Economy
Its location at one of the main transportation crossroads of Europe is probably the Netherlands' chief economic asset. Rotterdam and Amsterdam are international centers of shipping and commerce. In addition to being a leader in commerce, the Netherlands is also an advanced industrial and agricultural nation.
Although the government has substantial control over economic matters, the economy is based largely on private enterprise. The Netherlands, a founding member of what is now the European Union, is a strong supporter of European economic cooperation.
Holland's industrial development dates from the 16th century, when the nation first became a leader in world trade. Products were brought from many parts of the world to be processed in the Netherlands. Industries that date back to this period, and continue today, include diamond cutting, shipbuilding, and porcelain-making. Newer manufacturing industries include the production of iron and steel, machinery, transportation equipment, electrical goods, refined petroleum, and chemicals, fertilizers, and drugs. Of lesser importance are textiles and clothing, building materials, and paper and paper products.
Processed agricultural goods are also important. Leading industries based on agriculture are dairy processing, meat packing, food canning and packaging, and the brewing of beer. About 20 per cent of the nation's workers are employed in manufacturing.
Although agriculture employs only 6 per cent of the nation's workers, it accounts for a significant portion of the Netherlands' exports. Almost three-fourths of the land area is in crops and pastures. The chief crops are wheat and barley; potatoes, for food and industrial uses; sugar beets, for animal feed and refined sugar; and flower bulbs (mainly tulips). In a number of areas, fruits, vegetables, and flowers are grown.
Farming is highly mechanized, and crop yields are large and of excellent quality. Much of the soil in the Netherlands is poor, and must be heavily fertilized.
The raising of livestock, especially cattle, hogs, and poultry, has long been an important part of the economy. Dutch cheese, butter, hams, eggs, and other animal products have gained worldwide markets because of their high quality.
Natural gas is by far the most important mineral resource of the Netherlands. One of Europe's largest deposits was discovered in Groningen province in 1959, and domestic resources now supply a substantial amount of the nation's fuel. An important share of the nation's export earnings comes from the sale of natural gas to other European countries. Some petroleum is also produced.
The North Sea provides the Netherlands with good fishing grounds. The main catch is herring. From inland waters, primarily the IJsselmeer, comes a much smaller catch. The chief fishing ports are Scheveningen and IJmuiden.
Many international concerns have offices and factories in the Netherlands, Most of the nation's trade is with Germany, Belgium, Luxembourg, France, and Great Britain. Until 1949, when it was granted independence by the Netherlands, Indonesia was important as a market for Dutch goods and a source of raw materials. Major imports are machinery, foods, chemicals, motor vehicles, and petroleum and petroleum products. Leading exports are chemicals, foods, machinery, and petroleum products.
The Netherlands is a member of two economic unions—Benelux (Belgium, the Netherlands, and Luxembourg) and the European Union.
The Dutch merchant marine is an important earner of foreign exchange. It is also a major customer of the domestic shipbuilding industry.
The Netherlands has a well-developed transportation system with highways and railways reaching all parts of the country. An extensive network of navigable rivers and canals supplements rail and road transport. The principal Dutch ports are Rotterdam and Amsterdam; both accommodate seagoing and inland traffic. Rotterdam, including its facilities at Europoort near the Hook of Holland, handles more ocean-borne freight than any other port in the world. Royal Dutch Airlines (KLM) serves major cities throughout the world. The leading international airports are at Amsterdam and Rotterdam.
The basic currency unit of the Netherlands is the euro.
