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Denmark (07/02)For the most current version of this Note, see Background Notes A-Z. PROFILE OFFICIAL NAME: Geography* People Government
Economy *Excluding Greenland and the Faroe Islands PEOPLE AND HISTORY Although religious freedom is guaranteed, the state-supported Evangelical Lutheran Church accounts for about 84% (down from 92% in 1984) of those persons claiming religious affiliation. Several other Christian denominations, as well as other major religions, find adherents in Denmark. Islam is now the second-largest religion in 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 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. Cultural Achievements Among the leading lights of architecture and design was Arne Jacobsen (1902-1971), the "father of modern Danish design," whose jubilee year is celebrated in numerous retrospectives throughout Denmark in 2002. The name of Georg Jensen (1866-1935) is known worldwide for outstanding modern design in silver, and "Royal Copenhagen" is among the finest porcelains. No "short list" of famous Danes would be complete without the entertainer and pianist Victor Borge (1909-2000), who emigrated to the U.S. under Nazi threat in 1940, and had a worldwide following when he died a naturalized U.S. citizen in Greenwich, Connecticut, at the age of 91. Visitors to Denmark will discover a wealth of cultural activity. The Royal Danish Ballet, specializes in the work of the great Danish choreographer August Bournonville (1805-79). Danish dancers also feature regularly on the U.S. ballet scene, notably Peter Martins as head of New York City Ballet. Danes have distinguished themselves as jazz musicians, and the Copenhagen Jazz Festival held in July each year has acquired an international reputation. The Danish Film Institute, one of the oldest in Scandinavia, offers daily public screenings of Danish and international movies in their original language and plays an active role in the maintenance and restoration of important archival prints. International collections of modern art enjoy unusually attractive settings at the Louisiana Museum north of Copenhagen, "Arken" south of Copenhagen, and the North Jutland Art Museum in Aalborg. The State Museum of Art and the Glyptotek, both in Copenhagen, contain masterpieces of Danish and international art. Denmark's National Museum building in central Copenhagen harbors most of the state's anthropological and archeological treasures with especially fine prehistoric and Viking Age collections; two of its finest satellite collections are the Viking Ship Museum in Roskilde west of the metropolis and the Open Air Museum in a near northern suburb where original buildings have been transported from their original locations around the country and reassembled on plots specially landscaped to evoke the original site. The Museum of Applied Art and Industrial Design in Copenhagen exhibits the best in Danish design. Besides the Royal Copenhagen Porcelain Factory, Denmark boasts a second renowned ceramic manufacturer, Bing & Groendahl, which also exports worldwide. The ceramic tradition is carried on by designers such as Bjoern Wiinblad, whose whimsical creations remain as popular today as when they burst on the scene in the 1950s. Denmark has more than its share of impressive castles, many of which have been converted to museums. Frederiksborg Castle, on a manmade island in a lake north of Copenhagen, was restored after a catastrophic fire in the 1800s and now houses important collections in awe-inspiring splendor amidst impeccably manicured gardens. In Elsinore, Kronborg (or Hamlet's) Castle that once exacted tribute from passing ships now houses important furniture and art collections of the period, while hosting in its courtyard many touring summer productions of Shakespearean works. Back in Copenhagen, Rosenborg Castle houses the kingdom's crown jewels and boasts spectacular public gardens in the heart of the city. Among today's Danish writers, probably the best-known to American readers is Peter Hoeg (Smilla's Sense of Snow; Borderliners), while the most prolific is Klaus Rifbjerg--poet, novelist, playwright, and screenwriter. Benny Andersen writes poems, short stories, and music. Poems by both writers have been translated into English by the Curbstone Press. Suzanne Broegger focuses on the changing roles of women in society. Kirsten Thorup's Baby won the 1980 Pegasus Prize and is printed in English by the University of Louisiana Press. The psychological thrillers of Anders Bodelsen and political thrillers by Leif Davidsen also appear in English. In music, Hans Abrahamsen and Per Noergaard are the two most famous living composers. Abrahamsen's works have been performed by the National Symphony Orchestra in Washington, DC. Other international names are Poul Ruders, Bo Holten, and Karl Aage Rasmussen. In jazz, base player Niels Henning Oersted Petersen has won broad international recognition. Over the decades, movie directors like Gabriel Axel (Babette's Feast; 1986 Oscar for Best Foreign Film), Bille August (Pelle the Conqueror), and Lars von Trier (Breaking the Waves) also have won international acclaim. Cultural Policy Denmark's cultural policy is characterized by decentralized funding, program responsibility, and institutions. Danish cultural direction differs from other countries with a Ministry of Culture and a stated policy in that special laws govern each cultural field--e.g., the Theater Act of 1990 (as amended) and the Music Law of 1976 (as amended). The Ministry of Cultural Affairs includes among its responsibilities international cultural relations; training of librarians and architects; copyright legislation; and subsidies to archives, libraries, museums, literature, music, arts and crafts, theater, and film production. During 1970-82, the Ministry also recognized protest movements and street manifestations as cultural events, because social change was viewed as an important goal of Danish cultural policy. Different governments exercise caution in moderating this policy and practice. Radio and TV broadcasting also fall under the Ministry of Culture. Government contributions to culture have increased steadily in recent years, but viewed against the new government's firm objective to limit public expenditures, contributions are unlikely to increase in the future. Municipal and county governments assume a relatively large share of the costs for cultural activities in their respective districts. In 2002, government expenditures for culture total 0.3% of GDP. Most support goes to libraries and archives, theater, museums, arts and crafts training, and films. GOVERNMENT The 1953 constitution established a unicameral Folketing of not more than 179 members, of whom two are elected from the Faroe Islands and two from Greenland. Elections are held at least every four years, but the prime minister can dissolve the Folketing at any time and call for new elections. Folketing members are elected by a complicated system of proportional representation; any party receiving at least 2% of the total national vote receives representation. The result is a multiplicity of parties (eight represented in the Folketing after the November 2002 general election), none of which holds a majority. Electorate participation normally is above more than 85%. The judicial branch consists of about 100 local courts, two high courts, several special courts (e.g., arbitration and maritime), and a Supreme Court of 15 judges appointed by the crown on the Government's recommendation. Denmark is divided into 14 counties (Amter) and 275 municipalities (Kommuner)--as of January 1, 2003, 13 counties and 271 municipalities. The chief official of the Amt, the county mayor (Amts-borgmester), is elected by the county council from among its members, according to the municipal reform of 1970. The cities of Copenhagen and Frederiksberg function as both counties and municipalities. The Faroe Islands and Greenland enjoy home rule, with the Danish Government represented locally by high commissioners. These home-rule governments are responsible for most domestic affairs, with foreign relations, monetary affairs, and defense falling to the Danish Government. NATIONAL SECURITY Current resource plans are based on the 1999 defense agreement covering the period 2000-2004. In 2002, defense is budgeted to absorb about 1.3% of GDP. Principal Government Officials Ministers (Order of ranking as of November 27, 2001) Denmark maintains an embassy at 3200 Whitehaven Street NW, Washington, DC, 20008-3683 (tel. 202-234-4300). Consulates general are in Chicago and New York, while the Los Angeles office is being closed down. POLITICAL CONDITIONS The Social Democratic Party, historically identified with well-organized labor movement but today appealing more broadly to the middle class, held power either alone or in coalition for most of the postwar period except from 1982 to 1993. From February 1993 to November 2001, Social Democratic Party chairman Poul Nyrup Rasmussen led a series of different minority coalition governments, which all included the centrist Social Liberal Party. However, with immigration high on the November 2001 election campaign agenda, the Danish People's doubled its number of parliamentary seats; this was a key factor in bringing a new minority right-of-center coalition government into power. The coalition consists of the Liberal Party ("Venstre") and the Konservative Party, with the parliamentary support of the Christian People's Party and the Danish People's Party, and holds 72 of the 179 seats in the Folketing. The vulnerability implicit in a minority coalition has been evidenced on occasion, but the tradition for broadly based budget agreements has been the rule rather than the exception. However, since last November, the new government has carried through most of its agenda on narrowly based agreements with the Danish People's Party. Consensus decisionmaking is the most prominent feature of Danish politics. It has often allowed the small centrist parties to play a larger role than their size suggests, but not so after the November 2001 election. Since the 1988 elections, which led to a domestic truce on North Atlantic Treaty Organization (NATO) and security questions, Denmark's role in the European Union (EU) has come to be a key political issue. Denmark emerged from two referenda (June 2, 1992, and May 18, 1993) to the Maastricht Treaty on the European Union (May 28, 1998) with four exemptions (or "opt-outs"): common defense, common currency, EU citizenship, and certain aspects of legal cooperation, including law enforcement. However, the Amsterdam Treaty was approved in a Referendum May 28, 1998, by a 55% majority. Still, the electorate's fear of losing national identity in an integrated Europe and lack of confidence in long-term stability of European economies run deep. These concerns were at the forefront of the September 28, 2000 referendum on Denmark's participation in the third phase of the Economic and Monetary Union, particularly the common currency, the Euro; more than 53% voted "no," and Denmark retained its "crown" currency unit. ECONOMY Denmark is a net exporter of food and energy. Its principal exports are machinery, instruments, and food products. The U.S. 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 U.S. are industrial machinery, chemical products, furniture, pharmaceuticals, canned ham and pork, windmills, and plastic toy blocks (Lego). 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 U.S (notably by Maersk-SeaLand). There are some 325 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 has been more than halved to 5%, 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 2001 corresponding to 2.6% of GDP with further improvements expected in coming years. The former Social Democratic lead 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. The present right-of-center government initially has frozen all taxes but is likely to reduce tax on work income when the budget permits. Denmark has performed a stable currency policy since the early 1980s, formerly with the krone 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). However, a referendum on EMU participation held on September 28, 2000 resulted in a solid "no," and Denmark therefore maintains its right to remain outside the EMU's third phase. 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 counts 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 burden 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. Greenland and the Faroe Islands The public sector, including publicly owned enterprises and the municipalities, plays the dominant role in Greenland's economy. Close to one-half of the government revenues come from grants from the Danish Government, an important supplement of GDP. Greenland has registered a foreign trade deficit since the closure of the last remaining lead and zinc mine in 1989. Despite several interesting hydrocarbon and mineral exploration activities, it will take several years before production can materialize. Besides a continued increase in local content, i.e., using Greenlandic rather than Danish work force in both public and private sector, tourism appears to be the sector that offers the best near term potential, and even this is limited due to a short season and high costs. The Faroese economy has performed strongly since the mid-1990s, with annual growth rates averaging close to 6%, mostly as a result of increasing fish landings and salmon farming and high and stable export prices. Unemployment is insignificant, and there are labor shortages in several sectors. Most of the Faroese who emigrated in the early 1990s (some 10% of the population) due to the economic recession, have now returned to the Faroe Islands. The positive economic development also has helped the Faroese Home Rule government produce increasing budget surpluses that in turn help to reduce the large public debt, most of it to Denmark. However, the total dependence on fishing and salmon farming makes the Faroese economy very vulnerable, and the present fishing efforts appear in excess of what is required to ensure a sustainable level of fishing in the long term. Initial discoveries of oil in the Faroese area give hope for eventual oil production, which may lay the basis for a more diversified economy and thus less dependence on Denmark and Danish economic assistance. Aided by a substantial annual subsidy from Denmark, albeit reduced from some 10% of GDP to about 6% in 2002, the Faroese have a standard of living comparable to that of the Danes and other Scandinavians. Politically, the present Faroese Home Rule government has initiated a process toward greater independence from Denmark, if not complete secession from the Realm, a project of which the outcome is too early to predict. In that respect, agreement on how to phase out the Danish subsidy plays a crucial role. FOREIGN RELATIONS Although the government has moved to tighten foreign assistance expenditures, it remains a significant donor and one of the few countries to exceed the UN goal of contributing 0.7% of GNP to development assistance. In the wake of the Cold War, Denmark has been active in international efforts to integrate the countries of central and eastern Europe into the West. It has played a leadership role in coordinating Western assistance to the Baltic states (Estonia, Latvia, and Lithuania). The country is a strong supporter of international peacekeeping. Danish forces were heavily engagedin the former Yugoslavia in the UN Protection Force (UNPROFOR), in IFOR/SFOR as well as in KFOR. Denmark has been a member of NATO since its founding in 1949, and membership in NATO remains highly popular. There were several serious confrontations between the U.S. and Denmark on security policy in the so-called "footnote era" (1982-88), when a hostile parliamentary majority forced the government to adopt specific national positions on nuclear and arms control issues. With the end of the Cold War, however, Denmark has been supportive of U.S. policy objectives in the alliance. Danes have enjoyed a reputation as "reluctant" Europeans. When they rejected ratification of the Maastricht Treaty on June 2, 1992, they put the EC's plans for the European Union on hold. In December 1992, the rest of the EC agreed to exempt Denmark from certain aspects of the European Union, including a common defense, a common currency, EU citizenship, and certain aspects of legal cooperation. On this revised basis, a clear majority of Danes approved continued participation in the EU in a second referendum on May 18, 1993, and again in a referendum on the Amsterdam Treaty on May 28, 1998. Since September 11, 2001, Denmark has been highly proactive in endorsing and implementing U.S., UN, and EU-initiated counter-terrorism measures, just as Denmark has contributed substantially to the ISAF in Afghanistan and the neighboring countries. U.S.-DANISH RELATIONS Denmark's active liberal trade policy in the EU, OECD, and WTO largely coincides with U.S. interests; the U.S. is Denmark's largest non-European trade partner with about 6% of Danish merchandise trade. Denmark's role in European environmental and agricultural issues and its strategic location at the entrance to the Baltic Sea have made Copenhagen a center for U.S. agencies and the private sector dealing with the Nordic-Baltic region. American culture--and particularly popular culture, from jazz, rock, and rap to television shows and literature--is very popular in Denmark. Some 350,000 U.S. tourists visit the country annually. The U.S. Air Force (USAF) base and early warning radar at Thule, Greenland--a Danish self-governing territory--serve as a vital link in Western defenses. Principal U.S. Officials The U.S. Embassy is located at Dag Hammarskjoelds Alle 24, 2100 Copenhagen O, Denmark (tel. +45 35-55-31-44). The embassy maintains a website at www.usembassy.dk. The site contains links to U.S. Government agencies at the embassy and provides a wealth of information on U.S.-Danish relations. |
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173 m. (568 ft.).
