The Netherlands is a parliamentary democratic constitutional monarchy. It is located in Northwestern Europe, and bordered by the North Sea to the north and west, Belgium to the south, and Germany to the east. The capital is Amsterdam and the seat of government is The Hague.
The Netherlands is often called Holland, which is formally incorrect as North and South Holland are merely two of its twelve provinces. The word Dutch is used to refer to the people, the language, and anything appertaining to the Netherlands.
Being one of the first parliamentary democracies, the Netherlands was a modern country at the moment of its very foundation, and it has always been open to the world. Today, the country has an international outlook. Among other affiliations the country is a founding member of the European Union (EU), NATO, the OECD, and has signed the Kyoto protocol. The country is host to 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 former four are situated in The Hague as is the EU's criminal intelligence agency Europol. This has led to the city being dubbed "the world's legal capital."
The Netherlands is a geographically low-lying country, with about 27% of its area and 60% of its population located below sea level. Significant areas have been gained through land reclamation and preserved through an elaborate system of polders and dikes. Most of the country is very flat, with the exception of foothills of the Ardennes in the far south-east and several low-hill ranges in the central parts created by ice-age glaciers.
The Netherlands is a densely populated country. It is known for its traditional windmills, tulips, cheese, clogs (wooden shoes), delftware and gouda pottery, for its bicycles, and in addition, traditional values and civil virtues such as its classic social tolerance. The country is more recently known for its rather modern, liberal policies toward drugs, prostitution, homosexuality, and euthanasia. It also has one of the most free market capitalist economies in the world, ranking 13th of 157 countries on one index.