Denmark — industrial country without natural resources

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Дания — индустриальная страна без природных ресурсов

The Danes are a nation in which the entrepreneurial spirit is combined with obedience. Maybe that’s why the Kingdom of Denmark, despite high taxes, regularly recognized as one of the best for business development countries in the world. A small country, where the world-class brands.

THE UGLY DUCKLING THAT BECAME A SWAN

A small country almost devoid of natural resources, has managed to find its way in the global economy.

Numerous civil, religious and other wars in which Denmark has participated since the beginning of the XVI century, has weakened the country’s economic situation to the nineteenth century Past the destruction of Copenhagen in 1807 during the Napoleonic wars led to the loss of Norway, which went to Sweden, had withdrawn from the Union with Denmark in 1523

During the life of the famous Dane, Hans Christian Andersen (1805-1875) of Denmark was not a rich country. 90% of Danish exports (mainly going to the UK and Germany) in the early twentieth century, were products of agriculture. Denmark was dubbed the “dairy farm of Europe”.

The development of the Danish industry at the beginning of the XX century is also based on the development of agriculture-related industries. The global financial crisis of the late 30-ies of XX century did not bypass Denmark to 1933 the number of unemployed exceeded 200,000 people.

During the Nazi occupation of Denmark (1940-1945) the country remained food base of the Third Reich.

After the Second world war, in 1948, Denmark became a party to the American “Marshall Plan” and received help in the form of loans, raw materials and equipment. It helped to modernize and streamline the entire economy. For lack of natural resources bet in the struggle for economic prosperity the authorities were the skills of the workforce and the development of entrepreneurship.

In 1972 Denmark joined the Common market, the European coal and steel community and the European atomic energy community. The expansion of markets for export led to the rise of the Danish economy over the 15 “Golden years” (years 1958-1973).

The most important factor of its economic success has become its social policy in Denmark one of the highest in Europe level of social security and a small income gap in different segments of the population.

This is largely achieved through high progressive taxes. The bulk of companies operating in the territory of Denmark, is 77%, are small businesses. The share of large capital accounts for only 1%.

Exports three-quarters of total output in Denmark of products that compels its producers to compete for the high competitiveness on the world market. Even the smallest Danish firms are forced to rationalize their production and to introduce new technologies and labour organization. This is greatly facilitated by the possibility of receiving professional education, which in Denmark mainly free, subsidized by the state, in a pinch you can take out a loan, which is payable over a period of 10 years after graduation.

Diplomas University of Copenhagen. The Institute of agriculture. The Institute of trade highly rated in the world, but their graduates prefer to work in the Danish structures. The patriotism of the Danes achieved progress in the economy.

Flat terrain and humid climate of the Jutland Peninsula and the surrounding Islands, as well as favorable conditions for the fisheries has led to the success of Danish agriculture and food industry. However, the high expertise of the Danish experts has achieved significant results in many sectors of the economy. For example, today the whole world plays with the Danish LEGO.

SMALL COUNTRY — BIG BRANDS AND HIGH TAXES

Denmark is one of the most favourable places in the world for business development.

In Denmark it is not customary to flaunt wealth and demonstrate poverty. However, “poor”, that is hungry and homeless, citizen of Denmark to be extremely difficult — well-developed social protection system will help to find a job, pass, if necessary, retraining and rentals.

Special “education for entrepreneurship” under the auspices of the government stimulates private initiative of citizens. And example of successful implementation of the Danish model of business are numerous brands established in Denmark and today recognizable all over the world.

Thus, the company LEGO, founded in 1932 by Dane OLE kirk Christiansen as a small enterprise producing wooden toys, do not even need any introduction — millions of children in different parts of the world play with Legos. Children’s Park “Legoland” near the town of Bil-Lund — a favorite place of leisure and tourism, popular all over the world. The idea of “connecting building blocks”, which are now made from plastics, gave decades of such a high profit that enabled the company to build the airport next to the “Legoland”.

Even during the financial crisis, in 2009, the company “LEGO” announced the growth of sales and profit increase, and the expansion of production capacity and the opening of new Assembly facilities. And this is no exception. So, the Danish pharmaceutical concern Novo Nordisk, one of the leading manufacturers in the field of medical biotechnology, in 2009 announced the planned profit in excess of 360 million.

Bet on the intellect, expertise and quality of products and services has enabled Denmark to get e one of the much larger developed countries. In many ways, this contributes to the popularity of Danish firms that do not hand over their positions, despite the difficulties of the world economy and the country’s dependence on exports.

Magazines such as the Economist and Forbes, gave Denmark the lead in the world ranking of countries where it is easier to do business. According to the Economist. Denmark — on this indicator the fifth in the world, Forbes gave Denmark first place. Advantages of Denmark called good infrastructure, the network is ready turnkey offices, the transparency of legislation and taxation, availability of skilled labor. As the Economist writes, “Today in Denmark is 20% of European biotechnology companies. There are flourishing green technology, fashion and design. The share of GDP generated by local companies of venture capital in Denmark, more than in any other country of Europe”.

Forbes noted that Denmark was the country where the lowest ratio in the world of corrupt government officials and the highest degree of protection of private property.

Surprisingly. what business doesn’t run out of the country, where taxes are very high, total taxes can reach 59% and income tax is one of the highest in the world. But the Danish taxpayers some of the most disciplined in the world.

INTERESTING FACTS

■ Commercial Alliance of Northern German cities — Hansa (XIII-XVII centuries) constantly fought with Denmark for the Commerce in the Baltic. The king of Denmark from 1340 to 1375, under Waldemar IV (1320-1375) conquered the region of skåne (the southern part of the Scandinavian Peninsula) and devastated the Hanseatic city of Visby. The ensuing war ended in victory of the Hanseatic League in 1368 and humiliating for Denmark, Strahl-soundskin the world (1370).

■ Danish king in 1439 1396, Erik of Pomerania (1382-1459) in 1429 enacted a tax that was levied on all foreign ships passing through the Strait of Zund (øresund). This duty, which caused many military and diplomatic conflicts, got the name “Sundsta duty”.

■ Since 1857 “Sundsta fee” was abolished under the Treaty by which Denmark received r 20 years 30 476 325 rigsdaler has received from signatories to the Treaty — the UK, Russia, Sweden, Prussia, the Netherlands, France, Norway, Austria, Hannover, Hamburg, Lubeck, Oldenburg, Bremen.

■ The company “Carlsberg”, 8 founded 1847 by Dutch industrialist and philanthropist Jacob Christian Jacobsen, in 1920, provided financial support, the Danish physicist Niels Bohr, at the base of the Institute of theoretical physics at the University of Copenhagen.

■ Furniture Denmark known for quality products since the XVII century, Occupies 8-e a place among the most important export industries, the furniture industry provides employment for only 20 000 people who work for small and medium-sized enterprises.

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