In the Netherlands transportation is of special importance because the country functions as a gateway for the traffic of goods between western Europe and the rest of the world. (Amsterdam, for example, has been the center of diamond exchange for centuries.) Trade flows through Dutch harbors, continuing its passage by riverboat, train, truck, and pipeline. Maritime traffic accounts for more than half the total amount of goods loaded and unloaded in the Netherlands, and, indeed, the whole southern part of the North Sea may be likened to an immense traffic square, fed by the Thames, Rhine, Maas, and Schelde rivers, with links into the hinterland of the continent that make it one of the greatest commercial arteries of the world. Rotterdam has the country’s best-equipped modern harbor, the largest on the continent. Europoort, the region between Rotterdam and the North Sea, can easily be reached by the biggest oceangoing ships; it serves as an approach via the New Waterway Canal to Rotterdam harbor. For some 40 years, until it was eclipsed by busier Asian ports in the early 21st century, Rotterdam handled more tonnage than any other harbor in the world. In petroleum processing too, Rotterdam is one of the world’s leading centers, with facilities to receive the largest supertankers. The number of rivercraft is probably unsurpassed by any other country.

Other important ports, though dwarfed by Rotterdam-Europoort, are Amsterdam and, on the Western Schelde, Flushing and Terneuzen. KLM initiated scheduled service between Amsterdam and London in 1920 and became one of the world’s leading airlines, merging with Air France in 2004 to form Air France-KLM. Amsterdam Airport (Schiphol)—on the site of the former Haarlem Lake at about 13 feet (4 metres) below sea level—is among Europe’s largest airports. Smaller airports of international importance are Rotterdam (Zestienhoven), Eindhoven, and Maastricht.

In terms of internal traffic, motor vehicles, accommodated by a comprehensive road network, dominate both passenger and goods transport, despite the fact that there is a dense modern railway network. Dutch road haulage companies are market leaders and constitute a large slice of such business in the EU. Moreover, Dutch shipping companies handle about two-fifths of the EU’s freight transport by water. The Netherlands’ network of inland waterways, made up of some 3,000 miles (4,800 km) of rivers and canals, is linked with Belgian, French, and German systems. Besides such natural waterways as the Rhine, Lek, Waal, and Maas rivers, many artificial waterways—the Juliana Canal, the Amsterdam-Rhine River Canal (between Amsterdam and Tiel), the Maas-Waal Canal (west of Nijmegen), and others—connect the major ports on the coast with the hinterland.

The telecommunications system in the Netherlands is highly advanced, with extensive fibre-optic and mobile networks. Per capita cell phone usage in the Netherlands is comparable to that of most western European countries (though considerably less pervasive than in Scandinavia); per capita personal computer use is high by western European standards.

Constitutional framework

The Kingdom of the Netherlands is a constitutional monarchy. The monarchy is hereditary in both the male and female lines. The constitution, which dates from 1814, declares that the head of state, the monarch, is inviolable and thereby embodies the concept of ministerial responsibility. It further provides that no government may remain in power against the will of the parliament. The States General (Staten-Generaal), as the parliament is officially known, consists of two houses: the First Chamber (Eerste Kamer), or Senate, whose members are elected by the members of the councils of the 12 provinces; and the directly elected Second Chamber (Tweede Kamer), or House of Representatives. Both houses share legislative power with the government, officially known as the Crown (Kroon), defined as the head of state acting in conjunction with the ministers. The two houses control government policy. The First Chamber can only approve or reject legislation but does not have the power to propose or amend it.

Every four years, after elections to the Second Chamber have been held, the government resigns, and a process of bargaining starts between elected party leaders aspiring to form a government that will be assured of the support of a parliamentary majority. It usually takes a few months of maneuvering before a formateur, as the main architect of such a coalition is known, is ready to accept a royal invitation to form a government. The head of state then formally appoints the ministers. In the event of political crises resulting in the fall of the government before the end of a four-year period, the same process of bargaining takes place. The monarch, acting on the advice of the ministries, has the right to dissolve one or both chambers, at which time new elections are held.

Local government

In local government, the most important institutions are the municipalities (gemeenten). Since World War II the number of municipalities—which once totaled more than 1,000—has been dramatically reduced as a result of redivisions. Each municipality is run by a directly elected council that is presided over by a burgemeester (mayor), who is appointed by the national government and serves as chairman of the executive, the members of which are elected by and from the council; in the early 21st century, there was active discussion of directly electing mayors. In those areas to which the councils’ own ordinances are applicable, the municipalities are autonomous. In many instances, national legislation or provincial ordinances provide for the cooperation of municipal authorities.

The country is divided into 12 provinces: Groningen, Friesland, Drenthe, Overijssel, Flevoland, Gelderland, Utrecht, Noord-Holland, Zuid-Holland, Zeeland, Noord-Brabant, and Limburg. Their administrative system has the same structure as the municipal government: directly elected councils (staten), which elect the members of the executive, except for the chairman, who is appointed by the national government. The main functions of the provinces include oversight of the municipalities within their borders and of district water-control boards (waterschappen).

Justice

In the Netherlands the ordinary administration of justice is entrusted exclusively to judges appointed for life; there is no jury system. There are cantonal courts (kantongerechten), which exercise jurisdiction in a whole range of minor civil and criminal cases. More-important cases are handled by one of the district courts (rechtbanken), which also can hear appeals from cantonal court decisions. Appeals against decisions from the district courts are heard by one of five courts of appeal (gerechtshoven). The Supreme Court (Hoge Raad) ensures a uniform application of the law, but it cannot determine constitutionality. In the legislative process itself, the government and the parliament together pass judgment on the constitutionality of a bill under consideration. Laws that are at variance with the country’s international agreements cannot be enforced by the courts.

The Netherlands also plays an important role in international law. The Hague is the seat of the International Criminal Court, the International Court of Justice, and Europol.