Political And Economic Analysis Of The Netherlands Essay

Netherlands was known as Holland, capital of the state is Amsterdam.

Netherlands is located in Western Europe. It lies between Belgium and Germany which border the North Sea.It is located at the junction of 3 rivers: the Rhine, Meuse and the Schelde.

Area: The state has a entire country of 41,256 square kilometres.

It includes of 33,889 square kilometres of land and 7,643 square kilometres of H2O. The coastline of Netherlands is 451 kilometres long.

Population: Netherlands is little and one of most dumbly populated in universe with people populating in urban countries. The population of Netherlands is estimated to be 16,615,275 deliberate harmonizing to 2000. ( refer to appendix fig. no.1.1 )

The mean life anticipation in the Netherlands for males is 75.4 old ages and 81.28 old ages for females. There are 2.3 new immigrants of every 1000 citizens every twelvemonth. The mean population growing is calculated as 4.91 ( 81,000 people ) .

Important metropoliss: The of import metropoliss of Netherlands include: the Amsterdam, the Rotterdam, the Hague, the Utrecht. There are approx.7-29 lakh dwellers here. Mention to map in appendix ( fig. no 1.2 )

Currency: euro

Political system of the Netherlands

Netherlands has a authorities of constitutional monarchy. It is the thirteenth state following Laizzez-Faire type of economic system in the universe. Advantages of this type of system are:

A It opposes the redistribution of wealth taking placeaˆ¦therefore ensures equality between categories predominating in the country-upper or lower. This political orientation secured the wealth of people and assured the abuse of their portion would non taken topographic point. It comprises of Monarch Queen Beatrix. The Queen appoints the head of authorities i.e premier curate. The premier curate is elected as the leader for bulk of parties of state ‘s Parliament ‘s. The state ‘s policies are regulated by the consultative commission known as Council Of States. The members of Council of provinces are appointed by the Queen on advice of the premier curate.

The legislative subdivision of the state is called the States General. The States General has aA bicameralA legislative organic structure. The bicarmel means it has 2 houses which inlcue-

First Chamber and the Second Chamber. The Second chamber novices statute law and may supply in for amending measures proposed by the Council of Ministers. The Second chamber has strength of 150 members elected by general populace for 4-year footings.

The First Chamber comprises of 75 members appointed by the 12 provincial legislaures for a term of 4 old ages. The last meeting of the undermentioned chamber was held in May,2007.

The authorities besides includes the Council of Ministers which implement the policies. The Monarch ( Queen ) and the council of curates together are known as Crown. The curates can non be the portion of State general antonym to the British political system.

The Council of State is an consultative organic structure dwelling of the members of their Crown-appointed and royal households appointed by the different sections of State like political, commercial, diplomatic etc.

Difference with regard to the American system:

In American system-the people vote for peculiar party and non an person. It receives among 60 % of ballots. The representatives which are elected by the different legislative assemblies of the state ‘s 12 regional authoritiess, named as states.

Because of the relative system of elections, even little parties have representation in States General. Thus, unlike the U. S, the authorities of the Netherlands has made up of a alliance of a figure of little parties, and its policies are non ruled by 2 single parties.

Harmonizing to “ Purple Coalition “ led by the authorities Since 1998, gave rise to development of three parties: Labor, Liberal, and Democrats. All of them back up A capitalist economy ( Free market economy.It is based on rule of single rights ) A .

Labor and Democrats Party are supportive to authorities attempts in order to set up the societal and economic equality by organizing the revenue enhancement for the middle-class. The Liberal Party works difficult on independently formed political and economic freedom and on certain economic factors related to alliance parties. The chief resistance party against the State General is the Christian Democratic Appeal or Christian Democrats. It was formed by amalgamation of 3 spiritual parties which are by and large the Orthodox Dutch political groups. The latest major party developed was the Green Party which worked on the pro-enviromental issues.

The State General does non play a major function in any of the state ‘s economic ventures.The function of the authorities is most of import in 3 important countries

1.Rules & A ; ordinances on economic activites & A ; commanding the merchandise safety and advertisement.

2. It manages the rising prices rates to maintain up its Dutch merchandises less expensive in the market for their consumers, value of its currency and the different supply needed by the state.

3.The authorities demands to pass on taking attention of the environmental factors and maintain the state clean and green

During World War II- when Dutch was conquered by the Germans, it was severely affected in economic issues instead whole of state was in loss, since the Dutch have decided to back up the political cooperation in order to hold no farther struggles in Europe. The Netherlands being a little state, it can outdo accomplish their foreign and economic ends by working or taking support of international administrations such as: EU, EN etc

Factors of Production

The 3 factors of production include: land, labor, capital, . They are the primary inputs required for the goods and services to be provided to the consumers. They have been classified as it becomes easy to place the resources available for a state. Depending on states economic system they should make up one’s mind on what end products to bring forth, how to bring forth them-by what techniques, and for whom the end products should be produced.

1. LAND Resource:

The ‘Land ‘ refers to the natural resources: energy and non-energy. It consists of land used for farming or for underpinning houses. It includes energy resources – fuel used in for our autos and heat for places and non-energy- Cu & A ; Fe & A ; sand.

The Natural resources include: Natural gas, crude oil, fertile dirt

The major harvests grown in Netherlands are grains, murphies, farm animal, fruits etc.The state is popular for turning many cereals like wheat, barley, oats, rye, millets, buck wheat, soya beans etc. It is popularly known for the cereal production. Netherlands uses the land for reaping and production of different harvests. This concern continues for a long period of clip and has gained high rates in planetary markets.

Crops and farm animal provide exports and A aid to keep the state ‘s economic system.

Netherlands is besides the largest manufacturer of natural gas. They own big figure of gas militias in the North Sea, where t on-shore Wellss, and much of the production takes topographic point along the on-shore Wellss. Netherlands is about 2/3rd of its production ; the remainder is exported therefore it stands as the best exporter for natural gas in universe compared to other states. Construction is besides a portion of the land resource which accounts for around 6 % of GDP, it includes the different substructure assignments in different countries of the state.

2.LABOUR Resource

“ Labor ” consist of the human clip spent in production-working in car mills, learning the school, baking the pizzas etc. There are different businesss of people which are really of import as it is a necessity for the development of state ‘s advanced industrial economic system.

Netherlands include many industries which include labors in high demand.

The industries which require are popularly agribusiness and fishing ( mention appendix fig. no.1.3 ) .

The authorities has introduced freshly techno based industries for the employment to take place-biotechnology, aerospacing industry and microelectronics. There are many immigrants who come and wish to work here in different companies

There are big figure of parttime workers and batch figure of people who have seasonal occupations. Dutch workers are given the constitutional right to fall in Unions. The Union includes the military, political workers excessively. The widespread attempts put in by the worker is around 36 hours per hebdomad. They include all working members of the military, constabularies, and civil service sections. Child labor is forbidden by the jurisprudence, no one below 18yrs of age is allowed to work. Telecommunicating ( work from place ) he has become popular particularly among ladies of the state. The labour force of the state is approx. 7.1 million. The labour force by business is 2 % occupied in agribusiness and 18 % taken in industry.

3.CAPITAL Resource

The capital resources form the lasting goods of an economic system, produced in order to bring forth yet other goods. Capital goods include machines, roads, computing machines, cocks, trucks, steel Millss cars, edifices etc.

The Dutch fabrication unit has its monopoly in industries like: chemical production drug company industry, metals and electronics, nutrient processing, and baccy. Over the past old ages, the chemical industry has declined whereas the metals and nutrient industry has gain net incomes around 8-10 % . The state has developed in different industries as nutrient, baccy, machinery etc.

One of the transnational corporation Philips is the best Electronicss fabricating company.This company manufactures different visible radiations, electronic contraptions, music directors, senders and different assortments of the communicating systems. Around 1000000s of people are employed in different semiconducting material bring forthing industry for which Netherlands is highly popular for. There are many other MNC ‘s among which Philips ranks 9th in fabrication semiconducting materials.

The other sector where Netherlands excels in capital resource is textile fabrication and ship fix. Netherlands is the universe ‘s seventh-largest manufacturer of ships. This industry provides around 10,000 people with employment.The people shacking on western seashore and work in sip countries. Many of the finished goods and natural stuffs are made here. The Netherlands is one who imports stuffs like metals, chemicals etc. for running the mills and maintain up with the demand of the consumers. ( refer appendix fig no. 1.4 )

The Dutch chemical industry are major makers of the man-made gum elastic, plastic etc.. The major chemical companies in Netherlands include Shell, Akzo Nobel, and DSM.

As the state has little geographic size and extremely heavy state which besides gives rise to new sector of economic system i.e existent estate which is extremely valuable. The agribusiness and piscaries section include for around 2 % of GDP.


Netherlands is a little democratic state which is dumbly populated. There are approx.7 lakh dwellers. Netherlands is non an independent state, it is governed by Queen Beatrix.

Nederlands being a little economic state is first-class in transporting and electronic industries. It has a good labor force and due to little geographic size, the land resources are usefully consumed and the demands of the state are fulfilled. There are many no. of immigrants wishing to work in Netherlands. The GDP is about 2 % in piscaries and agribusiness.

Analyzing the demographics, political system and the factors of production of the state we can reason that Netherlands belongs to low economic expert state but it is developing really fast to accomplish the ends. The population growing rate has increased by 10 % in last 10 old ages. The state ensures employment to all the people of the state in assorted sectors. There is redistribution of wealth therefore maintains equality in economic issues among the assorted categories predominating in the state. Netherlands has a monarchy based authorities in which the Crown decides for the public assistance of the mock and different parties-liberal, labor, democrats look into different public issues. The state offers a good educational system and scholarships in order to actuate the pupils from different states to shack in here. It is one of the most secular state and the belongs to free market economic system state. Netherlands is one of the dumbly populated among Dutch states. The rising prices takes topographic point at low rates. The state was mostly affected during the recession in 2009, now it has made up for its losingss. Netherlands imports a batch of natural stuffs for the chemical industries and exports assorted harvests, cereals, fruits, farm animal etc.