Netherlands

2008 Country Review

http://www.countrywatch.com

Acknowledgement There are several people without whom the creation of the 2008 edition of the CountryWatch Country Reviews could not have been accomplished. Robert Kelly, the Founder and Chairman of CountryWatch envisioned the original idea of CountryWatch Country Reviews as a concise and meaningful source of country-specific information, containing fundamental demographic, socio-cultural, political, economic, investment and environmental information, in a consistent format. Special thanks must be conveyed to Robert Baldwin, the Co-Chairman of CountryWatch, who championed the idea of intensified contributions by regional specialists in building meaningful content. Today, the CountryWatch Country Reviews simply would not exist without the research and writing done by the current Editorial Department at CountryWatch. The team is responsible for hundreds of thousands of pages of current information on the recognized countries of the world. This Herculean task could not have been accomplished without the unique talents of Mary Ann Azevedo, Jennifer Colley, Julie Zhu, Ryan Jennings, Ryan Holliway, Anne Marie Surnson and Michelle Hughes within the Editorial Department. These individuals faithfully expend long hours of work, incredible diligence and the highest degree of dedication in their efforts. For these reasons, they have my utmost gratitude and unflagging respect. A word of thanks should also be given to Vicki Sanditen, Grant Panchacharam, Alisha Ansel-Davis, and Wayne Mathews in the Marketing and Sales Department at CountryWatch. They are in close contact with CountryWatch customers and are positioned to offer necessary insights, which ultimately improve our content. Finally, without the extraordinary assistance of our Information Technology department, the CountryWatch Country Reviews could not be published. Cesar Rosa, Saachi Roye and John Torres work responsively with the Editorial Department to ensure the annual production of the CountryWatch Country Reviews. As such, I am truly indebted to them for their efforts. Finally, my utmost gratitude is extended to my mentors in the disciplines of Anthropology, International Development and International Relations, who taught me about the tensions between states and nations in the contemporary world, the value of ethnographic research as the best lens to understanding the complexity of the human condition, and that policy is meaningless unless it positively impacts the quotidian lives of people across the planet.

Denise Youngblood Coleman Ph. D., Executive Vice President and Editor in Chief

Contributors Robert C. Kelly Founder and Chairman Denise Youngblood-Coleman Ph. D. Executive Vice President and Editor-in-Chief Mary Ann Azevedo M. A. Managing Editor Jennifer Colley M. A. Assistant Managing Editor Julie Zhu Economics Editor Ryan Jennings Economics Analysts Ryan Holliway Researcher and Writer Anne Marie Surnson News Wire Manager Michelle Hughes News Wire Editor Cesar Rosa Chief Information Officer Saachi Roye Web Developer John Torres Technical Network Manager

CountryWatch

COUNTRYWATCH REVIEW 2008 EDITION

Denise Youngblood Coleman Ph.D. Editor in Chief

CountryWatch, Inc. Houston, Texas

Table of Contents

Country Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Key Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Political Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Political Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Political Stability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Freedom Rankings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Human Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Voice and Accountability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Government Effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Government Functions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Government Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Principal Government Officials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 Leader Biography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Foreign Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 National Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 Defense Forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Economic Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Balance of Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 Government Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Government Sector - Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Gross Domestic Product . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

Review

Growth Rates: Real GDP, Population, Real GDP Per Capita - Graph . . . . . . 76 Major Trading Partners . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 Money Supply, Interest Rates, Foreign Exchange Reserves . . . . . . . . . . . . . 78 Price and Exchanges Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Real GDP Per Capita . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Trade Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Unemployment Rate - Graph . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Agricultural Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Agricultural Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 Electric Power Sector Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 Fossil Fuel Reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Mining/Metals Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 Production and Consumption of Energy (QUADS) . . . . . . . . . . . . . . . . . . . . 86 Production and Consumption of Energy (Standard Units) . . . . . . . . . . . . . . . 87 Production from Key Industries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 Production of Meat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 Production of Primary Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 Telecommunications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 World Agricultural Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 World Energy Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 World Price Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Foreign Investment Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Review

Stock Market. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 Partner Links. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Social Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113 Human Development Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 Status of Women. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 Culture and Arts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Etiquette . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Travel Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Diseases/Health Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 Environmental Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Environmental Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 Environmental Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Energy Profile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141 Global Environmental Snapshot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142 Global Environmental Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 International Environmental Agreements and Associations. . . . . . . . . . . . . 168 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179 Appendix: Dutch Territories and Jurisdiction . . . . . . . . . . . . . . . . . . . . . . . 179 Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179

Review

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4

Review

Chapter 1 Country Overview

Key Data

Country Overview

Country Overview Key Data Region:

Europe

Population: Total Area:

16,447,682 as of 2007 37,330 Sq. Km.

Total Land:

33,920 Sq. Km.

Coastline:

451 km

Climate:

Temperate; marine; cool summers and mild winters Average Daily Temperature:

Capital: January: July: Annual Rainfall:

Amsterdam, The Hague 2.9C / 37.2 17.1C / 62.8 831.6mm / 32.7

Languages: Dutch; several other languages also spoken Currency:

1 Euro = 100 cents

National Holiday:

Queen's Day is 30 April (1938), Liberation Day (WWII) is 5 May

Capital City:

Amsterdam, The Hague

Boundaries:

Germany: 577 km Belgium: 450 km Largest Cities:

1

City: Population: Year:

Amsterdam 746,685 2007

City: Population: Year:

Rotterdam 596,815 2007

City:

The Hague, s-Gravenhage

Netherlands Review 2007

Country Overview

Population: Year:

Key Data

486,876 2007

Ethnic Groups:

83%.......Dutch 9%.......Others (includes Moroccans, Turks, Surinamese, Antillieans and Indonesians) 8%.......Others (includes other Europeans and Westerners) Religions:

36%.......Unaffiliated 34%.......Roman Catholic 25%.......Protestant 3%.......Muslim 2%.......Other

Netherlands Review 2007

2

Key Data

Country Overview

Flag:

3

Netherlands Review 2007

Country Overview

Key Data

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Netherlands Review 2007

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Key Data

Country Overview

Europe Regional Map Greenland (Denmark)

70°

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5

Varna

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Mediterranean Sea

Bulgaria

Greece

Balearic Islands

Gibraltar (U.K.)

Serbia

Tyrrehenian Sea

Valencia

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Belgrade

Tiranë

Naples

Black Constanta

Bucharest

Mont.

Rome

Barcelona

Málaga

Romania

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Lisbon

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Slovenia

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Netherlands Review 2007

Country Overview

Key Data

Chapter 2 Political Overview

Netherlands Review 2007

6

History

Political Overview

Political Overview History The Dutch are primarily of Germanic stock with some Gallo-Celtic mixture. Their small homeland frequently has been threatened with destruction by the North Sea and often has been invaded by the great European powers.

Julius Caesar found the region that is now the Netherlands inhabited by Germanic tribes in the first century B.C.E. (Before the Common Era). The western portion was inhabited by the Batavians and became part of a Roman province; Frisians inhabited the eastern portion.

Between the fourth and eighth centuries C.E. (Common Era), the Franks conquered most of both portions. 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. Among other achievements, this period saw the emergence of some of painting's "Old Masters," including Rembrandt and Hals, whose works, along with those of later artists such as Mondriaan and Van Gogh, are today on display in museums throughout the Netherlands.

The country's importance declined, however, with the gradual loss of Dutch technological superiority and following wars with Spain, France, and England in the 18th century. The Dutch United Provinces supported the Americans in the Revolutionary War. 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 ten years old. Her mother, Queen Emma, reigned as regent until 1898, when Wilhelmina reached the age of 18 and became monarch.

The Netherlands proclaimed neutrality at the start of both world wars. Although it 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 acceded to the throne in 1948 upon her mother's abdication. In

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Netherlands Review 2007

Political Overview

Political Conditions

April 1980, Queen Juliana abdicated in favor of her daughter, the present Queen Beatrix. Crown Prince Willem Alexander was born in 1967.

Elements of the Netherlands' once far-flung empire were granted either 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. In January 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.

Strong religious and class divisions in the Netherlands intensified after the war. To maintain Dutch unity, political elites developed political mechanisms that facilitated cooperation across the religious and class divides. Today, the Dutch system continues to be characterized by a high degree of consensus among the different political parties and groups in the Netherlands.

Political Conditions

Introductory Synopsis

The Netherlands has had a history of coalition governments, which, for the majority of the last century, has included the Catholic and Protestant parties. Since 1977, these parties were linked as the Christian Democrat Appeal or CDA.

The pattern was broken in 1994 when the "Purple Coalition" was formed under Labor Party or PvdA Prime Minister, Wim Kok. The term "Purple" government refers to the coalition fused between (blue) Liberals and (red) Socialists, as noted below.

A second "Purple Coalition" government ensued after the May 1998 elections and continued until Prime Minister Wim Kok and his government resigned in April 2002.

They were defeated in the elections that followed by Jan Balkenende's center-right Christian Democrats. Prime Minister Balkenende's coalition with the far right List Pim Fortuyn Party and the liberal People's Party for Freedom and Democracy (VVD) fell soon thereafter. But he was re-elected narrowly in 2003 and formed a coalition instead with the VVD and Democrats-66.

Political Developments of the late 1990s

Netherlands Review 2007

8

Political Conditions

Political Overview

The last elections of the 1990s to the "Tweede Kamer" (Second Chamber of the Parliament) were held on May 6, 1998.

The Labor Party (PvdA) won with 29 percent of the vote and 45 seats, followed by the Liberal Party (VVD) with 24.7 percent and 38 seats, and the Christian Democratic Appeal (CDA) with 18.4 percent and 29 seats. The Democrats 66 (D'66) garnered nine percent of the vote and 14 seats, and the Green Left received 7.3 percent and 11 seats. Four smaller parties each won less than four percent of the vote, but still obtained seats: the Socialist Party (SP) won five seats; the Reformatorian Political Federation (RPF) won three; the Political Reformed Party (SGP) also won three; and the Reformed Political League (GPV) won two. The PvdA, the CDA, and D'66 renewed their "Purple Coalition" government following the elections. As noted above, the purple coalition refers to the combination of socialists (red) and the liberals (blue).

Cabinet selection within the "Purple Coalition" took nearly three months to complete; in August 1998, a 15-member cabinet was announced. Prime Minister Wim Kok of the PvdA headed the coalition, which held a total of 97 of the 150 seats in the "Tweede Kamer."

The Kok government collapsed in May 1999 when the D'66 left the coalition government because the upper house rejected a proposal pushed by D'66 to introduce popular referenda that might reverse future government policies. The government continued to act in a caretaker capacity and was reconstituted three weeks later with the same parties in coalition.

Political Developments from 2000-2001

For several days in September 2000, the Kok government faced a crisis as Dutch lorry (truck) and taxi drivers emulated their counterparts in other European countries in protesting unusually high fuel prices by blocking major routes through the Netherlands and around Amsterdam and Rotterdam. The high fuel prices were blamed not only on the high price of crude oil, but even more on the high level of fuel taxes. The Kok government, and in particular the finance minister, Gerrit Zalm, at first rejected cuts in fuel prices. After a continuation of the protests and further negotiations, however, Zalm agreed to tax rebates on fuel for the affected sectors and the blockades were lifted.

Also in September 2000, the Netherlands further enhanced its image as one of the most socially liberal of the advanced democracies by legalizing marriages between partners of the same sex. The new Dutch law traversed beyond the previous legal recognition of civil partnership between gay couples. A large majority in both the parliament and the public-at-large supported the new law.

In April 2001, the Netherlands again reinforced this liberal image by becoming the first country to legalize euthanasia, the practice of doctor-assisted suicide for people experiencing extreme pain. Although some Christian groups opposed the law, it had substantial public support and passed parliament by a large majority. Euthanasia had already been practiced in the Netherlands, though it was offi-

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Netherlands Review 2007

Political Overview

Political Conditions

cially illegal. The new law simply legalized a practice that had been unofficially and publicly accepted. The law took effect on Jan. 1, 2002.

Meanwhile, the usually placid Dutch monarchy became embroiled in public controversy in the spring of 2001 after Crown Prince Willem Alexander, the heir apparent to the throne, announced his engagement to Maxima Zoregueta. The problem was not that Maxima Zoregueta was from Argentina, but that her father had been a minister in the military junta that ruled Argentina during the period of the "dirty war." Human rights-conscious Dutch protested against the royal family becoming tainted by a relationship to someone that was a key participant in a repressive regime. Maxima's popularity and a compromise in which the father agreed not to attend the wedding, however, assuaged much of the public's opposition to the marriage.

In the spring and summer of 2001, the Netherlands experienced an outbreak of foot-and-mouth disease. Although the Netherlands' outbreak was not nearly so severe as the British epidemic, it did lead to the slaughter of tens of thousands of farm animals before the government could proclaim the outbreak under control.

Political Scene in 2002 The political landscaape radically changed in 2002. On April 16, 2002, the entire Dutch cabinet, including Prime Minister Wim Kok, resigned as a result of the Srebrenica report that concluded that Dutch peace-keeping troops failed to prevent the 1995 Srebrenica massacre in Bosnia where an estimated 8,000 Bosnian Muslim boys and men were killed by Bosnian Serbs. Srebrenica was, at the time, supposed to be under the protection of a Dutch peacekeeping battalion in a United Nations-designated "safe area." Though the Srebrenica report had concluded that the ill-organized and ill-equipped United Nations-led mission was doomed to failure from the start, the battalion made a number of fatal mistakes that aided in the biggest massacre of the Bosnian War. Bosnian survivors of the tragedy called for the United Nations to take responsibility for its irresponsibility as well.

The resignation was a largely symbolic act as Prime Minister Kok and the members of his cabinet were not in power when the massacre took place. Nevertheless, the Kok government wanted to demonstrate a spirit of strong ethics. In a more prgamatic gesture, the Dutch government pledged $12.5 million dollars to rebuild Srebrenica. The Netherlands's next parliamentary elections were scheduled for May 15, 2002. Until then, upon Queen Beatrix' request, Kok and his cabinet served as an interim government.

Leading up to the May 2002 election, populist political candidate Pim Fortuyn was murdered just outside a radio station in Hilversum, a city in the center of the Netherlands. The murder occurred prior to the Dutch general elections, which were scheduled for just over a week later. Regardless of the chaos caused by the incident, the Dutch government stated that the elections would go ahead as scheduled.

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Political Overview

Fortuyn, the head of a party called Fortuyn's List, came to the forefront of Dutch politics when his party gave a strong showing in the Rotterdam local elections. Rotterdam was Fortuyn's home city and the center of his political bloc. He was known for his anti-immigration political agenda, which included policies such as halting immigration into the Netherlands, the integration of existing immigrants, the re-establishment of Dutch border controls, a 25 percent decrease in the number of civil servants, and an end to the Dutch system of consensus politics.

Pre-election polls predicted that Fortuyn might well garner between 15 and 20 percent of the vote in the election, thanks to his policies restricting immigration. Even in the aftermath of his death, his name remained featured on the top of his party's list of candidates and, it was believed that his party would garner an even larger share than was originally anticipated due to sympathy votes.

Indeed, thousands of Dutch people marched in the streets of Rotterdam a day after Fortuyn's death to express their shock over his murder. Observers noted that the mass rally was not to be interpreted as a watershed movement in support of the late Fortuyn, however, since many people marched simply to express their sadness that such an awful event should occur in a progressive and peaceful country such as the Netherlands.

An environmental campaigner for the group called Environmental Offensive, Volkert van der Graaf, was charged with the murder of Fortuyn.

Meanwhile, another development that was taking place in the aftermath of the murder of Fortuyn was the ascendancy of the center-right Christian Democrats in the days leading up to the election. Indeed, on May 15, 2002, the Christian Democrats were poised to win 43 seats in the 150-seat parliament in the 2002 general elections. This victory made the Christian Democrats the largest party in the Netherlands. Jan Peter Balkenende, the leader of the Christian Democrats, stated that he was ready to form a coalition government.

The centre-left "Purple Coalition" government of interim Prime Minister Wim Kok, in power for eight years, thusly suffered a difficult defeat. Indeed, Kok's Labor Party won only 23 seats, while its primary coalition partner, the People's Party for Freedom and Democracy (VVD), won 24 seats -- a marked loss in comparison with the last election. As a consequence, the Labor Party's parliamentary leader, Ad Melkert, announced that he would resign as the party's head in the face of its poor election performance.

Meanwhile, Pim Fortuyn's List, the anti-immigration party of murdered politician, Pim Fortuyn, garnered 26 seats and thus, second place in the election. This successful showing would result in its inclusion in a coalition government, possibly along with the VVD party. Coalition building typically required several months of discussions in the Netherlands and so the the actual formation of the government would not be immediate.

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Political Conditions

Reportedly, voter turnout in the election was very high, presumably as a result of Fortuyn's murder. The results of the election demonstrated a turn to the metaphoric right in Dutch politics and a marked lack of confidence with the "Purple Coalition." The key representative from the emerging coalition government, Jan Peter Balkenende, the leader of the Christian Democrats, noted that policy priorities would likely focus on matters such as economic development, health, education and a reduction in crime.

Despite the expected inclusion of Fortuyn's party in a coalition government, radical shifts in immigration policies were not anticipated. It was expected that many of the proposed anti-immigration policies of Fortuyn's party would be toned down to an extent . Indeed, at the time of his election victory, Balkenende noted that the Christian Democrats were committed to tolerance, and he also stated that respect for others formed the keystone of his party's beliefs, making it unacceptable to argue that no more immigrants should be allowed into the Netherlands.

In the wake of such statements, it was a shocking development to find that not only did Fortuyn's party hold four out of 13 ministerial posts in the new government, but one of the four seats included the new Ministry for Asylum Policy and Immigration. The new minister, Fortuyn's Hilbrand Nawijn, openly praised Denmark's recent crackdown on asylum seekers. Indeed, most of the new immigration policies appeared to be consistent with Fortuyn's handline position and thus, contradicted the conventional wisdom that the policies of the Fortuyn party would not be easily integrated. (See below for a brief synopsis of immigration policies).

Other ministers from Fortuyn's party included Economics Minister, Herman Heinsbroek, the head of a record company who expressed little patience for extended parliamentary sessions; Health Minister, Eduard Bomhoff, a professor who began his new to role by openly criticizing the coalition government's reforms for health care; and Minister for Transport and Water, Rolf de Boer.

There were five members of the new cabinet from the Christian Democrats holding portfolios for Justice, Education, Foreign Affairs, Social Affairs and Agriculture. Meanwhile, there were four members of the new cabinet from the liberal VVD party; they held the portfolios for Interior, Defense, Housing and a fourth unspecified portfolio (due to integration of previous cabinet ministries).

An ancillary position, the Secretary of State for Families and Emancipation, was given to Philomena Bijlhout, a native of Suriname and the first cabinet member to be born outside of the Netherlands.

Soon after the announcement of the new coalition, discussions ensued about how long the government would actually endure, given the fact that only a few of the ministers actually had cabinet experience. The outgoing Prime Minister, Wim Kok, of the Labor Party was one of the main voices articulating concern about the lack of stability in the incoming coalition government. Other opposition members, such as Tom de Graaf of the D66, expressed doubts about the new government and its highly touted "new politics" noting that he could find nothing new or progressive in the coalition government's policies.

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Political Conditions

Political Overview

The key points in the coalition government's plans and policies -- noted in their "blueprint for reform" included the following: a crackdown on immigration; an increase in the number of police to deal with crime; a review of euthanasia law and measures to end "drug tourism," both of which found no support from Prime Minister Balkenende; decreasing hospital waiting lists; improvements in public transport; and a decrease in social welfare spending, which has been the major economic issue of all parties on the political right.

Meanwhile, trade union representatives, such as Lodewijk de Waal, the chairman of the country's largest labour union, voiced outrage over the proposed policies and plans of the new government. They warned that they intended to fight against the government's transposition to the political right. Of specific concern to trade and labor unions was the government's plan to decrease spending in social welfare programs, which included disability and health care benefits, as well as education.

Civil service organizations also intended to protest the government's plans and policies; paramount among their concerns was the 90 percent decrease in the budget typically intended for asylum seekers. The three major arenas that affect asylum policy changes included the following: obliging asylum seekers to pay a nearly 7,000 euro deposit for compulsory Dutch language and citizenship lessons; restricting entry of non-Western family members into the Netherlands; and a crackdown on all businesses that give work to illegal immigrants.

The new government of the Netherlands did not stand for long. Conflict within the coalition, and most especially, among Fortuyn's List, contributed to the breakdown of the government. By October 2002, Prime Minister Balkenende resigned. Then, the House of Representatives was prematurely dissolved in preparation for early elections, triggered by the collapse of the centre-right coalition that had governed for just 87 days, the shortest-lived Dutch government since World War II.

Political Scene in 2003

On Jan. 22, 2003, the Dutch voted for a new Parliament in early elections. The elections results showed that the Christian Democrats or CDA had taken 44 seats in the 150-seat Parliament, winning a small plurality over the Labor Party, which had won 42 seats. The liberal VVD garnerned the third largest number of seats at 28, followed by the Socialists, who won nine seats. Fortuyn's List or the LPF lost all but eight of the 26 seats it had won in May 2002. The Green Party garnered eight seats; the Democrats 66 (D66) won six seats; the Christian Union won three seats and the State Reform Party (SGP) won the remaining two seats.

Two months later, coalition discussions were ongoing regarding the formation of a new government. Former Prime Minister Jan Peter Balkenende had been functioning as the caretaker head of government. Although he initially stated that his CDA party would not form another coalition government with the Fortuyn's List, he later shifted his stance on the issue noting that the Netherlands needed to have a new government formed sooner rather than later. Regardless of the inclusion of Fortuyn's List, the CDA required the inclusion of the liberal VVD, which had a few more seats than the Fortuyn's List, in order for the coalition to consolidate the majority it needed to form a government.

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Political Overview

Political Conditions

Meanwhile, the discussions between the Christian Democrats or CDA and the Labor party, which had itself won the second largest number of seats, eroded without any mutual consensus or decision-making. As such, the new election seemed not to have resolved any of the internal conflicts that caused the collapse of the earlier -- and very short-lived -- government. Indeed, it seemed to have extended the political mess. The Head of State, Queen Beatrix, urged a quick conclusion to the country's political conundrum.

Finally, a center-right coalition sworn in with Balkenende at the helm for second term. The new coalition included Balkenende's Christian Democrats, the liberal VVD and Democrats-66.

Political Scene in 2004

In 2004, the Dutch government took over the six-month rotating presidency of the European Union. The assumption of the EU presidency followed on the heels of the expansion of the European body and the approval of a new president for the European Commission.

Also on the political landscape in 2004, the Queen Mother Juliana died. The Queen Mother had been on the throne for 32 years starting in 1948.

In early 2005, tension between the Dutch federal government and the Netherlands Antilles ensued after the Dutch Integration Minister, Rita Verdonk, put forth a policy intended to expel unemployed immigrants from those islands. Verdonk's plan would expel Antilleans between the age of 18 and 24 who are either unemployed or not enrolled in an institution of higher learning.

Although the minister claimed that the Dutch cabinet had approved her proposal intended to expunge criminal elements and to prevent people from taking advantage of the Dutch system, the premier of the Netherlands Antilles, Etienne Ys, said he had not been consulted. Indeed, he decried the policy noting that Antilleans, as Dutch citizens with Dutch passports, had the right to travel and live freely within any part of the Dutch Kingdom. Roy Pieters, the president of the consultative body of Caribbean Dutch nationals, expressed a similar view when he was acquitted in the Dutch daily Trouw as saying, "I thought the Antilleans were also Dutch nationals but apparently that is not the case."

Meanwhile, members of the Dutch opposition joined with Antillean interest groups in saying that the measure was illegal, that it traversed against the principles of equality, and that it was imbued with the colonial legacy.

Editor's Note:

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Political Overview

The Netherlands Antilles is a federation of five territories in the Caribbean made up of Bonaire, Curacao, Saba, Sint Eustatius, and Sint Maarten -- the Dutch part of the island of Saint Martin. The Caribbean island of Aruba, which is also under Dutch jurisdiction, is not part of the federation.

Developments Related to the European Union (2005-2006)

Dutch attention was placed on the matter of the European Union (EU) at the close of May 2005 as voters were to go to the polls on June 1, 2005 to either endorse or reject the European constitution by referendum. Only days prior, the French had rejected the treaty in their national referendum. Days before the vote, polls suggested that the "No" campaign was leading. Prime Minister Jan Peter Balkenende urged Dutch citizens to approve the treaty despite the outcome in France. If his call was not heeded, it was feared that the European Union would be cast into chaos.

On June 1, 2005, voters in the Netherlands overwhelmingly rejected the proposed European constitution. Provisional results indicated that only 38.4 percent of voters chose to back the charter with a "Yes" vote, while 61.6 percent of voters chose to support the "No" campaign. Turnout was strong with 62.8 percent participation. Prime Minister Jan Peter Balkenende expressed regret at the result but said that he would respect it nonetheless. In the Netherlands, the referendum was regarded as consultative rather than legally binding. As such, it was unknown what the referendum result would mean for the Netherlands within the context of the EU. At the very least, coming on the heels of the French result, it evoked questions about the future of the European charter, not to mention the EU itself.

In January 2006, Dutch Foreign Minister Bernard Bot took a firm stand regarding the European constitution when he said that for the Netherlands, the constitution was "dead." Several months later, he reiterated that position but went on to note that the EU likely needed another year in which it could reflect on the future of the European body. While the government has said that it will not put the EU constitution to another referendum, a future government might take a different view. The next elections in the Netherlands were due to take place in the first part of 2007.

Editor's Note: The draft of the constitution of the European Union had been crafted in 2004 following extensive -and often difficult -- negotiations among European governments. At the time of writing, nine countries had formally endorsed the European constitution: Austria, Germany, Greece, Hungary, Italy, Lithuania, Slovakia, Slovenia and Spain. Fifteen countries are yet to formally endorse the constitution, with eight of these countries scheduled to go the route of ratification by referendum.

Political Developments in Early 2006 In February of 2006, the Dutch Parliament agreed to deploy an additional 1,400 troops to Afghanistan to assist with the efforts of the Nato-led forces operating there. The decision came on the heels of several weeks of political discussions in which a small centrist party in the governing coalition opposed the mission. The scenario was also complicated by international pressure. EU ambassador to Afghan-

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Political Conditions

istan, Francesc Vendrell, said says the Dutch decision to send more troops would be vital in establishing the EU's credibility. By mid-2006, the status of a Somali-born parliamentarian, Ayaan Hirsi Ali, took center stage on the Dutch political scene. Ayaan Hirsi Ali had gained notoriety in recent years for her strong criticism of conservative Islam. In 2004, she was featured in a documentary called, "Submission," which dealt with violence against Muslim women. The filmaker with whom she worked on "Submission," Theo van Gogh, was later murdered by a radical Islamist. Ali was herself the recipient of many death threats and had to have police protection.

For Ali, however, the fame gained from her outspoken criticisms of Islamic extremism turned negative when irregularities associated with her citizenship came to light in the media. Details about how she falsified information in her asylum application became an increasingly controversial matter in the political purview of the Netherlands as a result. Indeed, Immigration Minister Rita Verdonk said that inaccurate information about Ali's names and age in her citizenship application (granted in 1997) rendered her Dutch citizenship invalid. Eventually, Ali announced that she was resigning from Parliament and intended to leave the Netherlands.

Still, revelations about the falsified data were hardly new. Ali publicly admitted to falsifying data about her personal circumstances in several interviews since 2002. Also, in 2003, before entering parliament, Ali's own political party, the ruling VVD, had been informed of the situation. Questions arose about why, then, Ali's situation would suddenly have become such a problematic issue in the Netherlands in 2006. Some observers surmised that the political climate of the time, in which immigration and asylum factored highly, may have spurred the particularly negative shift in perception about the resigning parliamentarian.

While the Christian Democrats, who were leading the ruling coalition in the country, supported Immigration MinisterVerdonk's hardline stance against Ali, not everyone took a favorable view of the situation. At issue was Verdonk's threat to strip Ali of her Dutch citizenship. Known as "Iron Rita," the Immigration Minister responded to criticism of her treatment of Ali by refusing to resign from office. As such, in June 2006, the coalition's smallest member -- D66 -- withdrew its support for Prime Minister Balkenende's government by removing its three ministers from the sitting cabinet. On the floor of the Parliament, D66 party leader Lousewies van der Laan said, "A rift was created with my party and I feel there is no other way but to withdraw support for this government."

The move essentially toppled Balkenende's government, forcing en masse resignations of the remaining cabinet ministers, and compelling new elections. In a televised address, Balkenende, "Following this, the remaining ministers and junior ministers decided to tender their positions to the head of state, the Queen. This also counts for me, the prime minister." Fresh elections were set for later in the year.

Ahead of elections, issues related to national identity and immigration were in the public purview. Most notably, in November 2006, the Dutch cabinet gave its support to Immigration Minister Verdonk's proposal to ban the wearing of the Muslim burqua (traditional Islamic dress that covers the body and obscures the face) in public places. The decision by cabinet came on the heels of previous backing by the Dutch Parliament a year earlier. Advocates of the ban -- which also include prohibitions on wearing helmets or large visors in public places -- contended that the such head and bodily

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Political Conditions

Political Overview

coverings present a risk to public safety, since people wearing such garb cannot be properly identified. The immigration minister had also argued that in addition to the need for all people to be clearly identifiable in public, there was also a need to promote integration -- rather than cultural retention -- within Western Dutch society. While civil rights groups have said that the ban contravened against freedom of expression, an expert committee ruled that the prohibition was consistent with Dutch law.

Elections of 2006 and Coalition Formation in 2007

As noted above, a controversy over the Immigration Minister's treatment of a former parliamentarian of Somali background spurred a rift within Prime Minister Balkenende's coalition government, ultimately forcing the resignation of the sitting cabinet and the scheduling of fresh elections for November 2006.

In the period leading up to those parliamentary elections, political debate focused on welfare reform rather than immigration. This was regarded as a rather ironic development given the fact that immigration was central to the fall of Balkenende's coalition government, and had, indeed, set the stage for new elections. Nevertheless, the focus on socio-economic themes served as a boost for the left-leaning parties, particularly the opposition Labor Party as well as the Socialists. While the conventional wisdom centered on the belief that Balkenende's Party would capture the plurality of votes, polls just ahead of election day showed the Socialists surging in support, but with a large portion of the electorate still undecided. Analysts predicted that the result would be very close and could require forging a new coalition -- possibly among unexpected partners.

On election day on November 22, 2006, the vote count showed the Christian Democrats (CDA) ahead with 41 seats -- but well short of a majority within the 150-seat lower house of Parliament. The Labor Party was set to garner 32 seats -- the second largest number -- but less than they would have liked, having lost support from the left-leaning voters to the Socialists. Indeed, the Socialists vaulted into third place with 26 seats -- well ahead of expectations, having experienced the most significant electoral gain among all the parties. The Liberals (VVD), who were the Christian Democrats' outgoing coalition partners, took 22 seats. The anti-immigration Party for Freedom (PVV) acquired nine seats, while the Christian Union and the Green Party each secured six seats. In another notable upset, the Party for Animals won two seats and were set to become the first animal rights party seated in any European country's parliamentary body.

Balkenende quickly claimed victory, noting that his party was the largest contingent in the Parliament. To this end, he said, "We are the biggest party again... the effort of four years of struggle has been rewarded and that makes me proud." As the leader of the party with the most parliamentary seats, he would have the first chance to form a coalition government. However, even with the Liberals, Balkenende would control only 63 seats -- well short of the requisite majority.

Moreover, the strong performance of the Socialists and the unexpected victory for the Party for Animals suggested that a great deal of wrangling was to be expected before a government capable of functioning could be formed. Certainly, the Socialists could expect to find themselves in powerful

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Political Conditions

positions when the negotiations for coalition-building began. Indeed, Labor was lamenting the fact that many left-leaning voters had chosen the clear left option in the form of the Socialists, rather than the center-left option they had provided. Agnes Kant of the Socialist Party was jubilant and said, "We expected to double our seats but this is absolutely fantastic. I am proud the Netherlands wants to move left."

With both the Christian Democrats and the Socialists claiming the mantle of being the "biggest winner" on election day, it was clear that the Dutch election had generated a split result with no consensus about the governing direction of the country. Reflecting this situation, Gerritt Zalm of the VVD said, "It's chaos. It is extremely difficult to distil a government out of these results." The coalition building process promised to be protracted, and thusly gave rise to speculation about the formation of a grand coalition, quite possible involving both the right and left wings. To this end, Nebahat Albayrak of the Labor Party said, "The jigsaw can still be laid in many different ways." Indeed, coalition-building promised to be a difficult process.

Reports emerged in February of 2007 -- several months after parliamentary elections had been held -that a center-left ruling coalition had been formed between the Christian Democrats (CDA), the Labor Party and the Christian Union. Party leaders were expected to conclude coalition discussions on February 5, 2007 with the creation of a draft agreement, which would then have to be approved by the three respective parties.

Upon approval, Prime Minister Jan Peter Balkenende of the CDA was expected to continue on in his role as head of government. Labor leader Wouter Bos was expected to become Deputy Prime Minister, while also holding the portfolio for the Finance Ministry.

Key focus arenas for the new government included environmental and ecological concerns as well as urban inner city challenges.

Senate Elections of 2007

The parties belonging to the Dutch coalition government retained a narrow majority in the Senate, following elections to the 12 Dutch provincial assemblies. Indeed, the provincial deputies to those assemblies were to formally elect members of the upper house of parliament, the Senate, in May 2007.

According to the share of each party following the election to provincial assemblies, the ruling Christian Democrats, and its coalition partners, the Labor Party and Christian Union, would control 41 of the 75 seats in the Senate. Results showed the loss of a seat for the prime minister's Christian Democrats, as well as a loss of four seats to the Labor Party, and a gain of two seats for the Christian Union. Meanwhile, the Socialist Party registered the most significant gains, substantially increasing its representation from four seats to 12 seats. The ascendancy of the Socialists, as noted above, indicated a shift in Dutch politics to the left.

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European Union Developments in 2007

In September 2007, presumably in order to prevent another negative result, the Dutch cabinet ruled against holding another referendum to ratify the new Reform Treaty of the European Union (EU). Both the Netherlands and France rejected the proposed European constitution in 2005 in public referenda, effectively creating a crisis of sorts within the EU. In order to preclude such an outcome for the successor legislation, especially since polls showed that the Dutch public was inclined to reject the Reform Treaty, just as it had rejected its predecessor, the Dutch cabinet decided that ratification should ensue via parliamentary vote instead. Still, there was no guarantee that parliament would itself support such a move, and such a change had to be endorsed by the legislative body.

-- September, 2007

Political Stability

Political Stability

Editor's Note: Political Stability is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It measures the likelihood of credible threats to, or changes in, the government in power. Credible threats include coups, domestic violence, terrorism, etc. This index denotes the idea that the quality of a nation's government can be compromised by threats against it. Such threats impede the ability to govern, and they also undermine peaceful changes of government. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating better governance and lower scores indicated poor governance in the countries observed.

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Political Overview

Political Stability

2004

2002

2000

Country

EST.

EST.

EST.

Afghanistan

-2.03

-2.25

-2.48

Albania

-0.97

-0.50

-0.61

Algeria

-1.42

-1.62

-1.75

Andorra

1.35

1.32

Angola

-0.95

-1.54

Antigua and Barbuda

1.30

0.82

Argentina

-0.24

-0.64

0.48

Armenia

-0.51

-0.57

-0.60

Australia

1.03

1.16

1.34

Austria

1.25

1.32

1.61

Azerbaijan

-1.52

-1.13

-0.63

Bahamas

0.94

0.99

0.71

Bahrain

0.06

0.42

0.02

Bangladesh

-1.24

-0.65

-0.55

Barbados

1.52

0.82

Belarus

-0.24

0.18

-0.07

Belgium

0.94

1.07

0.97

Belize

0.65

0.57

0.99

Benin

-0.37

0.65

0.24

Bhutan

0.84

0.81

0.74

Bolivia

-0.65

-0.06

-0.41

Bosnia-Herzegovina

-0.85

-0.75

-0.34

Botswana

0.70

0.79

0.90

Brazil

-0.13

0.11

0.20

Brunei

1.06

1.05

1.32

Bulgaria

0.13

0.56

0.30

Burkina Faso

-0.32

-0.13

-0.17

Burma

-1.12

-1.26

-1.47

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-2.32

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Political Overview

Burundi

-2.04

-2.13

-1.87

Cambodia

-0.60

-0.25

-0.73

Cameroon

-0.90

-0.46

-0.55

Canada

1.13

1.10

1.34

Cape Verde

0.67

0.82

Central African Republic

-1.43

-1.74

0.00

Chad

-1.20

-1.54

-0.87

Chile

0.89

1.03

0.85

China

-0.07

0.06

0.13

Colombia

-1.69

-1.95

-1.73

Comoros

-0.13

-0.19

Congo (Brazzaville)

-1.41

-1.63

-1.74

Congo (Kinshasa)

-2.27

-2.35

-2.83

Costa Rica

0.98

1.10

1.24

Cote d'Ivoire

-2.28

-2.00

-0.90

Croatia

0.35

0.48

0.49

Cuba

0.18

0.30

-0.10

Cyprus (G)

0.34

0.38

0.62

Czech Republic

0.84

1.07

0.84

Denmark

1.21

1.26

1.45

Djibouti

-0.44

-0.69

Dominica

1.19

0.56

Dominican Republic

-0.01

0.24

East Timor

-0.62

-0.94

Ecuador

-0.83

-0.68

-1.01

Egypt

-0.72

-0.49

0.00

El Salvador

-0.23

0.32

0.47

Equatorial Guinea

-0.30

0.24

Eritrea

-0.14

-0.26

-0.09

Estonia

0.92

1.02

0.84

Ethiopia

-0.98

-1.20

-0.83

Fiji

0.10

0.23

-0.02

0.18

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Political Stability

Finland

1.65

1.69

1.72

France

0.53

0.71

1.14

Gabon

-0.01

0.25

-0.34

Gambia, The

0.38

0.56

0.34

Georgia

-1.26

-1.71

-0.79

Germany

0.92

1.02

1.31

Ghana

-0.10

0.03

-0.04

Greece

0.53

0.76

0.87

Grenada

0.95

0.56

Guatemala

-0.85

-0.43

-0.89

Guinea

-0.91

-1.41

-1.16

Guinea-Bissau

-0.53

-0.41

-0.74

Guyana

-0.53

-0.39

-0.42

Haiti

-1.87

-1.29

-0.77

Honduras

-0.69

-0.08

0.26

Hungary

0.85

1.11

0.78

Iceland

1.77

1.59

1.71

India

-0.81

-0.93

-0.40

Indonesia

-1.38

-1.45

-1.85

Iran

-0.91

-0.67

-0.20

Iraq

-2.87

-1.76

-1.96

Ireland

1.22

1.32

1.39

Israel

-1.01

-1.46

-0.58

Italy

0.31

0.85

0.82

Jamaica

-0.28

-0.17

0.28

Japan

0.99

1.23

1.25

Jordan

-0.12

-0.32

0.21

Kazakhstan

-0.11

0.38

0.26

Kenya

-0.96

-0.98

-0.96

Kiribati

0.77

Kuwait

0.29

0.25

0.76

Kyrgyzstan

-0.91

-1.10

-0.09

Netherlands Review 2007

22

Political Stability

23

Political Overview

Laos

-0.76

-0.16

0.09

Latvia

0.95

0.95

0.69

Lebanon

-0.83

-0.63

-0.52

Lesotho

0.27

-0.03

1.01

Liberia

-2.20

-2.28

-1.35

Libya

-0.02

-0.34

-0.54

Liechtenstein

1.39

1.32

Lithuania

0.85

1.03

0.53

Luxembourg

1.66

1.68

1.64

Macedonia

-1.04

-0.94

-0.82

Madagascar

-0.02

0.22

0.05

Malawi

-0.33

0.16

0.11

Malaysia

0.38

0.36

0.35

Maldives

0.82

1.32

Mali

0.07

-0.10

0.52

Malta

1.46

1.49

1.10

Marshall Islands

0.66

Mauritania

0.26

0.30

-0.38

Mauritius

0.91

1.11

1.16

Mexico

-0.13

0.25

-0.11

Micronesia

0.83

Moldova

-0.62

-0.06

-0.09

Monaco

1.13

Mongolia

0.48

0.95

0.99

Morocco

-0.23

-0.18

0.11

Mozambique

-0.15

0.59

-0.28

Namibia

0.46

0.43

-0.57

Nauru

0.66

Nepal

-1.74

-1.64

-1.13

Netherlands

1.15

1.30

1.59

New Zealand

1.51

1.37

1.32

Nicaragua

-0.15

0.11

0.22

Netherlands Review 2007

Political Overview

Political Stability

Niger

-0.56

-0.24

-0.06

Nigeria

-1.78

-1.56

-1.47

North Korea

-0.67

0.70

-0.66

Norway

1.53

1.51

1.44

Oman

0.76

1.05

1.06

Pakistan

-1.59

-1.40

-0.60

Palau

0.66

Panama

0.29

0.39

0.60

Papua New Guinea

-0.94

-0.71

-0.46

Paraguay

-0.71

-1.10

-0.84

Peru

-0.68

-0.69

-0.46

Philippines

-1.01

-0.61

-0.39

Poland

0.35

0.73

0.84

Portugal

1.06

1.42

1.47

Qatar

0.92

0.82

1.45

Romania

0.22

0.34

0.01

Russia

-0.85

-0.52

-0.60

Rwanda

-0.92

-1.43

-1.56

Saint Kitts and Nevis

1.41

Saint Lucia

1.41

Saint Vincent and Grenadines

1.31

Samoa

0.89

San Marino

1.22

Sao Tome and Principe

0.08

0.56

Saudi Arabia

-0.60

-0.12

0.41

Senegal

-0.21

-0.26

-0.72

Serbia and Montenegro

-0.97

-0.86

-1.06

Seychelles

0.84

1.07

Sierra Leone

-0.61

-1.37

-1.53

Singapore

1.48

1.28

1.52

Slovakia

0.65

0.99

0.73

Slovenia

0.99

1.34

1.00

Netherlands Review 2007

0.82

24

Political Stability

25

Political Overview

Solomon Islands

-0.70

Somalia

-2.39

-1.97

-1.32

South Africa

-0.24

-0.23

-0.13

South Korea

0.45

0.50

0.49

Spain

0.54

0.63

1.08

Sri Lanka

-1.06

-0.97

-1.83

Netherlands Review 2007

Political Overview

Political Stability

Sudan

-2.08

-1.99

-2.42

Suriname

0.36

0.46

0.11

Swaziland

0.23

0.25

0.54

Sweden

1.38

1.41

1.49

Switzerland

1.44

1.56

1.73

Syria

-0.66

-0.20

-0.42

Taiwan

0.52

0.82

0.77

Tajikistan

-1.19

-1.17

-1.43

Tanzania

-0.38

-0.25

-0.33

Thailand

-0.15

0.45

0.24

Togo

-0.55

0.08

-0.47

Tonga

0.72

Trinidad and Tobago

0.04

0.01

0.42

Tunisia

0.16

0.30

0.73

Turkey

-0.60

-0.66

-1.01

Turkmenistan

-0.92

-0.19

0.10

Tuvalu

0.86

Uganda

-1.27

-1.47

-1.35

Ukraine

-0.27

0.12

-0.48

United Arab Emirates

0.91

0.93

1.17

United Kingdom

0.77

0.69

1.17

United States

0.47

0.21

1.30

Uruguay

0.49

0.86

1.04

Uzbekistan

-1.37

-1.02

-1.04

Vanuatu

0.53

Venezuela

-1.10

-1.17

-0.44

Vietnam

0.16

0.48

0.40

Yemen

-1.48

-1.40

-1.11

Zambia

-0.16

-0.02

-0.44

Zimbabwe

-1.86

-1.62

-1.21

Netherlands Review 2007

26

Freedom Rankings

Political Overview

Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.

Source: This material was derived from the World Bank and reflects the latest available data at the time of publication.

Freedom Rankings Freedom House: Freedom in the World 2005

Editor's Note: This ranking by Freedom House quantifies political freedom and civil liberties into a single combined index on each sovereign country's level of freedom and liberty. The initials "PR" and "CL" stand for Political Rights and Civil Liberties, respectively. The number 1 represents the most free countries and the number 7 represents the least free. Several countries fall in the continuum in between. The freedom ratings reflect an overall judgment based on survey results.

27

Netherlands Review 2007

Political Overview

Freedom Rankings

Country

PR

CL

Freedom Rating

Afghanistan

5

6

Not Free

Albania

3

3

Partly Free

Algeria

6

5

Not Free

Andorra

1

1

Free

Angola

6

5

Not Free

Antigua and Barbuda

2

2

Free

Argentina

2

2

Free

Armenia

5

4

Partly Free

Australia

1

1

Free

Austria

1

1

Free

Azerbaijan

6

5

Not Free

Bahamas

1

1

Free

Bahrain

5

5

Partly Free

Bangladesh

4

4

Partly Free

Barbados

1

1

Free

Belarus

7

6

Not Free

Belgium

1

1

Free

Belize

1

2

Free

Benin

2

2

Free

Bhutan

6

5

Not Free

Bolivia

3

3

Partly Free

Bosnia-Herzegovina

4

3

Partly Free

Botswana

2

2

Free

Brazil

2

3

Free

Brunei

6

5

Not Free

Bulgaria

1

2

Free

Burkina Faso

5

4

Partly Free

Burma

7

7

Not Free

Burundi

5

5

Partly Free

Cambodia

6

5

Not Free

Netherlands Review 2007

28

Freedom Rankings

29

Political Overview

Cameroon

6

6

Not Free

Canada

1

1

Free

Cape Verde

1

1

Free

Central African Republic

6

5

Not Free

Chad

6

5

Not Free

Chile

1

1

Free

China

7

6

Not Free

Colombia

4

4

Partly Free

Comoros

4

4

Partly Free

Congo (Brazzaville)

5

4

Partly Free

Congo (Kinshasa)

6

6

Not Free

Costa Rica

1

1

Free

Cote dIvoire

6

6

Not Free

Croatia

2

2

Free

Cuba

7

7

Not Free

Cyprus (G)

1

1

Free

Czech Republic

1

1

Free

Denmark

1

1

Free

Djibouti

5

5

Partly Free

Dominica

1

1

Free

Dominican Republic

2

2

Free

East Timor

3

3

Partly Free

Ecuador

3

3

Partly Free

Egypt

6

5

Not Free

El Salvador

2

3

Free

Equatorial Guinea

7

6

Not Free

Eritrea

7

6

Not Free

Estonia

1

1

Free

Ethiopia

5

5

Partly Free

Fiji

4

3

Partly Free

Finland

1

1

Free

France

1

1

Free

Netherlands Review 2007

Political Overview

Freedom Rankings

Gabon

5

4

Partly Free

The Gambia

4

4

Partly Free

Georgia

3

4

Partly Free

Germany

1

1

Free

Ghana

2

2

Free

Greece

1

2

Free

Grenada

1

2

Free

Guatemala

4

4

Partly Free

Guinea

6

5

Not Free

Guinea-Bissau

4

4

Partly Free

Guyana

2

2

Free

Haiti

7

6

Not Free

Honduras

3

3

Partly Free

Hungary

1

1

Free

Iceland

1

1

Free

India

2

3

Free

Indonesia

3

4

Partly Free

Iran

6

6

Not Free

Iraq

7

5

Not Free

Ireland

1

1

Free

Israel

1

3

Free

Italy

1

1

Free

Jamaica

2

3

Free

Japan

1

2

Free

Jordan

5

4

Partly Free

Kazakhstan

6

5

Not Free

Kenya

3

3

Partly Free

Kiribati

1

1

Free

Kuwait

4

5

Partly Free

Kyrgyzstan

6

5

Not Free

Laos

7

6

Not Free

Latvia

1

2

Free

Netherlands Review 2007

30

Freedom Rankings

31

Political Overview

Lebanon

6

5

Not Free

Lesotho

2

3

Free

Liberia

5

4

Partly Free

Libya

7

7

Not Free

Liechtenstein

1

1

Free

Lithuania

2

2

Free

Luxembourg

1

1

Free

Macedonia

3

3

Partly Free

Madagascar

3

3

Partly Free

Malawi

4

4

Partly Free

Malaysia

4

4

Partly Free

Maldives

6

5

Not Free

Mali

2

2

Free

Malta

1

1

Free

Marshall Islands

1

1

Free

Mauritania

6

5

Not Free

Mauritius

1

1

Free

Mexico

2

2

Free

Micronesia

1

1

Free

Moldova

3

4

Partly Free

Monaco

2

1

Free

Mongolia

2

2

Free

Morocco

5

4

Partly Free

Mozambique

3

4

Partly Free

Namibia

2

3

Free

Nauru

1

1

Free

Nepal

5

5

Partly Free

Netherlands

1

1

Free

New Zealand

1

1

Free

Nicaragua

3

3

Partly Free

Niger

3

3

Partly Free

Nigeria

4

4

Partly Free

Netherlands Review 2007

Political Overview

Freedom Rankings

North Korea

7

7

Not Free

Norway

1

1

Free

Oman

6

5

Not Free

Pakistan

6

5

Not Free

Palau

1

1

Free

Panama

1

2

Free

Papua New Guinea

3

3

Partly Free

Paraguay

3

3

Partly Free

Peru

2

3

Free

Philippines

2

3

Free

Poland

1

1

Free

Portugal

1

1

Free

Qatar

6

5

Not Free

Romania

3

2

Free

Russia

6

5

Not Free

Rwanda

6

5

Not Free

Saint Kitts and Nevis

1

2

Free

Saint Lucia

1

2

Free

Saint Vincent and Grenadines

2

1

Free

Samoa

2

2

Free

San Marino

1

1

Free

Sao Tome and Principe

2

2

Free

Saudi Ara bia

7

7

Not Free

Senegal

2

3

Free

Serbia and Montenegro

3

2

Free

Seychelles

3

3

Partly Free

Sierra Leon

4

3

Partly Free

Singapore

5

4

Partly Free

Slovakia

1

1

Free

Slovenia

1

1

Free

Solomon Islands

3

3

Partly Free

Somalia

6

7

Not Free

Netherlands Review 2007

32

Freedom Rankings

33

Political Overview

South Africa

1

2

Free

South Korea

1

2

Free

Spain

1

1

Free

Sri Lanka

3

3

Partly Free

Netherlands Review 2007

Political Overview

Freedom Rankings

Sudan

7

7

Not Free

Suriname

1

2

Free

Swaziland

7

5

Not Free

Sweden

1

1

Free

Switzerland

1

1

Free

Syria

7

7

Not Free

Taiwan

2

1

Free

Tajikistan

6

5

Not Free

Tanzania

4

3

Partly Free

Thailand

2

3

Free

Togo

6

5

Not Free

Tonga

5

3

Partly Free

Trinidad and Tobago

3

3

Partly Free

Tunisia

6

5

Not Free

Turkey

3

3

Partly Free

Turkmenistan

7

7

Not Free

Tuvalu

1

1

Free

Uganda

5

4

Partly Free

Ukraine

4

3

Partly Free

United Arab Emirates

6

6

Not Free

United Kingdom

1

1

Free

United States

1

1

Free

Uruguay

1

1

Free

Uzbekistan

7

6

Not Free

Vanuatu

2

2

Free

Venezuela

3

4

Partly Free

Vietnam

7

6

Not Free

Yemen

5

5

Partly Free

Zambia

4

4

Partly Free

Zimbabwe

7

6

Not Free

Netherlands Review 2007

34

Human Rights

Political Overview

Human Rights Overview of Human Rights in the Netherlands

The Kingdom of the Netherlands is a constitutional monarchy with a bicameral parliamentary legislative system. The government works to respect the civil and human rights of its citizens. When individual abuses are reported, the law provides the means for investigating them and if necessary prosecuting the perpetrator(s). In the last year, societal discrimination and violence against some religious and ethnic minorities were considered to be the most serious human rights abuses committed in the nation.

Human Development Index (HDI) Rank:

10th out of 177 Human Poverty Index Rank:

3rd out of 18

Note- The Netherlands is ranked on the HPI-2 scale with is only for the OECD countries, Eastern Europe and the CIS Gini Index:

30.9 Life Expectancy at Birth (years):

78.4 years Unemployment Rate:

6.6% Population living on $1 a day (%):

N/A Population living on $2 a day (%):

N/A Population living beneath the Poverty Line (%):

N/A

35

Netherlands Review 2007

Political Overview

Human Rights

Internally Displaced People:

N/A

Note-141,000 refugees are currently seeking asylum in the Netherlands

Total Crime Rate (%):

25.2% Health Expenditure (% of GDP):

Public: 5.8% % of GDP Spent on Education:

5.1% Human Rights Conventions Party to:

• International Convention on the Prevention and Punishment and Punishment of the Crime of Genocide • International Convention on the Elimination of All Forms of Racial Discrimination • International Covenant on Civil and Political Rights • International Covenant on Economic, Social and Cultural Rights • Convention on the Elimination of All Forms of Discrimination against Women • Convention against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment • Conventions on the Rights of the Child • Convention relating to the Status of Refugees • Rome Statute of the International Criminal Court *Human Development Index (HDI) is a composite index that measures the level of well-being in 177 nations in the world. It uses factors such as poverty, literacy, life-expectancy, education, gross domestic product, and purchasing power parity to assess the average achievements in each nation. It has been used in the United Nation's Human Development Report since 1993. *Human Poverty Index Ranking is based on certain indicators used to calculate the Human Poverty Index. Probability at birth of not surviving to age 40, adult literacy rate, population without sustainable

Netherlands Review 2007

36

Voice and Accountability

Political Overview

access to an improved water source, and population below income poverty line are the indicators assessed in this measure. *The Gini Index measures inequality based on the distribution of family income or consumption. A value of 0 represents perfect equality (income being distributed equally), and a value of 100 perfect inequality (income all going to one individual). *The calculation of the total crime rate is the % of the total population which has been effected by property crime, robbery, sexual assault, assault, or bribery (corruption) related occurrences.

Voice and Accountability

Voice and Accountability

Editor's Note: Voice and Accountability is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It is a measure of the level of political, civil, and human rights in each country. These indicators serve to gauge the extent citizens have the ability to participate in the political, social and economic processes in their respective lands. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating to better governance in the countries observed.

37

Netherlands Review 2007

Political Overview

Voice and Accountability

2004

2002

2000

Country

EST.

EST.

EST.

Afghanistan

-1.35

-1.31

-1.76

Albania

-0.03

-0.10

-0.05

Algeria

-0.91

-0.96

-1.31

Andorra

1.23

1.31

1.49

Angola

-1.02

-1.40

-1.37

Antigua and Barbuda

0.48

0.17

-0.02

Argentina

0.49

0.23

0.44

Armenia

-0.66

-0.44

-0.30

Australia

1.40

1.50

1.61

Austria

1.25

1.32

1.61

Azerbaijan

-0.97

-0.87

-0.81

Bahamas

1.14

1.18

1.10

Bahrain

-0.73

-0.74

-1.17

Bangladesh

-0.69

-0.57

-0.34

Barbados

1.17

1.39

1.21

Belarus

-1.54

-1.40

-1.21

Belgium

1.35

1.44

1.19

Belize

0.91

0.83

0.86

Benin

0.30

0.03

0.44

Bhutan

-1.18

-1.17

-1.63

Bolivia

-0.01

0.01

0.23

Bosnia-Herzegovina

-0.14

-0.29

-0.37

Botswana

0.73

0.73

0.78

Brazil

0.34

0.35

0.53

Brunei

-1.11

-0.82

-1.07

Bulgaria

0.58

0.56

0.51

Burkina Faso

-0.38

-0.27

-0.31

Burma

-2.19

-2.05

-2.12

Netherlands Review 2007

38

Voice and Accountability

39

Political Overview

Burundi

-1.13

-1.16

-1.66

Cambodia

-0.89

-0.56

-0.35

Cameroon

-1.18

-1.10

-0.90

Canada

1.38

1.50

1.27

Cape Verde

0.80

0.41

0.86

Central African Republic

-1.20

-0.80

-0.52

Chad

-1.09

-0.95

-0.89

Chile

1.09

1.07

0.56

China

-1.54

-1.38

-1.37

Colombia

-0.47

-0.55

-0.53

Comoros

-0.14

-0.51

-0.47

Congo (Brazzaville)

-1.64

-1.89

-1.91

Congo (Kinshasa)

-0.79

-1.10

-1.56

Costa Rica

1.11

1.16

1.31

Cote d'Ivoire

-1.46

-1.25

-1.31

Croatia

0.46

0.49

0.38

Cuba

-1.88

-1.77

-1.72

Cyprus (G)

1.00

0.94

1.22

Czech Republic

1.03

0.90

0.99

Denmark

1.59

1.72

1.51

Djibouti

-0.85

-0.69

-0.56

Dominica

1.13

1.05

1.21

Dominican Republic

0.27

0.19

0.43

East Timor

0.25

0.19

Ecuador

-0.19

-0.06

-0.14

Egypt

-1.04

-0.88

-0.81

El Salvador

0.26

0.06

0.24

Equatorial Guinea

-1.71

-1.44

-1.46

Eritrea

-1.96

-2.05

-1.42

Estonia

1.13

1.05

0.89

Ethiopia

-1.11

-1.14

-1.00

Fiji

0.15

-0.06

0.11

Netherlands Review 2007

Political Overview

Voice and Accountability

Finland

1.50

1.70

1.60

France

1.24

1.29

1.07

Gabon

-0.71

-0.42

-0.46

Gambia, The

-0.59

-1.03

-0.98

Georgia

-0.34

-0.29

-0.21

Germany

1.38

1.51

1.35

Ghana

0.39

0.01

0.00

Greece

0.91

1.05

1.01

Grenada

0.85

0.68

0.99

Guatemala

-0.39

-0.48

-0.26

Guinea

-1.12

-1.19

-1.12

Guinea-Bissau

-0.62

-0.74

-0.85

Guyana

0.62

0.65

0.91

Haiti

-1.50

-1.11

-0.79

Honduras

-0.02

-0.15

0.01

Hungary

1.16

1.17

1.14

Iceland

1.41

1.52

1.44

India

0.27

0.38

0.45

Indonesia

-0.44

-0.49

-0.52

Iran

-1.36

-1.04

-0.69

Iraq

-1.71

-2.12

-2.12

Ireland

1.30

1.40

1.42

Israel

0.46

0.61

0.94

Italy

1.06

1.11

1.06

Jamaica

0.54

0.51

0.71

Japan

0.98

0.99

0.99

Jordan

-0.68

-0.41

-0.19

Kazakhstan

-1.21

-1.14

-0.91

Kenya

-0.34

-0.58

-0.84

Kiribati

0.87

1.09

1.15

Kuwait

-0.48

-0.29

-0.22

Kyrgyzstan

-1.06

-0.90

-0.68

Netherlands Review 2007

40

Voice and Accountability

41

Political Overview

Laos

-1.55

-1.73

-1.43

Latvia

0.96

0.91

0.76

Lebanon

-0.81

-0.54

-0.37

Lesotho

0.28

-0.16

-0.03

Liberia

-1.24

-1.54

-1.16

Libya

-1.79

-1.70

-1.60

Liechtenstein

1.27

1.32

1.39

Lithuania

0.97

0.89

0.95

Luxembourg

1.40

1.41

1.33

Macedonia

-0.02

-0.30

-0.03

Madagascar

0.07

-0.05

0.25

Malawi

-0.50

-0.56

-0.28

Malaysia

-0.36

-0.28

-0.27

Maldives

-1.07

-0.74

-0.94

Mali

0.35

0.18

0.28

Malta

1.26

1.29

1.39

Marshall Islands

1.14

1.23

1.30

Mauritania

-1.16

-0.67

-0.67

Mauritius

0.94

0.80

1.21

Mexico

0.36

0.36

0.09

Micronesia

1.01

0.93

0.97

Moldova

-0.47

-0.32

-0.01

Monaco

0.91

0.92

1.11

Mongolia

0.45

0.44

0.73

Morocco

-0.55

-0.30

-0.44

Mozambique

-0.13

-0.26

-0.28

Namibia

0.47

0.33

0.28

Nauru

1.08

0.85

0.88

Nepal

-1.00

-0.52

-0.12

Netherlands

1.49

1.63

1.53

New Zealand

1.47

1.60

1.51

Nicaragua

0.06

0.09

-0.08

Netherlands Review 2007

Political Overview

Voice and Accountability

Niger

-0.12

-0.18

-0.07

Nigeria

-0.65

-0.70

-0.68

North Korea

-2.05

-2.32

-2.02

Norway

1.53

1.64

1.50

Oman

-0.90

-0.55

-0.68

Pakistan

-1.31

-1.10

-1.53

Panama

0.54

0.50

0.69

Papua New Guinea

-0.03

-0.15

-0.03

Paraguay

-0.23

-0.53

-0.59

Peru

-0.04

0.11

-0.01

Philippines

0.02

0.17

0.40

Poland

1.13

1.11

1.12

Portugal

1.31

1.31

1.35

Qatar

-0.79

-0.52

-0.66

Romania

0.36

0.41

0.43

Russia

-0.81

-0.44

-0.44

Rwanda

-1.09

-1.41

-1.46

Saint Kitts and Nevis

0.75

0.96

1.01

Saint Lucia

0.97

1.04

1.06

Saint Vincent and Grenadines

0.96

0.98

1.03

Samoa

0.69

0.67

0.62

San Marino

1.18

1.17

1.39

Sao Tome and Principe

0.55

0.48

0.93

Saudi Arabia

-1.63

-1.40

-1.27

Senegal

0.19

0.15

-0.11

Serbia and Montenegro

0.12

-0.23

-0.32

Seychelles

-0.04

-0.19

0.11

Sierra Leone

-0.49

-0.57

-1.36

Singapore

-0.13

0.51

-0.05

Slovakia

1.10

0.92

0.30

Slovenia

1.12

1.10

0.98

Palau

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42

Voice and Accountability

43

Political Overview

Solomon Islands

0.10

0.37

0.06

Somalia

-1.58

-1.51

-1.37

South Africa

0.86

0.73

1.05

South Korea

0.73

0.63

0.76

Spain

1.17

1.24

1.10

Sri Lanka

-0.16

-0.06

-0.37

Netherlands Review 2007

Political Overview

Voice and Accountability

Sudan

-1.81

-1.71

-1.75

Suriname

0.60

0.29

0.55

Swaziland

-1.45

-1.18

-1.22

Sweden

1.52

1.65

1.56

Switzerland

1.49

1.63

1.64

Syria

-1.72

-1.56

-1.64

Taiwan

0.95

0.89

0.81

Tajikistan

-1.12

-1.07

-0.93

Tanzania

-0.35

-0.41

-0.15

Thailand

0.24

0.20

0.25

Togo

-1.22

-1.20

-1.09

Tonga

-0.35

-0.12

-0.09

Trinidad and Tobago

0.49

0.56

0.61

Tunisia

-1.11

-0.83

-0.71

Turkey

-0.15

-0.47

-0.65

Turkmenistan

-1.90

-1.85

-1.59

Tuvalu

0.94

1.17

1.39

Uganda

-0.64

-0.77

-0.94

Ukraine

-0.62

-0.64

-0.39

United Arab Emirates

-1.01

-0.47

-0.62

United Kingdom

1.37

1.48

1.39

United States

1.21

1.32

1.18

Uruguay

1.00

0.95

1.04

Uzbekistan

-1.75

-1.58

-1.39

Vanuatu

0.68

0.89

0.62

Venezuela

-0.46

-0.41

-0.33

Vietnam

-1.54

-1.36

-1.53

Yemen

-0.99

-0.88

-0.72

Zambia

-0.36

-0.40

-0.24

Zimbabwe

-1.48

-1.51

-0.97

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44

Government Effectiveness

Political Overview

Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.

Source: This material was derived from the World Bank and reflects the latest available data at the time of publication.

Government Effectiveness Government Effectiveness

Editor's Note: Government Effectiveness is one of six governance indicators measured by the World Bank Policy Research Working Paper Series. It is a measure of the competency of the bureaucracy and the quality of public service delivery. This index focuses on the inputs required for those in power to be able to produce and implement effective policies, and to deliver public goods and services. It gauges the government's real commitment to its policies. EST, or point estimate, is measured on a scale of -2.5 to 2.5, with the higher scores indicating to better governance and lower scores indicating poor governance in the countries observed.

45

Netherlands Review 2007

Political Overview

Government Effectiveness

2004

2002

2000

Country

EST.

EST.

EST.

Afghanistan

-1.24

-1.43

-1.30

Albania

-0.36

-0.46

-0.75

Algeria

-0.46

-0.60

-0.75

Andorra

1.40

1.32

Angola

-1.14

-1.20

Antigua and Barbuda

0.31

0.50

Argentina

-0.33

-0.47

0.28

Armenia

-0.34

-0.39

-0.88

Australia

1.95

1.93

1.80

Austria

1.76

1.85

1.72

Azerbaijan

-0.81

-0.90

-0.96

Bahamas

1.27

1.38

1.20

Bahrain

0.76

0.81

0.74

Bangladesh

-0.72

-0.55

-0.47

Barbados

1.18

1.30

Belarus

-0.93

-1.04

-0.92

Belgium

1.71

1.94

1.48

Belize

0.16

-0.04

-0.28

Benin

-0.39

-0.48

0.05

Bhutan

-0.14

0.43

1.48

Bolivia

-0.63

-0.53

-0.40

Bosnia-Herzegovina

-0.54

-0.85

-0.54

Botswana

0.83

0.91

0.98

Brazil

0.02

-0.20

-0.18

Brunei

0.73

0.90

1.03

Bulgaria

-0.08

-0.02

-0.16

Burkina Faso

-0.52

-0.59

-0.14

Burma

-1.57

-1.33

-1.31

Netherlands Review 2007

-1.70

46

Government Effectiveness

47

Political Overview

Burundi

-1.24

-1.48

-1.25

Cambodia

-0.87

-0.51

-0.44

Cameroon

-0.64

-0.59

-0.44

Canada

1.96

2.02

1.94

Cape Verde

-0.19

-0.10

0.33

Central African Republic

-1.65

-1.51

-1.61

Chad

-1.29

-0.68

-0.36

Chile

1.27

1.26

1.34

China

0.11

0.20

0.22

Colombia

-0.18

-0.40

-0.31

Comoros

-1.45

-0.98

-1.29

Congo (Brazzaville)

-1.17

-1.33

-1.66

Congo (Kinshasa)

-1.41

-1.59

-1.79

Costa Rica

0.49

0.45

0.76

Cote d'Ivoire

-1.30

-0.89

-0.75

Croatia

0.32

0.23

0.15

Cuba

-0.47

-0.27

-0.18

Cyprus (G)

1.02

1.02

1.06

Czech Republic

0.63

0.72

0.70

Denmark

2.15

2.05

1.84

Djibouti

-0.76

-0.87

-1.07

Dominica

0.31

0.11

-0.67

Dominican Republic

-0.46

-0.42

-0.11

East Timor

-1.21

-0.93

Ecuador

-0.85

-0.94

-1.05

Egypt

-0.20

-0.29

0.30

El Salvador

-0.22

-0.50

-0.11

Equatorial Guinea

-1.40

-1.42

-2.22

Eritrea

-1.05

-0.52

-0.28

Estonia

0.99

0.85

1.00

Ethiopia

-0.96

-0.78

-0.60

Fiji

-0.57

0.13

-0.34

Netherlands Review 2007

Political Overview

Government Effectiveness

Finland

2.06

2.13

1.89

France

1.42

1.69

1.42

Gabon

-0.53

-0.42

-0.59

Gambia, The

-0.49

-0.82

0.17

Georgia

-0.80

-0.77

-0.72

Germany

1.38

1.83

1.90

Ghana

-0.17

0.00

0.09

Greece

0.74

0.80

0.77

Grenada

0.10

0.36

0.03

Guatemala

-0.87

-0.58

-0.50

Guinea

-0.93

-0.76

-0.07

Guinea-Bissau

-1.25

-1.39

-1.43

Guyana

-0.20

-0.30

-0.16

Haiti

-1.90

-1.56

-1.47

Honduras

-0.68

-0.73

-0.45

Hungary

0.68

0.79

0.78

Iceland

2.18

2.05

2.18

India

-0.04

-0.11

-0.07

Indonesia

-0.36

-0.55

-0.40

Iran

-0.66

-0.46

-0.17

Iraq

-1.51

-1.69

-1.49

Ireland

1.48

1.67

2.03

Israel

0.98

1.08

1.02

Italy

0.58

0.96

0.80

Jamaica

-0.13

-0.04

-0.19

Japan

1.21

1.11

1.08

Jordan

0.23

0.39

0.40

Kazakhstan

-0.63

-0.82

-0.54

Kenya

-0.81

-0.81

-0.68

Kiribati

-0.61

-0.25

0.05

Kuwait

0.55

0.15

0.21

Kyrgyzstan

-0.83

-0.72

-0.63

Netherlands Review 2007

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Government Effectiveness

49

Political Overview

Laos

-1.02

-0.50

-0.76

Latvia

0.60

0.70

0.36

Lebanon

-0.33

-0.40

-0.22

Lesotho

-0.33

-0.23

-0.05

Liberia

-1.86

-1.58

-1.41

Libya

-0.73

-0.90

-1.17

Liechtenstein

1.48

1.67

Lithuania

0.70

0.65

0.36

Luxembourg

2.08

2.30

2.10

Macedonia

-0.17

-0.37

-0.52

Madagascar

-0.43

-0.42

-0.32

Malawi

-0.81

-0.63

-0.65

Malaysia

0.99

0.96

0.69

Maldives

0.47

0.52

0.45

Mali

-0.29

-0.62

-0.81

Malta

1.03

1.20

0.86

Marshall Islands

-0.46

-0.22

-0.79

Mauritania

0.22

-0.01

-0.30

Mauritius

0.60

0.51

0.79

Mexico

-0.02

0.21

0.35

Micronesia

-0.33

-0.29

-0.55

Moldova

-0.73

-0.60

-1.04

Monaco

1.42

-0.61

Mongolia

-0.46

-0.19

0.15

Morocco

-0.03

-0.06

0.02

Mozambique

-0.39

0.35

-0.31

Namibia

0.29

0.10

0.48

Nauru

-1.36

-1.17

Nepal

-0.90

-0.45

-0.62

Netherlands

2.00

2.20

2.08

New Zealand

1.51

2.01

1.45

Nicaragua

-0.71

-0.85

-0.71

Netherlands Review 2007

Political Overview

Government Effectiveness

Niger

-0.87

-0.84

-1.04

Nigeria

-1.02

-1.11

-1.04

North Korea

-1.68

-1.79

-1.10

Norway

1.97

1.90

1.55

Oman

0.91

0.67

0.99

Pakistan

-0.57

-0.53

-0.54

Palau

0.39

-0.33

Panama

0.01

-0.11

-0.03

Papua New Guinea

-1.01

-0.77

-0.68

Paraguay

-1.07

-1.25

-1.27

Peru

-0.58

-0.46

-0.27

Philippines

-0.23

-0.07

0.08

Poland

0.47

0.64

0.38

Portugal

0.92

1.05

1.06

Qatar

0.87

0.75

0.96

Romania

-0.15

-0.30

-0.59

Russia

-0.21

-0.40

-0.62

Rwanda

-0.56

-0.72

-0.11

Saint Kitts and Nevis

-0.16

-0.26

0.11

Saint Lucia

0.19

0.01

0.16

Saint Vincent and Grenadines

0.23

-0.19

-0.01

Samoa

0.09

0.08

0.58

San Marino

-0.23

-0.33

Sao Tome and Principe

-0.89

-0.68

-0.70

Saudi Arabia

-0.06

-0.08

0.06

Senegal

-0.13

-0.11

0.23

Serbia and Montenegro

-0.21

-0.69

-1.00

Seychelles

-0.31

-0.22

-0.94

Sierra Leone

-1.32

-1.48

-1.39

Singapore

2.25

2.39

2.44

Slovakia

0.67

0.43

0.28

Slovenia

1.02

0.89

0.82

Netherlands Review 2007

50

Government Effectiveness

51

Political Overview

Solomon Islands

-1.76

-0.92

-1.04

Somalia

-2.32

-1.98

-2.59

South Africa

0.74

0.59

0.43

South Korea

0.95

0.91

0.63

Spain

1.29

1.58

1.78

Sri Lanka

-0.27

0.01

-0.32

Netherlands Review 2007

Political Overview

Government Effectiveness

Sudan

-1.28

-1.09

-1.46

Suriname

-0.23

-0.22

0.17

Swaziland

-0.60

-0.40

-0.55

Sweden

1.92

1.91

1.72

Switzerland

2.25

2.34

2.18

Syria

-0.72

-0.58

-0.83

Taiwan

1.15

1.12

1.06

Tajikistan

-1.05

-1.13

-1.39

Tanzania

-0.37

-0.50

-0.28

Thailand

0.38

0.29

0.20

Togo

-1.31

-1.16

-1.40

Tonga

-0.73

-0.46

-0.47

Trinidad and Tobago

0.47

0.50

0.64

Tunisia

0.57

0.67

1.24

Turkey

0.01

-0.16

-0.07

Turkmenistan

-1.37

-1.50

-1.38

Tuvalu

-0.79

-0.26

1.29

Uganda

-0.43

-0.38

-0.16

Ukraine

-0.67

0.76

-0.78

United Arab Emirates

1.20

0.83

0.72

United Kingdom

1.85

2.08

2.01

United States

1.80

1.73

1.80

Uruguay

0.52

0.52

0.71

Uzbekistan

-1.04

-1.04

-0.96

Vanuatu

-0.60

-0.28

-0.47

Venezuela

-0.96

-1.13

-0.83

Vietnam

-0.31

-0.29

-0.30

Yemen

-0.84

-0.84

-0.68

Zambia

-0.84

-0.77

-0.72

Zimbabwe

-1.20

-0.82

-1.13

Netherlands Review 2007

52

Government Functions

Political Overview

Note: Individual country ratings can exceed the normal scale when their estimates of governance are either extremely high or extremely low.

Source: This material was derived from the World Bank and reflects the latest available data at the time of publication.

Government Functions

The Constitution

The present constitution of the Netherlands was adopted on Feb. 17, 1983, replacing the constitution of 1848. The 1983 constitution continued the Dutch tradition of a constitutional monarchy with a parliamentary system of government.

The Monarchy

The monarch is the head of state, and as such, represents the Netherlands in its international relations. The monarch has limited political powers. Formally, the monarch must give assent to legislation passed by the parliament, though in practice the monarch does not exercise veto power. The monarch appoints a "formateur" tasked with forming a government that has the support of a majority in the parliament. The monarch can dissolve both houses of parliament and call early elections, though this would normally be done at the request of the government.

The Branches of Government

Executive authority is vested in the Council of Ministers (government or cabinet) composed of the prime minister and other ministers. The government is responsible for developing and implementing the domestic and foreign policies of the Netherlands. The monarch formally appoints the prime minister and other ministers. In practice, the ministers are appointed after a government formation process in which the political parties bargain on the basis of their seat totals in the parliament that reflect the support that a proposed government can have in the parliament. The prime minister and other ministers are responsible to the parliament and can be dismissed by votes of no confidence. The government shares

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Netherlands Review 2007

Political Overview

Government Structure

the authority to introduce legislation, formally on behalf of the monarch, with the Second Chamber of parliament.

The government is advised by a Council of State that consists of members of the royal family and other members appointed for life by the monarch because of their background and experiences. The Council of State also serves as an ombudsman ruling on appeals of citizens against governmental actions or policies.

Legislative authority is vested in the bicameral "Staten-Generaal" (States-General) composed of the "Eerste Kamer" (First Chamber) and the "Tweede Kamer" (Second Chamber). Most legislative authority rests with the Second Chamber which has members elected in a single nation-wide district according to a proportional representation formula for maximum four-year terms. It is the Second Chamber which passes motions of no-confidence against ministers and which shares the authority to introduce legislation with the government. The First Chamber has members elected by the members of the provincial councils for maximum four-year terms. The First Chamber can neither introduce nor amend legislation, except when meeting jointly with the Second Chamber, but its assent is necessary for legislation passed by the Second Chamber before the legislation may become law.

Judicial authority is vested in canton courts, district courts, five courts of appeal, and a Supreme Court. All judges are appointed for life by the monarch. The justices of the Supreme Court are appointed from a list provided by the Second Chamber. There is no constitutional review in the Netherlands.

Provincial Government

There are 12 provinces in the Netherlands with elected provisional assemblies and governments as well as a sovereign commissioner appointed by the monarch.

Government Structure Names: conventional long form: Kingdom of the Netherlands conventional short form: Netherlands local long form:

Koninkrijk der Nederlanden

Netherlands Review 2007

54

Government Structure

Political Overview

local short form: Nederland

Type: Constitutional monarchy; parliamentary democracy

Executive Branch: Head of state: Queen BEATRIX Wilhelmina Armgard (since April 30, 1980); hereditary, constitutional monarch; Heir Apparent WILLEM-ALEXANDER (born April 27, 1967), Prince of Orange, son of Queen BEATRIX Head of government: Prime Minister is Jan Peter Balkenende of the Christian Democrats; most recent elections held in Nov. 2006 to determine parliament, which also led to the formation of a new government and prime minister.

Reports emerged in February of 2007 -- several months after parliamentary elections had been held -that a center-left ruling coalition had been formed between the Christian Democrats (CDA), the Labor Party and the Christian Union. Party leaders were expected to conclude coalition discussions on February 5, 2007 with the creation of a draft agreement, which would then have to be approved by the three respective parties. Upon approval, Prime Minister Jan Peter Balkenende of the CDA was expected to continue on in his role as head of government while Labor leader Wouter Bos was expected to become Deputy Prime Minister.

Note: Following "Tweede Kamer" (Second Chamber) elections, the leader of the majority party, or leader of the majority coalition, is usually appointed prime minister by the queen. The government (prime minister and cabinet) must maintain the support of a majority of the Second Chamber to remain in office.

Cabinet: Cabinet; nominated by the prime minister; formally appointed by the queen.

Note:

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Netherlands Review 2007

Political Overview

Government Structure

There is also a Council of State composed of the queen, crown prince, and councilors consulted by the government regarding legislative and administrative policy.

Legislative Branch: Bicameral parliament called the "Staten Generaal" (States General): Consists of the "Eerste Kamer" (First Chamber) and the "Tweede Kamer (Second Chamber)

"Eerste Kamer" (First Chamber): 75 members; Indirectly elected by the country's 12 provincial councils to four-year terms

Elections: Last held for Eerste Kamer: March 2007

Election results: The parties belonging to the Dutch coalition government retained a narrow majority in the Senate, following elections to the 12 Dutch provincial assemblies. Indeed, the provincial deputies to those assemblies were to formally elect members of the upper house of parliament, the Senate, in May 2007. According to the share of each party following the election to provincial assemblies, the ruling Christian Democrats, and its coalition partners, the Labor Party and Christian Union, would control 41 of the 75 seats in the Senate. Results showed the loss of a seat for the prime minister's Christian Democrats, as well as a loss of four seats to the Labor Party, and a gain of two seats for the Christian Union. Meanwhile, the Socialist Party registered the most significant gains, substantially increasing its representation from four seats to 12 seats.

"Tweede Kamer" (Second Chamber): 150 members; Popularly elected via proportional representation to four-year terms

Elections: Last held for Tweede Kamer: Nov. 22, 2006

Election results: On election day on November 22, 2006, the vote count showed the Christian Democrats (CDA) ahead with 41 seats -- but well short of a majority within the 150-seat Parliament. The Labor Party was set

Netherlands Review 2007

56

Government Structure

Political Overview

to garner 32 seats -- the second largest number -- but less than they would have liked, having lost support from left-leaning voters to the Socialists. Indeed, the Socialists vaulted into third place with 26 seats -- well ahead of expectations, having experienced the most significant electoral gains among all the parties. The Liberals (VVD), who were the Christian Democrats' outgoing coalition partners, took 22 seats. The anti-immigration Party for Freedom (PVV) acquired nine seats, while the Christian Union and the Green Party each secured six seats. In another notable upset, the Party for Animals won two seats and were set to become the first animal rights party seated in any European country's parliamentary body.

Coalition formation: With both the Christian Democrats and the Socialists claiming the mantle of being the "biggest winner" on election day, it was clear that the Dutch election had generated a split result with no consensus about the governing direction of the country. Coalition building then commenced. Reports emerged in February of 2007 -- several months after parliamentary elections had been held -- that a center-left ruling coalition had been formed between the Christian Democrats (CDA), the Labor Party and the Christian Union. Party leaders were expected to conclude coalition discussions on February 5, 2007 with the creation of a draft agreement, which would then have to be approved by the three respective parties. Upon approval, Prime Minister Jan Peter Balkenende of the CDA was expected to continue on in his role as head of government.

Judicial Branch: "De Hoge Raad" (Supreme Court), justices nominated for life by the crown from a list compiled by the Second Chamber of the "Staten Generaal"

Constitution: Adopted 1814, amended many times, last time Feb. 17, 1983

Legal System: Civil law system incorporating French penal theory; judicial review in the Supreme Court of some legislation, constitution does not permit judicial review of acts of the States General; accepts compulsory ICJ jurisdiction, with reservations

Administrative Divisions: 12 provinces (provincien, singular - provincie): Drenthe, Flevoland, Friesland, Gelderland, Groningen, Limburg, Noord-Brabant, Noord-Holland, Overijssel, Utrecht, Zeeland, Zuid-Holland

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Principal Government Officials

Dependent Areas: Aruba, Netherlands Antilles (includes Curacao, Bonnaire)

Political Parties: Christian Democratic Appeal or CDA [Jan Peter BALKENENDE]; Christian Union Party [Andre ROUVOET]; Democrats 66 or D66 [Alexander PECHTOLD]; Green Left Party [Femke HALSEMA]; Labor Party or PvdA [Wouter BOS]; List Pim Fortuyn [Olaf STUGER]; Party for Freedom [Geert WILDERS]; People's Party for Freedom and Democracy (Liberal) or VVD [Mark RUTTE]; Socialist Party [Jan MARIJNISSEN]; Party for Freedom or PVV [Geert WILDERS]; Party for the Animals or PvdD [Marianne THIEME]; Reformed Political Party of SGP [Bas VAN DER VLIES]; plus a few minor parties

Suffrage: 18 years of age; universal

Principal Government Officials

Cabinet and Leadership of the Netherlands

Queen BEATRIX

Note: The prime minister and head of goverment is Jan Peter Balkenende of the Christian Democrats.

The most recent elections were held in Nov. 2006 to determine parliament, which also led to the formation of a new government and prime minister.

Reports emerged in February of 2007 -- several months after parliamentary elections had been held -that a center-left ruling coalition had been formed between the Christian Democrats (CDA), the Labor Party and the Christian Union.

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Principal Government Officials

Political Overview

Party leaders were expected to conclude coalition discussions on February 5, 2007 with the creation of a draft agreement, which would then have to be approved by the three respective parties.

Upon approval, Prime Minister Jan Peter Balkenende of the CDA was expected to continue on in his role as head of government while Labor leader Wouter Bos was expected to become Deputy Prime Minister, while also holding the portfolio for the Finance Ministry.

The new cabinet was as follows --

Queen BEATRIX Prime Min. & Min. of Gen. Affairs Jan Peter BALKENENDE Dep. Prime Min. Wouter BOS Dep. Prime Min. Andre ROUVOET Min. of Agriculture, Nature, & Food Quality Gerda VERBURG Min. of Defense Eimert VAN MIDDELKOOP Min. of Development Cooperation Bert KOENDERS Min. of Economic Affairs Maria VAN DER HOEVEN Min. of Education, Culture, & Science Ronald PLASTERK Min. of the Environment & Spatial Planning Jacqueline CRAMER Min. of European Affairs Frans TIMMERMANS Min. of Finance Wouter BOS Min. of Foreign Affairs Maxime VERHAGEN Min. of Health, Welfare, & Sport Ab KLINK Min. of Housing, Communities, & Integration Ella VOGELAAR Min. of Interior & Kingdom Relations Guusje TER HORST Min. of Justice Ernst HIRSCH BALLIN Min. of Social Affairs & Employment Piet Hein DONNER Min. of Transport, Public Works, & Water Management Camiel EURLINGS

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Leader Biography

Min. of Youth & Family Affairs Andre ROUVOET State Sec. for Defense Cees VAN DER KNAAP State Sec. for Education, Culture, & Science Sharon DIJKSMA State Sec. for Education, Culture, & Science Marja VAN BIJSTERVELDT-VLIEGENTHART State Sec. for European Affairs Frans TIMMERMANS State Sec. for Finance Jan Kees DE JAGER State Sec. for Foreign Trade Frans HEEMSKERK State Sec. for Health, Welfare, & Sport Jet BUSSEMAKER State Sec. for Interior & Kingdom Relations Ank BIJLEVELD-SCHOUTEN State Sec. for Justice Nebahat ALBAYRAK State Sec. for Social Affairs & Employment Ahmed ABOUTALEB State Sec. for Transport, Public Works, & Water Management Tineke HUIZINGA-HERINGA President, The Netherlands Central Bank Nout WELLINK Ambassador to the US Christiaan Mark Johan KROENER Permanent Representative to the UN, New York Franciscus MAJOOR

-- as of 2007

Leader Biography PRIME MINISTER OF THE NETHERLANDS Name Date of Birth Place of Birth Civil Status Children

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Foreign Relations

Political Overview

Education Previous Positions Present Positions

Foreign Relations General Relations

The Netherlands is a member of numerous international organizations including the United Nations and many of its specialized and regional agencies, the International Bank for Reconstruction and Development (World Bank), the International Monetary Fund (IMF), the World Trade Organization (WTO), and the Organization for Economic Cooperation and Development (OECD).

The Netherlands is also a member of the European Union (EU), the North Atlantic Treaty Organization (NATO), the European Bank for Reconstruction and Development (EBRD), the Organization for Security and Cooperation in Europe (OSCE), and the Council of Europe. In addition, the Netherlands is a member of the Western European Union (WEU).

The Netherlands' primary foreign policy concerns are relations with its fellow Benelux states, Belgium and Luxembourg; relations with the rest of Western Europe, in particular through its membership in the European Union (EU); relations with its fellow NATO members; and relations with the Baltic states and Central and Eastern European states hoping to join the EU.

Regional Relations

The Netherlands has very close ties to Belgium and Luxembourg. "Benelux" is the Customs Union formed by Belgium, Luxembourg, and the Netherlands in 1948. The union's goal was to promote economic cooperation and integration among the three states through the free movement of people, goods, services, and capital. Benelux served as the model for the European Community, and, in large part, has been included within the broader arrangement. When their fellow Europeans have expressed reservations about the form or pace of integration, the Benelux countries consistently have asserted the need for further integration and cooperation. For example, it was the Benelux states, in particular, that urged EU-wide acceptance of the Schengen Agreement.

Relations with the European Union (EU)

The Netherlands was one of the six founding members of the European Coal and Steel Community ECSC) in 1951 and continued to play a key role in European integration as the ECSC evolved into the European Communities (EC). The most important of the three communities in the EC was the European Economic Community (EEC) which created a common market that abolished tariffs between the

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member states. The EC has experienced several episodes of major institutional developments since the Treaty of Paris establishing the ECSC in 1951 including:

- the introduction of direct elections to the European Parliament in 1979

- the Single Europe Act of 1986-which sought to create a single market in goods and services

- the Maastricht Treaty of 1992-which renamed the EC to the European Union (EU), altered relations between the EU's legislative institutions, set a timeline for the adoption of a single EU-wide currency, and established the criteria that the member-states had to meet in order to join the single currency

- the Amsterdam Treaty of 1997-which further altered relations between the EU's institutions

- the launch of the single currency, the euro, in 1999

- proposals for the development of common foreign and security policies (CFSP) within the EU

As a small, West European country, The Netherlands has long viewed common European institutions as necessary for economic and security reasons. As a Benelux country and one of the founding countries of the EC, it is also one of the principal advocates of greater European political and economic integration. The Netherlands was a key supporter of each of the EC/EU's institutional changes including the Single Europe Act and the Maastricht and Amsterdam treaties.

In May 1998, the European Council defined the list of countries participating in the Economic and Monetary Union (EMU): Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain. Greece became a participating member in 2001. The euro was launched on Jan. 1, 1999; conversion rates of all EMU member states' currencies to the euro were irrevocably fixed. As of Jan. 1, 2002, euro banknotes and coins became legal tender in the Netherlands; the Dutch guilder ceased to be legal tender on Jan. 28, 2002. A Dutchman, Wim Duisenberg, currently heads the European Central Bank (ECB). It is quite likely that the Dutch will continue to play an important role in further economic and monetary integration in the EU.

The Netherlands is also a signatory to the Schengen Agreement of 1990, concerning the free movement of people across the borders of the European Union (EU) member states. From 1990 to May 1999, Schengen was an intergovernmental agreement among signatories and was not European Union law. When the Treaty of Amsterdam entered into force on May 1, 1999, the agreement was supposed to become part of EU law; however, various implementation problems are currently being addressed. Not all EU members are signatories to the Schengen Agreement. The United Kingdom and Ireland are not participants in any part of the accord. Greece, Sweden, Denmark, and Finland have signed but are not full members. Austria, Belgium, France, Germany, Italy, Luxembourg, the Netherlands, Portugal, and Spain are full members. This is supposed to mean the complete removal of internal air, land, and

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Political Overview

sea border controls between the members and cooperation among their respective police forces in criminal matters.

The Netherlands' position on "soft drugs," which makes them generally available throughout the country, is a source of concern for its neighbors. The move to end border controls between neighboring European countries, in particular, the Schengen Agreement, has made intra-regional drug transport much easier. Pressure from neighboring countries, especially France, has resulted in promises of increased efforts to halt the international drug trade in The Netherlands, pending the easing of regional pressures to change their position on "soft drugs."

The Treaty of Amsterdam was signed on Oct. 2, 1997; it became effective on May 1, 1999. The treaty makes significant changes to the way in which the "three pillars" of the European Union will be dealt with in the future. These "three pillars" are first, the single common market; second, common foreign and security policy; and third, justice and home affairs.

The treaty extends the co-decision procedure (in which the European Parliament wields significant amendment and veto powers) to 38 policy areas, that is, most of the policy areas concerning the promotion of the European common market, and therefore, most areas of European Union legislation. It also grants the European Parliament the power to approve or disapprove the choice (made by member governments) of Commission president. (The new president, Romano Prodi, was approved under this procedure). For the Council of Ministers, the treaty extends the areas in which qualified majority voting (QMV) applies. This makes it less likely for single countries to veto policy proposals. The treaty also moves certain policy areas of the 'third pillar' of justice and home affairs, which previously have been decided by intergovernmental bargaining without influence from the Commission or the European Parliament, to the 'first pillar' of single market issues. This change should increase the policymaking influence of the Commission and the Parliament. The Schengen Agreement falls into this category. Finally, the treaty calls for the creation of a "High Representative" for common foreign and security policy. Javier Solana, former secretary-general of NATO, has been appointed as the first high representative. To date, this "second pillar" has been a matter of intergovernmental bargaining, though with QMV. The belief is that the EU will have greater international influence if it is able to speak with one voice on matters of foreign policy.

With regard to a "European Security and Defense Identity" (ESDI), in December 1998, British Prime Minister Tony Blair and French President Jacques Chirac issued what became known as the "St. Malo Declaration," stating that the European Union should have the capability to act autonomously in security matters. This has long been a stated objective by various European leaders and has given rise to various failed attempts at security/defense cooperation. Examples include the European Defense Community (done away with at the draft stage) and the less ambitious Western European Union (which includes some NATO and non-NATO members and some EU and non-EU members).

The problems have been the lack of a common foreign policy (without which a common security policy is not possible); the so-called "special relationship" between the US and the UK; and the lack of consolidation in the European defense industry. That Prime Minister Blair advocated a common security arrangement within the EU was seen as a major breakthrough. Other NATO members subse-

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quently supported this at the April 1999 50thanniversary summit (including, most importantly, the U.S. and hesitantly, Turkey).

At the June 1999 EU Summit in Cologne, Germany, EU leaders agreed on a common defense/security program. In brief, the WEU will be incorporated into the EU by the end of 2000. It has been suggested that the new institution will be able to use NATO equipment without necessarily having other NATO members involved. Other NATO members would be consulted, however. Problems could arise because of non-overlapping memberships (see listing below).

Joint Members in the EU, WEU, and NATO: Belgium, France, Germany, Greece, Italy, Luxembourg, Netherlands, Portugal, Spain, UK

EU and NATO Member and WEU Observer: Denmark

EU Members and WEU Observers: Austria, Finland, Ireland, Sweden

NATO Members and WEU Associate Members: Czech Republic, Hungary, Iceland, Norway, Poland, Turkey

WEU Associate Partners: Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, Slovenia

In late 2000, the EU agreed to create a "rapid reaction force" consisting of approximately 60,000 troops to be deployed on humanitarian missions, peacekeeping missions, and in crisis situations, more generally. Serious concerns remain on the part of EU member states and non-EU members of NATO (particularly, the United States and Turkey) about the nature and command of this force - and its compatibility with NATO. At the December 2001 Laeken Summit, the EU governments declared the proposed rapid reaction force, which eventually will number 60,000 troops, to be operational.

Throughout 2000, the member states of the EU were engaged in an intergovernmental conference (IGC) tasked with designing a new treaty that prepares the EU for eventual enlargement that will nearly double the number of member countries in the EU. Enlargement will initially include Cyprus, the Czech Republic, Estonia, Hungary, Poland, and Slovenia. Six more countries are expected to follow; they are: Bulgaria, Latvia, Lithuania, Malta, Romania and Slovakia. Turkey has also been asked

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to begin negotiations for future accession to the EU. The larger membership necessarily requires changes in the EU institutions, which were designed for a far smaller number of member states.

In particular, the IGC was focused on three primary institutional decisions. The first issue was how to limit the size of the European Commission, the EU's executive branch, and how to distribute the commission's positions among the member states. Currently, France, Germany, Italy, Spain, and the United Kingdom obtain two commission positions each while the other 10 countries each receive one commission position. The second institutional issue concerned reformulating the voting procedure in the Council of Ministers, the EU legislature responsible for representing the member states' governments, to better reflect the population size of the member states. Currently, the smaller states are favored in the Council of Ministers' system of weighted votes. The third issue was altering the treaties to allow for more majority voting, based on weighted votes, in the Council of Ministers. Enlargement will make it more difficult to pass legislation in those issue areas that currently require unanimity in the Council of Ministers by granting even more countries the ability to single-handedly stop changes in EU policy. Treaty changes, which would allow for majority voting in some of these areas, would significantly facilitate the EU's legislative process.

The IGC concluded at a summit in Nice, France with France holding the six-month rotating presidency of the Council of the European Union. While French president Chirac claimed success, many analysts noted that the IGC was the longest and one of the most contentious summits in the EU's history with much of the controversy surrounding the re-weighting of votes in the Council of Ministers. The socalled Franco-German axis was threatened by the French refusal to give up voting power parity with Germany, even though Germany has a substantially larger population and economy. Additionally, large states were pitted against small states as the larger states sought to have the weight of votes more accurately reflect the population size of the member-states. In the end, an even more complicated weighting of votes was devised which increased the voting power of the larger states relative to that of the smaller states. In addition to re-weighting, the new rules for calculating a qualified majority, which will go into effect after enlargement, contain two new elements: a qualified majority in the Council of Ministers, according to vote weights, must also represent at least one-half of the member-states and 62 percent of the EU total population.

The other two institutional questions addressed at the Nice summit concerned the size of the European Commission and increasing the number of policy areas where qualified majority voting in the Council is applied. On the first question, the large states, which currently have two members in the Commission, agreed to give up their second member by 2005. Also, agreement was reached to limit the total size of the Commission to 27 members after enlargement. On the second question, qualified majority was extended to 39 new policy areas, which means that the vast majority of policy made at the European level is now covered by the qualified majority rule in the Council of Ministers, though countries retain vetoes over certain sensitive issue areas. In addition to agreeing to some institutional reforms, the participants at Nice signed a Charter of Fundamental Rights, which codifies a number of civil, political, and social rights for EU citizens. However, the leaders of the 15 member-states did not include the Charter in the Nice Treaty, thereby weakening the Charter's legal force.

Another pivotal summit was held in Laeken, Belgium in December 2001 during the Belgian EU presidency. The principal outcome of the "Laeken declaration" was an agreement to establish a 105-member convention with the responsibility to assess problems with the EU's political structure and to

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propose possible changes. Many have likened the proposed convention to a constitutional convention with a responsibility to consolidate the existing treaties that form the basis of the EU into a single document with constitutional force.

The issue of the war in Iraq in 2003 demonstrated key differences in foreign policy attitudes across Europe and created divisions within the EU. The question of whether or not those divisions will intensify with time is yet to be determined.

In 2004, the Dutch government took over the six-month rotating presidency of the European Union. The assumption of the EU presidency came on the heels of the expansion of the European body, elections to the European Parliament, and the approval of a new president for the European Commission.

In 2005, a referendum was to be held to ratify the European Constitution. Although as of early 2005 a "yes" vote was anticipated, as the vote drew closer, there was a rise in skepticism about the European bloc. Only days prior to the actual vote, the French had rejected the treaty in their national referendum and polls suggested that the "No" campaign was leading. Prime Minister Jan Peter Balkenende urged Dutch citizens to approve the treaty despite the outcome in France. If his call was not heeded, it was feared that the European Union would be cast into chaos.

Dutch attention was placed on the matter of the European Union (EU) at the close of May 2005 as voters were to go to the polls on June 1, 2005 to either endorse or reject the European constitution by referendum. Only days prior, the French had rejected the treaty in their national referendum. Days before the vote, polls suggested that the "No" campaign was leading. Prime Minister Jan Peter Balkenende urged Dutch citizens to approve the treaty despite the outcome in France. If his call was not heeded, it was feared that the European Union would be cast into chaos.

On June 1, 2005, voters in the Netherlands overwhelmingly rejected the proposed European constitution. Provisional results indicated that only 38.4 percent of voters chose to back the charter with a "Yes" vote, while 61.6 percent of voters chose to support the "No" campaign. Turnout was strong with 62.8 percent participation. Prime Minister Jan Peter Balkenende expressed regret at the result but said that he would respect it nonetheless. In the Netherlands, the referendum was regarded as consultative rather than legally binding. As such, it was unknown what the referendum result would mean for the Netherlands within the context of the EU. At the very least, coming on the heels of the French result, it evoked questions about the future of the European charter, not to mention the EU itself.

In January 2006, Dutch Foreign Minister Bernard Bot took a firm stand regarding the European constitution when he said that for the Netherlands, the constitution was "dead." Several months later, he reiterated that position but went on to note that the EU likely needed another year in which it could reflect on the future of the European body. The government has said that it would not put the EU constitution to another referendum.

In September 2007, presumably in order to prevent another negative result, the Dutch cabinet ruled against holding another referendum to ratify the new Reform Treaty of the European Union (EU).

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National Security

Political Overview

Both the Netherlands and France rejected the proposed European constitution in 2005 in public referenda, effectively creating a crisis of sorts within the EU. In order to preclude such an outcome for the successor legislation, especially since polls showed that the Dutch public was inclined to reject the Reform Treaty, just as it had rejected its predecessor, the Dutch cabinet decided that ratification should ensue via parliamentary vote instead. Still, there was no guarantee that parliament would itself support such a move, and such a change had to be endorsed by the legislative body.

Note: The draft of the constitution of the European Union had been crafted in 2004 following extensive -and often difficult -- negotiations among European governments. At the time of writing, nine countries had formally endorsed the European constitution: Austria, Germany, Greece, Hungary, Italy, Lithuania, Slovakia, Slovenia and Spain. Fifteen countries are yet to formally endorse the constitution, with eight of these countries scheduled to go the route of ratification by referendum.

NATO and International Efforts In February of 2006, the Dutch parliament agreed to deploy an additional 1,400 troops to Afghanistan to assist with the efforts of the Nato-led forces operating there. The decision came on the heels of several weeks of political discussions in which a small centrist party in the governing coalition opposed the mission. The scenario was also complicated by international pressure. European Union (EU) ambassador to Afghanistan, Francesc Vendrell, said says the Dutch decision to send more troops would be vital in establishing the EU's credibility.

National Security External Threats The Netherlands does not face any immediate threats from other countries. Crime The Netherlands has a moderately high crime rate. Citing local media sources, the U.S. Department of State reports that approximately one out of every ten visiting tourists is a crime victim in Amsterdam. While the incidence of violent crime is low, theft is prevalent. The Netherlands is also a major narcotics trafficking hub. It serves as an interim destination for cocaine, hashish, and heroin bound for final destinations throughout Europe. It is also a significant producer of ecstasy, amphetamines, and other synthetic drugs. The Netherlands' well-developed financial sector is susceptible to money laundering. Insurgencies The Netherlands enjoys an extremely high degree of politically stability. There are no insurgent movements operating inside or outside of the country that directly threaten its government or general population. Terrorism The Netherlands has played an active role in international efforts to combat global terrorism, which also poses a credible danger to its own national security. The Netherlands contributed to the liberation of Afghanistan from the Taliban, a regime that harbored and protected elements of the al-Qaida network, including its leader Osama bin Laden. It provided a frigate, fighter aircraft, and reconnaissance

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Defense Forces

planes to Operation Enduring Freedom. And it continues take part in multinational efforts to maintain stability in the region. Along with Germany, the Netherlands assumed joint command of the International Security and Assistance Force (ISAF) in Afghanistan in 2003 and has pledged US$15 million towards the rebuilding of the country. At home, the Netherlands has blocked the accounts and financial transactions of organizations with suspected ties to global terrorist networks, including the Hamasaffiliated al-Aqsa Foundation, as well as Benevolence International Nederland, allegedly linked to alQaida. It has also taken steps to enhance its port security, including the installation of radiological monitors at the port facility in Rotterdam, expected to be operational in the latter part of 2004. The Netherlands is party to all twelve of the international protocols and conventions pertaining to terrorism. The U.S. Department of State reports that in the past, Dutch law has inhibited the investigation and prosecution of suspected terrorists in the Netherlands. Proposed legislative amendments are anticipated to facilitate the Netherlands' efforts to combat terrorism, however. Other The late right-wing politician Pim Fortuyn embodies a paradox in Dutch views on immigration. Some perceive immigration as a significant threat, while others subscribe to the belief that attempts to halt or curb it represent a far greater menace to a society that prides itself on being progressive. Fortuyn supported a total ban on immigration. He was particularly adamant about stemming the flow of Muslim immigrants to the Netherlands, asserting that the conservative views of Islam contradict the country's longstanding tradition of protecting and promoting civil liberties. His message resonated with a certain segment of the population. He was expected to fare well in the 2002 general elections. But others vehemently disagreed with Fortuyn's views. Against the backdrop of such an open-minded society, they stood out as being particularly fascist. On May 6, 2002, a lone gunman shot and killed Fortuyn, less than two weeks before the elections took place. His assailant was neither an immigrant nor a Muslim. A white, Dutch-born 33-year old animal rights activist named Volkert van der Graaf confessed to the crime and is now serving an 18-year prison sentence. Van der Graaf's actions elicited widespread condemnation on both sides of the political spectrum.

Supplementary source: BBC article, available at URL: http://news.bbc.co.uk/1/hi/world/europe/1971462.stm

Defense Forces Military Data Military Branches:

Royal Netherlands Army, Royal Netherlands Navy (includes Naval Air Service and Marine Corps), Royal Netherlands Air Force (Koninklijke Luchtmacht, KLu), Royal Constabulary, Defense Interservice Command (DICO) Eligible age to enter service:

20 Mandatory Service Terms:

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Defense Forces

Political Overview

N/A Manpower in general population-fit for military service:

males age 20-49: 2,856,691 females age 20-49: 2,786,495 Manpower reaching eligible age annually:

males: 99,934 females age 20-49: 95,818 Current Capabilities:

Active: 53,130 Reserve: 54,400 Military Expenditures (in US $):

$9.408 billion Percent of GDP:

1.6%

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Chapter 3 Economic Overview

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Economic Overview

Economic Overview

Economic Overview Economic Overview Overview

The Netherlands has an advanced and prosperous economy. With Rotterdam as Europe's largest port, the country's geographical position as a crucial hub of Europe's transport system and the small size of its domestic market have made the Dutch economy one of the most open and outward-looking in the world. The openness of the economy is also reflected in the country's success in attracting foreign direct investment (FDI). The Netherlands is also an important producer of natural gas and petroleum for the European market and plays a major role as a transshipment center for mineral materials. Comprehensive economic reforms that started in the 1980s resulted in robust economic growth and reduction of unemployment in the Netherlands during the 1980s and 1990s. However, economic growth experienced a sharp slowdown in the early years of the new millennium largely due to the deteriorating competitiveness and weakening external demand.

After a period of slow or negative growth, economic growth started to recover in 2004 and the recovery is now firmly entrenched. Economic performance has been strong, the unemployment rate has significantly declined, and inflation has stayed in check. Improvements in the macroeconomic and business environments and technological innovation have contributed positively to the country's competitiveness. Looking ahead, a major challenge for policymakers is addressing population aging. In the current situation of robust economic growth and a tightening labor market, it is important to continue fiscal consolidation to further efforts in addressing the fiscal implications of population aging, and to reduce potential overheating risks.

Economic Performance

After a long period of comparatively strong economic performance, Netherlands' growth slowed when the country entered the new millennium, with GDP growth averaging just 0.8 percent from 2001 to 2003. A weakening external environment contributed to the sharp slowdown of economic activity, and deteriorating competitiveness due to wage pressures caused by tightness in the labor market restrained export performance and overall growth. Economic activity started to recover in 2004, and growth has since been strong. In 2006, real GDP growth reached 2.9 percent, up from 2 percent in 2004 and 1.5 percent in 2005. Growth has been broad-based, driven by strong consumption growth and business investment, and by favorable export performance. Meanwhile, inflation has remained in check, standing at 1.7 percent in 2006, compared to 1.5 percent in 2005. Fiscally speaking, after breaching the Maastricht deficit ceiling (three percent) in 2003, the Dutch government achieved considerable fiscal consolidation. As a result, the fiscal deficit declined to 1.8 percent of GDP in 2004 from 3.1 percent of GDP in 2003, and narrowed substantially to just 0.3 percent of GDP in 2005. In 2006, the fiscal balance shifted to a surplus of 0.6 percent of GDP, reflecting contributions from expenditure cuts and revenue measures, and from larger gas revenues.

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Economic Overview

Balance of Payments

As an internationally-oriented economy, the Netherlands is highly dependent on foreign trade, with exports of goods and services making up about 70 percent of its GDP growth. As a result, the country continues to run significant surpluses in its trade and current account balances. As economic activity started to recover with the external environment becoming more favorable, the current account surplus increased substantially to 8.9 percent of GDP in 2004 from 5.4 percent of GDP in 2003. The current account position remained strong in 2005 and 2006, with the surplus standing at 6.3 percent of GDP and 7.1 percent of GDP, respectively. Regional Situation

The Netherlands has traditionally been a strong advocate of European integration, with most aspects of its foreign, economic and trade policies being coordinated through the EU. Its economy is highly dependent on foreign trade, and exports to EU countries account for nearly 80 percent of the Dutch total exports. However, Dutch voters joined the French in rejecting the EU constitution in June 2005. This rejection reflects a strong anti-establishment feeling on the part of voters who disapprove of the EU's way of doing business, particularly when comes to topics such as the euro, the accession of ten new members, and the decision to start entry talks with Turkey. The euro is widely blamed for increasing the cost of living in the Netherlands. Some Dutch voters also fear that small countries will lose influence in an EU dominated by bigger ones, and are hoping the "No" vote will improve debate on European issues.

Updated in 2007

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Balance of Payments

Economic Overview

Balance of Payments Netherlands Macroeconomic Activity Balance of Payments (Billions of $US) 2002

2003

2004

2005

2006

11.349 E

26.940

54.413

40.188

57.448

Goods and Services

17.499 E

35.754

47.277

51.074

53.585

Net Investment Income

0.059 E

-1.001

15.088

-0.541

15.307

Net Current Transfers

-6.209 E

-7.813

-7.952

-10.345

-11.444

Capital and Financial Account

-5.073 E

-26.866

-54.600

-33.316

-1.357

Net Errors and Omissions

-6.077 E

-3.641

-0.827

-9.319

-13.980

Overall Balance

0.199 E

-3.567

-1.014

-2.447

42.111

n.a.

n.a.

n.a.

n.a.

n.a.

2.6% E

5.0%

9.0%

6.5%

8.8%

Current Account Balance

Official Reserves Stock

Current Account (Percent of GDP)

*See appendix for sources and additional information.

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Government Sector

Government Sector Netherlands Macroeconomic Activity Government Sector euros-billions 2002

2003

2004

2005

2006

Expenditures

110.2

116.0

118.5

120.4

133.6

Revenues

103.3

105.3

109.1

120.3

137.8

Deficit(-) or Surplus

-6.90

-10.72

-9.44

-0.076

4.16

*See appendix for sources and additional information.

Government Sector - Graph

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Gross Domestic Product

Economic Overview

Gross Domestic Product Netherlands Macroeconomic Activity Gross Domestic Product euros-billions 2002

2003

2004

2005

2006

Private Consumption

233.0

238.1

241.4

247.1

248.6

Gross Fixed Capital Formation

92.9

90.7

94.6

97.3

Increase/Decrease(-) in Stocks

1.500

-1.300

-0.100

0.800

Government Consumption

110.2

116.0

118.5

120.4

Exports of Goods&Services

298.5

301.4

328.1

354.2

391.6

Imports of Goods&Services

268.1

268.3

292.6

314.5

350.8

Gross Domestic Product

465.2

476.3

488.6

500.2

GDP Growth Rate (%)

3.9%

2.4%

2.6%

2.4%

*See appendix for sources and additional information.

75

Netherlands Review 2007

Economic Overview

Growth Rates: Real GDP, Population, Real GDP Per

Growth Rates: Real GDP, Population, Real GDP Per Capita - Graph

Netherlands Review 2007

76

Major Trading Partners

Economic Overview

Major Trading Partners Macroeconomic Activity Major Trading Partners ($US Millions) 2001

2002

2003

2004

2005

36,140

n.a.

20,302

n.a.

15,128

n.a.

18,111

n.a.

11,123

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

Imports

Exports

*See appendix for sources and additional information.

77

Netherlands Review 2007

Economic Overview

Money Supply, Interest Rates, Foreign Exchange Re-

Money Supply, Interest Rates, Foreign Exchange Reserves Netherlands Macroeconomic Activity Money Supply, Interest Rates and Foreign ExchangeReserves 2002

2003

2004

2005

2006

Money Supply M1 (euros-billions)

153

156

162

173

173

Money Supply - M2 (euros-billions)

460

498

525

576

576

Growth Rate - M1 %

1.0%

2.3%

4.0%

6.7%

Growth Rate - M2 %

3.1%

8.3%

5.4%

9.7%

0.0%

euro interbank rate (overnight)

3.28%

2.32%

2.50%

2.50%

2.50%

euro lending rate

3.28%

2.32%

2.50%

2.50%

2.50%

10

11

10

9

Interest Rates

Foreign Exchange Reserves ($US Millions)

*See appendix for sources and additional information.

Netherlands Review 2007

78

Price and Exchanges Rates

Economic Overview

Price and Exchanges Rates Netherlands Macroeconomic Activity Prices and Exchange Rates 2002

2003

2004

2005

2006

Consumer Prices Period Average 1995=100

107.6

109.9

111.2

113.1

113.1

Annual % Growth

3.3%

2.1%

1.2%

1.7%

1.1000

0.9000

0.8000

0.8000

-4.91

-16.62

-9.10

2002

2003

2004

2005

2006

422

505

565

572

589

Total Population (Millions-Mid Year Average)

16122830

16223248

16318199

16407491

16491461

Real GDP Per Capita (1995$US Per Capita)

23,916

28,380

31,566

31,791

Exchange Rate Period Average euros / $US Annual % Growth

*See appendix for sources and additional information.

Real GDP Per Capita Netherlands Macroeconomic Activity Real GDP Per Capita (Purchasing Power Parity Method)

Real GDP (Millions of 1995$US)

*See appendix for sources and additional information.

79

Netherlands Review 2007

Economic Overview

Trade Balance

Trade Balance Netherlands Macroeconomic Activity Trade Balance (Goods&Services), National Income Products Account ($US Millions) 2002

2003

2004

2005

2006

Exports

77

76

85

95

134

Imports

128

141

157

154

161

Trade Balance

-51

-65

-72

-59

0

*See appendix for sources and additional information.

Unemployment Rate - Graph

Netherlands Review 2007

80

Agricultural Exports

Economic Overview

Agricultural Exports Netherlands Key Sectors Agriculture/Food: Agricultural Exports ($1,000) 1997

1998

1999

2000

2001

Meats and Meat Prep

4,405,499

3,908,810

4,654,926

3,672,248

3,394,881

Cereals&Preps

1,458,485

1,252,939

1,428,023

1,085,546

1,122,374

Dairy Products and Eggs

3,806,657

3,805,697

3,785,751

3,214,645

3,295,332

Fruits and Vegetables

5,775,475

5,624,975

6,514,584

4,967,853

5,035,370

Beverages and Tobacco

4,394,152

3,913,919

4,752,748

4,207,909

4,336,900

Other Agricultural Exports

1,532,370

1,408,354

1,828,868

1,612,018

1,632,142

Total Exports

32,037,093

30,213,248

34,387,165

27,884,332

27,777,007

*See appendix for sources and additional information.

81

Netherlands Review 2007

Economic Overview

Agricultural Imports

Agricultural Imports Netherlands Key Sectors Agriculture/Food: Agricultural Imports ($1,000) 1997

1998

1999

2000

2001

Meats and Meat Prep

1,256,293

1,105,651

1,383,368

1,146,867

1,381,671

Cereals&Preps

1,561,825

1,358,069

1,676,395

1,084,591

1,317,439

Dairy Products and Eggs

1,920,215

1,767,882

2,077,450

1,611,467

1,558,926

Fruits and Vegetables

3,734,825

3,812,348

4,438,947

3,429,863

3,534,510

Beverages and Tobacco

1,932,565

1,778,042

2,115,179

1,918,506

1,855,510

821,610

750,634

985,510

743,629

694,727

18,214,355

17,926,313

20,118,535

16,218,531

16,978,184

Other Agricultural Imports

Total Imports

*See appendix for sources and additional information.

Netherlands Review 2007

82

Electric Power Sector Data

Economic Overview

Electric Power Sector Data Netherlands Key Sectors Energy: Electric Power Sector Data (Billions of KWH) 1999

2000

2001

2002

2003

Thermal

73.297

75.470

80.010

82.300

81.980

Hydro

0.089

0.140

0.120

0.110

0.070

Nuclear

3.640

3.730

3.780

3.720

3.820

Renewables

4.538

4.140

4.340

5.040

5.210

Total

81.564

84.360

88.250

90.370

91.070

Electricity Consumption

94.291

97.360

99.320

101.140

101.630

Electricity Imports

22.405

22.946

21.492

20.900

20.800

Electricity Exports

3.968

4.031

4.209

4.500

3.800

20,210.000

84.350

88.210

91.120

91.000

Electricity Production

Installed Capacity (MW)

*See appendix for sources and additional information.

83

Netherlands Review 2007

Economic Overview

Fossil Fuel Reserves

Fossil Fuel Reserves Netherlands Key Sectors Energy: Fossil Fuel Reserves Fuel Coal*

Units

Value

mm st

548.000

tcf

62.000

billion bbl

0.100

Natural Gas** Oil**

* As of April 23, 2002 ** As of January 1, 2001 *See appendix for sources and additional information.

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84

Mining/Metals Production

Economic Overview

Mining/Metals Production Netherlands Manufacturing Mining/Metals: Production Commodity

Units

2000

2001

2002

2003

2004

Bauxite

MT1000s

0

0

0

0

0

Copper

MT

0

0

0

0

0

Carats 1000s

0

0

0

0

0

KG

0

0

0

0

0

MT 1000s

0

0

0

0

0

Lead

MT

0

0

0

0

0

Nickle

MT

0

0

0

0

0

MT 1000s

0

0

0

0

0

Platinum

KG

0

0

0

0

0

Silver

MT

0

0

0

0

0

Tin

MT

0

0

0

0

0

Zinc

MT

0

0

0

0

0

Diamonds Gold Iron Ore

Phosphates

*See appendix for sources and additional information.

85

Netherlands Review 2007

Economic Overview

Production and Consumption of Energy (QUADS)

Production and Consumption of Energy (QUADS) Netherlands Key Sectors Energy: Production and Consumption of Primary Energy (Quads)

Coal

Hydro

Natural Gas

Nuclear

Petroleum

Renewables

Total

2000

2001

2002

2003

2004

Production

0.000

0.000

0.000

0.000

0.000

Consumption

0.318

0.331

0.334

0.342

0.339

Net Exports

-0.318

-0.331

-0.334

-0.342

-0.339

Production

0.001

0.001

0.001

0.001

0.001

Consumption

0.001

0.001

0.001

0.001

0.001

Net Exports

0.000

0.000

0.000

0.000

0.000

Production

2.288

2.456

2.392

2.301

2.715

Consumption

1.543

1.581

1.580

1.587

1.620

Net Exports

0.745

0.875

0.812

0.715

1.095

Production

0.036

0.037

0.036

0.037

0.035

Consumption

0.036

0.037

0.036

0.037

0.035

Net Exports

0.000

0.000

Production

0.065

0.059

0.104

0.106

0.096

Consumption

1.789

1.875

1.881

1.923

1.988

Net Exports

-1.725

-1.816

-1.777

-1.817

-1.892

Production

0.042

0.045

0.051

0.053

0.064

Consumption

0.042

0.045

0.051

0.053

0.064

Net Exports

0.000

0.000

Production

2.483

2.636

Consumption

3.723

4.051

Net Exports

-1.320

-1.300

-1.320

-1.470

-1.160

*See appendix for sources and additional information.

Netherlands Review 2007

86

Production and Consumption of Energy (Standard Units)

Economic Overview

Production and Consumption of Energy (Standard Units) Netherlands Key Sectors Energy: Production and Consumption of Primary Energy (Standard Units)

Coal (mm st)

Hydro

Natural Gas

Nuclear

Petroleum

Renewables

2000

2001

2002

2003

2004

Production

0.000

0.000

0.000

0.000

0.000

Consumption

14.161

14.751

14.803

15.157

14.646

Net Exports

-14.161

-14.751

-14.803

-15.157

-14.646

Production

0.141

0.116

0.109

0.071

0.095

Consumption

0.141

0.116

0.109

0.071

0.095

Net Exports

0.000

0.000

0.000

0.000

0.000

Production

2,559.172

2,746.977

2,676.029

2,574.322

3,036.490

Consumption

1,725.420

1,768.752

1,767.198

1,774.932

1,811.730

Net Exports

833.752

978.226

908.832

799.390

1,224.760

Production

3.730

3.777

3.719

3.819

3.629

Consumption

3.730

3.777

3.719

3.819

3.629

Net Exports

0.000

0.000

0.000

0.000

0.000

Production

88.190

81.490

98.380

100.950

95.800

Consumption

854.520

893.650

898.320

918.640

946.690

Net Exports

-766.330

-812.170

-799.950

-817.690

-850.890

Production

4.138

4.343

5.038

5.206

6.405

Consumption

4.138

4.343

5.038

5.206

6.405

Net Exports

0.000

0.000

0.000

0.000

0.000

*See appendix for sources and additional information.

87

Netherlands Review 2007

Economic Overview

Production from Key Industries

Production from Key Industries Netherlands Manufacturing Production From Key Industries 1997

1998

1999

2000

2001

2,378,000

2,303,000

2,300,000

471,000

372,000

n.a.

n.a.

n.a.

0

0

Veg. Oil and Fat

1,109,000

897,000

1,217,000

1,153,000

1,031,000

Wine

1,167,429

1,195,893

1,161,610

1,213,551

1,213,056

TOTAL

4,654,429

4,395,893

4,678,610

4,666,551

4,544,056

1995

1996

1997

1998

1999

3,180

3,140

3,230

3,200

3,200

216

227

232

264

265

Pig Iron

5,647

5,545

5,804

5,561

5,320

Raw Steel

6,409

6,325

6,640

6,379

6,075

12,272

12,097

12,676

12,204

11,660

Food

(MT)

Beer Raw Sugar

Cement

(MT 1000s)

Metals

(MT 1000s)

Aluminum

TOTAL

*See appendix for sources and additional information.

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88

Production of Meat

Economic Overview

Production of Meat Netherlands Key Sectors Agriculture/Food: Production of Meat (Metric Tons) Product

2000

2001

2002

2003

2004

Beef and Veal

287,800

386,800

315,300

349,100

287,600

Buffalo Meat

0

0

0

0

0

Camel Meat

0

0

0

0

0

Chicken Meat

697,000

701,000

701,000

462,000

592,000

Donkey Meat

0

0

0

Duck Meat

14,000

14,000

14,000

14,000

14,000

Game Meat

0

0

0

0

0

Goose Meat

0

0

0

0

0

Goat Meat

300

330

330

330

420

Horse Meat

1,000

1,100

1,000

1,000

1,000

Meat Nes

0

0

0

0

n.a.

Mule Meat

0

0

0

0

0

18,300

18,000

22,000

22,000

16,000

1,622,800

1,458,000

1,420,000

1,253,000

1,299,000

Rabbit Meat

0

0

0

0

0

Turkey Meat

43,000

42,000

42,000

42,000

40,000

2,879,130

2,594,800

2,536,850

2,223,420

2,350,150

-10%

-2%

-12%

6%

Mutton and Lamb Pig Meat

Total Production

Growth Rates (%)

-

*See appendix for sources and additional information.

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Netherlands Review 2007

Economic Overview

Production of Primary Crops

Production of Primary Crops Netherlands Key Sectors Agriculture/Food: Production of Primary Crops (Metric Tons) Product

2000

2001

2002

2003

2004

n.a.

n.a.

n.a.

n.a.

n.a.

BARLEY

0

0

0

0

0

COCOA BEANS

0

0

0

0

0

COCONUTS

0

0

0

0

0

COFFEE, GREEN

0

0

0

0

n.a.

162,000

150,000

158,000

196,000

196,000

8,126,800

7,015,253

7,363,000

6,468,762

7,488,000

RICE, PADDY

0

0

0

0

0

SOYBEANS

0

0

0

0

0

SUGAR BEETS

6,727,494

5,947,364

6,250,000

6,400,000

6,292,000

SUGAR CANE

0

0

0

0

0

WHEAT

1,143,000

991,000

1,057,000

1,130,100

1,223,900

Total Production

16,447,294

14,490,617

15,143,000

Growth Rates (%)

-

-12%

5%

BANANAS

MAIZE POTATOES

*See appendix for sources and additional information.

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90

Telecommunications

Economic Overview

Telecommunications Netherlands Key Sectors Services: Telecommunications 1999

2000

2001

2002

2003

Main Lines (1000s)

9,610

80

81

0

0

Main Lines per 100 persons

60.5

0.502896

0.505698

0

0

Mobile Cellular Subscribers

6,745,500

10,755,000

12,352,000

12,060,000

12,500,000

43

68

77

75

77

2000

2001

2002

2003

2004

Tourist Arrivals (1000s)

10,003

0

9,595

9,181

9,464

Tourist Expenditures Abroad ($US Millions)

7,217

0

7,706

9,160

10,260

International Tourist Receipts in this Country ($US Millions)

11,285

11,147

11,745

0

0

Mobile Cellular Subscribers per 100 persons

*See appendix for sources and additional information.

Tourism Netherlands Key Sectors Services: Tourism

*See appendix for sources and additional information.

91

Netherlands Review 2007

Economic Overview

Transportation

Transportation Netherlands Key Sectors Services: Transportation 1999

2000

2001

2002

2003

Passenger-KM

0

0

0

0

0

Ton-KM

0

0

0

0

0

Passenger-KM

0

0

0

0

0

Ton-KM

0

0

0

0

0

Clearances-Tons

n.a.

0

0

0

0

Entrances-Tons

n.a.

0

0

0

0

Registered-Tons

4,814

5,168

5,605

5,664

5,703

Air Traffic

Rail Traffic

Ship Traffic

*See appendix for sources and additional information.

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92

World Agricultural Prices

Economic Overview

World Agricultural Prices World Key Sectors Agriculture/Food: World Agriculture Prices Product

2000

2001

2002

2003

2004

Banannas

$/mt

422.27

584.70

527.61

375.19

524.84

Barley

$/mt

77.23

93.94

108.97

104.72

9,899.00

Beef

$/mt

87.79

96.54

95.40

89.74

113.91

Chicken

$/mt

1,189.00

1,272.60

1,261.60

1,324.20

1,514.60

Cocoa

$/mt

903.91

1,088.38

1,779.04

1,753.07

1,550.74

Coconut Oil

$/mt

457.73

314.23

414.78

461.75

673.30

Coffee

$/mt

1,596.00

1,010.00

900.60

1,015.60

1,384.80

Fish Meal

$/mt

452.10

530.05

645.54

650.20

692.88

Lamb

$/mt

112.85

130.25

146.04

159.81

165.77

Maize

$/mt

88.22

89.61

99.33

105.19

111.78

Pork

$/mt

1,185.80

1,228.60

945.20

1,068.00

1,420.20

Potatoes

$/mt

n.a.

n.a.

n.a.

n.a.

n.a.

Rice

$/mt

203.69

172.71

191.83

199.46

245.78

Soybeans

$/mt

183.00

168.75

188.75

233.25

276.83

Sugar

$/mt

388.00

426.80

418.80

430.00

411.40

Wheat

$/mt

124.72

144.03

152.78

165.55

167.05

Wood(logs)

$/mt

180.78

157.73

145.92

145.57

173.68

*See appendix for sources and additional information.

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Netherlands Review 2007

Economic Overview

World Energy Prices

World Energy Prices World Key Sectors Energy: World Energy Prices Commodity

Unit

1998

1999

2000

2001

2002

n.a.

1.220

1.080

1.390

1.730

1.860

US Export FOB

n.a.

1.430

1.380

1.680

1.780

1.950

US Utilities CIF

n.a.

1.250

1.220

1.330

1.360

1.380

Brent

n.a.

12.720

17.810

28.660

24.460

24.990

Dubai

n.a.

12.120

17.160

26.120

22.810

23.750

US-RAC

n.a.

12.220

17.510

27.720

22.000

23.710

US-WTI

n.a.

14.350

19.240

30.380

25.980

26.180

$/kwh

0.045

0.044

0.046

0.051

0.049

Europe Border

n.a.

2.420

2.130

0.050

0.050

0.050

LNG Japan

n.a.

2.910

3.080

3.250

4.150

3.460

US Henry Hub

n.a.

2.090

2.270

4.310

4.390

4.070

US Wellhead

n.a.

1.960

2.190

4.230

4.070

3.330

Coal Australian Export FOB

Crude Oil

Electricity US Industrial

Natural Gas

*See appendix for sources and additional information.

Netherlands Review 2007

94

World Price Trends

Economic Overview

World Price Trends World Manufacturing World Price Trends Commodity

Units

Cement

1997

1998

1999

2000

2001

73.49

76.46

78.27

78.56

76.50

Food Beer

2000=100

99.4

104.4

104.3

100.0

109.3

Raw Sugar

2000=100

69.9

74.9

95.3

100.0

91.9

71.0

80.3

96.9

100.0

89.5

102.6

100.2

94.2

100.0

107.5

0.771

0.655

0.657

0.780

0.720

107.4

105.0

97.1

100.0

93.5

Veg. Oil and Fat Wine

2000=100

Metals Aluminum Steel Mill Products

2000=100

*See appendix for sources and additional information.

95

Netherlands Review 2007

Economic Overview

World Price Trends

Chapter 4 Investment Overview

Netherlands Review 2007

96

Foreign Investment Climate

Investment Overview

Investment Overview Foreign Investment Climate Background

The Netherlands is a prosperous country with an open economy and a reliance on foreign trade. The Dutch economy involves industry such as in food processing, chemicals, petroleum refining, and electrical machinery. Other elements include a sophisticated and mechanized agricultural sector. Yet the majority of the country's GDP comes from the combined exports and imports of merchandise, making the Dutch economy one of the most internationally oriented in the world. The country is also a transportation hub for Europe. Although the Dutch economy was affected by the global economic slowdown a few years ago, its economic growth in the years prior was higher than several other European countries. Still, the Netherlands must deal with moderate unemployment and inflation, as well as a deteriorating budget position.

Foreign Investment Assessment

The trade and investment policies of the Netherlands are some of the most open and business-friendly in the world. The Netherlands is one of the world's largest suppliers of investment capital and is ranked as one of the world's largest foreign investors. Yet at the same time, it is also one of the biggest recipients of foreign direct investment. In this regard, the Dutch government has instituted policies favorable to foreign direct investment and adheres to the OECD investment codes. With few exceptions (such as banking, railways and broadcasting) foreign firms are able to invest in any sector and are entitled to equal treatment under the law. The country also adheres to European Union reciprocity provisions. The regulatory system is transparent and has enjoyed regular reform, the financial sector is sophisticated, the physical and technical infrastructure is well developed, and the political climate is highly stable. The only deterrent to foreign investment might be the high cost of labor as the work force itself is very well-educated.

Industries

Agricultural industries, metal and engineering products, electrical machinery and equipment, chemicals, petroleum, construction, microelectronics, fishing.

Import Commodities

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Netherlands Review 2007

Investment Overview

Foreign Investment Climate

Machinery and transport equipment, chemicals, fuels; foodstuffs, clothing.

Import Partners

Other EU countries; US and China

Export Commodities

Machinery and equipment, chemicals, fuels; foodstuffs

Export Partners

Other EU countries; U.S.

Labor Force

Most people employed in industry, services and agriculture.

Telephone System

Highly developed; extensive fiber-optic and cellular networks as well as GSM.

Internet Users

Highly-developed; extensive Internet usage.

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Investment Overview

Ports and Harbors

Amsterdam, Delfzijl, Dordrecht, Eemshaven, Groningen, Haarlem, IJmuiden, Maastricht, Rotterdam, Terneuzen, Utrecht, Vlissingen.

Judicial System

The Netherlands' legal system is influenced by French penal theory and includes judicial review. The Netherlands is also a signatory to the international convention on investment disputes and a member of the International Center for the Settlement of Investment Disputes (ICSID).

Corruption Perception Ranking

Transparency International ranks the Netherlands as nine along its continuum making it one of the least corrupt countries in the world.

Cultural Considerations

European norms dictate business conduct including expectations about punctuality. In general, principles of equality and understatement pervade the culture in contrast to the extroversion and ostentatious display of other cultures.

Country Website

N/A

Taxation

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Stock Market

The Dutch recently took the first step towards a fundamental reform of the tax system, partly with a view to further EU integration. The new tax system for the 21st century entails a substantial reduction in wage and individual income taxes, and simultaneous broadening of the tax base, as well as increasing value-added tax (VAT) rates.

Individual tax rates are progressive and go up 52 percent. This tax plan was expected yield a more transparent and equitable tax system and result in an appreciable shift from taxation of labor to taxation of consumption.

The Dutch corporate tax rate is among the lowest in the EU at 29.6 percent. In recent years, Dutch and Foreign multinationals have increasingly established their group financing activities outside the Netherlands due to attractive tax regimes elsewhere. In an attempt to reverse this trend, a bill became effective in 1997 offering finance companies of multinational companies a more friendly tax regime. Under certain conditions, companies conducting group financing activities are allowed to establish an international financial services reserve for tax purposes of up to 80 percent of their annual profits. The reduced profits are subject to the standard corporate tax rate.

Value-added tax, most frequently called by its acronym VAT, is charged on the sale of goods and services within the country. Unlike the customs duty, which is the same for all EU member countries, the VAT is established by the tax authorities of each country and differs from country to country. At each stage of the manufacturing and distribution chain, the seller adds the appropriate amount of VAT (tax on the amount of value that the seller added to the product, plus the amount of VAT passed on to the seller by the supplier) to the sales price. The tax is always quoted separately on the invoice. The firm periodically subtracts the VAT paid on its purchases of goods and services from the VAT collected on sales and remits the balance to the government. This process repeats itself at each stage until the product is sold to the final consumer, who bears the full burden of the tax. Below is a summary of the Dutch VAT rates:

Standard VAT rate is 19 percent; a lower rate of 6 percent applies to necessities of life such as food, medicines, and transportation, while exports and the performance of electronic services for customers outside of the EU are zero-rated.

Excise taxes are levied on a small number of products such as soft drinks, wine, beer, spirits, tobacco, sugar, and petroleum products. For imports, the excise tax is paid by the importer and is in addition to any customs duty or VAT. The EU plans to harmonize excise taxes and create a single internal market.

Stock Market

In 2000, the Paris Bourse, Amsterdam Exchange, and Brussels Exchange merged to form EURONEXT, the largest exchange in Western Europe. Over 1,860 companies are listed on the exchange.

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Partner Links

Investment Overview

For more information on the Amsterdam Exchange and EURONEXT, see URL: http://www.euronext.com/en/.

Partner Links CountryWatch Selected International Links

International Partner Links - to international business and country sites Regional Partners - by major world geographic regions Country Partners - providing information on individual countries International Trade and Investment - for statistics, policies, regulations Business Magazines - to search archives and companies International News - from leading international business media Company and Country Reference - for background and historical development

International Partner Links

InternationalAffairs.com - Oxford Analytical InternationalAffairs.com

International BizTech network - Brint.com International Business & Technology: World Level: @Brint.com

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Partner Links

Internet Resources for International Business - Columbia University Watson Library Business and Economics Internet Resources

International Business and Economics on the Web - Longwood College International Business Business and Economics Information

Foreign Economic Statistics on Web - University of Michigan Statistical Resources on the Web/Foreign Economics

International Business Sources on the WWW - Michigan State University International Business Resources on the WWW

Virtual International and Business Sources - University of North Carolina New Vibes

International Trade and Business Links - University of British Columbia Center for International Business Studies

WebEc International Economic Data - University of Helsinki WebEc - Economic Data

Regional Partners

Asia-Pacific Far Eastern Economic Review Issues and Archives Far Eastern Economic Review

AsiaWeek Issues and archives - Time and CNN.com

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Investment Overview

AsiaWeek.com | Archives | 2000

Asia Source Business & Economics - Asia Society AsiaSource: Business & Economics - A Resource of the Asia Society

Economics and Statistics - Asia Development Bank Economics and Statistics - ADB.org

Individual Economy Reports - APEC APEC - Member Economies

Asian Country Information

Asia/Pacific UN Statistics

Europe Economy and Finance - Eurostat Eurostat: Economy and Finance

Financial and Economic Statistics - European Central Bank ECB - European Central Bank

European Business Directory - EuroPages Europages: The European Business Directory

Central and Eastern Europe Business and Economic Resources - Gonzaga University CEESource

Business, Markets, Stocks, Currencies - Central and Eastern Europe Online Central Europe Online Investor Insight - Central Europe - Investor Insight

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Partner Links

Latin America Latin America Network Information Center LANIC

Business News Americas Daily Business News from Latin America

Latin America Newsletters Political and Economic Information

Latin Focus - On Line Source to Economy LatinFocus

Political Database of the Americas A Political Database Covering the Americas

Economic Commission for Latin America (ECLAC) Statistics Statistics

Inter-American Development Bank (IADB) Research and Statistics Inter-American Development Bank: Research and Statistics

Latin World Country Information Latin America on the Net: Regions

Zona Latina Media and Marketing Zona Latina: The Latina America Media Site

Organization of America States (OAS) Information, News, Reports

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Investment Overview

Organization of American States

Africa African Business and Economy African Business Information Services

All Africa On Line Business allAfrican.com: Business

African Business Network - International Finance Corporation The African Business Network

Lex Africa Business Guides Lex Africa: A Network of Laws Firms in Africa

Africa Business Website - MBendi Africa's Leading Business Website

News Africa On Line Business, News, and Culture

Africa Economic Analysis Headlines and Articles

Africa South of Sahara Business & Economy Africa South of the Sahara - Business & Economy

Middle East Arabia On Line and Business Directory

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Partner Links

Arabia.com

Arab Net Country Information ArabNet

Arab World On Line Country and Business Information Country Information

Middle East Economic Survey of Oil, Banking, Finance, Politics The Middle East Economic Survey

Euro Mediterranean Investment Guides Euromed Internet Forum on the Euro-Mediterranean Partnership

Doing Business in Arab Mid East Countries - Ali Middle Eastern Laws

Country Partners

Infonation - UN data comparisons by Country WebEC - Economics Data

Regions and Countries - World Bank The World Bank Group Countries and Regions

Business and Technology - BizTech - Brint.com International Business & Technology: Country Level: @Brint.com

Area and Ethnic Studies Country Information - Galileo Internet Resources

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Partner Links

Investment Overview

Country Information

Destination Guides - Expedia.com Travel Information for the World Guide

PricewaterhouseCoopers Doing Business Guides Publications: PricewaterhouseCoopers: Global

Quick Tax Guides to 82 Countries - Deloitte Touche Deloitte Touche Tax

Doing Business in 141 Countries - Tax, Investment, Corporate Structure, Accounting - Ernst & Young Ernst & Young's Doing Business In

Political, Economic, Business Reports - Economist Intelligence Unit EIU

Business Information on the Net - University of Strathclyde Business Information Sources on the Internet: Country Information

International Data Base - US Census Bureau International Data Base (IDB)

International Trade and Investment

Trade Statistics - US Office of Trade and Economic Analysis The Office of Trade and Economic Analysis

Web Resources for International Trade - Federation International Trade Associations

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Partner Links

FITA | International Trade Web Resources

International Trade Statistics - International Trade Center Infobases, Products, and Services

Global Statistics - United Nations, Agencies, Autonomous Organizations United Nations and International Statistics Programmes

OECD Statistics Industry Sectors, Economic, and Other

International Corporate Information

Business Magazines

Business Week Issues and Archives The New York Times: BusinessWeek.com

Forbes Issues and Archives Forbes Magazine Archives

Fortune Issues and Archives FORTUNE.com

The Economist Issues and Archives The Economist

International News

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Partner Links

Investment Overview

Financial Times - FT.com Home

New York Times International The New York Times: International

Wall Street Journal Wall Street Journal Interactive Edition

Business News from Reuters Reuters | Breaking News from Around the Globe

BBC OnLine World News BBC Online WorldNews

World Business Review - BBC BBC World Service

CNN.com World News CNN.com - World News

Company and Country Reference

Companies and Industries - Hoovers On Line Hoover's Online - Companies & Industries

Companies - Annual Reports Library The Annual Report Library

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Partner Links

Countries - Brittanica.com Brittanica.com

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Partner Links

Chapter 5 Social Overview

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People

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Social Overview People

Cultural Demography The population of the Netherlands is over 16 million. The population is most densely concentrated heavily in the western part of the country, referred to as the "Randstad." Indeed, the Netherlands is one of the most densely populated countries in the world, with an average of about 1.100 people per square mile, or 425 people per square kilometer. The Dutch people are primarily of Germanic stock with some Gallo-Celtic mixture. Today, ethnic Dutch comprise approximately 83 percent of the Netherlands' total population. Other resident ethnic groups include other Europeans and Westerners numbering about 8 percent of the total population. Moroccans, Turks, Surinamese, Antilleans and Indonesians make up the remaining 9 percent of the population of the Netherlands.

Dutch - also called Nederlands -- is the official language. English however, is widely spoken and understood, as are several other European languages.

In terms of religious affiliation, it is estimated that 34 percent are Roman Catholic, 25 percent are Protestant, 3 percent are Muslim, and the remaining 2 percent belong to other religions. A significant portion of the population -- 36 percent -- claim to be unaffiliated.

Human Development

In terms of human development, the Dutch population has an average life expectancy at birth of 78.5 years of age (75.7 years for males, 81.5 years for females). Estimates in recent years show that the population growth rate is 0.53 percent. Meanwhile, the infant mortality rate is 4.31 deaths per 1,000 live births, according to recent estimates. An estimated 99 percent of the population, age 15 and older, can read and write.

One notable measure used to determine a country's quality of life is the Human Development Index (HDI), which has been compiled annually since 1990 by the United Nations Development Programme (UNDP). The HDI is a composite of several indicators, which measure a country's achievements in three main arenas of human development: longevity, knowledge and education, as well as economic standard of living. In a recent ranking of 177 countries, the HDI placed the Netherlands in the high human development category, at 10th place.

Editor's Note: Although the concept of human development is complicated and cannot be properly captured by values and indices, the HDI, which is calculated and updated annually, offers a wide-rang-

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Human Development Index

ing assessment of human development in certain countries, not based solely upon traditional economic and financial indicators.

Human Development Index Human Development Index (Ranked Numerically) from Human Development Report 2003

The Human Development Index (HDI) is used to measure quality of life in countries across the world. The HDI has been compiled since 1990 by the United Nations Development Programme (UNDP) on a regular basis. The HDI is a composite of several indicators, which measure a country's achievements in three main arenas of human development: longevity, education, and economic standard of living. Although the concept of human development is complicated and cannot be properly captured by values and indices, the HDI offers a wide-ranging assessment of human development in certain countries, not based solely upon traditional economic and financial indicators. For more information about the methodology used to calculate the HDI, please see the "Source Materials" in the appendices of this review.

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Human Development Index

Country

Social Overview

Rank

High Human Development Norway

1

Iceland

2

Australia

3

Luxembourg

4

Canada

5

Sweden

6

Switzerland

7

Ireland

8

Belgium

9

United States

10

Japan

11

Netherlands

12

Finland

13

Denmark

14

United Kingdom

15

France

16

Austria

17

Italy

18

New Zealand

19

Germany

20

Spain

21

Hong Kong

22

Israel

23

Greece

24

Singapore

25

Slovenia

26

Portugal

27

Korea, South

28

Cyprus

29

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Barbados

30

Czech Republic

31

Malta

32

Brunei

33

Argentina

34

Hungary

35

Poland

36

Chile

37

Estonia

38

Lithuania

39

Qatar

40

United Arab Emirates

41

Slovakia

42

Bahrain

43

Kuwait

44

Croatia

45

Uruguay

46

Costa Rica

47

Latvia

48

Saint Kitts & Nevis

49

Bahamas

50

Seychelles

51

Cuba

52

Mexico

53

Tonga

54

Bulgaria

55

Panama

56

Trinidad & Tobago

57

Medium Human Development Libya

58

Macedonia

59

Antigua

60

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Malaysia

61

Russia

62

Brazil

63

Romania

64

Mauritius

65

Grenada

66

Belarus

67

Bosnia-Herzegovina

68

Colombia

69

Dominica

70

Oman

71

Albania

72

Thailand

73

Samoa

74

Venezuela

75

Saint Lucia

76

Saudi Arabia

77

Ukraine

78

Peru

79

Kazakhstan

80

Lebanon

81

Ecuador

82

Armenia

83

Philippines

84

China

85

Suriname

86

Saint Vincent & Grenadines

87

Paraguay

88

Tunisia

89

Jordan

90

Belize

91

Fiji

92

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Sri Lanka

93

Turkey

94

Dominican Republic

95

Maldives

96

Turkmenistan

97

Jamaica

98

Iran

99

Georgia

100

Azerbaijan

101

West Bank and Gaza Strip

102

Algeria

103

El Salvador

104

Cape Verde

105

Syria

106

Guyana

107

Vietnam

108

Kyrgyzstan

109

Indonesia

110

Uzbekistan

111

Nicaragua

112

Bolivia

113

Mongolia

114

Moldova

115

Honduras

116

Guatemala

117

Vanuatu

118

Egypt

119

South Africa

120

Equatorial Guinea

121

Tajikistan

122

Gabon

123

Morocco

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Namibia

125

Sao Tome & Principe

126

India

127

Solomon Islands

128

Myanmar

129

Cambodia

130

Botswana

131

Comoros

132

Laos

133

Bhutan

134

Pakistan

135

Nepal

136

Papua New Guinea

137

Ghana

138

Bangladesh

139

Sudan

141

Congo (RC)

142

Togo

143

Uganda

144

Zimbabwe

145 Low Human Development

Madagascar Swaziland

119

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Cameroon

148

Lesotho

149

Djibouti

150

Yemen

151

Mauritania

152

Haiti

153

Kenya

154

Gambia

155

Guinea

156

Senegal

157

Nigeria

158

Rwanda

159

Angola

160

Eritrea

161

Benin

162

Cote d `Ivoire

163

Tanzania

164

Malawi

165

Zambia

166

Congo (DRC)

167

Mozambique

168

Burundi

169

Ethiopia

170

Central African Republic

171

Guinea-Bissau

172

Chad

173

Mali

174

Burkina Faso

175

Sierra Leone

176

Niger

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Status of Women

Social Overview

Status of Women Gender Related Development Index (GDI) Rank:

12th out of 140 Gender Empowerment Measure (GEM) Rank:

8th out of 80 Female Population:

8.2 million Female Life Expectancy at birth:

81.1 years Total Fertility Rate:

1.8 Maternal Mortality Ratio (2000):

16 Total Number of Women Living with HIV/AIDS:

3,000-10,000 Ever Married Women, Ages 15-19 (%):

1% Mean Age at Time of Marriage:

30 Contraceptive Use Among Married Women, Any Method (%):

79% Female Adult Literacy Rate:

Almost universal Combined Female Gross enrollment ratio for Primary, Secondary and Tertiary schools:

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99% Female-Headed Households (%):

24% Economically Active Females (%):

46.0% Female Contributing Family Workers (%):

80% Female Estimated Earned Income:

$20,512 Seats in Parliament held by women (%):

Lower or Single House: 36.7% Upper House or Senate: 29.3% Year Women Received the Right to Vote:

1919 Year Women Received the Right to Stand for Election:

1917 *The Gender Development Index (GDI) is a composite index which measures the average achievement in a country. While very similar to the Human Development Index in its use of the same variables, the GDI adjusts the average achievement of each country in terms of life expectancy, enrollment in schools, income, and literacy in accordance to the disparities between males and females. *The Gender Empowerment Measure (GEM) is a composite index measuring gender inequality in three of the basic dimensions of empowerment; economic participation and decision-making, political participation and decision-making, and power over economic resources. *Total Fertility Rate (TFR) is defined as the average number of babies born to women during their reproductive years. A TFR of 2.1 is considered the replacement rate; once a TFR of a population reaches 2.1 the population will remain stable assuming no immigration or emigration takes place. When the TFR is greater than 2.1 a population will increase and when it is less than 2.1 a population will eventually decrease, although due to the age structure of a population it will take years before a low TFR is translated into lower population. *Maternal Mortality Rate is the number of deaths to women per 100,000 live births that resulted from conditions related to pregnancy and or delivery related complications.

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*Economically Active Females are the share of the female population, ages 15 and above, whom supply, or are able to supply, labor for the production of goods and services. *Female Contributing Family Workers are those females who work without pay in an economic enterprise operated by a relative living in the same household. *Estimated Earned Income is measured according to Purchasing Power Parity (PPP) in US dollars.

Culture and Arts

Useful links for students of culture:

Foreign Language Phrases for Travelers http://www.gorin.com/phrase/ http://www.dictionaries.travlang.com/otherdicts.html http://www.linguanaut.com/ National Anthems http://www.national-anthems.net/

www.geocities.com/olusegunyayi Holidays Around the World http://www.oanda.com/cgi/world_holiday.pl?hdnAction=search_countries

www.earthcalendar.net/index.php International Recipes http://www.masterstech-home.com/The_Kitchen/Recipes/Recipe_Indices/InternationalRecipesIndex.html http://recipes.wuzzle.org/ http://members.tripod.com/~GabyandAndy/Internation_Recipes.html

Etiquette Cultural Dos and Taboos

1. The firm handshake is the standard greeting for men and women, upon meeting and again upon departure. Men shake hands briefly with other men, with most women, and even when being introduced to a child. Friends, family and those who share some familiarity may use either the handshake or a brief hug. Note that it is impolite to reach over someone's handshake or to leave your left hand in your pocket while shaking hands.

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Etiquette

2. If you have not been formally introduced to everyone at a business or social gathering, it is commonplace to introduce yourself. One should go around the room and shake hands with everyone.

3. One should use the formal form of address such as Mr. or Mrs. followed by a surname, unless invited to move to a first name basis. Younger people are more apt to move to less formal forms of address quickly. Among men, it is common for last names alone to be used in forms of address. Outside the personal sphere, however, it is advisable that professional and governmental titles be used. In business, titles are used more rarely in verbal communication although they are customarily used in written communications.

4. Most greetings take place at a close distance. Yelling hello across a room would be considered culturally inappropriate. Wait until the person or persons with whom you are meeting are in close proximity to you where a quiet and polite greeting can be exchanged.

5. When entering a shop, it is considered polite to say "good day" or "hello" to everyone present, customers and employees alike. If the clerk is attending to another customer, however, you should not interrupt him or her; it is typical for clerks to wait on only one person at a time.

6. Dutch culture emphasizes and appreciates equality, while denouncing servility and superior stances. In encounters with Dutch people of all walks of life, it is advisable that one adopt this respectful outlook. Airs of condescension and arrogance will not be well-received.

7. The Dutch culture also emphasizes modesty and understatement, while eschewing ostentation. Likewise, the Dutch culture also values honesty and candor. One should thus take these traits into consideration while engaging personally or professionally with locals.

8. In conversation, sports, sightseeing, travel and politics are considered to be good topics of conversation. The Dutch people tend to be well informed about politics and to have firm political opinions. Expect honest and opinionated expression of ideas in this regard.

9. When invited to dinner, taking some sort of gift is suggested protocol. A bouquet of unwrapped flowers for your hostess is the preferred gift. Chocolate or candy are also good choices, especially if there are children in the household.

10. Dining is typically continental-style with the fork steadfastly held in the left hand and the knife in the right hand.

11. Punctuality is the norm in this culture, so be sure to be consistently punctual for both business meetings and social occasions.

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Social Overview

12. Dress is generally casual and should conform to the temperate climate. Business wear is more conservative; suits are the norm for both men and women, although some industries may allow more casual attire to be worn. Women generally to be more restrained in regard to makeup and jewelry, opting for a more natural look than other parts of Europe. Casual wear is essentially the same as in the United States, although shorts are generally worn when indulging in some kind of outdoor activity such as jogging or hiking.

Travel Information

International Travel Guide

Checklist for Travelers

1. Take out travel insurance to cover hospital treatment or medical evacuation. Overseas medical costs are expensive to most international travelers, where one's domestic, nationalized or even private health insurance plans will not provide coverage outside one's home country. Learn about "reciprocal insurance plans" that some international health care companies might offer. 2. Make sure that one's travel insurance is appropriate. If one intends to indulge in adventurous activities, such as parasailing, one should be sure that one is fully insured in such cases. Many traditional insurance policies do not provide coverage in cases of extreme circumstances. 3. Take time to learn about one's destination country and culture. Read and learn about the place one is traveling. Also check political, economic and socio-cultural developments at the destination by reading country-specific travel reports and fact sheets noted below. 4. Get the necessary visas for the country (or countries) one intends to visit - but be aware that a visa does not guarantee entry. A number of useful sites regarding visa and other entry requirements are noted below. 5. Keep in regular contact with friends and relatives back at home by phone or email, and be sure to leave a travel itinerary. 6. Protect one's personal information by making copies of one's passport details, insurance policy, travelers checks and credit card numbers. Taking copies of such documents with you, while leaving another collection copies with someone at home is also good practice for travelers. Taking copies of one's passport photograph is also recommended.

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Travel Information

7. Stay healthy by taking all possible precautions against illness. Also, be sure to take extra supplies of prescription drugs along for the trip, while also taking time to pack general pharmaceutical supplies, such as aspirin and other such painkillers, bandages, stomach ailment medication, anti-inflammatory medication and anti-bacterial medication. 8. Do not carry illicit drugs. Understand that the punishment for possession or use of illegal drugs in some countries may be capital punishment. Make sure your prescription drugs are legal in the countries you plan to visit. 9. Know the laws of one's destination country and culture; be sure to understand the repercussions of breaking those laws and regulations. Often the transparency and freedoms of the juridical system at home is not consistent with that of one's destination country. Become aware of these complexities and subtleties before you travel. 10. For longer stays in a country, or where the security situation is volatile, one should register one's self and traveling companions at the local embassy or consulate of one's country of citizenship. 11. Women should take care to be prepared both culturally and practically for traveling in a different country and culture. One should be sure to take sufficient supplies of personal feminine products and prescription drugs. One should also learn about local cultural standards for women, including norms of dressing. Be aware that it is simply inappropriate and unsafe for women to travel alone in some countries, and take the necessary precautions to avoid risk-filled situations. 12. If one is traveling with small children, one should pack extra supplies, make arrangements with the travel carrier for proper seating that would adequately accommodate children, infants or toddlers. Note also that whether one is male of female, traveling with children means that one's hands are thus not free to carry luggage and bags. Be especially aware that this makes one vulnerable to pickpockets, thieves and other sorts of crime. 13. Make proper arrangements for accommodations, well in advance of one's arrival at a destination. Some countries have limited accommodation, while others may have culturally distinctive facilities. Learning about these practicalities before one travels will greatly aid the enjoyment of one's trip. 14. Travel with different forms of currency and money (cash, traveler's checks and credit cards) in anticipation that venues may not accept one or another form of money. Also, ensuring that one's financial resources are not contained in one location, or by one person (if one is traveling with others) can be a useful measure, in the event that one loses a wallet or purse. 15. Find out about transportation in the destination country. In some places, it might be advisable to hire a local driver or taxi guide for safety reasons, while in other countries, enjoying one's travel experience may well be enhanced by renting a vehicle and seeing the local sights and culture independently. Costs may also be prohibitive for either of these choices, so again, prior planning is suggested.

Tips for Travelers

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• Check with your embassy, consulate, or appropriate government institution related to travel before traveling.

• Make sure you are insured. Even for a short vacation, make sure you have full medical insurance.

• Make sure you have enough money for your stay. Check if cash cards issued by the major banks can be used in local cash dispensers.

• Keep your valuables in a safe place. Don't carry your passport unless you need to and make a photocopy of it before you travel.

• Enter next of kin details into the back of your passport.

• The major cities of The Netherlands are safe for tourists but pick-pockets prey on visitors in the major tourist areas, airports, railway stations, on the main rail routes from Amsterdam airport and on trams. Be aware of who is around you. Don't be distracted by seemingly innocent enquiries.

• Always respect local laws and customs, especially when touring in rural areas where religious observance is important.

• Don't carry drugs. The Netherlands has a reputation for being tolerant on the use of so-called 'soft drugs'. In reality this exists in the major cities in designated premises; possession of prohibited substances carries a prison sentence.

Note: This information is directly quoted from the United Kingdom Foreign and Commonwealth Office.

Sources: United Kingdom Foreign and Commonwealth Office

Business Culture: Information for Business Travelers

The Dutch market is a highly competitive market and the exporter must keep certain factors in mind to achieve maximum success. The "golden keys" of customary business is courtesy, especially replying promptly to requests for price quotations and to orders. These are a prerequisite for exporting success. In general, European business executives are more conservative than their counterparts; therefore, it is best to refrain from using their first names until a firm relationship has been formed. Friendship and mutual trust are highly valued, and once an American has earned this trust, a productive working relationship can usually be counted upon.

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Travel Information

Dutch buyers appreciate quality and service and are also interested in delivery price. Care must be taken to assure that delivery dates will be closely maintained and that after-sales service will be promptly honored. The Dutch and Europeans in general, are concerned that after placing an order with a supplier, the delivery date will not be honored. While there are numerous factors that may interfere with prompt shipment, the exporter must allow for additional shipping time and keep in close contact with the buyer. It is much better to quote a later delivery date that can be guaranteed than promise an earlier delivery that is not completely certain.

Exporters should maintain close liaison with distributors and customers to exchange information and ideas. In most instances, mail, fax, or telephone communication is sufficient, but the understanding developed through periodic personal visits is the best way to keep distributors apprised of new developments and to resolve problems quickly. Prompt acknowledgment of correspondence by airmail or fax is recommended.

Further, exporters should seriously consider warehousing in the Netherlands for speedy supply and service of their European customers. A vigorous and sustained promotion is often needed to launch products because of buying habits. Products must be adapted to both technical requirements and to consumer preferences. It is not sufficient to merely label a product in conformity to national requirements for the development of the full market potential. Consumers must also be attracted to the product by label and packaging as well as ease of use.

Sources: United States Department of State Commercial Guides Online Resources Regarding Entry Requirements and Visas

Foreign Entry Requirements for Americans from the United States Department of State http://travel.state.gov/foreignentryreqs.html

Visa Services for Non-Americans from the United States Department of State http://www.unitedstatesvisas.gov/ http://travel.state.gov/visa/visa_1750.html Visa Bulletins from the United States Department of State http://travel.state.gov/visa_bulletin.html Visa Waivers from the United States Department of State http://travel.state.gov/jvw.html Passport and Visa Information from the Government of the United Kingdom http://www.fco.gov.uk/travel/dynpage.asp?Page=402

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Visa Information from the Government of Australia http://www.dfat.gov.au/visas/index.html

Entry Requirements and Other Services for Travelers from the Government of Canada http://travel.state.gov/travel/cis_pa_tw/cis/cis_1082.html Online Visa Processing by Immigration Experts by VisaPro http://www.visapro.com

Sources: United States Department of State, United Kingdom Foreign and Commonwealth Office, Government of Australia: Department of Foreign Affairs and Trade, Government of Canada: Canada International

Useful Online Resources for Travelers

Your trip abroad http://travel.state.gov/travel/tips/brochures/brochures_1225.html A safe trip abroad http://travel.state.gov/travel/tips/safety/safety_1747.html Tips for expatriates abroad http://travel.state.gov/travel/living/residing/residing_1235.html Tips for students http://travel.state.gov/travel/living/studying/studying_1238.html http://travel.state.gov/travel/tips/brochures/brochures_1219.html Medical information for travelers http://travel.state.gov/travel/tips/health/health_1185.html US Customs Travel information http://www.customs.gov/xp/cgov/travel/ UK Travelers' Checklist

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Travel Information

http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1098377239217 Canadian Government's resources on traveling, living or working abroad http://www.voyage.gc.ca/Consular-e/living_menu-e.htm Plan a trip to an exotic location http://www.geopassage.com

Sources: United States Department of State; United States Customs Department, United Kingdom Foreign and Commonwealth Office, Government of Canada: Department of Foreign Affairs and International Trade

Other Practical Online Resources for Travelers

World Weather Forecasts http://www.intellicast.com/

Worldwide Time Zones and World Clock http://www.timeanddate.com/

International Currency Exchange Rates http://www.xe.com/ucc/

Banking and Financial Institutions Across the World http://www.123world.com/banks/index.html

International Credit Card or Automated Teller Machine (ATM) Locator http://international.visa.com/ps/services/atmnetwork.jsp http://www.mastercard.com/cardholderservices/atm/

Foreign Language Phrases for Travelers

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http://www.travlang.com/languages/

International Dialing Codes http://www.kropla.com/dialcode.htm

International Airport Codes http://www.ar-group.com/icaoiata.htm

International Internet Café Search Engine http://cybercaptive.com/

World Electric Power Information http://www.kropla.com/electric.htm

World Electric Power Guide http://www.kropla.com/electric2.htm

World Television Standards and Codes http://www.kropla.com/tv.htm

International Chambers of Commerce http://www.123world.com/chambers/index.html

Diplomatic and Consular Information

United States Diplomatic Posts Abroad http://usembassy.state.gov/ Resources for Finding Embassies and other Diplomatic Posts Across the World http://www.escapeartist.com/embassy1/embassy1.htm

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Travel and Tourism Information

World Tourism Websites http://123world.com/tourism/

Safety and Security

United States Department of State Travel Warnings and Consular Information Sheets http://travel.state.gov/travel_warnings.html

United States Department of State Current Warnings http://travel.state.gov/warnings_list.html

United Kingdom Current Warnings and Travel Advice By Country http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029390590 United Kingdom Travel Fact Sheets By Country http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029394365#T1 Government of Canada Travel Reports By Country http://www.voyage.gc.ca/dest/ctry/new-en.asp#ctr Government of Canada Travel Warnings http://www.voyage.gc.ca/dest/sos/warnings-en.asp Government of Australia Travel Advice Reports By Country http://www.dfat.gov.au/consular/advice/index.html

Sources: United Kingdom Foreign and Commonwealth Office, the United States Department of State, the Government of Canada: Department of Foreign Affairs and International Trade, Government of Australia: Department of Foreign Affairs and Trade

Other Safety and Security Online Resources for Travelers

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Information on Terrorism from Government of Canada http://canada.gc.ca/wire/2001/09/110901-US_e.html

Information on Human Rights http://www.state.gov/g/drl/hr/

Government of the United Kingdom Resource on the Risk of Terrorism http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1044011304926 FAA Resource on Aviation Safety http://www.faa.gov/safety/ In-Flight Safety Information for Air Travel (by British Airways crew trainer, Anna Warman) http://www.warman.demon.co.uk/anna/inflight.html Hot Spots: Travel Safety and Risk Information http://www.airsecurity.com/hotspots/HotSpots.asp

Current Issues and Warnings by Government of United States http://travel.state.gov/travel/cis_pa_tw/pa/pa_1766.html http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html Sources: The United States Department of State, the United States Customs Department, the Federal Aviation Authority, Anna Warman's In-flight Website, Hot Spots Travel and Risk Information, the United Kingdom Foreign and Commonwealth Office, the Government

Diseases/Health Data Health Information for Travelers to the Netherlands

The preventive measures you need to take while traveling in Western Europe depend on the areas you visit and the length of time you stay. For most areas of this region, you should observe health precautions similar to those that would apply while traveling in the United States.

Travelers' diarrhea, the number one illness in travelers, can be caused by viruses, bacteria, or parasites, which can contaminate food or water. Infections may cause diarrhea and vomiting (E. coli, Salmonella,

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cholera, and parasites), fever (typhoid fever and toxoplasmosis), or liver damage (hepatitis). Make sure your food and drinking water are safe. (See below.)

A certificate of yellow fever vaccination may be required for entry into certain of these countries if you are coming from countries in tropical South America or sub-Saharan Africa. (There is no risk for yellow fever in Western Europe.) For detailed information, see Comprehensive Yellow Fever Vaccination Requirements (< http://www.cdc.gov/travel/yelfever.htm).>

Tickborne encephalitis, a viral infection of the central nervous system, occurs chiefly in Central and Western Europe. Travelers are at risk who visit or work in forested areas during the summer months and who consume unpasteurized dairy products. The vaccine for this disease is not available in the United States at this time. To prevent tickborne encephalitis, as well as Lyme disease, travelers should take precautions to prevent tick bites (see below).

CDC Recommends the Following Vaccines (as Appropriate for Age):

See your doctor at least 4-6 weeks before your trip to allow time for shots to take effect.

• Hepatitis A or immune globulin (IG). You are not at increased risk in Northern, Western, and Southern Europe, including the Mediterranean regions of Italy and Greece. • Hepatitis B, if you might be exposed to blood (for example, health-care workers), have sexual contact with the local population, stay longer than 6 months in Southern Europe, or be exposed through medical treatment. • As needed, booster doses for tetanus-diphtheria. Hepatitis B vaccine is now recommended for all infants and for children ages 11-12 years who did not complete the series as infants.

All travelers should take the following precautions, no matter the destination:

• Wash hands often with soap and water. • Because motor vehicle crashes are a leading cause of injury among travelers, walk and drive defensively. Avoid travel at night if possible and always use seat belts. • Always use latex condoms to reduce the risk of HIV and other sexually transmitted diseases. • Don't eat or drink dairy products unless you know they have been pasteurized. • Don't share needles with anyone.

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• Never eat undercooked ground beef and poultry, raw eggs, and unpasteurized dairy products. Raw shellfish is particularly dangerous to persons who have liver disease or compromised immune systems. (Travelers to Western Europe should also see the information on Bovine Spongiform Encephalopathy ["Mad Cow Disease"] and New Variant Creutzfeldt-Jakob Disease [nvCJD] at URL< http://www.cdc.gov/travel/madcow.htm.)>

Travelers to rural or undeveloped areas should take the following precautions:

To Stay Healthy, Do:

• Drink only bottled or boiled water, or carbonated (bubbly) drinks in cans or bottles. Avoid tap water, fountain drinks, and ice cubes. If this is not possible, make water safer by BOTH filtering through an "absolute 1-micron or less" filter AND adding iodine tablets to the filtered water. "Absolute 1-micron filters" are found in camping/outdoor supply stores. • Eat only thoroughly cooked food or fruits and vegetables you have peeled yourself. Remember: boil it, cook it, peel it, or forget it. • Protect yourself from insects by remaining in well-screened areas, using repellents (applied sparingly at 4-hour intervals), and wearing long-sleeved shirts and long pants tucked into boots or socks as a deterrent to ticks. • To prevent fungal and parasitic infections, keep feet clean and dry, and do not go barefoot.

To Avoid Getting Sick:

• Don't eat food purchased from street vendors. Do not drink beverages with ice. • Don't handle animals (especially monkeys, dogs, and cats), to avoid bites and serious diseases (including rabies and plague).

What You Need To Bring with You:

• Insect repellent containing DEET (diethylmethyltoluamide), in 30%-35% strength for adults and 6%10% for children. The insecticide permethrin applied to clothing is an effective deterrent to ticks. • Over-the-counter antidiarrheal medicine to take if you have diarrhea. • Iodine tablets and water filters to purify water if bottled water is not available. See Food and Water Precautions and Travelers' Diarrhea Prevention (< http://www.cdc.gov/travel/foodwatr.htm)> and Risks from Food and Drink (< http://www.cdc.gov/travel/food-drink-risks.htm)>

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for more detailed information about water filters. • Sunblock, sunglasses, hat. • Prescription medications: make sure you have enough to last during your trip, as well as a copy of the prescription(s).

After You Return Home:

If you become ill after your trip-even as long as a year after you return-tell your doctor where you have traveled.

For More Information:

Ask your doctor or check the CDC web sites for more information about how to protect yourself against diseases that occur in Western Europe, such as:

For information about diseases-

Carried by Insects Lyme disease

Carried in Food or Water Bovine spongiform encephalopathy ("mad cow disease"),Escherichia coli, diarrhea, Hepatitis A, Typhoid Fever

Person-to-Person Contact Hepatitis B, HIV/AIDS For more information about these and other diseases, please check the Diseases (< http://www.cdc.gov/travel/diseases.htm)> section and the Health Topics A-Z (< http://www.cdc.gov/health/diseases.htm).>

Note:

Netherlands is located in the Western Europe health region.

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Sources:

The Center for Disease Control Destinations Website: < http://www.cdc.gov/travel/destinat.htm>

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Chapter 6 Environmental Overview

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Environmental Overview Environmental Issues General Overview: Protecting the environment is of high priority to the government and citizens of the Netherlands. One interesting feature of Dutch environmental policy is the use of "covenants," which are voluntary agreements between industry and government, and sometimes other organizations, to work together to achieve certain environmental goals, such as the reduction of waste. Current Issues: water pollution from heavy metals, organic compounds, nitrates, and phosphates -air pollution from vehicles and refining activities -acid rain Total Greenhouse Gas Emissions (Mtc):

59.0 Country Rank (GHG output):

29th Natural Hazards:

-flooding

Environmental Policy Regulation and Jurisdiction: The regulation and protection of the environment in the Netherlands is under the jurisdiction of the following: Ministry of Housing, Physical Planning, and the Environment Ministry of Agriculture, Nature, Management, and Fisheries The Commission For Environmental Impact Assessment The Nature Conservation Council Major Non-Governmental Organizations: Friends of the Earth International (FOEI) Greenpeace International

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Environmental Policy

Natuurmonumenten (the Society for the Preservation of Nature) Netherlands Economic Institute Royal Rotterdam Zoological Gardens Stichting Milieu-Educatie (the Institute of Environmental Education) Stichting Natuur en Milieu (the Society for Nature and Environmental Conservation) Stichting Reservaten Przewalski-paard (the Przewalski Horse Reserves Foundation) Werkgroep Noordzee (the North Sea Work Group) Other private companies and university programs International Environmental Accords: Party to: Air Pollution Air Pollution-Nitrogen Oxides Air Pollution-Persistent Organic Pollutants Air Pollution-Sulfur 85 Air Pollution-Sulfur 94 Air Pollution-Volatile Organic Compounds Antarctic-Environmental Protocol Antarctic-Marine Living Resources Antarctic Treaty Biodiversity Climate Change Climate Change-Kyoto Protocol Desertification Endangered Species Environmental Modification Hazardous Wastes Kyoto Protocol Law of the Sea Marine Dumping Marine Life Conservation Nuclear Test Ban Ozone Layer Protection Ship Pollution Tropical Timber 83 Tropical Timber 94 Wetlands Whaling Signed but not ratified: None Kyoto Protocol Status (year ratified): 2002

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Energy Profile Oil Production: 46,200 bbl/day Oil Consumption: 895,300 bbl/day Oil Imports: 2.284 million bbl/day Net Oil Exports: 1.418 million bbl/day Oil Reserves: 88.06 million bbl Natural Gas Production: 77.75 billion cu m Natural Gas Consumption: 49.72 billion cu m Natural Gas Imports: 20.78 billion cu m Net Natural Gas Exports: 49.28 billion cu m Natural Gas Reserves: 1.693 trillion cu m Electricity Production: 90.61 billion kWh Electricity Consumption: 100.7 billion kWh Electricity Consumption per Capita (kWh):

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Global Environmental Snapshot

6,659 Electricity Imports: 20.9 billion kWh Electricity Exports: 4.5 billion kWh

Global Environmental Snapshot Introduction

The countries of the world face many environmental challenges in common. Nevertheless, the nature and intensity of problem vary from region to region, as do various countries' respective capacities, in terms of affluence and infrastructure, to remediate threats to environmental quality.

Consciousness of perils affecting the global environment came to the fore in the last third or so of the 20th century has continued to intensify well into the new millennium. According to the United Nations Environment Programme, considerable environmental progress has been made at the level of institutional developments, international cooperation accords, and public participation. Approximately twodozen international environmental protection accords with global implications have been promulgated since the late 1970s under auspices of the United Nations and other international organizations, together with many additional regional agreements. Attempts to address and rectify environmental problems take the form of legal frameworks, economic instruments, environmentally sound technologies and cleaner production processes as well as conservation efforts. Environmental impact assessments have increasingly been applied across the globe.

Environmental degradation affects the quality, or aesthetics, of human life, but it also displays potential to undermine conditions necessary for the sustainability of human life. Attitudes toward the importance of environmental protection measures reflect ambivalence derived from this bifurcation. On one hand, steps such as cleaning up pollution, dedicating parkland, and suchlike, are seen as embellishments undertaken by wealthy societies already assured they can successfully perform those functions deemed, ostensibly, more essential-for instance, public health and education, employment and economic development. On the other hand, in poorer countries, activities causing environmental damagefor instance the land degradation effects of unregulated logging, slash-and-burn agriculture, overgrazing, and mining-can seem justified insofar as such activities provide incomes and livelihoods.

Rapid rates of resource depletion are associated with poverty and high population growth, themselves correlated, whereas consumption per capita is much higher in the most developed countries, despite these nations' recent progress in energy efficiency and conservation. It is impossible to sequester the global environmental challenge from related economic, social and political challenges.

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Environmental Overview

First-tier industrialized countries have recently achieved measurable decreases in environmental pollution and the rate of resource depletion, a success not matched in middle income and developing countries. It is believed that the discrepancy is due to the fact that industrialized countries have more developed infrastructures to accommodate changes in environmental policy, to apply environmental technologies, and to invest in public education. The advanced industrialized countries incur relatively lower costs in alleviating environmental problems, in comparison to developing countries, since in the former even extensive environmental programs represent a rather minuscule percentage of total expenditures. Conversely, budget constraints, lagged provision of basic services to the population, and other factors such as debt service and militarization may preclude institution of minimal environmental protection measures in the poorest countries.

A synopsis for the current situation facing each region of the world follows:

Regional Synopsis: Africa

The African continent, the world's second-largest landmass, encompasses many of the world's least developed countries. By global standards, urbanization is comparatively low but rising at a rapid rate. More heavily industrialized areas at the northern and southern ends of the continent experience the major share of industrial pollution. In other regions the most serious environmental problems typically stem from inefficient subsistence farming methods and other forms of land degradation, which have affected an increasingly extensive area under pressure of a widely impoverished, fast-growing population. Africa's distribution of natural resources is very uneven. It is the continent at greatest risk of desertification, especially in the Sahel region at the edge of the Sahara but also in other dry-range areas. Yet at the same time, Africa also harbors some of the earth's richest and most diverse biological zones.

Key Points:

Up to half a billion hectares of African land are moderately to severely degraded, an occurrence reflecting short-fallow shifting cultivation and overgrazing as well as a climatic pattern of recurrent droughts.

Soil degradation is severe along the expanse directly south of the Sahara, from the west to the east coasts. Parts of southern Africa, central-eastern Africa, and the neighboring island of Madagascar suffer from serious soil degradation as well.

Africa contains about 17 percent of the world's forest cover, concentrated in the tropical belt of the continent. Many of the forests, however, are severely depleted, with an estimated 70 percent showing some degree of degradation.

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Global Environmental Snapshot

Population growth has resulted in continuing loss of arable land, as inefficient subsistence farming techniques affect increasingly extensive areas. Efforts to implement settled, sustainable agriculture have met with some recent success, but much further progress in this direction is needed. Especially in previously uninhabited forestlands, concern over deforestation is intensifying.

By contrast, the African savanna remains the richest grassland in the world, supporting a substantial concentration of animal and plant life. Wildlife parks are sub-Saharan Africa's greatest tourist attraction, and with proper management-giving local people a stake in conservation and controlling the pace of development-could greatly enhance African economies.

Significant numbers of mammal species in parts of northern, southern and eastern Africa are currently threatened, while the biological diversity in Mauritania and Madagascar is even further compromised with over 20 percent of the mammal species in these two countries currently under threat.

With marine catch trends increasing from 500,000 metric tons in the 1950s to over 3,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.

Water resource vulnerability is a major concern in northeastern Africa, and a moderate concern across the rest of the continent. An exception is central Africa, which has plentiful water supplies.

Many Africans lack adequate access to resources, not just (if at all) because the resources are unevenly distributed geographically, but also through institutional failures such as faulty land tenure systems or political upheaval. The quality of Africa's natural resources, despite their spotty distribution, is in fact extraordinarily rich. The infrastructure needed to protect and benefit from this natural legacy, however, is largely lacking.

Regional Synopsis: Asia and the Pacific

Asia-earth's largest landmass-and the many large and nearly innumerable small islands lying off its Pacific shore display extraordinarily contrasting landscapes, levels of development, and degrees of environmental stress. In the classification used here, the world's smallest continent, Australia, is also included in the Asia-Pacific region.

The Asia-Pacific region is home to 9 of the world's 14 largest urban areas, and as energy use for utilities, industry and transport increases in developing economies, urban centers are subject to worsening air quality. Intense population density in places such as Bangladesh or Hong Kong is the quintessential image many people have of Asia, yet vast desert areas such as the Gobi and the world's highest mountain range, the Himalayas, span the continent as well. Forested areas in Southeast Asia and the islands of Indonesia and the Philippines were historically prized for their tropical hardwood, but in many

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places this resource is now severely depleted. Low-lying small island states are extremely vulnerable to the effects of global warming, both rising sea levels and an anticipated increase in cyclones.

Key Points:

Asian timber reserves are forecast to be depleted in the next 40 years. Loss of natural forest is irreversible in some areas, but plantation programs to restore tree cover may ameliorate a portion of the resulting land degradation.

Increased usage of fossil fuels in China and other parts of southern Asia is projected to result in a marked increase in emissions, especially in regard to carbon dioxide. The increased usage of energy has led to a marked upsurge in air pollution across the region.

Acidification is an emerging problem regionally, with sulfur dioxide emissions expected to triple by 2010 if the current growth rate is sustained. China, Thailand, India, and Korea seem to be suffering from particularly high rates of acid deposition. By contrast, Asia's most highly developed economy, Japan, has effected substantial improvements in its environmental indicators.

Water pollution in the Pacific is an urgent concern since up to 70 percent of the water discharged into the region's waters receives no treatment. Additionally, the disposal of solid wastes, in like manner, poses a major threat in a region with many areas of high population density.

The Asia-Pacific region is the largest expanse of the world's land that is adversely affected by soil degradation.

The region around Australia reportedly suffers the largest degree of ozone depletion.

The microstates of the Pacific suffer land loss due to global warming, and the consequent rise in the levels of ocean waters. A high-emissions scenario and anthropogenic climate impact at the upper end of the currently predicted range would probably force complete evacuation of the lowest-elevation islands sometime in this century.

The species-rich reefs surrounding Southeast Asia are highly vulnerable to the deleterious effects of coastal development, land-based pollution, over-fishing and exploitative fishing methods, as well as marine pollution from oil spills and other activities.

With marine catch trends increasing from 5,000,000 metric tons in the 1950s to over 20,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.

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Global Environmental Snapshot

Significant numbers of mammal species in parts of China and south-east Asia are currently threatened, while the biological diversity in India, Japan, Australia, the Philippines, Indonesia and parts of Malaysia is even further compromised with over 20 percent of the mammal species in these countries currently under threat.

Water resource vulnerability is a serious concern in areas surrounding the Indian subcontinent.

Regional Synopsis: Central Asia

The Central Asian republics, formerly in the Soviet Union, experience a range of environmental problems as the result of poorly executed agricultural, industrial, and nuclear programs during the Soviet era. Relatively low population densities are the norm, especially since upon the breakup of the U.S.S.R. many ethnic Russians migrated back to European Russia. In this largely semi-arid region, drought, water shortages, and soil salinization pose major challenges.

Key Points:

The use of agricultural pesticides, such as DDT and other chemicals, has contributed to the contamination of soil and groundwater throughout the region.

Land and soil degradation, and in particular, increased salinization, is mostly attributable to faulty irrigation practices.

Significant desertification is also a problem in the region.

Air pollution is prevalent, mostly due to use of low octane automobile fuel.

Industrial pollution of the Caspian Sea and the Aral Sea, as a result of industrial effluents as well as mining and metal production, presents a challenge to the countries bordering these bodies of water.

One of the most severe environmental problems in the region is attributable to the several billion tons of hazardous materials stored in landfills across Central Asia.

Uzbekistan's particular problem involves the contraction of the Aral Sea, which has decreased in size by a third, as a consequence of river diversions and poor irrigation practices. The effect has been the near-total biological destruction of that body of water.

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Kazakhstan, as a consequence of being the heartland of the former Soviet Union's nuclear program, has incurred a high of cancerous malignancies, biogenetic abnormalities and radioactive contamination.

While part of the Soviet Union, the republics in the region experienced very high levels of greenhouse gas emissions, as a consequence of rapid industrialization using cheap but dirty energy sources, especially coal.

By contrast, however, there have recently been substantial reductions in the level of greenhouse gas emissions, especially those attributable to coal burning, with further decreases anticipated over the next decade. These changes are partially due to the use of cleaner energy technologies, such as natural gas, augmented by governmental commitment to improving environmental standards.

Regional Synopsis: Europe

Western Europe underwent dramatic transformation of its landscape, virtually eliminating large-scale natural areas, during an era of rapid industrialization, which intensified upon its recovery from World War II. In Eastern Europe and European Russia, intensive land development has been less prevalent, so that some native forests and other natural areas remain. Air and water pollution from use of dirty fuels and industrial effluents, however, are more serious environmental problems in Eastern than in Western Europe, though recent trends show improvement in many indicators. Acid rain has inflicted heavy environmental damage across much of Europe, particularly on forests. Europe and North America are the only regions in which water usage for industry exceeds that for agriculture, although in Mediterranean nations agriculture is the largest water consumer.

Key Points:

Europe contributes 36 percent of the world's chlorofluorocarbon emissions, 30 percent of carbon dioxide emissions, and 25 percent of sulfur dioxide emissions.

Sulfur and nitrogen oxide emissions are the cause of 30 to 50 percent of Central and Eastern Europe's deforestation.

Acid rain has been an environmental concern for decades and continues to be a challenge in parts of Western Europe.

Overexploitation of up to 60 percent of Europe's groundwater presents a problem in industrial and urban areas.

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Global Environmental Snapshot

With marine catch trends increasing from 5,000,000 metric tons in the 1950s to over 20,000,000 metric tons by 2000, there was increasing concern about the reduction in fisheries and marine life, should this trend continue unabated.

Significant numbers of mammal species in parts of western Europe, Eastern Europe and Russia are currently threatened, while the biological diversity on the Iberian Peninsula is even further compromised with over 40 percent of the mammal species in this region currently under threat. As a result, there has been a 10 percent increase in protected areas of Europe.

A major environmental issue for Europe involves the depletion of various already endangered or threatened species, and most significantly, the decline of fish stocks. Some estimates suggest that up to 50 percent of the continent's fish species may be considered endangered species. Coastal fisheries have been over-harvested, resulting in catch limits or moratoriums on many commercially important fish species.

Fortunately, in the last few years, these policies have started to yield measurable results with decreasing trends in marine fish catch.

Recently, most European countries have adopted cleaner production technologies, and alternative methods of waste disposal, including recycling.

The countries of Eastern Europe have made air quality a major environmental priority. This is exemplified by the Russian Federation's addition to the 1995 "Berlin Mandate" (transnational legislation based on resolutions of the Rio Earth Summit) compelling nations to promote "carbon sinks" to absorb greenhouse gases.

On a relative basis, when compared with the degree of industrial emissions emitted by many Eastern European countries until the late 1980s, there has been some marked increase in air quality in the region, as obsolete plants are closed and a transition to cleaner fuels and more efficient energy use takes place.

Regional Synopsis: The Middle and Near East Quite possibly, the Middle East will exemplify the adage that, as the 20th century was a century fixated on oil, the 21st century will be devoted to critical decisions about water. Many (though far from all) nations in the Middle East rank among those countries with the largest oil and gas reserves, but water resources are relatively scarce throughout this predominantly dry region. Effects of global warming may cause moderately high elevation areas that now typically receive winter "snowpack" to experience mainly rain instead, which would further constrain dry-season water availability. The antiquities and

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religious shrines of the region render it a great magnet for tourism, which entails considerable economic growth potential but also intensifies stresses on the environment.

Key Points:

Water resource vulnerability is a serious concern across the entire region. The increased usage of, and further demand for water, has exacerbated long-standing water scarcity in the region. For instance, river diversions and industrial salt works have caused the Dead Sea to shrink by one-third from its original surface area, with further declines expected.

The oil industry in the region contributes to water pollution in the Persian Gulf, as a result of oil spills, which have averaged 1.2 million barrels of oil spilt per year (some sources suggest that this figure is understated). The consequences are severe because even after oil spills have been cleaned up, environmental damage to the food webs and ecosystems of marine life will persist for a prolonged period.

The region's coastal zone is considered one of the most fragile and endangered ecosystems of the world. Land reclamation, shoreline construction, discharge of industrial effluents, and tourism (such as diving in the Red Sea) contribute to widespread coastal damage.

Significant numbers of mammal species in parts of the Middle East are currently threatened.

Since the 1980s, 11 percent of the region's natural forest has been depleted.

Regional Synopsis: Latin America and the Caribbean

The Latin American and Caribbean region is characterized by exceedingly diverse landforms that have generally seen high rates of population growth and economic development in recent decades. The percentage of inhabitants residing in urban areas is quite high at 73.4 percent; the region includes the megacities of Mexico City, Sao Paulo, and Rio de Janeiro. The region also includes the world's secondhighest mountain range, the Andes; significant expanses of desert and grassland; the coral reefs of the Caribbean Sea; and the world's largest contiguous tropical forest in the Amazon basin. Threats to the latter from subsistence and commercial farming, mineral exploitation and timbering are well publicized. Nevertheless, of eight countries worldwide that still retain at least 70 percent of their original forest cover, six are in Latin America. The region accounts for nearly half (48.3 percent) of the world's greenhouse gas emissions derived from land clearing, but as yet a comparatively minuscule share (4.3 percent) of such gases from industrial sources.

Key Points:

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Although Latin America is one of the most biologically diverse regions of the world, this biodiversity is highly threatened, as exemplified by the projected extinction of up to 100,000 species in the next few decades. Much of this loss will be concentrated in the Amazon area, although the western coastline of South America will also suffer significant depletion of biological diversity. The inventory of rainforest species with potentially useful commercial or medical applications is incomplete, but presumed to include significant numbers of such species that may become extinct before they are discovered and identified.

Up to 50 percent of the region's grazing land has lost its soil fertility as a result of soil erosion, salinization, alkalinization and overgrazing.

The Caribbean Sea, the Atlantic Ocean, and the Pacific Ocean have all been contaminated by agricultural wastes, which are discharged into streams that flow into these major waters. Water pollution derived from phosphorous, nitrates and pesticides adversely affects fish stocks, contributes to oxygen depletion and fosters overgrowth of aquatic vegetation. Marine life will continue to be severely compromised as a result of these conditions.

Due to industrial development in the region, many beaches of eastern Latin America and the Caribbean suffer from tar deposits.

Most cities in the region lack adequate sewage treatment facilities, and rapid migration of the rural poor into the cities is widening the gap between current infrastructure capacity and the much greater level needed to provide satisfactory basic services.

The rainforest region of the Amazon Basin suffers from dangerously high levels of deforestation, which may be a significant contributory factor to global warming or "the greenhouse effect." In the late 1990s and into the new millennium, the rate of deforestation was around 20 million acres of rainforest being destroyed annually.

Deforestation on the steep rainforest slopes of Caribbean islands contributes to soil erosion and landslides, both of which then result in heavy sedimentation of nearby river systems. When these sedimented rivers drain into the sea and coral reefs, they poison the coral tissues, which are vital to the maintenance of the reef ecosystem. The result is marine degradation and nutrient depletion. Jamaica's coral reefs have never quite recovered from the effects of marine degradation.

The Southern Cone of Latin America (Argentina, Brazil, Chile, Paraguay, and Uruguay) suffers the effects of greatly increased ultraviolet-B radiation, as a consequence of more intense ozone depletion in the southern hemisphere.

Water resource vulnerability is an increasingly major concern in the northwestern portion of South America.

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Regional Synopsis: North America

North American nations, in particular the United States and Canada, rank among the world's most highly developed industrial economies-a fact which has generated significant pollution problems, but also financial resources and skills that have enabled many problems to be corrected. Although efforts to promote energy efficiency, recycling, and suchlike have helped ease strains on the environment in a part of the world where per capita consumption levels are high, sprawling land development patterns and recent preferences many households have demonstrated for larger vehicles have offset these advances.

Meanwhile, a large portion of North America's original forest cover has been lost, though in many cases replaced by productive second-growth woodland. In recent years, attitudes toward best use of the region's remaining natural or scenic areas seem to be shifting toward recreation and preservation and away from resource extraction. With increasing attention on the energy scarcity in the United States, however, there is speculation that this shift may be short-lived. Indeed, the energy shortage on the west coast of the United States and associated calls for energy exploration, indicate a possible retrenchment toward resource extraction. At the same time, however, it has also served to highlight the need for energy conservation as well as alternative energy sources.

Despite generally successful anti-pollution efforts, various parts of the region continue to suffer significant air, water and land degradation from industrial, vehicular, and agricultural emissions and runoff. Mexico, as a middle-income country, displays environmental problems characteristic of a developing economy, including forest depletion, pollution from inefficient industrial processes and dirty fuels, and lack of sufficient waste-treatment infrastructure.

Key Points:

Because of significantly greater motor vehicle usage in the United States (U.S.) than in the rest of the world, the U.S. contribution of urban air pollution and greenhouse gas emissions, especially carbon dioxide, is disproportionately high in relation to its population.

Acid rain is an enduring issue of contention in the northeastern part of the United States, on the border with Canada.

Mexico's urban areas suffer extreme air pollution from carbon monoxide, nitrogen oxides, sulfur dioxide, and other toxic air pollutants. Emissions controls on vehicles are in their infancy, compared to analogous regulations in the U.S.

The cities of Mexico, including those on the U.S. border, also discharge large quantities of untreated or poorly treated sewage, though officials are currently planning infrastructure upgrades.

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Deforestation is noteworthy in various regions of the U.S., especially along the northwest coastline. Old growth forests have been largely removed, but in the northeastern and upper midwestern sections of the United States, evidence suggests that the current extent of tree cover probably surpasses the figure for the beginning of the 20th century.

Extreme weather conditions in the last few years have resulted in a high level of soil erosion along the north coast of California; in addition, the coastline itself has shifted substantially due to soil erosion and concomitant landslides.

Agricultural pollution-including nitrate contamination of well water, nutrient runoff to waterways, and pesticide exposure-is significant in various areas. Noteworthy among affected places are California's Central Valley, extensive stretches of the Midwest, and land in the Chesapeake Bay watershed.

Inland waterways, especially around the Great Lakes, have substantially improved their water quality, due to concentrated efforts at reducing water pollution by governmental, commercial and community representatives. Strict curbs on industrial effluents and near-universal implementation of sewage treatment are the chief factors responsible for this improvement.

A major environmental issue for Canada and the United States involves the depletion of various already endangered or threatened species, and most significantly, the decline of fish stocks. Coastal fisheries have been over-harvested, resulting in catch limits or moratoriums on many commercially important fish species. In the last few years, these policies have started to yield measurable results with decreasing trends in marine fish catch.

Due to the decay of neighboring ecosystems in Central America and the Caribbean, the sea surrounding Florida has become increasingly sedimented, contributing to marine degradation, nutrient depletion of the ecosystem, depletion of fish stocks, and diseases to coral species in particular.

Polar Regions

Key Points:

The significant rise in sea level, amounting 10 to 25 centimeters in the last 100 years, is due to the melting of the Arctic ice sheets, and is attributed to global warming.

The Antarctic suffers from a significant ozone hole, first detected in 1976. By 1985, a British scientific team reported a 40 percent decrease in usual regeneration rates of the ozone. Because a sustained increase in the amount of ultraviolet-B radiation would have adverse consequences upon all planetary

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life, recent environmental measures have been put into effect, aimed at reversing ozone depletion. These measures are projected to garner significant results by 2050.

Due to air and ocean currents, the Arctic is a sink for toxic releases originally discharged thousands of miles away. Arctic wildlife and Canada's Inuit population have higher bodily levels of contaminants such as PCB and dioxin than those found in people and animals in much of the rest of the world.

Global Environmental Concepts 1. Global Warming and Greenhouse Gases

The Greenhouse Effect: In the early 19th century, the French physicist, Jean Fourier, contended that the earth's atmosphere functions in much the same way as the glass of a greenhouse, thus describing what is now understood as the "greenhouse effect." Put simply, the "greenhouse effect" confines some of the sun's energy to the earth, preserving some of the planet's warmth, rather than allowing it to flow back into space. In so doing, all kinds of life forms can flourish on earth. Thus, the "greenhouse effect" is necessary to sustain and preserve life forms and ecosystems on earth. In the late 19th century, a Swedish chemist, Svante Arrhenius, noticed that human activities, such as the burning of coal and other fossil fuels for heat, and the removal of forested lands for urban development, led to higher concentrations of greenhouse gases, like carbon dioxide and methane, in the atmosphere. This increase in the levels of greenhouse gases was believed to advance the "greenhouse effect" exponentially, and might be related to the trend in global warming.

In the wake of the Industrial Revolution, after industrial development took place on a large scale and the total human population burgeoned simultaneously with industrialization, the resulting increase in greenhouse gas emissions could, many scientists believe, be significant enough to have some bearing on climate. Indeed, many studies in recent years support the idea that there is a linkage between human activities and global warming, although there is less consensus on the extent to which this linkage may be relevant to environmental concerns.

That said, some scientists have argued that temperature fluctuations have existed throughout the evolution of the planet. Indeed, Dr. S. Fred Singer, the president of the Science and Environment Policy Project has noted that 3,000-year-old geological records of ocean sediment reveal changes in the surface temperature of the ocean. Hence, it is possible that climate variability is merely a normal fact of the planet's evolution. Yet even skeptics as to anthropogenic factors concur that any substantial changes in global temperatures would likely have an effect upon the earth's ecosystems, as well as the life forms that inhabit them.

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The Relationship Between Global Warming and Greenhouse Gases:

A large number of climatologists believe that the increase in atmospheric concentrations of "greenhouse gas emissions," mostly a consequence of human activities such as the burning of fossil fuels, are contributing to global warming. The cause notwithstanding, the planet has reportedly warmed 0.3°C to 0.6°C over the last century. Indeed, each year during the 1990s was one of the very warmest in the 20th century, with the mean surface temperature for 1999 being the fifth warmest on record since 1880.

In early 2000, a panel of atmospheric scientists for the National Research Council concluded in a report that global warming was, indeed, a reality. While the panel, headed by Chairman John Wallace, a professor of atmospheric sciences at the University of Washington, stated that it remained unclear whether human activities have contributed to the earth's increasing temperatures, it was apparent that global warming exists.

In 2001, following a request for further study by the incoming Bush administration in the United States, the National Academy of Sciences again confirmed that global warming had been in existence for the last 20 years. The study also projected an increase in temperature between 2.5 degrees and 10.4 degrees Fahrenheit by the year 2100. Furthermore, the study found the leading cause of global warming to be emissions of carbon dioxide from the burning of fossil fuels, and it noted that greenhouse gas accumulations in the earth's atmosphere was a result of human activities.

Within the scientific community, the controversy regarding has centered on the difference between surface air and upper air temperatures. Information collected since 1979 suggests that while the earth's surface temperature has increased by about a degree in the past century, the atmospheric temperature five miles above the earth's surface has indicated very little increase. Nevertheless, the panel stated that this discrepancy in temperature between surface and upper air does not invalidate the conclusion that global warming is taking place. Further, the panel noted that natural events, such as volcanic eruptions, can decrease the temperature in the upper atmosphere.

The major consequences of global warming potentially include the melting of the polar ice caps, which, in turn, contribute to the rise in sea levels. Many islands across the globe have already experienced a measurable loss of land as a result. Because global warming may increase the rate of evaporation, increased precipitation, in the form of stronger and more frequent storm systems, is another potential outcome. Other consequences of global warming may include the introduction and proliferation of new infectious diseases, loss of arable land (referred to as "desertification"), destructive changes to existing ecosystems, loss of biodiversity and the isolation of species, and concomitant adverse changes in the quality of human life.

International Policy Development in Regard to Global Warming:

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Regardless of what the precise nature of the relationship between greenhouse gas emissions and global warming may be, it seems that there is some degree of a connection between the phenomena. Any substantial reductions in greenhouse gas emissions and global warming trends will likely involve systematic changes in industrial operations, the use of advanced energy sources and technologies, as well as global cooperation in implementing and regulating these transformations.

In this regard, the United Nations Framework Convention on Climate Change (UNFCCC) stipulated the following objectives:

1. To stabilize "greenhouse gas" concentrations within the atmosphere, in such a manner that would preclude hazardous anthropogenic intervention into the existing biosphere and ecosystems of the world. This stabilization process would facilitate the natural adaptation of ecosystems to changes in climate.

2. To ensure and enable sustainable development and food production on a global scale.

The UNFCCC was adopted at the Rio Earth Summit in 1992, and entered into force in 1994. Over 175 parties were official participants.

Meanwhile, however, many of the larger, more industrialized nations failed to reach the emissions' reduction targets, and many UNFCCC members agreed that the voluntary approach to reducing emissions had not been successful. As such, UNFCCC members reached a consensus that legally binding limits were necessitated, and agreed to discuss such a legal paradigm at a meeting in Kyoto, Japan in 1997. At that meeting, the UNFCCC forged the Kyoto Protocol. This concord is the first legally binding international agreement that places limits on emissions from industrialized countries. The major greenhouse gas emissions addressed in the Kyoto Protocol include carbon dioxide, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and methane.

The provisions of the Kyoto Protocol stipulate that economically advanced nations must reduce their combined emissions of greenhouse gases, by approximately five percent from their 1990 levels, before the 2008-2010 deadline. Countries with the highest carbon dioxide emissions, such as the United States (U.S.), many of the European Union (EU) countries, and Japan, are to reduce emissions by a scale of 6 to 8 percent. All economically advanced nations must show "demonstrable progress" by 2005. In contrast, no binding limits or timetable have been set on developing countries. Presumably, this distinction is due to the fact that most developing countries -- with the obvious exceptions of India and China -- simply do not emit as many greenhouse gases as do more industrially advanced countries. Meanwhile, these countries are entrenched in the process of economic development.

Regardless of the aforementioned reasoning, there has been strong opposition against the asymmetrical treatment assigned to emissions limits among developed and developing countries. Although this distinction might be regarded as unfair in principle, associations such as the Alliance of Small Island States have been vocal in expressing how global warming -- a result of greenhouse gas emissions - has contributed to the rise in sea level, and thus deleteriously affected their very existence as island nation

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states. For this reason, some parties have suggested that economically advanced nations, upon returning to their 1990 levels, should be required to further reduce their greenhouse gas emissions by a deadline of 2005. In response, interested parties have observed that even if such reductions were undertaken by economically advanced nations, they would not be enough to completely control global warming. Indeed, a reduction in the rate of fossil fuel usage by developing nations would also be necessary to have substantial ameliorative effect on global warming. Indeed, a reduction in the rate of fossil fuel usage by developing nations would also be necessary to have substantial ameliorative effect on global warming.

As such, the Protocol established a "Clean Development Mechanism" which permits developed countries to invest in projects aimed at reducing emissions within developing countries in return for credit for the reductions. Ostensibly, the objective of this mechanism is to curtail emissions in developing countries without unduly penalizing them for their economic development. Under this model, the countries with more potential emissions credits could sell them to other signatories of the Kyoto Protocol, whose emissions are forecast to significantly rise in the next few years. Should this trading of emissions credits take place, it is estimated that the Kyoto Protocol's emissions targets could still be met.

In 1999, the International Energy Outlook projected that Eastern Europe, the former Soviet Union and Newly Independent States, as well as parts of Asia, are all expected to show a marked decrease in their level of energy-related carbon emissions in 2010. Nations with the highest emissions, specifically, the U.S., the EU and Japan, are anticipated to reduce their emissions by up to 8 percent by 2012. By 2000, however, the emissions targets were not on schedule for achievement. Indeed, the U.S. Department of Energy estimates forecast that by 2010, there will be a 34 percent increase in carbon emissions from the 1990 levels, in the absence of major shifts in policy, economic growth, energy prices, and consumer trends. Despite this assessment in the U.S., international support for the Kyoto Protocol remained strong, especially among European countries and island states, who view the pact as one step in the direction away from reliance on fossil fuels and other sources of greenhouse gases.

In 2001, U.S. President, George W. Bush, rejected his country's participation in the Kyoto Protocol, saying that the costs imposed on the global economic system, and especially, on the US, overshadowed the benefits of the Protocol. He also cited the unfair burden on developed nations to reduce emissions, as another primary reasons for withdrawal from the international pact, as well as insufficient evidence regarding the science of global warming. Faced with impassioned international disapproval for his position, the U.S. president stated that his administration remained interested in dealing with the matter of global warming, but would endorse alternative measures to combat the problem, such as voluntary initiatives limiting emissions. Critics of Bush's position, however, have noted that it was the failure of voluntary initiatives to reduce emissions following the Rio Summit that led to the establishment of the Kyoto Protocol in the first place.

In the wake of the Bush administration's decision, many participant countries resigned themselves to the reality that the goals of the Kyoto Protocol might not be achieved without U.S. involvement. Nevertheless, in Bonn, Germany, in July 2001, the remaining participant countries struck a political compromise on some of the key issues and sticking points, and planned to move forward with the Protocol, irrespective of the absence of the U.S. The key compromise points included the provision for countries to offset their targets with carbon sinks (these are areas of forest and farmland which can absorb carbon

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through the process of photosynthesis). Another compromise point within the broader Bonn Agreement was the reduction of emissions cuts of six gases from over 5 percent to a more achievable 2 percent. A third key change was the provision of funding for less wealthy countries to adopt more progressive technologies. In late October and early November 2001, the UNFCC's 7th Conference of the Parties met in Marrakesh, Morocco, to finalize the measures needed to make the Kyoto Protocol operational. Although the UNFCC projected that ratification of the Protocol would make it legally binding within a year, many critics noted that the process had fallen short of implementing significant changes in policy that would be necessary to actually stop or even slow climate change. They also maintained that the absence of U.S. participation effectively rendered the Protocol into being a political exercise without any substance, either in terms of transnational policy or in terms of environmental concerns.

The adoption of the compromises ensconced within the Bonn Agreement had been intended to make the provisions of the Kyoto Protocol more palatable to the U.S. In this regard, it failed to achieve its objective as the Bush administration continued to eschew participation in the international accord. Still, however, the Bonn Agreement did manage to render a number of other positive outcomes. Specifically, in 2002, key countries, such as Russia, Japan and Canada agreed to ratify the protocol, bringing the number of signatories to 178. The decision by key countries to ratify the protocol was regarded as "the kiss of life" by observers.

By 2005, on the eve of a climate change conference in London, British Prime Minister Tony Blair was hoping to deal with the problems of climate change beyond the provisions set forth in the Kyoto Protocol. Acknowledging that the Kyoto Protocol could not work in its current form, Blair wanted to open the discussion for a new climate change plan. Blair said that although most of the world had signed on to Kyoto, the protocol could not meet any of its practical goals of cutting greenhouse gas emissions without the participation of the United States, the world's largest polluter. He also noted that any new agreement would have to include India and China -- significant producers of greenhouse gas emissions, but exempt from Kyoto because they have been classified as developing countries. Still, he said that progress on dealing with climate change had been stymied by "a reluctance to face up to reality and the practical action needed to tackle problem." Blair also touted the "huge opportunities" in technology and pointed toward the possibilities offered by wind, solar and nuclear power, along with fuel cell technology, eco-friendly biofuels, and carbon capture and storage which could generate low carbon power. Blair also asserted that his government was committed to achieving its domestic goal of reducing carbon dioxide emissions by 20 percent by 2010. In the United States, President George W. Bush has said that global warming remained a debatable issue and despite conclusions reached by his own Environmental Protection Agency, he has not agreed with the conclusion that global warming and climate change are linked with human activities. Bush has also refused to ratify Kyoto on the basis of its economic costs. Australia , an ally of the United States, has taken a similarly dim view of the Kyoto Protocol. Ahead of the November 2005 climate change meeting in Canada in which new goals for the protocol were to be discussed, Australia 's Environment Minister, Ian Campbell, said that negotiating new greenhouse gas emission levels for the Kyoto Protocol would be a waste of time. Campbell said, "There is a consensus

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that the caps, targets and timetables approach is flawed. If we spend the next five years arguing about that, we'll be fiddling and negotiating while Rome burns." Campbell, like the Bush administration, has also advocated a system of voluntary action in which industry takes up new technologies rather than as a result of compelling the reduction of emissions. But the Australian Conservation Foundation (ACF) has called on its government to ratify the Kyoto Protocol, to establish a system of emissions trading, and to set binding limits on emissions. Interestingly, although it did not sign on to Kyoto, Australia was expected to meet its emissions target by 2012 (an 8 percent increase in 1990 levels in keeping with the country's reliance on coal). But this success has nothing to do with new technologies and is due to state-based regulations on land clearing. Note: The Kyoto Protocol calls for developed nations to cut greenhouse emissions by 5.2 percent of 1990 levels by 2012. 2. Air Pollution

Long before global warming reared its head as a significant issue, those concerned about the environment and public health noted the deleterious effects of human-initiated combustion upon the atmosphere. Killer smogs from coal burning triggered acute health emergencies in London and other places. At a lower level of intensity motor vehicle, power plant, and industrial emissions impaired long-range visibility and probably had some chronic adverse consequences on the respiratory systems of persons breathing such air.

In time, scientists began associating the sulfur dioxide and nitrogen oxides released from coal burning with significant acid deposition in the atmosphere, eventually falling as "acid rain." This phenomenon has severely degraded forestlands, especially in Europe and a few parts of the United States. It has also impaired some aquatic ecosystems and eaten away the surface of some human artifacts, such as marble monuments. Scrubber technology and conversion to cleaner fuels have enabled the level of industrial production to remain at least constant while significantly reducing acid deposition. Technologies aimed at cleaning the air and curtailing acid rain, soot, and smog may, nonetheless, boomerang as the perils of global warming become increasingly serious. In brief, these particulates act as sort of a sun shade -- comparable to the effect of volcanic eruptions on the upper atmosphere whereby periods of active volcanism correlate with temporarily cooler weather conditions. Thus, while the carbon dioxide releases that are an inevitable byproduct of combustion continue, by scrubbing the atmosphere of pollutants, an industrial society opens itself to greater insolation (penetration of the sun's rays and consequent heating), and consequently, it is likely to experience a correspondingly greater rise in ambient temperatures.

The health benefits of removing the sources of acid rain and smog are indisputable, and no one would recommend a return to previous conditions. Nevertheless, the problematic climatic effects of continually increasing emissions of carbon dioxide and other greenhouse gases pose a major global environmental challenge, not as yet addressed adequately.

3. Ozone Depletion

The stratospheric ozone layer functions to prevent ultraviolet radiation from reaching the earth. Normally, stratospheric ozone is systematically disintegrated and regenerated through natural photochemi-

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cal processes. The stratospheric ozone layer, however, has been depleted unnaturally as a result of anthropogenic (man-made) chemicals, most especially chlorine and bromide compounds such as chloroflorocarbons (CFCs), halons, and various industrial chemicals in the form of solvents, refrigerants, foaming agents, aerosol propellants, fire retardants, and fumigants. Ozone depletion is of concern because it permits a greater degree of ultraviolet-B radiation to reach the earth, which then increases the incidences of cancerous malignancies, cataracts, and human immune deficiencies. In addition, even in small doses, ozone depletion affects the ecosystem by disturbing food chains, agriculture, fisheries and other forms of biological diversity.

Transnational policies enacted to respond to the dangers of ozone depletion include the 1985 Vienna Convention on the Protection of the Ozone Layer and the 1987 Montreal Protocol on Substances that Deplete the Ozone Layer. The Montreal Protocol was subsequently amended in London in 1990, Copenhagen in 1992 and Vienna in 1995. By 1996, 155 countries had ratified the Montreal Protocol, which sets out a time schedule for the reduction (and eventual elimination) of ozone depleting substances (OPS), and bans exports and imports of ODS from and to non-participant countries.

In general, the Protocol stipulates that developed countries must eliminate halon consumption by 1994 and CFC consumption by 1996, while developing countries must eliminate these substances by 2010. Consumption of methyl bromide, which is used as a fumigant, was to be frozen at the 1995 in developed countries, and fully eliminated in 2010, while developing countries are to freeze consumption by 2002, based on average 1995-1998 consumption levels. Methyl chloroform is to be phased out by 2005. Under the Montreal Protocol, most ODS will be completely eliminated from use by 2010.

4. Land Degradation

In recent decades, land degradation in more arid regions of the world has become a serious concern. The problem, manifest as both "desertification" and "devegetation," is caused primarily by climate variability and human activities, such as "deforestation," excessive cultivation, overgrazing, and other forms of land resource exploitation. It is also exacerbated by inadequate irrigation practices. Although the effects of droughts on drylands have been temporary in the past, today, the productivity and sustainability of these lands have been severely compromised for the long term. Indeed, in every region of the world, land degradation has become an acute issue.

Desertification and Devegetation:

"Desertification" is a process of land degradation causing the soil to deteriorate, thus losing its nutrients and fertility, and eventually resulting in the loss of vegetation, known as "devegetation." As aforementioned, "desertification" and "devegetation" are caused by human activities, yet human beings are also the greatest casualties. Because these forms of land degradation affect the ability of the soil to produce crops, they concomitantly contribute to poverty. As population increases and demographic concentrations shift, the extent of land subject to stresses by those seeking to wrest subsistence from it has inexorably risen.

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In response, the United Nations has formed the Convention to Combat Desertification-aimed at implementing programs to address the underlying causes of desertification, as well as measures to prevent and minimize its effects. Of particular significance is the formulation of policies on transboundary resources, such as areas around lakes and rivers. At a broader level, the Convention has established a Conference of Parties (COP), which includes all ratifying governments, for directing and advancing international action.

To ensure more efficacious use of funding, the Convention intends to reconfigure international aid to utilize a consultative and coordinated approach in the disbursement and expenditure of donor funds. In this way, local communities that are affected by desertification will be active participants in the solution-generation process. In-depth community education projects are envisioned as part of this new international aid program, and private donor financing is encouraged. Meanwhile, as new technologies are developed to deal with the problem of desertification, they need to be distributed for application across the world. Hence, the Convention calls for international cooperation in scientific research in this regard.

Desertification is a problem of sustainable development. It is directly connected to human challenges such as poverty, social and economic well-being and environmental protection as well. Broader environmental issues, such as climate change, biological diversity, and freshwater supplies, are indirectly related, so any effort to resolve this environmental challenge must entail coordinated research efforts and joint action.

Deforestation:

Deforestation is not a recent phenomenon. For centuries, human beings have cut down trees to clear space for land cultivation, or in order to use the wood for fuel. Over the last 200 years, and most especially after World War II, deforestation increased because the logging industry became a globally profitable endeavor, and so the clearing of forested areas was accelerated for the purposes of industrial development. In the long term, this intensified level of deforestation is considered problematic because the forest is unable to regenerate itself quickly. The deforestation that has occurred in tropical rainforests is seen as an especially serious concern, due to the perceived adverse effects of this process upon the entire global ecosystem.

The most immediate consequence of deforestation is soil degradation. Soil, which is necessary for the growth of vegetation, can be a fragile and vital property. Organically, an extensive evolution process must take place before soil can produce vegetation, yet at the same time, the effects of natural elements, such as wind and rain, can easily and quickly degrade this resource. This phenomenon is known as soil erosion. In addition, natural elements like wind and rain reduce the amount of fertile soil on the ground, making soil scarcity a genuine problem. When fertile topsoil that already exists is removed from the landscape in the process of deforestation, soil scarcity is further exacerbated. Equally significant is the fact that once land has been cleared so that the topsoil can be cultivated for crop production, not only are the nutrient reserves in the soil depleted, thus producing crops of inferior quality, but the soil structure itself becomes stressed and deteriorates further.

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Another direct result of deforestation is flooding. When forests are cleared, removing the cover of vegetation, and rainfall occurs, the flow of water increases across the surface of land. When extensive water runoff takes place, the frequency and intensity of flooding increases. Other adverse effects of deforestation include the loss of wildlife and biodiversity within the ecosystem that supports such life forms.

At a broader level, tropical rainforests play a vital role in maintaining the global environmental system. Specifically, destruction of tropical rainforests affects the carbon dioxide cycle. When forests are destroyed by burning (or rotting), carbon dioxide is released into the air, thus contributing to an intensified "greenhouse effect." The increase in greenhouse gas emissions like carbon dioxide is a major contributor to global warming, according to many environmental scientists. Indeed, trees themselves absorb carbon dioxide in the process of photosynthesis, so their loss also reduces the absorption of greenhouse gases.

Tropical rainforest destruction also adversely affects the nitrogen cycle. Nitrogen is a key nutrient for both plants and animals. Plants derive nitrogen from soil, while animals obtain it via nitrogen-enriched vegetation. This element is essential for the formation of amino acids, and thereby for proteins and biochemicals that all living things need for metabolism and growth. In the nitrogen cycle, vegetation acquires these essential proteins and biochemicals, and then cyclically returns them to the atmosphere and global ecosystem. Accordingly, when tropical rainforest ecosystems are compromised, not only is vegetation removed; the atmosphere is also affected and climates are altered. At a more immediate level, the biodiversity within tropical rainforests, including wildlife and insect species and a wealth of plant varieties, is depleted. Loss of rare plants is of particular concern because certain species as yet unknown and unused could likely yield many practical benefits, for instance as medicines.

As a result of the many challenges associated with deforestation, many environmental groups and agencies have argued for government policies on the sustainable development of forests by governments across the globe. While many countries have instituted national policies and programs aimed at reducing deforestation, and substantial research has been advanced in regard to sustainable and regenerative forestry development, there has been very little progress on an international level. Generally speaking, most tropical rainforests are located in developing and less developed countries, where economic growth is often dependent upon the exploitation of tropical rainforests. Timber resources as well as wildlife hunting tend to be particularly lucrative arenas.

In places such as the Amazon, where deforestation takes place for the construction of energy plants aimed at industrialization and economic development, there is an exacerbated effect on the environment. After forests are cleared in order to construct such projects, massive flooding usually ensues. The remaining trees then rot and decay in the wake of the flooding. As the trees deteriorate, their biochemical makeup becomes more acidic, producing poisonous substances such as hydrogen sulphide and methane gases. Acidified water subsequently corrodes the mechanical equipment and operations of the plants, which are already clogged by rotting wood after the floodwaters rise.

Deforestation generally arises from an economically plausible short-term motivation, but nonetheless poses a serious global concern because the effects go beyond national boundaries. The United Nations

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has established the World Commission on Forest and Sustainable Development. This body's task is to determine the optimal means of dealing with the issue of deforestation, without unduly affecting normal economic development, while emphasizing the global significance of protecting tropical forest ecosystems.

5. Water Resources

For all terrestrial fauna, including humans, water is the most immediate necessity to sustain life. As the population has increased and altered an ever-greater portion of the landscape from its natural condition, demand on water resources has intensified, especially with the development of industrialization and large-scale irrigation. The supply of freshwater is inherently limited, and moreover distributed unevenly across the earth's landmasses. Moreover, not just demand for freshwater but activities certain to degrade it are becoming more pervasive. By contrast, the oceans form a sort of "last wilderness," still little explored and in large part not seriously affected by human activity. However, coastal environments - the biologically richest part of the marine ecosystem-are experiencing major depletion due to human encroachment and over-exploitation.

Freshwater:

In various regions, for instance the Colorado River in the western United States, current withdrawals of river water for irrigation, domestic, and industrial use consume the entire streamflow so that almost no water flows into the sea at the river's mouth. Yet development is ongoing in many such places, implying continually rising demand for water. In some areas reliant on groundwater, aquifers are being depleted at a markedly faster rate than they are being replenished. An example is the San Joaquin Valley in California, where decades of high water withdrawals for agriculture have caused land subsidence of ten meters or more in some spots. Naturally, the uncertainty of future water supplies is particularly acute in arid and semi-arid regions. Speculation that the phenomenon of global warming will alter geographic and seasonal rainfall patterns adds further uncertainty.

Water conservation measures have great potential to alleviate supply shortages. Some city water systems are so old and beset with leaking pipes that they lose as much water as they meter. Broad-scale irrigation could be replaced by drip-type irrigation, actually enhancing the sustainability of agriculture. In many areas where heavy irrigation has been used for decades, the result is deposition of salts and other chemicals in the soil such that the land becomes unproductive for farming and must be abandoned.

Farming is a major source of water pollution. Whereas restrictions on industrial effluents and other "point sources" are relatively easy to implement, comparable measures to reform hydraulic practices at farms and other "nonpoint sources" pose a significantly knottier challenge. Farm-caused water pollution takes the following main forms:

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- Nitrate pollution found in wells in intensive farming areas as a consequence of heavy fertilizer use is a threat to human health. The most serious danger is to infants, who by ingesting high-nitrate water can contract methemoglobinemia, sometimes called "blue baby syndrome," a potentially fatal condition.

- Fertilizer runoff into rivers and lakes imparts unwanted nutrients that cause algae growth and eventual loss of oxygen in the body of water, degrading its ability to support fish and other desirable aquatic life.

- Toxic agricultural chemicals - insecticides, herbicides, and fungicides - are detectable in some aquifers and waterways.

In general, it is much easier to get a pollutant into water than to retrieve it out. Gasoline additives, dry cleaning chemicals, other industrial toxins, and in a few areas radionucleides have all been found in water sources intended for human use. The complexity and long time scale of subterranean hydrological movements essentially assures that pollutants already deposited in aquifers will continue to turn up for decades to come. Sophisticated water treatment processes are available, albeit expensive, to reclaim degraded water and render it fit for human consumption. Yet source protection is unquestionably a more desirable alternative.

In much of the developing world, and even some low-income rural enclaves of the developed world, the population lacks ready access to safe water. Surface water and shallow groundwater supplies are susceptible to contamination from untreated wastewater and failing septic tanks, as well as chemical hazards. The occurrence of waterborne disease is almost certainly greatly underreported.

Marine Resources:

Coastal areas have always been desirable places for human habitation, and population pressure on them continues to increase. Many types of water degradation that affect lakes and rivers also affect coastal zones: industrial effluents, untreated or partially treated sewage, nutrient load from agriculture figure prominently in both cases. Prospects for more extreme storms as a result of global warming, as well as the pervasiveness of poorly planned development in many coastal areas, forebode that catastrophic hurricanes and landslides may increase in frequency in the future. Ongoing rise in sea levels will force remedial measures and in some cases abandonment of currently valuable coastal property.

Fisheries over much of the globe have been overharvested, and immediate conservation measures are required to preserve stocks of many species. Many governments subsidized factory-scale fishing fleets in the 1970s and 1980s, and the resultant catch increase evidently surpassed a sustainable level. It is uncertain how much of the current decline in fish stocks stems from overharvesting and how much from environmental pollution. The deep ocean remains relatively unaffected by human activity, but continental shelves near coastlines are frequently seriously polluted, and these close-to-shore areas are the major biological nurseries for food fish and the smaller organisms they feed on.

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6. Environmental Toxins

Toxic chemical pollution exploded on the public consciousness with disclosure of spectacularly polluted industrial areas such as Love Canal near Buffalo, New York. There is no question that pollutants such as organophosphates or radionucleides can be highly deleterious to health, but evidence to date suggests that seriously affected areas are a localized rather than universal problem.

While some explore the possibilities for a lifestyle that fully eschews use of modern industrial chemicals, the most prevalent remediative approach is to focus on more judicious use. The most efficient chemical plants are now able to contain nearly all toxic byproducts of their production processes within the premises, minimizing the release of such substances into the environment. Techniques such as Integrated Pest Management (IPM) dictate limited rather than broadcast use of pesticides: application only when needed using the safest available chemical, supplemented as much as possible with nontoxic controls.

While heightened public awareness and growing technical sophistication suggest a hopeful outlook on limiting the damage from manmade environmental toxins, one must grant that previous incidents of their misuse and mishandling have already caused environmental damage that will have to be dealt with for many years to come. In the case of the most hazardous radioactive substances, the time scale for successful remediation actually extends beyond that of the recorded history of civilization. Moreover, in this era of high population density and rapid economic growth, quotidian activities such as the transport of chemicals will occasionally, seemingly inevitably result in accidents with adverse environmental consequences.

7. "Islandization" and Biodiversity

With increased awareness regarding the adverse effects of unregulated hunting and habitat depletion upon wildlife species and other aspects of biodiversity, large-scale efforts across the globe have been initiated to reduce and even reverse this trend.

In every region of the world, many species of wildlife and areas of biodiversity have been saved from extinction. Nationally, many countries have adopted policies aimed at preservation and conservation of species, and one of the most tangible measures has been the proliferation of protected habitats. Such habitats exist in the form of wildlife reserves, marine life reserves, and other such areas where biodiversity can be protected from external encroachment and exploitation.

Despite these advances in wildlife and biodiversity protection, further and perhaps more intractable challenges linger. Designated reserves, while intended to prevent further species decline, exist as closed territories, fragmented from other such enclaves and disconnected from the larger ecosystem. This environmental scenario is referred to as "islandization." Habitat reserves often serve as oversized zoos or game farms, with landscapes and wildlife that have effectively been "tamed" to suit. Mean-

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while, the larger surrounding ecosystem continues to be seriously degraded and transformed, while within the islandized habitat, species that are the focus of conservation efforts may not have sufficient range and may not be able to maintain healthy genetic variability.

As a consequence, many conservationists and preservationists have demanded that substantially larger portions of land be withheld as habitat reserves, and a network of biological corridors to connect continental reserves be established. While such efforts to combat islandization have considerable support in the United States, how precisely such a program would be instituted, especially across national boundaries, remains a matter of debate. International conservationists and preservationists say without a network of reserves a massive loss of biodiversity will result.

The concept of islandization illustrates why conservation and preservation of wildlife and biodiversity must consider and adopt new, broader strategies. In the past, conservation and preservation efforts have been aimed at specific species, such as the spotted owl and grizzly bear in North America, the Bengal tiger in Southeast Asia, the panda in China, elephants in Africa. Instead, the new approach is to simultaneously protect many and varied species that inhabit the same ecosystem. This method, referred to as "bio-regional conservation," may more efficaciously generate longer-term and more farreaching results precisely because it is aimed at preserving entire ecosystems, and all the living things within.

More About Biodiversity Issues:

This section is directly taken from the United Nations Environmental Program: "Biodiversity Assessment"

The Global Biodiversity Assessment, completed by 1500 scientists under the auspices of United Nations Environmental Program in 1995, updated what is known (or unknown) about global biological diversity at the ecosystem, species and genetic levels. The assessment was uncertain of the total number of species on Earth within an order of magnitude. Of its working figure of 13 million species, only 13 percent are scientifically described. Ecological community diversity is also poorly known, as is its relationship to biological diversity, and genetic diversity has been studied for only a small number of species. The effects of human activities on biodiversity have increased so greatly that the rate of species extinctions is rising to hundreds or thousands of times the background level. These losses are driven by increasing demands on species and their habitats, and by the failure of current market systems to value biodiversity adequately. The Assessment calls for urgent action to reverse these trends.

There has been a new recognition of the importance of protecting marine and aquatic biodiversity. The first quantitative estimates of species losses due to growing coral reef destruction predict that almost 200,000 species, or one in five presently contributing to coral reef biodiversity, could die out in the next 40 years if human pressures on reefs continue to increase.

Since Rio, many countries have improved their understanding of the status and importance of their biodiversity, particularly through biodiversity country studies such as those prepared under the aus-

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pices of UNEP/GEF. The United Kingdom identified 1250 species needing monitoring, of which 400 require action plans to ensure their survival. Protective measures for biodiversity, such as legislation to protect species, can prove effective. In the USA, almost 40 percent of the plants and animals protected under the Endangered Species Act are now stable or improving as a direct result of recovery efforts. Some African countries have joined efforts to protect threatened species through the 1994 Lusaka Agreement, and more highly migratory species are being protected by specialized cooperative agreements among range states under the Bonn Agreement.

There is an emerging realization that a major part of conservation of biological diversity must take place outside of protected areas and involve local communities. The extensive agricultural areas occupied by small farmers contain much biodiversity that is important for sustainable food production. Indigenous agricultural practices have been and continue to be important elements in the maintenance of biodiversity, but these are being displaced and lost. There is a new focus on the interrelationship between agrodiversity conservation and sustainable use and development practices in smallholder agriculture, with emphasis on use of farmers' knowledge and skills as a source of information for sustainable farming.

Perhaps even more important than the loss of biodiversity is the transformation of global biogeochemical cycles, the reduction in the total world biomass, and the decrease in the biological productivity of the planet. While quantitative measurements are not available, the eventual economic and social consequences may be so significant that the issue requires further attention.

Sources for this section:

Bendall, Roger. 1996. "Biodiversity: the follow up to Rio". The Globe 30:4-5, April 1996.

Global Environmental Change: Human and Policy Implications. 1995. Special issue on "People, Land Management and Environmental Change", Vol. 3, No. 4, September 1995.

Golubev, Genady N. (Moscow University) In litt. 29 June 1996.

Heywood, V.H. (ed.). 1995. Global Biodiversity Assessment. United Nations Environment Programme. Cambridge University Press, Cambridge.

Heywood, V.H. 1996. "The Global Biodiversity Assessment". The Globe, 30:2-4, April 1996.

Reaka-Kudla, Marjorie. 1996. Paper presented at American Association for Advancement of Science, February 1996. Quoted in Pain, Stephanie. "Treasures lost in reef madness". New Scientist, 17 February 1996.

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Uitto, Juha I., and Akiko Ono (eds). 1996. Population, Land Management and Environmental Change. The United Nations University, Tokyo.

USFWS. 1994. U.S. Fish and Wildlife Service report to Congress, cited in news release 21 July 1994.

Information Resources

For more information about environmental concepts, CountryWatch recommends the following resources:

The United Nations Environmental Program Network (with country profiles) < http://www.unep.net/>

The United Nations Environment Program on Climate Change < http://climatechange.unep.net/>

The United Nations Environmental Program on Waters and Oceans < http://www.unep.ch/earthw/Pdepwat.htm>

The United Nations Environmental Program on Forestry: "Forests in Flux" < http://www.unep-wcmc.org/forest/flux/homepage.htm>

FAO "State of the World's Forests" < http://www.fao.org/forestry/FO/SOFO/SOFO99/sofo99-e.stm>

World Resources Institute < http://www.wri.org/>

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Harvard University Center for Health and the Global Environment < http://www.med.harvard.edu/chge/the-review.html>

The University of Wisconsin Center for Sustainability and the Global Environment. < http://sage.aos.wisc.edu/>

International Environmental Agreements and Associations 1. Major International Environmental Accords:

General Environmental Concerns

Convention on Environmental Impact Assessment in a Transboundary Context, Espoo, 1991.

Accords Regarding Atmosphere

Annex 16, vol. II (Environmental Protection: Aircraft Engine Emissions) to the 1044 Chicago Convention on International Civil Aviation, Montreal, 1981

Convention on Long-Range Transboundary Air Pollution (LRTAP), Geneva, 1079

United Nations Framework Convention on Climate Change (UNFCCC), New York, 1002

Vienna Convention for the Protection of the Ozone Layer, Vienna, 1985 including the Montreal Protocol on Substances that Depleted the Ozone Layer, Montreal, 1987

Accords Regarding Hazardous Substances

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Convention on the Ban of the Import into Africa and the Control of Transboundary Movements and Management of Hazardous Wastes within Africa, Bamako, 1991

Convention on Civil Liability for Damage Caused during Carriage of Dangerous Goods by Road, Rail and Inland Navigation Vessels (CRTD), Geneva, 1989

Convention on the Control of Transboundary Movements of Hazardous Wastes and their Disposal (Basel Convention), Basel, 1989

Convention on the Transboundary Effects of Industrial Accidents, Helsinki, 1992

Convention to Ban the Importation into Forum Island Countries of Hazardous and Radioactive Wastes and to Control the Transboundary Movement and Management of Hazardous Wastes within the South Pacific Region (Waigani Convention), Waigani, 1995

European Agreement Concerning the International Carriage of Dangerous Goods by Road (ADR), Geneva 1957

FAO International Code of Conduct on the Distribution and Use of Pesticides, Rome, 1985

2. Major International Marine Accords:

Global Conventions

Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter (London Convention 1972), London, 1972

International Convention for the Prevention of Pollution from Ships, 1973, as modified by Protocol of 1978 relation thereto (MARPOL 73/78), London, 1973 and 1978

International Convention on Civil Liability for Oil Pollution Damage 1969 (1969 CLC), Brussels, 1969, 1976, and 1984

International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1971 (1971 Fund Convention), Brussels, 1971

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Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea (HNS), London 1996

International Convention on Oil Pollution Preparedness, Response, and Co-operation (OPRC), London, 1990

International Convention Relation to Intervention on the High Seas in Cases of Oil Pollution Casualties (Intervention Convention), Brussels, 1969

United Nations Convention on the Law of the Sea (UNCLOS), Montego Bay, 1982

Regional Conventions

Convention for the Prevention of Marine Pollution by Dumping from Ships and Aircraft (Oslo Convention), Oslo, 1972

Convention for the Prevention of Marine Pollution from Land-based Sources (Paris Convention), Paris, 1974

Convention for the Protection of the Marine Environment of the North East Atlantic (OSPAR Convention), Paris, 1992

Convention for the Protection of the Marine Environment of the Baltic Sea Area (1974 Helsinki Convention), Helsinki 1974

Convention for the Protection of the Marine Environment of the Baltic Sea Area (1992 Helsinki Convention), Helsinki 1992

Conventions within the UNEP Regional Seas Programme

Convention on the Protection of the Black Sea against Pollution, Bucharest, 1992

Convention for the Protection and Development of the Marine Environment of the Wider Caribbean Region, Cartagena de Indias, 1983

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Convention for the Protection, Management, and Development of the Marine and Coastal Environment of the Eastern African Region, Nairobi, 1985

Kuwait Regional Convention for Co-operation on the Protection of the Marine Environment from Pollution, Kuwait, 1978

Convention for the Protection and Development of the Marine Environment and Coastal Region of the Mediterranean Sea (Barcelona Convention), Barcelona, 1976

Regional Convention for the Conservation of the Red Sea and Gulf of Aden Environment, Jeddah, 1982

Convention for the Protection of the Natural Resources and Environment of the South Pacific Region, Noumea, 1986

Convention for the Protection of the Marine Environment and Coastal Area of the South-East Pacific, Lima, 1981

Convention for Co-operation in the Protection and Development of the Marine and Coastal Environment of the West and Central African Region, Abidjan, 1981

3. Major Conventions Regarding Living Resources:

Marine Living Resources

Convention on the Conservation of Antarctic Marine Living Resources (CCAMLR), Canberra, 1980

International Convention for the Conservation of Atlantic Tunas (ICCAT), Rio de Janeiro, 1966

International Convention for the Regulation of Whaling (ICRW), Washington, 1946

Nature Conservation and Terrestrial Living Resources

Antarctic Treaty, Washington, D.C., 1959

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Convention Concerning the Protection of the World Cultural and Natural Heritage (World Heritage Convention), Paris, 1972

Convention on Biological Diversity (CBD), Nairobi, 1992

Convention on the Conservation of Migratory Species of Wild Animals (CMS), Bonn, 1979

Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), Washington, D.C., 1973

Convention on Wetlands of International Importance especially as Waterfowl Habitat (Ramsar Convention), Ramsar, 1971

Convention to Combat Desertification (CCD), Paris 1994

FAO International Undertaking on Plant Genetic Resources, Rome, 1983

International Tropical Timber Agreement, 1994 (ITTA, 1994), Geneva, 1994

Freshwater Resources

Convention on the Protection and Use of Transboundary Watercourses and International Lakes, Helsinki, 1992

4. Major Conventions Regarding Nuclear Safety:

Convention on Assistance in the Case of a Nuclear Accident or Radiological Emergency (Assistance Convention), Vienna, 1986

Convention on Early Notification of a Nuclear Accident (Notification Convention), Vienna, 1986

Convention on Nuclear Safety, Vienna, 1994

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Vienna Convention on Civil Liability for Nuclear Damage, Vienna, 1963

5. Major Intergovernmental Organizations

Commission on Sustainable Development (CSD)

European Union (EU): Environment

Food and Agriculture Organization (FAO)

Global Environment Facility (GEF)

International Atomic Energy Agency (IAEA)

International Council for the Exploration of the Sea (ICES)

International Fund for Agricultural Development (IFAD)

International Labour Organization (ILO)

International Maritime Organization (IMO)

International Monetary Fund (IMF)

International Oil Pollution Compensation Funds (IOPC Funds)

Organization for Economic Co-operation and Development (OECD), Environment Policy Committee (EPOC)

United Nations Children's Fund (UNICEF)

United Nations Development Programme (UNDP)

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United Nations Educational, Scientific, and Cultural Organization (UNESCO)

United Nations Environment Programme (UNEP)

United Nations Industrial Development Organization (UNIDO)

United Nations Population Fund (UNFPA)

World Bank

World Food Programme (WFP)

World Health Organization (WHO)

World Meteorological Organization (WMO)

World Trade Organization (WTO)

6. Major Non-Governmental Organizations

Atmosphere Action Network East Asia (AANEA)

Climate Action Network (CAN)

Consumers International (CI)

Earth Council

Earthwatch Institute

Environmental Liaison Centre International (ELCI)

European Environmental Bureau (EEB)

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Forest Stewardship Council (FSC)

Friends of the Earth International (FoEI)

Greenpeace International

International Chamber of Commerce (ICC)

International Confederation of Free Trade Unions (ICFTU)

International Planned Parenthood Federation (IPPF)

International Solar Energy Society (ISES)

IUCN-The World Conservation Union

Pesticide Action Network (PAN)

Sierra Club

Society for International Development (SID)

Third World Network (TWN)

Water Environment Federation (WEF)

Women's Environment and Development Organization (WEDO)

World Business Council for Sustainable Development (WBCSD)

World Federalist Movement (WFM)

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World Resources Institute (WRI)

World Wide Fund For Nature (WWF)

7. Other Networking Instruments

Arab Network for Environment and Development (RAED)

Global Legislators for a Balanced Environment (GLOBE)

Regional Environmental Center for Central and Eastern Europe (REC)

United Nations Non-Governmental Liaison Service (UN-NGLS)

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Appendices

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Appendix: Dutch Territories and Jurisdiction

Appendices

Appendices Appendix: Dutch Territories and Jurisdiction

Coming soon..

Bibliography

Sources: Key Data

Altapedia. URL: http://www.atlapedia.com/online/country_index.htm

Ethnologue. URL: http://www.ethnologue.com

Infoplease: URL: http://www.infoplease.com

The Statesman's Year-Book 2006. Barry Turner, ed. London: St. Martin's Press.

United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.htm

United States Central Intelligence Agency, World Factbook. Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html

World Climate Data Online. URL: http://www.worldclimate.com

World Gazateer Population Statistics. URL: http://www.gazetteer.de/home.htm

Sources: Political Overview

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Bibliography

BBC International News. URL: http://news.bbc.co.uk/1/hi/world/ (Various editions and dates as cited in particular reviews)

Britannica Book of the Year. 1998-present. David Calhoun, ed. Chicago: Encyclopedia Britannica, Inc.

Britannica Online URL : http://www.eb.com

Britannica Year in Review. URL: http://www.britannica.com/browse/year

Chiefs of State and Cabinet Members of Foreign Governments. URL: http://www.cia.gov/cia/publications/chiefs/index.html

Christian Science Monitor. URL: http://www.csmonitor.com/ (Various editions and dates as cited in particular reviews)

CNN International News. URL: http://www.cnn.com/WORLD/ (Various editions and dates as cited in particular reviews)

Current Leaders of Nations. 1997. Jennifer Mossman, ed. Detroit: Gale Research

The Economist Magazine. (Various editions and dates as cited in particular reviews)

The Economist Country Briefings. URL: http://www.economist.com/countries/

Eldis Country Profiles. URL: http://www.eldis.org/country/index.htm

Elections Around the World. URL: http://www.electionworld.org/

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Appendices

Election Resources. URL: http://electionresources.org/

Europa World Yearbook 1999. Vols. I & II. 1999. London: Europa Publications Ltd.

Europe World Online. URL: http://www.europaworld.com/pub/

Foreign Government Resources. URL: http://www.lib.umich.edu/govdocs/foreign.html

Human Rights Watch. URL: http://www.hrw.org

IFES Election Guide. URL: http://www.electionguide.org

International Institute for Democracy and Electoral Assistance. URL: http://www.idea.int/

International Who's Who 1997-1998, 61st Edition. 1997. London: Europa Publications Ltd.

Leadership Views, Chiefs of State Online. URL : http://www.cia.gov/cia/publications/chiefs/index.html

Library of Congress Country Studies. URL: http://lcweb2.loc.gov/frd/cs/cshome.html

New Encyclopedia Britannica. 1998. Chicago: Encyclopedia Britannica Inc.

New York Times. URL: http://www.nytimes.com (Various editions and dates as cited in particular reviews)

Patterns of Global Terrorism. n.d. United States Department of State. Washington D.C.: United States Department of State Publications.

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Bibliography

Political Handbook of the World. n.d. Arthur S. Banks, Thomas C. Muller, ed. Binghamton, New York: CSA Publications.

Political Reference Almanac Online. URL: http://www.polisci.com/almanac/nations.htm

Rulers. URL: http://rulers.org/

The Guardian Online. URL: http://www.guardian.co.uk/ (Various editions and dates as cited in particular reviews)

The Statesman's Year-Book 2006. Barry Turner, ed. London: St. Martin's Press.

United Nations Development Programme. URL: http://hdr.undp.org

United Nations Refugee Agency. URL: http://www.unhcr.org

United States Central Intelligence Agency, World Factbook.Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html

United States Department of State, World Military Expenditures and Arms Transfers (WMEAT) URL : http://www.state.gov/www/global/arms/bureau_ac/reports_ac.html

United States Department of State, Country Reports on Human Rights Practices. URL: http://www.state.gov/g/drl/rls/hrrpt/2002/18245.htm

United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.html

Virtual Library: International Relations Resources. URL: http://www.etown.edu/vl/countgen.html

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Bibliography

Appendices

World Bank: Governance Indicators. URL: http://info.worldbank.org/governance

Note on Edition Dates:

The earlier edition dates are noted above because they were used to formulate the original country reviews and serve as the baseline for some of the information covered. Later editions have been used and are cited as such as well.

Sources: Economic Overview

BP Statistica Review of World Energy. URL: http://www.bp.com/genericsection.do?categoryId=92&contentId=7005893

BP Statistical Review of World Energy, June 1998. 1998. Page 1.C. London: The British Petroleum Company.

International Monetary Fund, Direction of Trade Statistics Yearbook. Washington, D.C.: International Monetary Fund Publication Services.

International Monetary Fund, International Financial Statistics. 1998 to present. Washington, D.C.: International Monetary Fund Publication Services.

International Monetary Fund, International Financial Statistics Yearbook. 1999 to present. Washington, D.C.: International Monetary Fund Publication Services.

International Monetary Fund, World Economic Outlook, May 1999. 1999. Washington, D.C.: International Monetary Fund Publication Services.

International Labour Office, World Employment Report, 1998-99. 1998. Geneva: International Labour Office.

United Nations Statistical Division Online. URL: http://unstats.un.org/unsd/default.htm

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Bibliography

United Nations Statistics Division, Monthly Bulletin of Statistics (MBS On Line), November 1999 Edition. 1999. New York: United Nations.

United Nations, Statistical Yearbook, 43rd Issue. 1999. New York: United Nations.

United Nations, Food & Agricultural Organization, FAOSTAT Database. URL : http://apps.fao.org/

United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html

United States Department of Labor, Bureau of Labor Statistics Database

United States Geological Service, Mineral Information

United States Department of State, Country Commercial Guides. Washington, D.C. United States of America. URL: http://www.state.gov/www/about_state/business/com_guides/index.html

The World Bank, Global Development Finance, Country Tables. 1999 to present. Washington, D.C.: The World Bank.

The World Bank Group, World Development Indicators. 1999 to present. Washington, D.C.: The World Bank.

Yearbook of Tourism Statistics, World Tourism Organization. 1998 to present. Madrid: The World Tourism Organization.

Note on Edition Dates:

The earlier edition dates are noted above because they were used to formulate the original country reviews and serve as the baseline for some of the information covered. Later editions have been used and are cited as such as well.

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Appendices

Methodology Notes for Economic Data:

Estimates by CountryWatch.com of real GDP in most countries are made by converting estimates by the US Central Intelligence Agency (CIA) of the purchasing power parity value of GDP for a reference year for each country to a 1990 base through the use of the US GDP deflator. CIA reference year estimates of real GDP for most countries are given in the CIA World Factbook for a recent range of years. The time series estimates for this range is generated for non-reference year values by utilizing the real GDP growth rates given by the International Monetary Fund (IMF) in the World Economic Outlook.

Exceptions to this method were used for: Bosnia-Herzegovina Nauru Cuba Palau Holy See San Marino Korea, North Serbia & Montenegro Liberia Somalia Liechtenstein Tonga Monaco Tuvalu In these cases, other data and/or estimates by CountryWatch.com were utilized.

Investment Overview

Corruption and Transparency Index. URL: http://www.transparency.org/documents/cpi/2001/cpi2001.html#cpi < http://www.transparency.org/documents/cpi/2001/cpi2001.html

Deloitte Tax Guides. URL: http://www.deloittetaxguides.com

United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html

United States Department of State, Background Notes. URL:

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http://www.state.gov/www/background_notes/index.html

United States Department of State, Country Commercial Guides. 1996-2006. Washington, D.C. United States of America. URL: http://www.state.gov/www/about_state/business/com_guides/index.html

World Bank: Doing Business. URL: http://www.doingbusiness.org

World Bank: Governance Indicators. URL: http://info.worldbank.org/governance

Social Overview

Borden, G.A., Conaway, W.A., Morrison, T. 1994. Kiss, Bow, or Shake Hands: How to do Business in Sixty Countries.Holbrook, Massachusetts, 1994.

Center for Disease Control. URL: http://www.cdc.gov

Eldis Country Profiles. URL: http://www.eldis.org/country/index.htm

Ethnologue. URL: http://www.ethnologue.com/

Government of Australia Department of Foreign Affiars and Trade. URL: http://www.dfat.gov.au/geo

Government of Canada Foreign Affairs and International Trade. URL: http://www.voyage.gc.ca/consular_home-e.htm

Library of Congress Country Studies. URL: http://lcweb2.loc.gov/frd/cs/cshome.html

Lonely Planet. URL: http://www.lonelyplanet.com/worldguide/

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Bibliography

Appendices

Steve Kropla's Online Help For World Travelers. URL: http://www.kropla.com/

United Kingdom Ministry of Foreign and Commonwealth Office. URL: http://www.fco.gov.uk/

United Nations Human Development Report. URL: http://www.undp.org/hdro

UNICEF Statistical Database Online. URL: http://www.unicef.org/statis/atoz.html

United States Central Intelligence Agency, World Factbook. 2001. Washington, D.C.: Printing and Photography Group. URL: http://www.cia.gov/cia/publications/factbook/index.html

United States Department of State, Background Notes. URL: http://www.state.gov/www/background_notes/index.html

United States Department of State, Commercial and Business Affairs: Travel Tips. URL: http://www.state.gov/www/about_state/business/cba_travel.html

United States Department of State, Bureau of Consular Affairs. URL: http://travel.state.gov/

World Health Organization. URL: http://www.who.int/home-page/

Methodology Notes for the HDI:

Since 1990, the United Nations Development Programme, in concert with organizations across the globe, has produced the Human Development Index (or HDI). According to the UNDP, the index measures average achievement in basic human development in one simple composite index, and produces from this index a ranking of countries. The HDI is a composite of three basic components of human development: longevity, knowledge and standard of living. Longevity is measured by life expectancy. Knowledge is measured by combination of adult literacy and mean years of schooling. Standard of living is measured by purchasing power, based on real GDP per capita (in constant US$) adjusted for dif-

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ferences in international living costs (or, purchasing power parity, PPP). While the index uses these social indicators to measure national performance with regard to human welfare and development, not all countries provide the same level of information for each component needed to compute the index; therefore, as in any composite indicator, the final index is predicated on projections, predictions and weighting schemes. The index is a static measure, and thus, an incomplete measure of human welfare. In fact, the UNDP says itself the concept of human development focuses on the ends rather than the means of development and progress, examining in this manner, the average condition of all people in a given country.

Specifically, the index is calculated by determining the maximum and minimum for each of the three components (as listed above) and then measuring where each country stands in relation to these scalesexpressed as a value between 0 and 1. For example, the minimum adult literary rate is zero percent, the maximum is 100 percent, and the reading skills component of knowledge in the HDI for a country where the literacy rate is 75 percent would be 0.75. The scores of all indicators are then averaged into the overall index.

For a more extensive examination of human development, as well as the ranking tables for each participating country, please visit: http://www.undp.org

Environmental Overview

Environmental Profiles: A Global Guide to Projects and People. 1993. Linda Sobel Katz, Sarah Orrick, and Robert Honig. New York: Garland Publishing.

The Environment Encyclopedia and Directory, 2nd Edition. 1998. London: Europa.

Environmental Protection Agency Global Warming Site. http://www.epa.gov/globalwarming

Global Warming Information Page. http://globalwarming.org

An Introduction to Global Environmental Issues, 2nd Edition. 1997. Kevin Pickering and Lewis Owen. London: Routledge.

United States Department of Energy, Country Analysis Briefs. URL: http://www.eia.doe.gov/emeu/cabs/contents.html

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Bibliography

Appendices

World Directory of Country Environmental Studies. 1996. The World Resource Institute.

The World Factbook. US Central Intelligence Agency. Washington, D.C.: Printing and Photography Group.

1998-1999 World Resources Guide to the Global Environment by the World Resources Institute. May, 1998.

The 1998/1999 Yearbook of International Cooperation on Environment and Development. 1998. London: Earthscan Publications.

Other Sources:

General information has also been used in the compilation of this review, with the courtesy of governmental agencies from this country.

News Services:

Business in Asia. Asia Pulse Pte Ltd., Sydney, Australia.

CANA Daily Bulletin. Caribbean Media Agency Ltd., St. Michael, Barbados.

Central and Eastern Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for Central and Eastern Africa.

Daily News, Panafrican News Agency. Dakar, Senegal.

Electronic News in English, EFE News Services (U.S.), Inc. Washington, D.C.

The Financial Times. URL: http://www.financialtimes.com

Interfax Daily Financial Report, Interfax-America, Inc. Denver, Colorado, USA.

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Bibliography

Interfax Daily Business Report, Interfax-America, Inc. Denver, Colorado, USA.

Interfax Daily News Bulletin, Interfax-America, Inc. Denver, Colorado, USA.

Internet News Service, Xinhua News Agency (U.S.) Inc. Woodside, New York.

The New York Times (daily print version).

PACNEWS, Pacific Islands Broadcasting Association. Suva, Fiji.

Southern Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for Southern Africa.

U.S. and World News, United Press International. Washington, D.C. 1998-1999

West Africa Report, United Nations Office for the Coordination of Humanitarian Affairs - Integrated Regional Information Network for West Africa. 1998-1999

World News Connection, National Technical Information Service. Springfield, Virginia, USA. 19981999

Note: Some or all these news services have been used to research various sections of this Country Review.

USING COUNTRYWATCH.COM AS AN ELECTRONIC SOURCE:

MLA STYLE OF CITATION

Commentary

For items in a "Works Cited" list, CountryWatch.com suggests that users follow recommended patterns forindentation given in theMLA Handbook, 4th edition.

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Individual Works

Basic form, using an Internet protocol:

Author/editor. Title of Print Version of Work. Edition statement (if given). Publication information (Place of publication: publisher, date), if given. Title of Electronic Work. Medium. Available Protocol (if applicable):Site/Path/File. Access date.

Examples:

Youngblood-Coleman, Denise, editor. Country Review: France. 2003. Houston, Texas: CountryWatch Publications, 2003. Country Review:France. Online. Available URL: http://www.countrywatch.com/cw_country.asp?vCOUNTRY=61 October, 12, 2003. Note: This is the citation format used when the print version is not used in the reference.

Parts of Works

Basic form, using an Internet protocol:

Author/editor. "Part title." Title of Print Version of Work. Edition statement (if given). Publication information (Place of publication: publisher, date), if given. Title of Electronic Work. Medium. AvailableProtocol (if applicable): Site/Path/File. Access date.

Examples:

Youngblood-Coleman, Denise, editor. "People." CountryWatch.com: France. 2003. Houston, Texas: CountryWatch Publications, 2003.CountryWatch.com: France. Online. Available URL : http://www.countrywatch.com/cw_topic.asp?vCOUNTRY=61&SECTION=SOCIAL&TOPIC=CLPEO&TYPE=TEXT. October 12, 2003. Note: This is the citation format used when the print version is not used in the reference.

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Bibliography

For further source citation information, please email:[email protected] or [email protected].

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Netherlands Review 2007

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CountryWatch CountryWatch is an information provider for public and private sector organizations that operate globally. The management of CountryWatch has extensive international experience and has utilized this experience to provide a concise and useful set of political, economic, and business information for its clients in the form of Country Reviews, the Country Wire, CountryWatch Data and CountryWatch Forecast. This Country Review is designed to provide accurate and authoritative information on the subject matter covered. It is sold with the understanding that the publication is not intended to provide legal, accounting, investment, or other professional advice. CountryWatch believes that the information and opinions contained here in are reliable, but does not make any warranties, express or implied, and assumes no liability for reliance on or use of the information or opinions contained herein. The offices of CountryWatch are located at: CountryWatch Two Riverway, Suite 1770 Houston, Texas 77056 U.S.A. Tel: 800-879-3885 Fax: 713-355-2008 Web address: http://www.countrywatch.com Email: [email protected] Copyright © 2008, CountryWatch All rights reserved.

ISBN: ISBN: ISBN: ISSN:

1- 60523- 125-8 1- 60523- 193-2 1- 60523- 194-0 1520- 2070

Netherlands Country Review The World Set The World Set CD-ROM

2008 2008 2008

Printed in the United States of America ISBN 1-60523-125-8

54295

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