Similar to its neighbors Scandinavian countries Denmark only felt the full impact of the Industrial Revolution at the end of the 19th century, mainly due to the lack of coal deposits. Opportunities for industrial development were much more limited in Denmark than in any other Nordic country. Unlike Sweden and Norway, Denmark does not have large rivers or significant hydropower reserves. Oil and gas reserves in the Danish sector of the North Sea are smaller than in the Norwegian and British ones. Forests occupy less than 10% of the country's area.
Denmark's industrial structure is based on its agricultural products, its limestone and clay resources and its wide range of imported raw materials. An important factor is the availability of qualified labor.
In the 1990s, Denmark had a diverse industry, with no single industry dominating the economy. In 1996, the number of people employed in industry was 485 thousand people and has actually changed little since 1985. About a quarter of those employed are concentrated in metallurgy and mechanical engineering. However, in 1996 industrial enterprises produced approximately 27% of Denmark's GDP and supplied approx. 75% export. The country has both large iron and steel factories (the largest of which is the Frederikswerk steel mill) and numerous small enterprises producing milking machines and electronic equipment. Industrial enterprises are located in many parts of the country and provide jobs in almost every city. However, the largest and most famous industrial centers are Copenhagen, Aarhus and Odense. Shipbuilding was the most important industry in Denmark, but due to foreign competition, the activities of many large shipyards in Copenhagen, Helsingør and Aalborg were curtailed or completely ceased. However, there are shipyards in Odense and Frederikshavn. In 1912, the large double-deck diesel ship Zealand was launched for the first time at the shipyards in Copenhagen. Danish shipyards also specialize in the production of refrigerated ships, railway and car ferries.
Two other important industrial sectors in Denmark are agricultural engineering (beet harvesters, milking units, etc.) and the production of electrical goods (from cables to televisions and refrigerators). Denmark has entered the international market, specializing in certain types of goods. The cement industry stands out here, which arose on the basis of limestone deposits in the Aalborg region. Cement production expanded from 1945 until the 1970s, but then declined due to a decline in construction in Denmark itself. The development of this industry stimulated the production of related machines, and Denmark exported finished cement plants to more than 70 countries. Another type of Danish minerals - clay - is used as a raw material for the production of bricks and tiles. The main area of this production is north-eastern Zealand, located close to the developed construction materials production in Greater Copenhagen.
Some Danish industries rely on local agricultural raw materials. Sugar mills are concentrated on the islands, mainly Lolland and Falster, where sugar beets are grown. The waste from this production is an important source of feed for livestock; production of industrial alcohol, alcoholic beverages and yeast from potatoes, molasses (a by-product of sugar production), grains and sugar beets has been established. Most of these enterprises are located in Copenhagen, Aalborg and Randers, some in Hobro and Slagels. Breweries use part of the barley harvest. About 90% of Danish beer is produced in Copenhagen; large breweries are also located in Odense, Aarhus and Randers.
Transport. Shipbuilding
Almost two-thirds of GDP is created in the private sector. Geographically, Denmark's industrial potential is moving to the western regions of the country (Fyn and Jutland), which is caused by the growing interest of the Danes in the markets of Central Europe. Currently, two thirds of manufacturing companies are concentrated in these regions.
After a short period of industrial stagnation in 1995 and 1996, associated with the decline of the Danish krone against European currencies and the US dollar, 1997 showed an increase in production and export volumes. This trend is driven by increased demand in European markets and the strengthening of Denmark's export potential.
The total value of industrial products produced in Denmark in 1997 is about 400 billion kroner. Two thirds of production is exported.
The leading branches of Danish industry are metalworking, mechanical engineering and instrument making. About 34% of the total industrial production is created here. An important place is occupied by the food industry - 26%, the chemical industry - 16.5%, the pulp and paper and printing industry - 8.5%, as well as the woodworking and furniture industry - 7.8%. All these industries have a steady tendency to increase production and exports of their products. After several years of stagnation, there has been a rise in the textile and clothing industry. Currently, these industries provide about 3.5% of total industrial production. The leather industry is in crisis.
The results of 1997, the situation in the Danish economy at the beginning of 1998, allow us to conclude that the country's economy is in a boom stage. Forecasts by Danish and international experts confidently predict moderate GDP growth for the Danish economy in the near future, a further increase in agricultural and industrial production, moderate export growth and a strengthening of the country's monetary and financial position.
According to experts from the International Monetary Fund and the Organization for Economic Cooperation and Development, the economic growth rate in Denmark will decrease slightly and will approach the European average (2.7%), the inflation rate will continue to exceed the European average (by 0.5%), and the unemployment rate will still more will fall to a record low of 6.9% by 1999.
On April 14, 1998, the Danish government officially announced plans to achieve strategic goals for the period until 2005: reduce the unemployment rate to 5%; reduce public debt to 40% of GDP; eliminate Denmark's foreign debt by 2005.
At the same time, both Danish (National Bank of Denmark) and international experts (IMF) have repeatedly expressed concerns about the possibility of overheating of the Danish economy and the need to take tough measures to limit the growth of wages and private consumption in the country. The recovery of the Danish economy, however, has not led to a significant increase in Danish exports, which is mainly due to the unfavorable ratio of the Danish krone to the US dollar.
The most dynamically developing industries, such as furniture, pharmaceuticals, medical, environmental and wind energy equipment, as well as the agro-industrial complex (production of pork and beef, butter, cheese and milk powder) have a good chance of continued growth. In industry and agriculture, there will be an even stronger emphasis on the priority of environmentally friendly technologies.
The development of transport infrastructure will continue, primarily the network of expressways and crossings across the straits, as well as modernization and electrification railway transport, construction of a mini-metro in Copenhagen.
At the same time, in the field of transport services, a noticeable increase in the volume of cargo turnover was expected in 1998 only in maritime transport due to further development container transportation. Investments in the development of Danish seaports should yield positive results in terms of increased cargo turnover in the coming years.
In 1998 it was expected further growth in industries such as telecommunications and computer science. Work continued on the development of a unified computer network in Denmark.
Transport
The transport industry in Denmark is traditionally considered one of the most important sectors of the economy and is the third largest exporter in the country. It remains a significant source of foreign exchange earnings (about 90% of earnings).
Sea transport. It accounts for approximately 75% of all foreign trade transport.
The merchant fleet under the Danish flag today includes more than 1,656 ships with a total tonnage of 5.9 million tons, of which half are engaged in liner shipping, about 20% in tramp shipping, and a third are used for the transport of tanker cargo. The Danes cover 5% of the global freight market.
The activities of the Danish merchant fleet concentrate mainly on international lines. Domestic transportation accounts for only 10% of shipping companies' turnover. Cargo transportation in Europe accounts for 25% of turnover. Largest market maritime transport for Denmark is the North American continent. It accounts for 50% of the total turnover of the Danish fleet. Within the Nordic countries, the Danes carry out only 5% of maritime transport. Danish shipping companies transported about 360 thousand tons of cargo to Russia in 1997.
Danish shipowners operate one of the most modern fleets with an average ship age of less than 8 years, which is almost half the average age of the world's merchant fleet. In 1997, net income from the operation of the merchant fleet, which is mainly used to transport foreign trade cargo, amounted to $8 billion. The merchant fleet employs 20 thousand people.
There are more than 300 shipping companies in Denmark, the largest of which are owned by the A.P. Muller and Lauritzen concerns. The former holds the leading position in the world in the transportation of standard 20-foot containers. If in 1990 this company already owned the world's two largest container ships, Zealandia and Jutlandia, capable of simultaneously transporting 3,600 standard 20-foot containers each, then in 1996 A.P. Muller received the first of 12 ordered giant container ships, each capable of carrying up to 6,000 standard 20-foot containers, making them the largest ships in the world today.
Denmark is a highly developed industrial country, the standard of living and social guarantees of its population is one of the highest in the world. The economy is dominated private sector, but the state exerts significant influence through monetary, financial and tax policies, and the provision of subsidies to agriculture. The state owns many public utilities and most of the air and rail transport.
The service sector gained a dominant position in the Danish economy in the second half of the 20th century. The main industries in which private services are common are banking, insurance and finance, tourism, transport and trade.
In the 1990s, Denmark had a diverse industry, with no single industry dominating the economy. Structure Danish industry based on its agricultural products, North Sea oil and gas reserves, limestone and clay resources and a wide range of imported raw materials. An important factor is the availability of qualified labor.
Having limited reserves of hydroelectric power and brown coal, Denmark was forced to import almost all energy resources until 1980. In 1966, oil and natural gas reserves were discovered in the Danish sector of the North Sea, exploitation of which began in 1972.
Agriculture in Denmark specializes in livestock farming; A significant part of crop production is used for animal feed. Overall, the role of agriculture in Denmark is decreasing.
Leading foreign trade partners of Denmark in 1995 there were Germany, Sweden, Great Britain, the Netherlands and Norway. The share of countries belonging to the EEC accounted for 68.8% of foreign trade turnover, and the share of the USA - approx. 4%.
Agriculture in DenmarkGeography. Denmark is located on the Jutland Peninsula and the islands of Funen, Zealand, Falster, Lolland, Bornholm, parts of the North Frisian, etc. Formally, Denmark includes the largest island in the world - Greenland, as well as the Faroe Islands, but these territories enjoy self-government, making them practically independent. The country is washed by the Baltic and North seas and the Skagerrak and Kattegat straits. Territory area - 43094 km 2. Climate. Temperate maritime, with mild, unstable winters, cool summers and extended transitional seasons, humid and cloudy, with a relatively strong influence of the ocean, namely warm current Gulf Stream. The average temperature in January is 0 o C, in July +15...+17 o C. Precipitation per year ranges from 600 mm in the east and up to 800 mm in the west. On average, it rains 120 days a year in Denmark. The greatest amount of precipitation occurs in autumn. Most of the year, strong winds prevail, mainly from the west. In winter the weather is cloudy, and in spring it is sunny. Spring comes late. In summer the weather is clear and warm. The maximum amount of precipitation occurs in the autumn-winter period, and the minimum in spring and early summer. Precipitation mainly falls in the form of rain. Relief. The country's landscape is low-lying, almost the entire territory is located below 100 m above sea level. Central Jutland is characterized by heathlands, lakes, and hills up to 170 m above sea level. The shores are indented by fjords. The most high point country, Mount Iding-Skovhoy (173 m), is located in eastern Jutland, and the most low point(12 m below sea level) – at west coast this peninsula. The eastern coasts of Denmark are heavily indented and abound in bays, while the western and northern coasts are mostly leveled and bordered by sand dunes. In the southwest of Jutland there are Wadden Coasts, which are influenced by sea tides. Dikes have been built along these low-lying banks to protect farmland from flooding. The surface of the Faroe Islands is mostly rocky. Hydrography. Surface waters. The surface of the country is covered with a network of short rivers with slight gradients and slow, calm currents. The most large river– Gudeno in eastern Jutland, 158 km long. Denmark's lakes are small and do not have much economic importance. Their greatest number is concentrated in the hilly areas of Central Jutland. The groundwater. Aquatic biological resources. Vegetation. On Faroe Islands Mostly meadow plants are found. Soils. The soils of Denmark were formed mainly on moraine clay deposits, as well as on sandy coastal-marine sediments. In Western Jutland, soils of the podzolic type are common, in Eastern Jutland and on the Danish Islands - brown forest soils.
Historical background
Historically, Denmark has never had the reputation of being an industrial power. Rather, it was the agricultural outskirts of Europe. During the 16th-19th centuries, the main Danish export was grain. This seems somewhat surprising, because... The country is quite northern. However, in fact, the climate here, thanks to the Gulf Stream, is mild. Its combination with a flat topography convenient for farming and relatively fertile soils made it possible to obtain good harvests, especially in comparison with its northern neighbors.
But at the end of the 19th century, due to entry into world markets large quantity The Danes could no longer compete with cheap grain from Russia and the USA. Therefore, Danish agriculture switched mainly to raising livestock and pigs, and pork and butter became the main goods exported from the country. It was for them that Denmark was famous throughout the 20th century. This same specialization has largely been preserved to this day. Denmark currently sends almost 30 million pigs to slaughter every year. That is, approximately 5 goals for each Dane. This allows it to be the only country in the world where the number of pigs exceeds the number of people. :-)
Main industries now
Of course, nowadays Denmark is no longer just about agriculture. Already from the end of the 19th century, with the general development of European industry, plants and factories began to appear in Denmark. But they were usually small or medium in size. Because of this, by now they have mostly either entered into large European concerns or are their suppliers, and therefore are little known to the average consumer. Indicative, for example, is the fate of the famous Copenhagen shipyard Burmeister & Wain, which in the 1980s became part of the German MAN AG, becoming part of its division for the production of marine engines. As for the Danish machine builders, the only one that is somewhat famous is the pump manufacturer Grundfos.
The most famous Danish companies in the world are Maersk, the largest container carrier, and Carlsberg, one of the largest brewing companies. Although, of course, these companies operate all over the world. Carlsberg, for example, is the leader of the Russian beer market. But he doesn’t bring beer for us from Denmark, but produces it here. Including at the Baltika plant he owns. Only the management of these companies is now located in Denmark. But the profit goes to Denmark :-).
The Lego company is also somewhat famous. Although its industrial significance is not very great, it is a “trend setter” in the field of production of children's construction sets and therefore it is known all over the world. Which is a source of pride for the Danes.
Development continues
As you know, in recent decades, the determining factor in the economy has become not the volume of production, but the level of technology development. For development advanced technologies advanced science and education are needed. Of course, when there was a sharp leap in the development of science in Europe in the 19th century, agricultural Denmark could not be at the forefront. But she couldn’t be called lagging either. It is enough to recall the names of Oersted and Bohr.
Although ideas about what is high-tech have changed over time, from today's perspective, some of the first high-tech companies were pharmaceutical companies. Thanks to the development of medical science in Denmark at the beginning of the 20th century, a number of such companies were founded here. The largest of them now is Novo Nordisk, known for its diabetes drugs. It currently employs more than 30,000 employees and Forbes list In 2013, it is in 16th place among pharmaceutical companies in the world. In the 1990s, a boom in biotechnology began in the world; this area became one of the most advanced and rapidly developing. On this wave, several notable biotech companies have emerged in Denmark over the past 20 years, including those involved in the development of new drugs.
If we talk about modern high technology, then it’s impossible not to remember about computers and electronics in general. But this is not very good in Denmark, as in Europe in general; Denmark can only boast of the production of hearing aids. The situation is better in the field of software development. The situation here is similar to that in the Danish engineering industry - the country does not have its own large software companies, instead there are a considerable number of medium and small enterprises and divisions of world giants, starting with Microsoft and Google. But the best confirmation of the level of programming development in the country is not even this, but the names of famous Danish programmers, starting with Björn Stroustrup, developer of the C++ language.
"Eternal values:-)
Yes, and I completely forgot about oil and gas :-). It turns out that they also exist in Denmark, or rather not in Denmark itself, but in the Danish part of the North Sea. What is produced is enough not only to cover our own needs, but also to sell. Moreover, about half of Denmark's electricity is currently generated mainly from wind. Another half is produced from imported coal. Yes, and as already written on this site, gasoline consumption is being limited in Denmark, cycling is being introduced, etc. That is, we see a rather strange approach - having so much fuel that one could not at all deny itself its consumption, the country, on the contrary, is making every effort to reduce it. At the same time, no saving of hydrocarbon resources occurs; they are extracted and sent for sale.
Agriculture has long been Denmark's international specialty. Danish farmers, who made up less than 3% of the workforce in 2008 (Danish statistics combine farmers with fishermen and mining workers), produce enough to feed 15 million people. Despite the fact that the share of the agro-industrial complex in GDP is currently very small, agricultural land still occupies 65% of the country's territory. Denmark is a major global supplier of food products (especially pork and pork products), and in export statistics they are counted as products of the manufacturing (food) industry.
A special feature of the Danish economy is that most enterprises are small and medium-sized. A similar picture can be observed in other developed countries. The share of enterprises with more than 100 employees in Denmark is no more than 30%, of which only a small part is truly large. This makes the Danish economy very flexible and able to respond quickly to various market impulses, but it holds back the development of many sectors due to the inability to take advantage of economies of scale.
The state in Denmark plays a significant role, especially in the social sphere: in the healthcare system, education, and in labor regulation. The government is also actively involved in supporting economic competitiveness and industrial policy.
The Danish state at one time laid the foundations for the industrial development of the country by creating an effective transport, utilities and social infrastructure, but state property was almost not used directly in the manufacturing sector or in the financial and banking sector. At the end of the 19th century, all railways country, after which the state concentrated ownership of sea and later air ports in its hands. In the 1970s, when the development of oil and gas fields in the North Sea began, the state-owned company Dong (Dortg) was created, which has a monopoly on the transportation, storage and sale of natural gas in Denmark.
Currently, many Danish state-owned companies are fully or partially privatized. Mainly state property is still represented by infrastructure, as well as energy. The state owns, in whole or in part, the sea and air ports of Copenhagen, the postal service, a number of air transportation companies, a real estate company, Exhibition Center, lottery, railways. The state owns about a third of the shares listed on the Copenhagen Stock Exchange.
Denmark's share of public sector employment increased from 8% in 1950 to 35.4% in 2007, which has played a role in maintaining employment. The state provides free health care to all Danish citizens (with the exception of dental services; there are also some restrictions on the payment for medicines). The hospitals that Danes can go to are also public, although in some cases visits to private clinics are allowed, subject to reimbursement of expenses. The costs of maintaining this system are covered by taxes. Many experts believe that the public nature of the health care system does not prevent it from being effective, because management and responsibility for the quality of services are transferred to the lower level of government, which is in direct contact with the needs of the Danes.
The educational system also involves fully free education for Danish citizens. Fees are only charged for some forms of adult education (for example, second higher education). Danish students and even high school students have the opportunity to take advantage of preferential government loans, if necessary, to continue their education above the legally established minimum.
The pension system is also financed primarily from the country's budget. Upon reaching 65 years of age, a Danish citizen receives a guaranteed state pension, which is the same for everyone. The second part of the pension depends on the amount of income received during life. The third part is received only by those pensioners who, during their working years, independently made pension savings or entered into a collective agreement on the formation of a pension with the employer.
The Danish government actively regulates the labor market, influences the real estate market, implements measures to stimulate the economy, especially in the field of scientific research, and also promotes business expansion into foreign markets. The most important channel of influence is legislative activity.
The Danish model of labor market management is called “flexicurity” (the meaning of the English name can be conveyed by the phrase “flexible security”). In accordance with it, when dismissing or hiring personnel, enterprises do not encounter any legislative obstacles, however, the state implements a generous program to support the unemployed, which consists not only of providing benefits, but also of creating conditions and incentives for finding work and obtaining new qualifications, if required. market. The system is quite expensive for taxpayers, but allows businesses to effectively manage personnel. However, it does not solve the problem of long-term unemployment.
Denmark's main foreign trade partners are EU countries (especially Germany, Sweden, Great Britain, Norway), the USA, and China (2006).
