Economy and Education of Denmark

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Economy of Denmark

Denmark is a highly developed industrial and agricultural country. It is characterized by a highly developed agriculture, modern industry, a wide scale of social measures, a high level of well-being and a high dependence on the external market. Denmark is a net exporter of food and energy and has a positive balance of payments.

After successful development in the post-war period, Denmark faced economic problems from the beginning. 1970s Economic growth slowed down. After a period of full employment, unemployment rose sharply (up to 9%), which over the next 20 years became chronic and became a key socio-economic problem. Inflation has intensified. The state budget deficit and external debt increased.

In the 1990s the situation has improved. In 1993-2000, the average annual increase in GNP was almost 3%. GNP growth in 2002 amounted to 1.2% and slightly exceeded the figure of the previous year, GNP amounted to 1358 billion kroons, GNP per capita – 253 thousand kroons. The economically active population is 2.9 million people. Unemployment in 2002 – 5%. Inflation almost did not go beyond 2-3% per year (2.4% in 2002).

Sectoral structure of the economy: in terms of contribution to GDP – agriculture – 3%, industry – 26%, services – 71%; in terms of employment – agriculture – 4%, industry – 17%, services – 79%.

The industry is dominated by small and medium enterprises. The leading industries are mechanical engineering, food, chemical, pharmaceutical, and textile industries. They account for approximately 80% of the gross value of industrial production. St. 40% of the total production is exported. Mechanical engineering has long specialized in the production of ships, various agricultural machines, production equipment and instruments. The share of production of electronic equipment has increased. Chemical enterprises produce fertilizers and medicines (insulin, antibiotics, vitamins, etc.) on the basis of waste and by-products of slaughterhouses. Among other industries, the electronic, brewing, furniture, construction, and shipbuilding industries stand out.

Energy is based mainly on the consumption of oil and coal. A smaller role is played by natural gas, hydroelectric power and wind sources. In 1986, the Folketing decided to completely abandon the use of nuclear energy. In 2000, electricity generation was 35.8 billion kWh.

Agriculture is one of the most productive sectors of the economy. The volume of agricultural and livestock production exceeds the needs of the country’s population by more than 3 times. Denmark has long been a country with developed agriculture, which was facilitated by favorable natural conditions. The leading branch of agriculture is meat and dairy animal husbandry and bacon pig breeding, which provide 80-90% of the marketable value of agricultural products, as well as poultry farming. Highly productive breeds predominate in the composition of the cattle population: red Danish, which makes up almost half of the herd, black-and-white and Jersey. The average Danish cow gives 7-8 thousand liters of milk per year. Almost 2/3 of dairy products are exported. Denmark remains one of the world’s largest suppliers of butter, cheese and milk powder, heading primarily to the UK. The feed base of pig breeding is mainly dairy waste. Pig products account for about half of agricultural exports. The main consumer of Danish bacon is the UK.

Almost 3/4 of the country’s territory is occupied by agricultural land, of which 90% is plowed. Forage crops predominate in crop production. St. 1/2 of the arable land is occupied by grain crops, mainly barley, which is used for fattening pigs, and also serves as a raw material for the production of beer. Of the other crops, the most common are fodder grasses, oats, wheat, rye, and sugar beets. Large yields give gardens in Denmark. Fruits and berries are used mainly for canning. From fruit crops, apple trees predominate, from vegetables – carrots, tomatoes and celery, from berries – strawberries.

Fishing is carried out in coastal waters, mainly in the North Sea. They catch herring and flounder. Rainbow trout are bred in the rivers and lakes of Denmark.

The bulk of cargo transportation is carried out by the merchant fleet – 301 large ships with a total displacement of 6.3 million gross tons. The total length of railways is approx. 3000 km, almost all electrified; highways – 71 thousand km; oil pipelines – 688 km, gas pipelines – 700 km. The main ports are Copenhagen, Aalborg, Aarhus. The country has 116 airports, 4.8 million phones and 1.5 million mobile phones, 26 TV stations, St. 3 million TVs. In 2002 there were 3.37 million Internet users in Denmark.

All R. In 1998, in connection with the threat of “overheating” of the economy, the Folketing adopted a package of laws aimed at reducing domestic demand and attracting labor to the labor market. As a result of these measures, domestic demand fell markedly, which, together with the growth of exports, markedly improved the balance of payments. The government is pursuing a policy aimed at further privatization of state assets. Denmark remains outside the European Monetary System for the time being.

The central bank in its policy follows the European Central Bank, and interest rates on long-term obligations follow the rates in Germany. A strict credit and financial policy is being pursued. Among commercial banks, Den Danske Bank, created as a result of the merger of three large banks in 1990, stands out.

In general, the Danish economy is balanced with a good state of public finances. In 2002, the state budget surplus amounted to 1.9% of GNP. In 2002, the public debt fell to 44% of GDP. The maximum personal income tax rate is 59%. Corporate income tax rates are 30%. A policy of “freezing” taxes is being pursued.

Since 1997 wages in Denmark have risen noticeably faster than the EU average. Household savings rate – approx. 5%. In 2000, the richest 10% of households accounted for 24% of income, while the poorest 10% accounted for 2%.

Denmark trades with almost every country in the world. Exports, which amounted to 601 billion kroons (2002), are dominated by machinery and equipment, meat and meat products, dairy products, fish, chemical products, furniture, ships. In 2001, 65% of exports went to the EU countries (Germany – 20%, Sweden – 12%, Great Britain – 10%, France – 5%, the Netherlands – 5%), to the USA – 7%, to Norway – 6%. Imports, which amounted to 521 billion kroons (2002), are dominated by machinery and equipment, industrial raw materials and semi-finished products, chemical products, grain and food products, consumer goods. In 2001, 70% of imports came from the EU countries (Germany – 22%, Sweden – 12%, Great Britain – 8%, the Netherlands – 7%, France – 6%, Italy – 5%), from the USA – 4%.

In 2002, the remaining positive balance of payments amounted to 2.2% of GNP.

In the Faroe Islands, most of the population is engaged in fishing. Fishing fleet – 260 vessels. Animal husbandry specializes in the production of milk and lamb. Sheep are bred.

In Greenland, economic life is concentrated on an ice-free coastal strip of approx. 15% of the island. Approximately 1/4 of the able-bodied population is employed in fishing and fish processing enterprises. The fishing fleet includes approximately 440 vessels. Seal fishing is underway. Sheep and deer are bred. The main export item is fish products, primarily shrimp.

Science and culture in Denmark

According to, in 1972, a nine-year education for children was introduced in Denmark, starting at the age of seven. To continue education, there are real schools and gymnasiums. Graduates of gymnasiums receive the right to enter universities. Among higher educational institutions, 5 universities stand out, the largest and oldest (founded in 1479) of which is the University of Copenhagen. The rest are in Aarhus, Odense, Roskilde and Aalborg. There are also several specialized higher educational institutions, in particular, the Higher Technical School, the Higher Engineering Academy, the Higher School of Pharmacists, the Higher Veterinary and Agricultural School, the Higher Trade School, the Higher Pedagogical School, the Academy of Arts, the Conservatory.

Among Danish scientists, the most famous physicists Niels Bohr (1885-1962) and his son Aage Bohr (b. 1922) were Nobel Prize winners in physics in 1922 and 1975, respectively. Five Danish scientists were awarded the Nobel Prize in medicine and physiology: Niels R. Finsen (1903), A. Krogh (1920), J. Fibiger (1926), Henrik Dam (1943), N.K. Yerne (1984).

Ludwig Holberg (1684-1754) was the first of the Scandinavian writers to gain European fame. An outstanding place in Danish and world literature is occupied by the work of Hans Christian Andersen (1805–75), who became famous for his fairy tales and stories. Denmark gave the world the philosopher Soren Kierkegaard (1813-55), whose works formed the foundation of modern existentialism. Prominent representatives of realism in literature were the critics, the Brandes brothers Georg (1842–1927) and Eduard (1847–1931), and the writer Jens Peter Jacobsen (1847–85). The authors of historical novels Johannes W. Jensen (1873-1950, Nobel Prize in Literature 1944) and social novels Martin Andersen-Neckse (1869-1954) gained great fame.

Sculptor Kai Nielsen, composer Karl Nielsen, architect Jorn Utson, artists Asker Jorn, Herluf Bidstrup, Viktor Brockdorf, writers Klaus Riefbjerg, Hans Scherfig, film directors Bille August and Lars von Trier, chess player Bent Larsen, football players brothers Mikael and Brian Laudrup.

Education of Denmark

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