History of Denmark
During the Viking period (9th-11th centuries), Denmark was a great power based on the Jutland Peninsula, the Island of Zealand, and the southern part of what is now Sweden. In the early 11th century, King Canute united Denmark and England for almost 30 years.
Viking raids brought Denmark into contact with Christianity, and in the 12th century, crown and church influence increased. By the late 13th century, royal power had waned, and the nobility forced the king to grant a charter, considered Denmark's first constitution. Although the struggle between crown and nobility continued into the 14th century, Queen Margrethe I succeeded in uniting Denmark, Norway, Sweden, Finland, the Faroe Islands, Iceland, and Greenland under the Danish crown. Sweden and Finland left the union in 1520; however, Norway remained until 1814. Iceland, in a "personal union" under the king of Denmark after 1918, became independent in 1944.
The Reformation was introduced in Denmark in 1536. Denmark's provinces in today's southwestern Sweden were lost in 1658, and Norway was transferred from the Danish to the Swedish crown in 1814, following the defeat of Napoleon, with whom Denmark was allied.
The Danish liberal movement gained momentum in the 1830s, and in 1849 Denmark became a constitutional monarchy. After the war with Prussia and Austria in 1864, Denmark was forced to cede Schleswig-Holstein to Prussia and adopt a policy of neutrality. Toward the end of the 19th century, Denmark inaugurated important social and labor market reforms, laying the basis for the present welfare state.
Denmark remained neutral during World War I. Despite its declaration of neutrality at the beginning of World War II, it was invaded by the Germans in 1940 and occupied until liberated by the Allied forces in May 1945. Resistance against the Germans was sporadic until late 1943. By then better organized, the resistance movement and other volunteers undertook a successful rescue mission in which nearly the entire Jewish population of Denmark was shipped to Sweden (whose neutrality was honored by Germany). However, extensive studies are still being undertaken for the purpose of establishing a clearer picture of the degree of Danish cooperation—official and corporate—with the occupying power. Denmark became a charter member of the United Nations and was one of the original signers of the North Atlantic Treaty.
Economy
Its standard of living is among the highest in the world, and the Danes devote about 1% of gross national product (GNP) to foreign aid to less developed countries. In addition, Denmark in 2006 devoted 0.81% of GNP for overseas development, including for peace and stability purposes, refugee pre-asylum costs, and for environmental purposes in central and eastern Europe and developing countries.
- GDP (2006): $275.24 billion.
- Annual growth rate (real terms, 2006 est.): 3.2%.
- Per capita GDP: $50,625.
- Agriculture and fisheries (2.4% of GDP at gross value added): Products—meat, milk, grains, seeds, hides, fur skin, fish and shellfish.
- Industry (21.0% of GDP at gross value added): Types—industrial and construction equipment, food processing, electronics, chemicals, pharmaceuticals, furniture, textiles, windmills, and ships.
- Natural resources: North Sea—oil and gas, fish. Greenland—fish and shrimp, potential for hydrocarbons and minerals, including zinc, lead, molybdenum, uranium, gold, platinum. The Faroe Islands—fish, potential for hydrocarbons.
- Trade (2006 .): Exports--$90.97 billion: manufactured goods 81% (of which machinery and instruments 35%); agricultural products 10% (of which pork and pork products cover 48%), fuels 2%, fish and fish products 3%, other 4%. Imports--$84.23 billion: raw materials and semi-manufactures 43%, consumer goods 29%, capital equipment 14%, transport equipment 7%, fuels 5%, other 2%. Partners (percent of total trade in goods)--Germany 21%, Sweden 13%, U.K. 8%, U.S. 5%, Norway 5%, Japan 2%, east European countries 5%.
- Official exchange rate: 5.70 kroner=U.S. $1 as of late February 2007.
Denmark is a net exporter of food and energy. Its principal exports are machinery, instruments, and food products. The United States is Denmark's largest non-European trading partner, accounting for about 6% of total Danish merchandise trade. Aircraft, computers, machinery, and instruments are among the major U.S. exports to Denmark. Among major Danish exports to the United States are industrial machinery, chemical products, furniture, pharmaceuticals, canned ham and pork, windmills, and plastic Lego bricks. In addition, Denmark has a significant services trade with the U.S., a major share of it stemming from Danish-controlled ships engaged in container traffic to and from the United States (notably by Maersk-SeaLand). There are some 375 U.S.-owned companies in Denmark.
The Danish economy is fundamentally strong. Since the mid-1990s, economic growth rates have averaged close to 3%, the formerly high official unemployment rate stands at around 4%, and public finances have been in surplus. Except for one year—1998—Denmark since 1989 has had comfortable balance-of-payments current account surpluses, in 2006 corresponding to 2.45% of GDP. The former Social Democratic-led government coalition lowered marginal income tax rates but at the same time reduced tax deductions, increased environmental taxes, and introduced a series of user fees, thus increasing overall revenues. Under the tax reform plan agreed upon by the government and the Danish People's Party on March 31, 2003, taxpayers received tax relief in 2004, albeit at a lesser rate than the government proposed originally. Denmark has maintained a stable currency policy since the early 1980s, with the krone formerly linked to the Deutschmark and since January 1, 1999, to the euro. Denmark meets, and even exceeds, the economic convergence criteria for participating in the third phase (a common European currency—the euro) of the European Monetary Union (EMU). Although a referendum on EMU participation held on September 28, 2000 resulted in a firm "no" and Denmark, therefore, has not yet adopted the euro, opinion polls show support for EMU membership now exceeds 60%.[Citation Needed]
Danes are generally proud of their welfare safety net, which ensures that all Danes receive basic health care and need not fear real poverty. However, at present the number of working-age Danes living mostly on government transfer payments amounts to more than 800,000 persons (roughly 23% of the working-age population). Although this number has been reduced in recent years, the heavy load of government transfer payments burdens other parts of the system. Health care, other than for acute problems, and care for the elderly and children have particularly suffered, while taxes remain at a painful level. More than one-fourth of the labor force is employed in the public sector.
