The country's resources include natural gas, petroleum, limestone, peat, salt, gravel and arable land. Despite it having one of the world's largest natural gas fields situated in Slochteren, because of it's small size these resources arent great in quantity. As a conclusion to this, the netherlands depends heavily on imports from foreign countries, using these raw goods to produce other finished goods for export.
What sectors of the economy are the biggest employers??
The largest employing sector would be the services related to community, social and personal things. They employ around 34 % of the total population, so 2,615, 000 people. It is followed by trade, restaurant, hotel and repair services who employ 1,567,00, which is 20% and the services of finance, insurance, real estateand business, 1,252,00 people and so 16%.
1. Ahold - Food Markets
How are economic decisions made?? Who makes them??
The Netherlands is a social market economy, or mixed economy like Australia. A mix of socialism and capitalism aimed at maintaining the balance between economic factors such as economic growth, inflation, unemployment, working conditions , social welfare and public services, allowing the control of the distribution of wealth to be in the hands of the community but while still keeping government intervention. The Dutch economy is mainly dependent on the private sector. This sector is controlled by corporatism, a system whereby the all business leaders of the firms in a particular area assemble to discuss common policy, such a cartel is called a corporation.
Though the government's role has been reduced since the 1980's, it still has an important place in the economy. It has spent 47.9% of the GDP on resources for the public, such as schools, hospitals, roads, social security transfer payments, defense, etc. Also it has kept the total tax revenue at 37.5%, lower than the EU average. Also it monitors almost all economic activity in the forms of permit requirements and regulations.
It is also one of the three parties in the Social Economic Council, a important economic advisory council. The other two being employer organizations, such as the VWO-NCW and labour unions such as the FNV. These three parties cooperate in order to solve many economic issues, taking into action the "polder model", which is a plan aiming to help the economy. It consist of shorter working hours but less pay, and more employment. It has been seen as the reason, along with a few other things, for the Netherlands economic comeback in the 1990s.
- Sustain economic growth
- Increase the participation of citizens in the labour market
- Fairly distribute income
What is the most important economic sector and is is more labour or capital intensive??
Service industries are likely to be the most important sector. It alone counts for 71% of the total GDP and more than 1/2 of the total national income. Not only that by it also employs around 70% of the population. The businesses involved in the service industry invole finance, insurance, real estate, government trade, restaurants, hotels, repair shops, transportation, communication. Like most other industries it is likely to be capital intensive.
Does this nation use advanced technology in its economy? If so, provide an example.
Almost every aspect of the economy is technically advanced and highly industrialized, possibly because of the country's lack of resources. The agricultural sector employs only 4% of the labour force, yet it is ranked third in the world for it's agricultural exports, earing $55 billion annually. The Netherlands is a fairly small landscape and with a large amount of the land originally submerged under water, because of this arable land is scare. With modern techniques/equipment and heavily fertilizing soil, the land available is made as productive as possible and so Dutch farmers have been come to be known as specialized producers. producing crops such as barley, potatoes, sugar, beets and wheat. They are especially famous for their horticulture, cultivating tulips, hyacinth, daffodil, narcissus, and crocus, all flown over to other countries.
What is one of the major economic problems faced by this nation (e.g.: unemployment, poverty, inflation, debt)? Explain how this problem effects this economy and what the government and/or businesses are doing to solve it.
The petrol prices are rising quite high, up to $9.43 U.S. dollars. though this has been largely unnoticed by the community as there are various other options of transport availible (e.g. bikes, trams, trains, metros, buses, trains, boats, etc.). Funnily enough, the government has decided not to take much action against the the rising prices, on the contrary, it welcomes it. Congestion and lack of parking space has long been an issue and the government has been trying to decrease the amount of people driving cars by opening other options, like free public transport. Since the high oil prices discourages driving, it helps them achieve this goal. Even if it does increase tax and might have other unwanted consequences, but at the moment there seems to by no major upheaval about it.
In what ways is this nation's economy similar to and/or different to Australia's economy?
It is similar to Australia's in that it is a mixed, open market economy, where both the community and government control a certain area of the economy, although Australia's government might have less stringent regulations on economic activity. Also they both are developed countries. Though there might be more tax in the Netherlands, but the inflation and unemployment rates a considerably lower.
Sources:
- World Book N-O 14
- http://en.wikipedia.org/wiki/Economy_of_the_Netherlands
- http://latimesblogs.latimes.com/bottleneck/2008/06/yesterday-in-ga.html
- www.myglobalcareer.com/my-global-career-500/
