth will occur at a slower pace. An important element of the service sector is banks and other credit and financial companies. There are currently 12 banks operating in the Netherlands. Almost all of them are universal. The two largest accounts for almost 90% of assets and approximately 79% of loans issued. High concentration is also inherent in other branches of the credit and financial sector, in particular, the insurance business: two leading insurance companies concentrate at least 75% of the industry’s assets. During the entire post-war period, the state socio-economic policy was based on the desire to create the most favorable climate for national entrepreneurs.
In this regard, a long-term income policy was pursued in the form of wage containment; as a result to ser. 1960s unit labor costs in the cost of Dutch manufacturing products were 15-22% lower than those of the main foreign competitors. The state forced to abandon the income policy due to major social unrest ser. 1960s, again resorted to it in the beginning. 1980s in connection with the sharp deterioration of the situation in the Dutch economy, since the industry was hit hard by both oil shocks and the general reversal of the development trend in the industrial countries. It was at this time in the Netherlands that there was a transition from Keynesian methods of economic regulation and from the full support of the “welfare state” to the theory and practice of neoliberalism. This manifested itself in a number of ways. First of all, the state returned to the policy of revenues. Collective agreements, usually concluded every 2 years, were not revised between 1983-89 and 1992-97. Secondly, social payments were reduced both by the state itself and by companies (in the Netherlands, there is a link between these two parameters). The main measures in this area were the liberalization of the health care system and the revision of the Law on Incapacity for Work, adopted back in the 1960s. Previously, in accordance with this law, any citizen who had suffered any serious illness could receive disability benefits until retirement age without any re-examination; since 1996, all recipients of long-term sickness benefits have passed a medical examination and, in case of normal health, switched to regular unemployment benefits (payment period – 2 years). As a result, the number of recipients of benefits under this law decreased by a third – by 400,000 people. The third area of activity of the state was the constant and repeated reduction of tax payments of entrepreneurs. The share of entrepreneurs in tax and social payments is now 20%, the population – 40%, the state – 40%. Finally, the labor market was liberalized – its flexibility increased due to the expansion of opportunities for hiring part-time. All these actions have borne fruit in the form of a resorption of unemployment (and, as a consequence, an increase in domestic demand), but most importantly, in the form of a reduction in unit labor costs in the cost of Dutch products. This, in turn, contributed to a marked acceleration in the growth of exports, the most important component of final demand for the Netherlands. A positive role in the growth of exports was also played by the equating of the Dutch guilder within the framework of the European “currency snake” to the German mark. Germany absorbs a third of Dutch exports. Due to the stagnation of wages in the Netherlands, the actual ratio of currencies was in favor of Dutch exporters. Sufficiently successful economic development led to a good filling of the revenue part of the budget, and a well-thought-out state policy led to a reduction in expenditures. As a result, in 2000 the state budget was for the first time in 25 years reduced to a surplus (1% of GDP); public debt has been drastically reduced. In the future, due to the deterioration of the situation, the main indicators of the state of public finances deteriorated somewhat compared to 2000. Nevertheless, they are better than in many other EU countries: the state budget deficit amounted to 0.1% of GDP, public debt – 51.8%. Gold and foreign exchange reserves 8.2 billion dollars (2002), the interest rate on long-term deposits is 5.0%. The standard of living of the population of the Netherlands is very high. In 2001, the average salary of a full-time worker before taxes was 3,580 euros, incl. in the public sector 5730, in the business sector – 4350 euros. There is a significant difference in the incomes of the economically active and inactive population: the second category (primarily old-age and sickness pensioners) has an average monthly income of 2,700 euros. The Netherlands has a developed system of social insurance. All residents are subject to compulsory insurance under national insurance schemes. Of these, 4 are of a general nature and provide for the payment of old-age pensions, survivors’ pensions, child allowances and emergency medical expenses. Another 4 apply to those who work: payment for temporary disability, industrial accidents, health insurance and unemployment insurance. Two specific schemes cover working youth (under the age of 23) and self-employed. Finally, the Law on Incapacity for Work continues to operate (albeit in a truncated form). In 2002, 23.7% of the income received by the population was directed to savings. More than 90% of families live in comfortable apartments or separate houses with all amenities. The average housing area is 98 m2. For an average family of 2.3 people. accounts for 4.2 rooms. 75% of families own at least one car; almost 100% refrigerator, 98% color TV, 26% dishwasher, 57% microwave, etc. Living conditions in rural areas are almost the same as in urban areas. Among the developed countries, there are few in which the importance of the foreign economic sphere in economic life would be as high as that of the Netherlands. The export quota now stands at 67%. 90.1% of exports go to EU countries. In imports, their share is noticeably smaller – only 55.6%, which is partly due to traditionally active trade relations with oil exporting countries (about 8% of imports), as well as with the USA, China, and Japan. 83% of exports are goods, incl. 74% – products of the manufacturing industry (machinery and equipment 31.5%). Balances of trade in goods and services are reduced to a positive balance. The Netherlands is characterized by large volumes of capital exports. In 2001, the total volume of foreign direct investment amounted to 309 billion euros. Accumulated foreign investments in 2001 exceeded 1141.9 billion euros. The balance of payments is reduced with a positive result.
