Country Risk Analysis The Netherlands

Table of Contents

1. Introduction 3 1.1 Background 3 1.2 General Facts 3 2. Political Risk Factors 4 2.1 Political Structure Analysis 4 2.2 Key Internal Political Risks 5 2.3 Key External Political Risks 6 3. Economic Risk Factors 7 3.1 The Real Sector 7 3.2 The Public Sector 8 3.3 The Monetary Sector 8 3.4 The External Sector 9 3.5 The Labour Market 10 3.6 Economic Risk Assessment 11 4. Social Risk Factors 13 4.1 Social Spectrum of Netherlands 13 4.2 Key Social Risks 14 5. Technical Risk Factors 16 5.1 Living and Working Environment 16 5.2 Key Technical Risks 17 6. Conclusion 18 Bibliography 19 Students Declaration 22
Dispute with Afghanistan
Since 2001 the Netherlands has been helping to bring stability and security to Afghanistan by providing humanitarian relief, growth aid and deploying troops. The Dutch mission has already once been extended by two years (since 2006) and has cost 21 soldiers' lives.
The Netherlands has become the first NATO member to announce its departure from the fight in Afghanistan, following the collapse of the center-right government over its involvement in the U.S.-led war against the Taliban. This case can set an example for other governments to reconsider their support for an unpopular war.
Thus, situation with Afghanistan, economic future of the Netherlands and scenarios of withdrawal from financial crisis will be depended on the new government. (see Appendix 1, event 3)

3. Economic Risk Factors

3.1 The Real Sector
The Netherlands has one of the most advanced economies in the world, which is modern and diversified, with institutional strengths in the sphere of legal framework and impregnability of property rights.
Exports and imports account more than 60 % of nominal GDP. Strategic geographic position and a small size of its domestic market play a key role on the world arena and by attracting foreign investments. The Netherlands showed significant economic performance and GDP growth in the nineties. The economy’s main focus is export commodities. Dutch trade mainly comprises