Being sick the Dutch way<\/strong><\/h2>\n![\"\"](\"https:\/\/blogs.transparent.com\/dutch\/wp-content\/uploads\/sites\/11\/2018\/07\/medications_money_cure_tablets_pharmacy_medical_the_disease_get_sick-1344930-1024x678.jpg\")
<\/a>Image from pxhere.com<\/p><\/div>\n
Dutch disease is not a medical ailment, but an economic one. So we gotta get a little economic here.<\/p>\n
It describes the phenomenon of how one sector (for example oil extraction) growing seems to cause other sectors of the economy (say, farming) to decline. Would not be a problem, if it did not affect the country’s currency. Because oil can be sold outside of the country, the currency’s value will go up, making importing goods more expensive for other countries. However, it also means that it is cheaper to import foreign goods, because more can be bought with more valuable money. Those goods then often replace goods from sectors in the country.<\/p>\n
It can be a bit more complicated than that, but maybe it helps to show it with a little example. The Dutch actually suffered from this disease!<\/p>\n
How did the Dutch get involved?<\/strong><\/h2>\n![\"\"](\"https:\/\/blogs.transparent.com\/dutch\/wp-content\/uploads\/sites\/11\/2018\/07\/gasveld-1024x683.jpg\")
<\/a>Image by Jos @ FPS-Groningen at Flickr.com under license CC BY 2.0<\/p><\/div>\n
The term Dutch disease comes from the year 1977. These were the good old days when the Dutch still had the\u00a0gulden<\/em><\/a>, its\u00a0valuta\u00a0<\/em>(currency) before the euro was introduced around the turn of the\u00a0eeuw\u00a0<\/em>(century). The Dutch economy was doing well, and it was especially happy with the\u00a0gasvoorraad\u00a0<\/em>(natural gas reserves) that brought in a lot of\u00a0welvaart\u00a0<\/em>(wealth) since their\u00a0ontdekking\u00a0<\/em>(discovery) in 1959.<\/p>\n
<\/a>Image from pxhere.com<\/p><\/div>\n
Dutch disease is not a medical ailment, but an economic one. So we gotta get a little economic here.<\/p>\n
It describes the phenomenon of how one sector (for example oil extraction) growing seems to cause other sectors of the economy (say, farming) to decline. Would not be a problem, if it did not affect the country’s currency. Because oil can be sold outside of the country, the currency’s value will go up, making importing goods more expensive for other countries. However, it also means that it is cheaper to import foreign goods, because more can be bought with more valuable money. Those goods then often replace goods from sectors in the country.<\/p>\n
It can be a bit more complicated than that, but maybe it helps to show it with a little example. The Dutch actually suffered from this disease!<\/p>\n
How did the Dutch get involved?<\/strong><\/h2>\n<\/a>Image by Jos @ FPS-Groningen at Flickr.com under license CC BY 2.0<\/p><\/div>\n
The term Dutch disease comes from the year 1977. These were the good old days when the Dutch still had the\u00a0gulden<\/em><\/a>, its\u00a0valuta\u00a0<\/em>(currency) before the euro was introduced around the turn of the\u00a0eeuw\u00a0<\/em>(century). The Dutch economy was doing well, and it was especially happy with the\u00a0gasvoorraad\u00a0<\/em>(natural gas reserves) that brought in a lot of\u00a0welvaart\u00a0<\/em>(wealth) since their\u00a0ontdekking\u00a0<\/em>(discovery) in 1959.<\/p>\n
<\/a>Image by Jos @ FPS-Groningen at Flickr.com under license CC BY 2.0<\/p><\/div>\n
The term Dutch disease comes from the year 1977. These were the good old days when the Dutch still had the\u00a0gulden<\/em><\/a>, its\u00a0valuta\u00a0<\/em>(currency) before the euro was introduced around the turn of the\u00a0eeuw\u00a0<\/em>(century). The Dutch economy was doing well, and it was especially happy with the\u00a0gasvoorraad\u00a0<\/em>(natural gas reserves) that brought in a lot of\u00a0welvaart\u00a0<\/em>(wealth) since their\u00a0ontdekking\u00a0<\/em>(discovery) in 1959.<\/p>\n
![\"\"](\"https:\/\/blogs.transparent.com\/dutch\/wp-content\/uploads\/sites\/11\/2018\/07\/gasveld-350x233.jpg\")