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The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders with Belgium, Germany and the United Kingdom. It is a parliamentary democracy organised as a unitary state. The country capital is Amsterdam and the seat of government is The Hague. The Netherlands in its entirety is often referred to as Holland, although North and South Holland are actually only two of its twelve provinces (a case of pars pro toto; see terminology of "the Netherlands").
The Netherlands is a geographically low-lying country, with about 25% of its area and 21% of its population located below sea level, and 50% of its land lying less than one metre above sea level. This distinct feature contributes to the country's name: in Dutch (Nederland), English, and in many other European languages (e.g. German: Niederlande, Croatian: Nizozemska, French: Les Pays-Bas, Italian: PaesiBassi, Finnish: Alankomaat and Spanish: PaísesBajos), its name literally means "(The) Low Countries" or "Low Country". Most of the areas below sea level are man-made, caused by centuries of extensive and poorly controlled peat extraction, lowering the surface by several meters. Even in flooded areas peat extraction continued through turf dredging. As from the late 16th century land reclamation started and large polder areas are now preserved through elaborate drainage systems with dikes, canals and pumping stations. Much of the Netherlands is formed by the estuary of three important European rivers, which together with their distributaries form the Rhine-Meuse-Scheldt delta. Most of the country is very flat, with the exception of foothills in the far southeast and several low-hill ranges in the central parts.
The Netherlands was one of the first countries to have an elected parliament. Among other affiliations the country is a founding member of the EU, NATO, OECD and WTO. With Belgium and Luxembourg it forms the Benelux economic union. The country is host to the Organization for the Prohibition of Chemical Weapons and five international courts: the Permanent Court of Arbitration, the International Court of Justice, the International Criminal Tribunal for the Former Yugoslavia, the International Criminal Court and the Special Tribunal for Lebanon. The first four are situated in The Hague as is the EU's criminal intelligence agency Europol and judicial co-operation agency Eurojust. This has led to the city being dubbed "the world's legal capital". The Netherlands has a capitalist market-based economy, ranking 13th of 157 countries according to the Index of Economic Freedom. In May 2011, the Netherlands was ranked as the "happiest" country according to results published by the Organisation for Economic Co-operation and Development.
The European area of the Netherlands lies between latitudes 50° and 54° N, and longitudes 3° and 8° E.
The country is divided into two main parts by three large rivers, the Rhine (Rijn) and its main distributaries, the Waal and the Meuse (Maas). These rivers functioned as a natural barrier between earlier fiefdoms and hence created traditionally a cultural divide, as is evident in some phonetic traits that are recognizable north and south of these "Large Rivers" (de Grote Rivieren).
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