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Doing business in...

The Netherlands

By Jan Hendrik Wiggers
Chairman
Van Luyken Communicatie Adviseurs and Partner
Public Relations Organisation International, Inc.

Demographics
Nation of Exports and Imports
Business Culture
The Polder Model
Media Landscape
The Communications Industry


Demographics
The Netherlands has a population of over 16 million inhabitants. Ten percent of them are of non-westerner descent. The most urbanised areas are in the west of the Netherlands. There the cities of Amsterdam, Rotterdam and The Hague, with the smaller towns and cities in between, have merged to form the so-called Randstad region. In the south-east of the country, too, there is a nearly contiguous group of cities, which - together with Aachen (Germany) and Liège (Belgium) - form a cross-border agglomeration. Most of the land in the north, the east and the south-west of the Netherlands is used for farming. Although there are urban areas there, they are smaller and more scattered. The regions are characterised by arable and livestock farming.

The Netherlands: a nation of Exports and Imports
The Netherlands has traditionally been a trading nation, with extensive import and export flows. The centers and symbols of this tradition are Amsterdam Airport Schiphol and the ports of Rotterdam and Amsterdam. In the period 1980-2003, the value of Dutch exports rose from 67 to 232 billion euro. The value of imports also grew, from 69 to 204 billion euro. Three-quarters of Dutch exports goes to the fourteen ‘old’ countries of the European Union, while half of imports comes from these countries. Germany is still the Netherlands’ most important trading partner by far, accounting for nearly a quarter of Dutch exports and one fifth of imports.

More than half of Dutch imports and exports consist of foodstuffs, chemical products and machines. The share of the latter category is the largest by far. In 2003 32 percent of exports and 38 percent of imports consisted of machines. The largest category within machines is computers, most of which are imported into the Netherlands en route to other countries. Indeed a considerable proportion of goods imported into the Netherlands leave the country again immediately, or after brief processing, thus contributing to Dutch exports. Many of these goods are imported from the US and Asia and are destined for the European hinterland.

The agricultural sector accounts for 2.5 percent of the total gross domestic product (GDP). The quarter of largest farms in the Netherlands accounts for two-thirds of production by this sector. The agricultural sector in the Netherlands is largely geared to the export market. The main export products from this sector are flowers and plants, fruit and vegetables, dairy products and meat. Together these products represent an export value of 24.3 billion euro. Nearly 90 percent of agricultural products are exported to the fourteen ‘old’ countries of the European Union, with Germany the main customer. Exports of agricultural products have remained stable in recent years; their total value of 31.5 billion euro accounts for around 14 percent of all Dutch exports.

Business Culture
The Netherlands is famous for its international-mindedness and sensitivity towards cultures. It is no coincidence that, currently, almost 200 companies chose the Netherlands as the location for their European headquarters. Of all foreign headquarters established in Europe, currently 57% are located in the Netherlands.

Political Structure: the "Polder Model"
The famous Dutch political polder model resulted from a sustained socio-economic crisis triggered by the world wide recession following the oil crisis in 1972/73.

In 1983 the Netherlands found itself in a fundamental socio-economic crisis that demanded immediate action. The gloomy situation pressed trade unions, employers and the government to negotiate an agreement encompassing wage restraints, shorter working hours and tax cuts. The remaining margin for pay increases created by the Polder model was used to create new jobs in the private sector.

This successful approach pushed up employment by an average 1.8 percent annually and a growth in labour productivity of 1.1 percent a year in the period 1984-2000. As a result in 1998 the country seemed to have recovered. The unemployment rate had dropped to 3.7%, the national debt and the budget deficit were well within the Maastricht criteria, and public spending was reduced to under 50% of the GDP.

It seems that the Netherlands has delivered the proof that a modern social market economy with a strong emphasis on social justice can thrive and survive in the face of stiff international competition. History will show whether the polder model can survive in this new period of economic challenges, including – as in most European countries - the growing number of pensioners, with a corresponding reduction in the workforce needed to pay for old-age benefits.

The Dutch Media Landscape
The Dutch national newspapers take up about 45 per cent of the market with a total of 2,080,000 copies sold daily.

There are eight national newspapers, not including daily specialist papers such as the Financieel Dagblad (a finance and business paper) and the Agrarisch Dagblad (for the agricultural sector). The main newspapers are De Telegraaf (850,000), Algemeen Dagblad (395,000), de Volkskrant (350,000), NRC Handelsblad (270,000), Trouw (112,000) and Het Parool (90,000). Since 1999 two free tabloid newspapers (Metro and Spits) are distributed at public transport stations. Apart from the national newspaper, there are 29 regional newspapers. Together they sell just under 2,600,000 copies per day.

In the Netherlands there are over 200 magazines. The major opinion magazines are Elsevier (133,000 copies), Vrij Nederland (67,000), HP/De Tijd (41,000), De Groene Amsterdammer (17,500) and Hervormd Nederland (14,000).

Dutch radio and TV are divided into a public and commercial system. The public system counts twenty broadcasting associations and is financed by an annual licence fee payable by all owners of radio and/or television sets, the member fees of the associations and advertising. The national broadcast organisation NOS is responsible for public television news, sports and major events and for the overall co-ordination of the public channels. There are seven Dutch language commercial companies broadcasting nationwide and a vast range of commercial radio stations. In addition there are 13 regional and over 375 local broadcasting organisations.

The Communications Industry
The fourteen major communications consultancies (public relations and strategic communications) in the Netherlands participate in an informal trade association named Precom. Their websites are to be found via www.precom.org.

Most Dutch advertising agencies are a member of the trade association VEA. Their site (www.vea.nl) lists all associated agencies.

For assistance in finding a PR agency in The Netherlands contact:

Jan Hendrik Wiggers
Chairman
Van Luyken Communicatie Adviseurs
wiggers@vanluyken.nl
www.vanluyken.nl

 

 
   
   
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