Background Notes: Netherlands
PA/PC
Source: Office of Public Communication, Bureau of Public
Affairs
Date: Jan 15, 19911/15/91
Category: Country Data
Region: Europe
Country: Netherlands
Subject: Travel, History, International Organizations,
Trade/Economics
[TEXT]
January 1991
Official Name: Kingdom of the Netherlands
PROFILE
Geography
Area: 41,473 sq. km. (16,464 sq. mi.). Cities: Capital- Amsterdam
(pop. 687,450). Others-The Hague, seat of government, (pop.
449,350); Rotterdam, principal port (pop. 558,850); Utrecht (pop.
231,750). Terrain: Coastal lowland. Climate: Northern maritime.
People
Population: 15 million. Nationality: Noun-Dutchmen and Dutchwomen.
Adjective-Dutch. Ethnic Groups: Predominantly Dutch; largest
minority communities are Moroccans, Turks, Surinamese, and
Indonesians. Religions: Roman Catholic, Protestant, non-affiliated,
and other. Language: Dutch. Education: Years compulsory-10.
Attendance-nearly 100%. Literacy-98%. Health: Infant mortality
rate-6/1,000. Life expectancy-76 yrs. (males, 73 yrs.; females, 79
yrs.). Work force (1985): 6 million. Agriculture-1.4%, Trade-17%,
Industry-30%, Services-45%. Of the above total, government-23%
of the work force.
Government
Type: Parliamentary democracy under a constitutional monarch.
Constitution: 1814 and 1848.
Branches: Executive-monarch (chief of state), prime minister (head
of government), Cabinet. Legislative-Bicameral Parliament (First
and Second Chambers). Judicial-Supreme Court.
Subdivisions: 12 provinces.
Political parties: Christian Democratic Appeal (CDA), Labor Party
(PvdA), Liberal Party (VVD), Democrats '66 (D'66), other minor
parties. Suffrage: Universal over 18.
Defense (1989): 2.9% of GNP.
Flag: Three horizontal stripes: red, white, and blue, from top to
bottom.
Economy
GNP (1989): $224 billion; (1988) $227 billion. GNP per capita
(1988): $15,000. Annual growth rate (1989): 4.2%. Per capita
income (1989) $13,500. Inflation (1989): 1%; 1988: 0.7%.
Unemployment (1989): 6%; (1988): 6%. Gov't deficit/GNP (1989): 5%
(US: 3%).
Natural resources: Natural gas.
Agriculture (4% of Net National Income (NNI)): Products-dairy,
poultry, meat, flower bulbs, cut flowers, vegetables/fruits, sugar
beets, potatoes, wheat, barley, oats.
Industry (19% of NNI): Types-steel, metal products, electronics,
bulk chemicals, natural gas, petroleum products, transport
equipment.
Trade (1989): Exports-$103 billion: mineral fuels, chemical
products, machinery and transport equipment, foodstuffs. Imports-
$104 billion: mineral fuels and crude petroleum, machinery,
chemical products, foodstuffs. Major trade partners-FRG, Belgium,
Luxembourg, France, UK, US.
Official exchange rate (average 1989): 2 Dutch guilders= US $1.
Foreign Development aid: 1.5% of NNI, (1990 est.: $3 billion).
Membership in International Organizations
UN, North Atlantic Treaty Organization (NATO), European
Community (EC), Organization for Economic Cooperation and
Development (OECD), International Energy Agency (IEA),
International Atomic Energy Agency (IAEA), European Monetary
System, BENELUX Economic Union, European Space Agency (ESA),
INTELSAT, Western European Union, others.
PEOPLE
The Dutch are primarily of Germanic stock with some Gallo-
Celtic mixture. They have clung tenaciously to their small
homeland against the constant threat of destruction by the North
Sea and recurrent invasions by the great European powers.
Religion influences Dutch history, society, institutions, and
attitudes and is closely related to political life, though to a
diminishing degree. The right of every individual to religious
freedom is guaranteed by the constitution. Although church and
state are separate, a few historical ties remain-the royal family
belongs to the Dutch Reformed Church (Protestant).
The arts have played a major role in the development and
representation of Dutch culture. The works of Old Masters,
including Rembrandt and Hals, and later artists, such as Mondriaan
and Van Gogh, are on display in museums throughout the
Netherlands. The government strongly supports artists, sculptors,
and architects and attempts to use their works in public projects
whenever possible. The Amsterdam Concertgebouw Orchestra and
the Residentie Orchestra in The Hague and the Rotterdam
Philharmonic enjoy excellent international reputations. The
Netherlands' active intellectual life is stimulated by lively
political satire and a counterculture and is sustained by prestigious
universities.
HISTORY
Julius Caesar found the Netherlands inhabited by Germanic
tribes, one of which, the Batavi, did not submit to Rome until BC 13,
and then only as an ally. A part of Charlemagne's empire in the 8th
century AD, the area later passed into the hands of the House of
Burgundy and the Austrian Hapsburgs. Falling under harsh Spanish
rule in the 16th century, the Dutch revolted in 1558, under the
leadership of Willem of Orange. By virtue of the Union of Utrecht in
1579, the seven northern Dutch provinces became the Republic of
the United Netherlands.
During the 17th century, considered its "golden era," the
Netherlands became a great sea and colonial power. Its importance
declined, however, after wars with Spain, England, and France in the
18th century. In 1795, French troops ousted Willem V of Orange,
the Stadhouder under the Dutch Republic and head of the House of
Orange.
Following Napoleon's defeat in 1813, the Netherlands and
Belgium became the "Kingdom of the United Netherlands" under King
Willem I, son of Willem V of Orange. The Belgians withdrew from
the union in 1830 to form their own kingdom. King Willem II was
largely responsible for the liberalizing revision of the constitution
in 1848.
The Netherlands prospered during the long reign of Willem III
(1849-90). At the time of his death, his daughter, Wilhelmina, was
10 years old. Her mother, Queen Emma, reigned as regent until 1898
when Wilhelmina reached the age of 18 and became the monarch.
The Netherlands proclaimed neutrality at the start of both
world wars. Although the Netherlands escaped occupation in World
War I, German troops overran the country in May 1940. Queen
Wilhelmina fled to London and established a government-in-exile.
Shortly after the Netherlands was liberated in May 1945, the queen
returned. Crown Princess Juliana succeeded to the throne in 1948
upon her mother's abdication. In April 1980, Queen Juliana
abdicated in favor of her daughter, now Queen Beatrix.
The Netherlands' once far-flung empire was granted full
independence or nearly complete autonomy after World War II.
Indonesia formally gained its independence in 1949, and Suriname
became independent in 1975. The five islands of the Netherlands
Antilles (Curacao, Bonaire, Saba, St. Eustatius, and a part of St.
Maarten) are an integral part of the Netherlands realm but enjoy a
large degree of autonomy. On January 1, 1986, Aruba, which had
been a part of the Netherlands Antilles, was granted a separate
status within the kingdom on par with, but apart from, the
Netherlands Antilles.
[For more information, see Background Notes on Netherlands
Antilles.]
GOVERNMENT
The present constitution dates from 1848 and has been
amended several times.
The first level administrative divisions are the 12 provinces,
each governed by a locally elected provincial council and a
provincial executive appointed by members of the provincial
council. The province is formally headed by a queen's commissioner
appointed by the crown.
The government is based on the principles of ministerial
responsibility and parliamentary government. It is composed of
three institutions: the crown, the States General, and the courts.
The Crown
-- The monarch is the titular head of state. The queen's
function is largely ceremonial, but she does have some influence
deriving from the traditional veneration of the House of Orange
(from which Dutch monarchs for more than three centuries have
been chosen), the personal qualities of the queen, and her power to
appoint the formateur, who forms the Council of Ministers
following elections.
-- The Council of Ministers plans and implements government
policy. Most ministers also head government ministries, although
ministers without portfolio exist. The ministers, collectively and
individually, are responsible to the States General (parliament).
Unlike the British system, Dutch ministers cannot simultaneously
be members of parliament.
-- The Council of State, a constitutionally established
advisory body to the government, consists of members of the royal
family and crown-appointed members generally having political,
commercial, diplomatic, or military experience. The Council of
State must be consulted by the cabinet on proposed legislation
before a law is submitted to parliament. The Council of State also
serves as a channel of appeal for citizens against executive branch
decisions.
States General (Parliament)
The Dutch parliament consists of two houses, the First
Chamber and the Second Chamber. Historically, Dutch governments
have been based on the support of a majority in both houses of
Parliament.
The Second Chamber is by far the more important of the two
houses. It alone has the right to initiate legislation and amend bills
submitted by the Council of Ministers and shares with the First
Chamber the right to question ministers and state secretaries.
The Second Chamber consists of 150 members, directly elected
for a 4-year term (unless the government falls prematurely) on the
basis of a nationwide system of proportional representation. This
system means that members represent the whole country, rather
than individual districts as in the United States, and are normally
elected on a party slate, not on a personal basis. The electoral
system makes a coalition government almost inevitable. Elections
for the Second Chamber were held in September 1989. New
elections are not constitutionally required until 1993.
The First Chamber is composed of 75 members elected for 4-
year terms by the 12 provincial legislatures. It cannot initiate or
amend legislation, but its approval of bills passed by the Second
Chamber is required before bills become law. The First Chamber
generally meets only once a week, and its members usually have
other full-time jobs. The last First Chamber was constructed as a
result of provincial assembly elections in June 1987; the Chamber
will next be revised following such elections in March 1991.
Courts
The judiciary comprises 62 cantonal courts, 19 district
courts, 5 courts of appeal, and a Supreme Court which has 24
justices. All judicial appointments are made by the crown. Judges
are nominally appointed for life but, in fact, are retired at age 70.
POLITICAL CONDITIONS
From the end of World War II until December 1958, the
Netherlands was governed by a series of coalitions built on a Labor-
Catholic base. Since 1958, governments have been formed primarily
from a center-right coalition of the Christian Democrats and the
Liberals. The social democratic-oriented Labor Party generally has
been in opposition, except between 1973-77 and briefly from April
1965 to October 1966, and from September 1981 to May 1982. The
Labor Party is part of the present coalition.
The current government, formed in November 1989, is a
center-left coalition of the Christian Democratic Appeal (CDA) and
Liberal (VVD) parties headed by Prime Minister Ruud Lubbers of the
CDA. The government has the support of 103 of the 150 members of
the Second Chamber who represent 10 political parties. The four
largest parties hold 137 of the 150 seats. They are:
-- Christian Democratic Appeal (CDA) was formed from a
merger of the Catholic People's Party and two Protestant parties,
the Anti-Revolutionary Party and the Christian-Historical Union.
The merger process, begun in the early 1970s to attempt to stem
the tide of losses suffered by religiously based parties, was
completed in 1980. The CDA occupies the political center among
the major Dutch political parties. It supports free enterprise and
NATO membership and holds to the principle that government
activity should supplement but not supplant communal action by
citizens. On the political spectrum, the CDA sees its philosophy as
standing between the "individualism" of the Liberals and the
"statism" of the Labor Party. The CDA won 54 seats in 1989
parliamentary elections. This equalled the party's strong showing
in the 1986 elections.
-- Labor Party (PvdA), a European social democratic party, is
left of center. Labor has 49 seats in the current Second Chamber
which makes it the second largest party after the CDA. The party
joined the CDA to form the present government, after having spent
most of the past 11 years in opposition. Labor's program is based
on greater social, political, and economic equality for all citizens,
although in recent years the party has begun to debate the role of
central government in that process. The PvdA supports Dutch NATO
membership but has been critical of some alliance policies,
particularly regarding nuclear weapons. Although called he "Labor
Party," it has no formal links to the trade unions.
-- The Liberal Party (VVD) is "liberal" in the European, rather
than American, sense of the word. It thus attaches great
importance to private enterprise and the freedom of the individual
in political, social, and economic affairs. The VVD is generally seen
as the most conservative of the major parties and solidly supports
most NATO policies. The VVD was the junior partner in two
governing coalitions with the CDA from 1982-89, but is now in
opposition with 22 seats in the Second Chamber.
-- Democrats '66 (D'66), largest of the "small" parties in the
Dutch parliament. The electoral fortunes of D'66 have fluctuated
widely since the party's founding in 1966. The 12 seats it currently
holds are slightly above the historical average of the party's
showing over the last 20 years. D'66 is a center-left party,
generally portrayed as between the CDA and PvdA, with its
strongest support among young, urban, professional voters. D'66 is
currently an opposition party.
ECONOMY
The Dutch economy is based on private enterprise. Although
the government has little direct ownership or participation, it
heavily influences the economy, with more than 45% of the gross
national product (GNP) involved in its operations and social
programs (including transfer payments). The government plays a
significant economic role through the many permit requirements
and regulations pertaining to almost every aspect of economic
activity.
Services, which account for more than half of the national
income, are primarily in transport and financial areas, such as
banking and insurance. Industrial activity provides about 22% of the
national income and is dominated by the metalworking, oil refining,
chemical, and food-processing industries. Construction amounts to
about 9% of the national income. Agriculture and fishing, although
visible and traditional Dutch activities, account for slightly more
than 4%.
Foreign trade heavily influences the open Dutch economy, with
exports accounting for 66% of GNP. The Netherlands find a liberal
commercial policy advantageous and participates in the European
Community (EC), the Benelux Economic Union, and the European
Monetary System. It is a firm supporter of the General Agreement
on Tariffs and Trade (GATT) and supports multilateral trade
negotiations to establish freer and expanded world trade.
The recent political developments in Eastern Europe are not
expected to have significant effects on the Dutch economy during
the next few years because the Dutch level of trade and investment
in those countries is very low.
In 1959, the vast Slochteren gasfield in Groningen Province
began production and is now one of the world's largest producing
natural gasfields. In addition, the Netherlands also discovered gas
on the North Sea's continental shelf. At present, total proven
natural gas reserves (mainland and North Sea) amount to 1.2 trillion
cubic meters. The reserves of other Dutch gasfields, including the
Dutch North Sea sector, total about 24% of those of Slochteren.
Current gas production is running annually at about 72 billion cubic
meters, roughly half of which is exported to EC member countries.
General government revenues from natural gas totaled about $8.7
billion in 1986 and accounted for more than 14% of total
government revenue, dropping to $2.9 billion in 1989 (4% of
revenue).
Dutch economic growth has improved after several years of
lackluster performance. The annual growth rate in 1989 was 4.2%,
while inflation remained low at 1.1%. Corporate investment has
been high. Weakening domestic demand and slower increases in
export demand are expected to slow down the rate of expansion in
1990. The Netherlands' balance-of-payments current account
displays a strong surplus.
The CDA/VVD coalition under Prime Minister Ruud Lubbers has
agreed on the broad outlines of its economic policy for the 1990-94
period, leaving the basic goals of the previous government intact,
but changing its emphasis. The new policies will boost public
spending on the environment by $3 billion and education, housing,
social security, and health by $1 billion over the next four years.
Defense spending will grow by just 0.6% in 1990 and 1991, and will
be frozen in 1992 and 1993. In total, the new policy measures will
increase public spending by 4.6 billion guilders (about $2.3 billion)
per year by 1994.
Environmental Policy
Awareness of the environment plays a major role in Dutch life.
In 1988, the Netherlands spent 1.34% of its GNP on environmental
protection-almost twice as much per capita as in the United States.
The Dutch Ministry of Environmental Affairs has released an
ambitious and expensive-$3 billion-environmental plan for 1990-
94. Under this plan, Dutch industry will be required to double its
spending on environmental protection. By 1994, industry will have
to spend an extra $1 billion each year to meet stricter pollution
control guidelines.
In November 1989, Prime Minister Lubbers presented his
government's proposals to the States General. The Dutch goal is to
make production and consumption compatible with the conditions of
sustainable development within one generation. In June 1990, a
supplement to the environmental plan, "Nmp-Plus", was submitted,
including plans for a leveling off and eventual reduction in CO2
emissions by 2000.
To finance this program, a CO2 levy has been introduced, which
is expected to generate $75 million in 1990. This will be spent on
anti-acidification measures ($20 million), energy conservation ($30
million), and promotion of public transport ($25 million).
FOREIGN RELATIONS
The Netherlands abandoned its policy of neutrality after World
War II, and joined the NATO alliance as the best means to ensure
security and promote national interests. The postwar Netherlands
governments have followed an active, engaged foreign policy in
many areas of the world.
In addition to pursuit of national interests, Dutch foreign
policy in recent years has been rooted in several important
principles, which include the promotion of peace and security in
Europe, support for Third World development, and respect for
international law and human rights.
The Netherlands seeks to advance many of its objectives
through multilateral cooperation. It was a founding member of the
European Community, has long based its security policy upon
membership in NATO, and is one of five nations to sign the Schengen
Accord abolishing border controls between itself and Belgium,
Luxembourg, France, and Germany).
Economic and trade policy is closely coordinated through the
European Community and, to a lesser extent, other international
bodies, such as the Organization for Economic Cooperation and
Development, GATT, and the International Monetary Fund.
Other foreign policy interests generally take into account
consultations within European Political Cooperation, the political
consultation process of the EC. The Netherlands also is a member of
the Benelux group (Belgium, Netherlands, Luxembourg). Finally, the
Netherlands is an active and responsible participant in the United
Nations and its affiliated organizations.
The Netherlands is a strong proponent of North-South
cooperation and maintains an impressive development assistance
program. Aid commitments are fixed by law at 1.5% of net national
income, although actual disbursements have not always reached
that level. For 1990, the development assistance program will give
special attention to four transnational problems: poverty,
population, environment, and debt. The Netherlands has had a long
term development relationship with 10 "program" countries
(Bangladesh, Egypt, India, Indonesia, Kenya, Yemen, Pakistan, Sudan,
Sri Lanka, Tanzania) and three geographic regions (the Sahel,
Southern Africa, and Central America). They also contribute large
amounts of aid through multilateral channels, especially the UN
Development Program, International Development Association, and
EC programs. A large portion of Dutch aid funds are channelled
through private ("cofinancing") organizations that have almost total
autonomy in choice of projects. The Dutch are members of the
European Bank for Reconstruction and Development (EBRD) which
was formed recently to finance economic reforms in Eastern Europe.
US-DUTCH RELATIONS
Our partnership with the Netherlands is our oldest continuous
relationship and dates back to the American revolution. Our
excellent bilateral relations are based on close historical and
cultural ties and a common dedication to individual freedom and
uman rights. An outward-looking nation, the Netherlands shares
with the United States a commitment to an open market and free
trade.
In May 1989, Prime Minister Lubbers was in Washington on a
private visit and met with President Bush, and 2 months later,
President Bush became the first American President to visit the
Netherlands while in office. The President went to the Netherlands
as a guest of Queen Beatrix and spoke in the church in Leiden used
by the Pilgrims before many of them sailed to America. The United
States and the Netherlands often have similar positions on issues
affecting NATO, regional problems, trade, and economic cooperation
which enables them to work together both bilaterally and in the
United Nations and other international and regional organizations.
DEFENSE
The defense structure of the Netherlands comprises the
Ministry of Defense and the various branches of the armed forces.
Political responsibility for the defense of the Netherlands lies with
the minister of defense and the state secretary for defense. The
Dutch, as members of NATO, are engaged in arms control
negotiations with members of the Warsaw Pact which will affect
the size and equipment of the participants' conventional military
forces.
The Royal Netherlands Army Forces (RNAF) has a total
peacetime personnel strength of about 123,000 military and
civilians. The Royal Netherlands Navy is composed of escort ships,
submarines, maritime patrol aircraft, helicopters, a mine
countermeasure force, and a Marine Corps, as well as the necessary
supporting elements. Priority has been given to anti-submarine
warfare, with emphasis on air defense and surface warfare. The
weapons systems of the Royal Netherlands Air Force are primarily
fighter aircraft and surface-to-air guided weapons.
Principal Government Officials
Head of State-Queen Beatrix
Council of Ministers Prime Minister-Ruud Lubbers
Vice Prime Minister and Finance-Wim Kok
Foreign Affairs-Hans van den Broek
Ambassador to the United States-Johan H. Meesman
Ambassador to the UN- Robert Jan van Schaik
Principal US Officials
Ambassador-C. Howard Wilkins, Jr.
Deputy Chief of Mission-Thomas H. Gewecke
Political Counselor-Lawrence G. Rossin
Economic Counselor-George Boutin
Administrative Counselor-Timothy E. Roddy
Commercial Counselor-Michael Hegedus
Public Affairs Counselor-C. William La Salle
Defense and Naval Attache-Capt. Bruce Barker
Army Attache-Col. William Mitchell
Air Attache-Col. Allen Ryals
Agriculture Counselor-Norval Francis
Chief, Office of Defense Cooperation-Col. Charles W. Brewer, USAF
Country Attache: Narcotics-Joseph Beachell Customs Attache-
Robert L. Gerber
Consul General, Amsterdam-Jake M. Dyels
The US Embassy is located at Lange Voorhout 102, 2514 EJ The
Hague (telephone no. (070) 3-62-49-11). The consulate general is at
Museumplein 13, 1071 DJ Amsterdam (tel. 020 790-321).
TRAVEL NOTES
Clothing: Clothing needs are similar to those of Seattle,
Washington. Currency unit is the Dutch guilder (Fl.); foreign
exchange control regulations place no limit on the amount of foreign
currency or negotiable instruments that may be imported. Health:
Medical facilities are good. Community sanitation is comparable to
standards in US cities.
Telecommunications: Facilities are good for local and long-
distance use. Amsterdam and The Hague are six time zones ahead of
eastern standard time.
Transportation: Good public transportation by bus and
streetcar is available in the cities and serves principal sectors of
the city as well as the suburbs. Most Dutch cities are connected by
rail, and almost all regions of the Netherlands are accessible by
good public transportation. Excellent transportation to other
principal European cities also is available. The main international
airport is at Schiphol, near Amsterdam, but a few international
flights also arrive at Rotterdam and Maastricht Airports.
Published by the United States Department of State -- Bureau of
Public Affairs -- Office of Public Communication -- Washington,
DC -- Jan. 1991 -- Editor: Susan Holly
Department of State Publication 7967 -- Background Notes Series
-- This material is in the public domain and may be reprinted
without permission; citation of this source is appreciated. For sale
by the Superintendent of Documents, US overnment Printing Office,
Washington, DC 20402. (###)