Netherlands
The Netherlands is originally based on the cooperation of merchants and farmers. After the Industrial revolution the Netherlands grew to a society with all marks of the modern civilisation. The agriculture sector is strongly specialised since the crisis of 1880. Intensive manure, teaching of agriculture methods and research as well as re-allotment, has brougt fore a highly technocratic and economically agriculture branch in which the farmer has more the role of a well bookkeeping manager than of the old-fashioned cow-milking farmer. Machines, computers and organised branches give the picture of a modern farming company. The industry is dependent of the import of raw materials. In the past the raw materials for food were imported from for instance Indonesia and Suriname. Nowadays the petro-chemistry imports the main part and is dependent of the prices on the world-oil-market. The textile- shoe- and lurgical-industry have had many crisis. In the low-wage countries textile shoes and metal are cheaper produced. Even administrative functions are being rationalized to low-wage countries. Most of the textile-industry has been vanished. The metal-industry has been reorganized and despite the competition the Dutch company Hoogovens in Ymuiden has products of high quality and compared to the European and world-market it scores good results. The ship-building sector had rough times but slowly they climb out of the valley. The mostly subsidized firms could not compete against the Japanese and other low-wage countries, who conquered the market. The strongest pillars of the Dutch economy are at present the harbouring-facilities in Rotterdam and Amsterdam, petrochemistry in the the Rotterdam Pernis-harbour by Shell, car-industry by Nedcar in Born, Limburg, the natural gas resources in Slochteren, Groningen, and the service industries. The Netherlands have become considerable a service industry economy as well at home and abroad for the social, teaching and medical services but also through the trading, transport, financial, trafficing and touristic sectors. Holland has become a transit-country for goods, which are mainly transported by truck and train. The hinterland is the strongest economy in Europe: Germany. Since East-Germany was united with the Federal Republic of Germany, the economy slowed down and the rate of unemployment was in 1997 the highest since 1945. A traditional and stiff organisation of the economy, where positions are tightly hold, cannot compete with the international flexible market in which the Netherlands play their prominent role. The newly chosen Chansellor Schröder is trying to open the minds for a more flexible economy. That's why his attention is also directed to the "poldermodel" of Prime Minister Kok in The Netherlands. Despite the international reasonable trading position of Holland, the unemployment-figures were from 1970 until 1995 higher than the surrounding countries. It is the new model of cooperation between employers and trade-unions, that has brought a climate of moderation in demands for higher wages. This so called "Polder-model" kept wages in line with the inflation-rate but didn't rise too high and that's why the government of Prime Minister Kok managed to check wages and prices and to be competetive with regard to many other countries. The Netherlands have even become famous for this policy in Europe and beyond. In May 1998 the number of unemployed employees was: 335.000. The most recent figures about the Dutch Economy have been produced by the Central Office for Statistic, "Centraal Bureau voor de Statistiek". Read about the Dutch economic indicators at the CBS, which is seated in Heerlen, in the southern part of the Netherlands in the province of Limburg. To get social benefits has been set to more rules and restrictions. For the long-term unemployed it's still a problem to get a job. Also people over 35 are not attractive for the labour-market. The higher wages to be payed for this group and possible health-problems cause hesitations and rejections from the employers side. Since 1997 the employer has to pay himself for ill employees. Healthcare shows a rising amount of expenses. The government has put conditions to wages of specialists and the total budget of hospitals and institutions have been submitted to cutting down of expenses. This pattern of economizing has been practised in many branches by government-policy. The Central Intelligance Agency CIA produces in the World Factbook regularly reports about all the countries in the world, also about The Netherlands. report about Holland. In the Netherlands the number of temporary staff has risen to the highest level of Europe. This flexible labour-force has given the Dutch economy an enormous boost and is less vulnerable than abroad for a decline in the economy. Owing to the success of the "Polder-model" the deficit has fallen to 2% of the National income in 1998. The standard of a 3% deficit, the limit, as agreed in the Treaty of Maastricht, is the rule to join the European Monetary Union, has been gained easily by the Dutch. In June 1998 the number of unemployed has, for the first time in 17 years, fallen under 300.000. |
