The Dutch are a surprising people. They live - all 16 million
of them - on 41,528 square kilometres, little more than half the size of
Scotland . The Netherlands is thus one of the world's most densely populated
countries. But the Dutch have turned their crowded country into such a success
that the world's planners and architects flock here to find out how.
The Netherlands is best known for its tulips, windmills and
clogs. And for its low altitude and vulnerability to flooding. Less well known
is that it is the world's eighth largest exporter of goods and capital and the
world's third largest exporter of food. Equally little known is that Dutch
people have won 15 Nobel prizes: for chemistry, physics, medicine, economics and
peace.
The Dutch are major players in fields like science, the
economy, the arts and sports - and their country is a beacon of forward-thinking
social and cultural policy.
The Country
The Netherlands is a kingdom. Its full name is the Kingdom of
the Netherlands . It consists of the Netherlands itself and six islands in the
Caribbean Sea: Aruba and the Netherlands Antilles.
The Netherlands is also sometimes called " Holland ". The word
features in the names of the two western coastal provinces, North and South
Holland , which have played a dominant role in the country's history. Thanks to
their location on the estuaries of two major West European rivers, the Rhine and
the Maas , these two provinces are still very important for the economy.
Each of the Netherlands ' major cities has a distinctive
character, even though they are all so close. Amsterdam , The Hague , Rotterdam
and Utrecht all belong to the Randstad conurbation, with a population of ten
million. Amsterdam attracts many tourists, with its historic centre, majestic
buildings, museums and unique ring of canals. But The Hague , Delft , Haarlem ,
Utrecht , Groningen and Maastricht also have their share of historic buildings,
museums, traditions and attractions. Rotterdam is renowned for its strikingly
modern architecture, as exemplified by the Erasmus Bridge , known locally as the
"Swan".
Economy
The Netherlands has been a trading nation for centuries due to
its open economy and outlook. The Dutch are seasoned travellers. They are
proficient in languages and skilled in negotiating trade agreements and
implementing projects against the odds.
Nevertheless, the Netherlands was the world's eighth largest
exporter of goods and services in 2003. Its workforce numbered 7.5 million,
three-quarters of whom worked in the service sector. Per capita gross domestic
product (GDP) was €27,900. The unemployment rate was 5.3%. And growth was
strongest in the public sector, education and health care.
Strategic
Position
Traversed by the rivers Rhine, Maas and Scheldt as they meander
towards the North Sea, the Netherlands is a hub of transport and distribution: a
natural gateway to Europe and centre for multinational enterprise. Its
advantages include an advanced infrastructure both for transport and
telecommunications. Many Asian and North American imports to Europe are
transhipped at Rotterdam or Amsterdam , the country's two transport centres.
The seaport of Rotterdam is the largest in the world,
transshipping tens of millions of tonnes of goods per year. And Amsterdam
Schiphol Airport is the fourth largest airport in Europe for both passenger and
goods traffic. Dutch transport companies are clustered around the two main
import and export centres: Amsterdam Schiphol Airport and the seaport of
Rotterdam .
The best-known transport companies are Nedlloyd, Frans Maas
and Smit International. The world's oldest national airline, KLM Royal Dutch
Airlines, had to merge with French airline Air France in 2003.
Services and Technological
cooperation
In recent years, services have grown into the Netherlands ' largest economic
sector. The largest service industry is trade, followed by transport and
telecommunications, construction, banking and insurance, and other financial
services. The two largest banks are ABN Amro and ING, which operate worldwide,
serving Dutch and non-Dutch businesses as well as governments.
Although
commercial services as a whole contracted in 2003, telecommunications and
financial services expanded. Information and communications technology (ICT)
seems best positioned to grow, especially where combined with innovation. ICT is
expected to benefit productivity in all sectors. By linking businesses in
networks, it enables them to benefit from each other's investments.
Government
incentives
In January 2004, the government launched its Innovation
Partnerships Grant Programme to promote cooperation in research and development.
The Programme encourages businesses and public-sector knowledge institutes to
study and launch national and international partnerships. By drawing on each
other's knowledge and expertise, businesses will become better placed to face
the competition, improve their knowledge base and make the Dutch economy more
innovative. Around 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.
