Info-Stat

 

GLOBALIZATION AND THE ECONOMY

Denmark, October 20th 1999

Info-Stat (Web Site : (English short version) http://www.lilliput-information.com) has received an invitation to give its contribution to the 8th International Congress of Professors’ World Peace Academy to be held in Seul, Korea, February 2000.
The congress has published a book including the reports about the respective countries.ISBN 1-885118-00-7(pbk.)

Contents within the issues:

  1. OVERVIEW OF THE NATIONAL ECONOMY
  2. INTEGRATION OF THE NATIONAL ECONOMY WITH THE GLOBAL ECONOMY
  3. IMPACT OF GLOBAL ECONOMY ON NATIONAL POLITICS

4.–6. IMPACT OF GLOBAL ECONOMY ON SOCIETY, CULTURE, THE FAMILY

7. OVERALL ASSESSMENT

8. AUTHORSHIP

The report:

 

Assumptions:

Globalization has not been defined properly as an useful concept anywhere – as far as I know. This should not take you by surprise. The spirit of the times tells us that form matters, contents do not.

Perhaps something like worldwide strong time- and distance-independent information, less time-consuming cheap transmission of communication and decentral EDP (chip-) technology are generally developing national and regional markets to a world-wide emporium, e.g. on The Internet. Hollywood/satellite television-channels shaping a common mainsteam socio-culture influence family life and spiritual values. The globalization, and its centralization of power and control that influence nations, and at the same time integration of nations used by politicians to protect (they hope) against the impacts of the further globalization. All together the identity of the individuals, and the structure of population are influenced, so is mankind. Perhaps the reason is that something in life is certainly not for sale, something perhaps cannot be produced or consumed either.

The Impact of globalization: Has the same weakness. The impact of a phenomenon which is not properly defined is of course a serious problem too. In fact there are at least three reasons for that:

1. Adequancy, unequivocability and functionality are scientific requirements to which the most newer so-called concepts do not comply (read my first sentence again). Globalization and the impacts of are to be judged by the following two propositions also:

2. Impact implies a before and an after or a totally apriori knowledge of the way impacts have an effect including the strenght of these impacts. Who has this apriori knowledge?

3. The misuse of science has at least for the last 30 years developed (or dismantled) from "impact of" to influence on, management and control of, e.g. from analyses and understanding of human behaviour including economic behavior to (mental) design, influence, monitoring, and control.

On this basis I shall try to give a reply by reporting some public (reliablely) registered indicators of possible impacts of globalization on politics, society and family in Denmark - where public registered data are available. If these are not reliable, honest alternative private sources have been chosen.


 

 

Statement, enclosed diagrams, figures of documentation and foot-notes 1)


  • OVERVIEW OF THE NATIONAL ECONOMY:
  • Population

    The area is 43,092 square kilometers, 5.3 mill. inhabitants including 500,000-700,000 immigrants from areas outside Western Europe and North America.2) In 1985 the population amounted 5.1 mill. The official information tells you 192,491 of these are foreign immigrants by 01/01/98. The new citizenships by naturalization, and the children born by the naturalized have not been included properly in the official accounts. In 1998 the number of naturalizations was doubled from 5,500 to nearly 11,000 a year. This means that the annual immigration from these areas amounting approximately 15,000 officially is reduced to about 4,000 (15,000 minus 11,000). More than 24,000 young Danes emigrate every year, and more than 5,000 do not return.

    Uemployment, employment and labor force (see the enclosed documentation, Table 1)

    The official number of unemployed is the so-called the registred number of unemployed. This number was 168,993 in average in 1998 (last column in Table 1 A).

    The requirements to get into the this first category, when you cannot find work, has been tightened several times. The time you can stay in the first category has been shortend, and the number of months you have to work and pay to be covered by the arragement has been extended. The result is that the second and fourth category have to increase at a higher rate. In both 2nd and 4th category you have to look for work, and you are registered as well, but officially not as unemployed. The period you can receive maternity benefits has been extended several times, so has the number of public arrangements – public means: central government or local government financed - in the fifth category, and this means more room for temporary substitutes – they would probably have been unemployed without these changes. Some considerable parts of the last two categories are certainly not without the ability and the will to work either. The differences between the official and the real number have partly been labelled ’on-leave-camouflage’. The true number of unemployed was rather 600,000 in 1998.3) This number of unemployed is nearly the same, perhaps a little higher than 13 years ago.

    As you perhaps notice the difference between 600,000 and 168,993 (se Table 1 A) is not included in the labor force. You reach an official unemployment-rate of 5.9 p.c. in 1998. If you choose to include 600,000 instead of 168,993 in the labor force (see Table 1 A) you get a more realistic unemployment-rate of 18.2 p.c.

    Production and earning (National Account):

    GDP (including the public sector) 1998: dkr. 1,166,636 mill. and GFI (including public sector): dkr. 988,689 mill. or GDP US$ 182,003 mill. and GFI (GDP at factor cost) US$ 154,242 mill.4)

    Public administration and public service amount to a GFI of US$ 35,600 mill. (1998). Figures of the private sector has been registered earlier, but the categories has recently been changed and renamed: "Company-sector", and "Household-sector" 5)in the last edition of Statistical ten-year review 1999 published by the official Danmark’s Statistik. That the two last categories have given problems to the registration can been seen from fact that the last published account of details concerns 1997. In both the "company-sector" and the "household-sector" are included typical public financed activities. Included in the "company-sector" are many companies where the public is strongly involved. Non-profit institutions, most of which are partly public subsidized, are included in the "household-sector". So you can read in a foot-note in this publication. If you try to divide GFI further on business-lines you get problems. The registered revenue-figures here are certainly not reliable indicators. (see Unemployment, employment and labor force, Table 1).

    We have not used the concept growth, because among other things inflation, and the choice of price-index number often make the results unreliable. The growth in Denmark is officially stated to 1-2 p.c.; so is the inflation. But note that with the existing Danish National Account a loan-financed growth of the consumption in the public sector is registered just like a productivity-increase in the industry.

    Danish Government Borrowing and Debt

    When we read in the publication Statistical ten-year review 1999, section National Account, the government debt amounted to dkr. 610,596 millions or US$ 95,257 millions on 12/31/98, but if we read in table 5.2.1 in "Danish Government Borrowing and Debt" from the Danish central bank called Danmark’s Nationalbank government debt amounted 567,100 millions d.kr. or about US$ 87.8 billions ultimo 1998. Provisional figures, differences on the account of the so-called Social Pension Fund, more changes on the total national accounts (-method) made by the state are refered to in footnotes in both publications. When we take some earlier editions of the last mentioned (yearbook-) publication from e.g. the years 1998 and 1995, the debt was accounted in net figures ultimo 1995. In footnote no. 2 of tabel 3.1.1 The Danish National Bank noticed (1995) that differences between the account of the state and the account of the bank partly are to be explaned by delimitations of periods. In 1998 The Danish National Bank included a supplementary notice about the government debt: "The gross-debt of the public sector amounts to dkr. 657,000 mill. following the Maastricht Treaty of the European Union". This means a difference of dkr. 90 billions. About dkr. 100,000 – 200,000 mill. debt6) of the municipalities, and more than dkr.100,000 mill. extra have to be added too refering to the development of The Social Fund which was collected by extra-taxes. This means a public Danish debt of nearly dkr. 1 trillion or US$ 156 billions7) - almost as much as in Russia.

    (In the following we mention all amounts in dkr., 1dkr = 0.156 US$ on 01/25/99)

    Savings

    Acccording to Table 3, last column last row, the net saving is less than 3.4 p.c. (40.1/1,166) of GDP. This figure tells its own story of the foundation in a country without any deciding physical ressources for development and new investment in the Technetronic Era. "Once our surest capital-good" is dealt with in section 2.

    Taxes and Expenditure-structure

    Nearly 60 p.c. of GDP is collected in tax and duties to finance the activities and the consumption of 953.000 public employees, and about 2,000,000 outside the working force8) including about 1 mill. Danish pensioners and alike. We have the highest taxation of all countries in the world. Only 30 p.c. of our economy is based on real private arragements. The private consumption amounts 50.2 p.c but of these are more than 20 procent-points transfer payments, measured out and allocated by the public civil servants.

    An example of taxation from this world: In Denmark you pay in average 175 p.c. duty, when you buy a new car. This means the price is added Value Added Tax (25 p.c.) plus in average 175 p.c. car-duty of the price. The result: You pay 3 times the price of the car. But before you can pay the new car, you have to earn 10 times the price of the car, because you have to pay 2/3 of your income in income-tax.

    It should be added that the ’J. M. Keynes’ ideas about accellerating the economy by increasing the public expenditure financed e.g. by taxation have been used effectively by all politicians for the last 50 years. Unfortunately it was not enough with or without these ideas. The taxation had to be increased even more to fill the gap of interest and instalment coming form the state-debt created systematically by these ideas.

    The immigrants from the third world living in Denmark increase the public expenditures by an amount of officially dkr. 11 billions. Some ominous information of this foreigner-load was delivered by the Social Ministry. An investigation shows that 87 p.c. of the asylum-applicants remain recipients of transfer payments – children and pensioners not included. Another investigation from the town of Aarhus shows that the expenditures of cash-transfers to asylum-applicants had been doubled in five years (1993) and in 1993 they received 19 p.c. of all social-security-transfer-payments.9) Now 5 years have gone again. Does it mean 38 p.c. . of all social-security-transfer-payments now? The cost (transfer-payments and service minus tax) of the immigrant-load amounted to more than dkr. 100 billions in 1997.10)

    More than dkr. 233 billions or more than one third of the total public budget of d.kr. 653 billions were tranfer payments in 1998.

    The public finances "speed up the economy"(?)

    When you take the italicized figures (numerical) each year and subtract the accentuated (numerical) figures of the same year in Table 5 you get an impression not just of the running liquidity-need of the year to finance the payments of the public budget but also the permanent need of (loan) financing of the activities of the state with its present organization, and the present structure of factor-allocation decided by the leaders.

    Every year a budget-deficit of 25-40 billions was meant to "kickstart" the economy, and to finance all public ideas in the real world. In the areas, where the unemployment is highest, subsidized production has become the "greatest hit" here and all over Europe in the 1990s. The surest way to total political control.

    The subsidies then turns and increases the demand on a totally false foundation. When the subsidies are discontinued or just not further increased the activity begins to decline and unemployment ends up at a higher level than before the subsidies were introduced. (See: The impact of the European Agriculture-Structure-Policy in section 3).

    Former President of the European Commission (now Bilderberger) Jaques Delors recommends these subsidies, on-leave-camouflage and a secondary market of labor force etc. all over Europe. In actual fact the situation is much the same in all the 15 indebted member-states.

  • INTEGRATION OF THE NATIONAL ECONOMY WITH THE
  • GLOBAL ECONOMY:

    The value of export was dkr.179,577 mill. in 1985 and dkr.321,185 in 1997. The import-value was 191,563 mill. in 1985 and dkr.293,522 mill. in 1997. These figures hide the price-changes in the period. In relation to globalization the distribution on countries should be given the greatest attention.

    The result of the current entries of the balance of payments has for the last 4 years shown a decrease from + dkr. 17,500 mill. to -16,000 mill., with expected –20,000 (1999), even though the balance of trade decreased in the positive area from +50,000 mill. to less than +20,000 mill. See why in the next under-section: Impact on foreign trade.

    Foreign debt has become an unequivocable concept, as it should be called loan-debt when the 42 p.c. of Danish state-paper-debt has been sold in foreign countries (the Danish National Bank reported, 1999). The competition of international financial markets as a central part of globalization demands a change in this and in other concepts too. The last mentioned debt-category has been called domestic debt. The total debt is still increasing although it amounts to more than the total saleable production of one year. Refering to the Capital-Balance in Statistical ten-year review 1999 (CD) the foreign net-debt (or loan-debt) was net. dkr. 243.5 billion in 1985, and 280 billions in 1998. The foreign net debt of the public sector was 172 billions in 1985, and 358 billions in 1998. State-paper-debt made by the public sector amounts to dkr. 399 billions in 1998, and it increased from 181 billions in 1985 (accounted in figures of the year). In the section Danish Government Borrowing and Debt some of the difficulties reaching a reliable debt-account were mentioned.

    The impact on foreign trade

    The colored diagrams on the first page of the enclosure illustrate the distribution of foreign trade on nations and areas in 1985 and in 1997.

    Import: The share of European countries has increased from about 78.1 p.c. to about 82.1 p.c. The members of the European Union has increased their share of this from 67.9 to 70.4. Holland increased its share from 5.2 to 7.8 p.c., but Germany, Sweden, United Kingdom decreased the share respectively from 22.1 to 21.5, from 13.0 to 12.7, from 9.4 to 7.5. USA decreased its share from 5.9 to 5.1 p.c., and all countries outside Europe decreased their share from 21.9 to 17.9.

    Export: The share of European countries has increased from 72.0 to 80.2 p.c. The members of the European Union have increased their share from 59.6 to 65.0 p.c. Germany increased its share from 16.1 to 21.2 p.c. United Kingdom, Sweden and Norway (outside the EU) decreased their share respectively from 12.2 to 9.7, from 12.1 to 11.3, from 6.7 to 6.2. USA decreased its share from 10.2 to 4.6, and all countries outside Europe decreased their share from 28.0 to 19.7.

    It is difficult to maintain that either globalization or/and the integration of the states in Europe with the so-called interior market decided in 1986 have implied more trade until now, when you look at the facts from Denmark. In the summer 1994 the BBC reported that the (British) trade with rest of EU/EEC had decreased by 15 p.c. since the interior market was decided in 1986.

    Product-groups:

    Table 6 shows the indexed-quanta-distribution of import and of export on product-groups and respectively the indexed-unit-value for years 1985 and 1997.

    Totally the quanta of export and import have increased by nearly the same amount. The import-quantum of Product for direct use increased the most (224 p.c.), and the import-prices of these products fell a little. Machinery and capital equipment increased in import-quantum, and prices went up too. The export-quantum of Industrial products increased, but certainly not enough; the prices were the only export-prices that went higher. The export-quantum of Agriculture-products increased a little, but the prices fell. Fuelmaterials, lubricating oil and electricity more than tripled its export-quantum, but the prices fell to less than the half.

    Import for direct use increased far too much, so did import of Machinery and capital equipment. The export of our expensive Industrial products was far too weak caused by the national structure shown in section 1, as will be seen from the text below.

    High educational level, once the strongest capital-good of Denmark

    Education and research: Following the investigation of The Weekly Newsletter Monday Morning (see footnote no.9), A resume: "Denmark is staggering up other countries according to 10 key-issues". "We are far from making the results that should correspond to the fact that Denmark already is one of the smallest markets with one of the highest cost-levels".

    "Denmark represents the international mediocrity. It is due to wrong efforts for decades. Denmark can not become domicile of the distinct knowledge-intensive productions. Denmark has missed the chance of becoming a high-technological industry nation".

    "Denmark "has to create" 100,000 jobs the next 15 years for people with education of short duration or educate them further, the Ministry of Trade conclude in a worried analysis (The Weekly Newsletter Monday Morning no. 36, 1996). The Ministries of Economy and of Finance prevented the publication of this estimate and decided on thorough changes in a government-memorandum. "Pure technical discussion", Minister of Economy Marianne Jelved said. Unfortunately the conclusion in the memorandum did not harmonize with the conclusion made in another memorandum from EU about the competition with East-Europe earlier the same year".

    Fundamental disagreement about the consequences of the globalization.

    Knowledge-economic key-issues that The Weekly Newsletter Monday Morning uses in its analysis:

    "1st The number of teaching-hours in ground school. 2nd Level of education in the population. 3rd The number of the employed in high-technological areas in the industry. 4th The value of the production in the private sector. 5th The number of research scientists in the labor force. 6th National patent-applications in relation to the number of inhabitants. 7th Investment in information-technology, in percent of GDP. 8th Number of IT-patents taken up in USA in relation to the national research- and development-expenditures. 9th The total expenditures on research and development. 10th Number of innovative businesses "

    "The 1000 most important Danish businesses expect to invest dkr. 45 billions and set up 50,000 jobs outside Denmark the next 5 years", an investigation made by The Weekly Newsletter Monday Morning reports. "This is a dramatic slide, because businesses are estimated to have 30.000 employees abroad today".

    "Top businessmen are talking of moving out in big scale now. The firm Grundfoss will move a greater part of its traditional pump production away from Denmark the next 10 years. Chairman of the Board Niels Due Jensen warns against investments-fallingbehind in the Danish education and research system. This may imply fewer jobs in the year 2000 than today. The managing director Erik Sørensen in the concern Christian Hansen – a big Danish laboratory-firm – said that business may be forced to continue a greater part of its research and development abroad, if the quality of the Danish graduates do not improve".

    "Worrying outlines on all levels in competence-pyramid of Denmark

    The considerations in Christian Hansen – one the most successful businesses of Denmark – contributes to impression that Denmark does not exploit the possibilities sufficiently to build up competence in the international top scale".

    "The topical signals of warning", The Weekly Newsletter Monday Morning writes:

    The Government Welfare Commission said that Denmark was characterised by a small share of employment in the high-technological lines in relation to other OECD-countries".

    "It said that low contents of technology in the products in relation to other OECD-countries characterised Denmark. Denmark’s resources in research is behind the OECD-average. 50 p.c. decrease in the number of engeneers in Denmark. A big wastage at the universities. 30 p.c. of a youth-class do not get a qualification-giving education. Big additional unemployment. Criticism of the content and of the effect of the adult-educations. Growing criticism of the results of ground school".

    "High-technological and knowledge-concentrated environments are not created just in the businesses, but the foundation is created in research-areas, in the business-schools, and in the early learning years. Knowledge-intensive jobs are an end product, where the quality of what is going on in the kindergartens and in ground school also matters and forms part of what can be called the competence-pyramid of Denmark. It begins at the preschool-level, the kindergartens and the day nurseries, then Ground school follows, then unskilled labor, high schools, business-education, the more advanced studies, public and private research, methods of production in industry and businesses, and at last the material end products of the economic life".

    "Series of hazard flashers expose the signs of weakness

    A investigation by Denmark’s Pedagogical Institute shows that the children in the Danish 1st – 3rd classes have the weakest reading-development in the Nordic countries. In ground school the running expenditures per pupil increased 20 p.c. 1985-1994 without it is resulting in more hours of education per pupil. At the same time there is a widespread criticism of the results of the ground school. Denmark has a big additional unemployment among people with an educations of shorter duration. At the same time 30 p.c. of a youth-class do not get an education yielding business-competence. About 10 p.c. of the students drop out of the more advanced studies, and the annual uptake on the engineering studies has decreased 50 p.c.11) 1985-1995".

    "The are examples on all levels of how the Danish are too unambitious. Denmark is not in uniquely bad position, but the possebilities are being lost", The Weekly Newsletter Monday Morning wrote. An investigation of how to create more well-paid knowledge-jobs has been made on the basis of data supplied by OECD og the EU Commission".

    "Lowest in competence-pyramid the resultats are marked, Monday Morning writes

    The Danish ground school is at bottom level compared with other countries concerning the number of teaching-hours of the pupils. The pupils receive relatively few teaching-hours, but at the same time they are among the most expensive pupils in the OECD-area. In Holland 9 years old are taught nearly twice as much as in Denmark, at the same time the expenditures are about the half. More than 40 p.c. of population has only a ground school education to offer on the labor market. In Germany this figure is less than 20 p.c. The modest level of education in Denmark matches the employment in industry. In Denmark only a little more than 10 p.c. are employed in high-technological production. OECD has investigated the countries’ investments in information technology. The Danish businesses are keeping up in relation to investements in research and development; but only the half of the amount – in percent of GDP - of what is used in Sweden is used here. Denmark is far from the OECD-elite measured in the number of researchers per thousand inhabitants. Japan has twice the number of research scientists compared with Denmark. Also Norway, Sweden and Finland have a great deal more. The number of Danish patent-applications in relation to the population is far below the OECD-average. In Denmark the number of applications is one third the number in the other countries. The value of technology in the private sector relative to GDP is lower in Denmark than in most other OECD-countries. The figures show that the value is at the same level as Italy, far lower than United Kingdom and Holland. The Danish level of costs is among the highest in the world. According to The World Competiveness Yearbook 1995 published by IMD in Switzerland only 7 out of 43 countries have higher wage-costs in industry. Even though the wage-costs are only one of the factors involved in global competition the wage-level indicates high demands on value-increase if the businesses wish to compete from a base in Denmark".

    "The inadequate development of competence on all levels in the competence-pyramid indicates a risk that Denmark erodes its growth-potentiel. A more favourable international position cannot be created in just a few years. International research environments are built up e.g. over a longer span of years ".

    "The Danish wealth of today has been created on the basis of ventures in the past . The 10 key-figures indicate that the run-down perhaps has begun already".

    This was the conclusion of The Weekly Newsletter Monday Morning which is highly respected by the highest circles in the Danish Parliament .

    Quotations from this newsletter above has been marked.

    3.-7. IMPACT OF GLOBAL ECONOMY ON NATIONAL POLITICS,

    SOCIETY, CULTURE, FAMILY

    (the seven listed questiones cannot be replied and documented properly within 5-10 pages)

    Ultra short :

    • The number of false or empty news items and reports on TV are increasing day by day.
    • About 2000 laws were passed the Parliament 1998-1999. At least 70 p.c. was initated by the European Union.
    • The international monetary system (based on the Bretton-Woods-Agreement from 1944) collapsed 29 years ago. A new and better one – without stimulants which tempt re-election seeking politicians to put their country in debt is sorely needed.
    • Politicians struggle to establish the EURO in the United Kingdom, in Sweden and in Denmark also. To implement the ancient dream of an European super state. This currency is only a new junk-currency made up by confused politically correct civil servants in indebted deficit-nations. It is the opposite of the English inspired voluntary ECU with a common emission-house.
    • Denmark has world record in taxation, is number 8 in high nominal wages, has the world record in both public sectorial doings (of which one third are transfer-payments), nearly 1/3 of each newborn generation end in abortions, and the number in suicides, the country is one of the leaders in the world.

    Agriculture as an example of EU-initiated Strangulation Refusal-Kill (through subsidy refusal), named the European Agricultural Structure Policy:

    In a period from 1971 to 1993 the number of farms was reduced from 137,100 to 71,600. The number of stocks of dairy cattle fell from 86,000 in 1972 to 14,800 in 1995. The number of dairy cattle was reduced from 1,125,000 in 1972 to 685,000 in 1994.

    These facts can be read in Frihedsbrevet (The letter of liberty) no. 6 Volume 1995 in the well-documented article 'The Lies And The Reality' written by Kai Petersen, Varde. According to Kai Petersen 930 the number of farm bankruptcies in 1991 reached a record high of 930. In the 1980-1994 period only in one year (1980) the relative number of bankruptcies were lower than in the worst years in the thirties.

    8. Authorship

    Name : Joern E. Vig

    Position: M. Sc. (economics) director

    Institutional affiliation: (The Private) Information on Denmark, section Info-Stat

    Country: Denmark


    Epiloque

    If the gentle reader feels that what is written above spells a prelude to disaster, he or she is not far from wrong. But Economy is notoriously a science trying to find a system in chaos. No one can know what the future will bring. We can only read the trends, and they are far from promising.

    As William Shakespeare wrote: "There is something rotten in the state of Denmark".

     

    Professor Hankel: Euro and the social state - discussed by IOD

    Back to lilliput-information.com-index

     

     

     

    * Everything has failed. Let’s try the truth *

    Information on Denmark – Stadion Allé 48 – DK-8000 Aarhus C - Denmark
    Tel/fax: (+45) 86 14 58 37
    E-mail:
    mail@lilliput-information.com
    Info-Stat Web Site (English version): http://www.lilliput-information.com.com

     

     

     

    Inclosure (documentation and sources)


    Diagrams showing the distribution of import and of export on countries and areas

    Table 1

    Employment and labor force 12)

    Employees in sector (1,000 persons) and year.

    Year

    1989

    1990

    1997

    1998

    Total number of employed

    2626.1

    2605.7

    2642.7

    2700.5

    Agriculture, fishing and mining

    153.8

    145.4

    114.6

    111.2

    Industry

    479.6

    479.5

    448.8

    458.7

    Energy- og water-supply

    16.3

    17.3

    16.8

    16.4

    Building and construction

    158.8

    151.5

    155.4

    161.4

    Trade, hotels- og restaurants

    471.1

    469.4

    497.8

    506.8

    Transport., post og telecommunication

    181.4

    180.3

    179.3

    181.2

    Financing, business-service

    288.8

    281.9

    292.3

    305.3

    Public and personal services

    876.3

    880.3

    937.8

    959.6

    of this: (continued page 14)

    Public administration

    194.1

    191.9

    215.4

    220.1

    Teaching

    187.4

    182.6

    194.7

    199.1

    Heath Care

    145.5

    151.1

    157.3

    162.2

    Social Institutions

    241.2

    243.6

    241

    246.3

    Removal of refuse, unions and entertainments

    108.1

    111.1

    129.5

    131.9

     

    Table 1 A

    Labor force and unemployed: Year:

    1985

    1997

    1998

     Inside the labor force

    2833630

    2863330

    2868307

     Employed

    2598392

    2669658

    2699314

     Registered unemployed

    235238

    193672

    168993

    Outside the labor force

    2277478

    2411791

    2426553

     

     

    Table 2

    GDP's use percent-distributed

    Year

    1987

    1997

     Private consumption 13)

    45.4

    50.2

     Public consumption 14)

    22.9

    25.3

     Constant gross-investements

    20.1

    20.1

     Import of products and services

    27.2

    32.6

     

    Table 3

    Saving, Dkr. billions of the year (still provisional figures according to Statistical ten-year review 1999)

    Year

    1995

    1996

    1997

    1998

    Gross-Saving

    220.7

    217.3

    213.4

    229.5

    Consumption of stock of capital

    156.0

    168.8

    179.0

    189.4

    Net-Saving

    44.7

    48.5

    52.4

    40.1

    GDP, 1998: Dkr. 1,166 billions

    Table 4

    Extracts of the public income and expenditure sources (prices of the year) – p. c. of GDP

    Year

    Public consumption

    Subsidies

    Transfer

    payments

    Duties

    Income-

    taxes

    Total public

    income

    1988

    26.3 15)

    2.1

    17.1

    18.3

    30.3

    58.2

    1996

    25.7

    2.6

    20.0

    17.2

    30.5

    57.5

     

    Table 5

    The financial transactions of the state (mill.dkr.) by transaction and year – an extraction

    Year

    1985…

    1994

    1995

    1996

    1997

    Surplus/deficit on State-Account of running and the capital expenditures and borrowing

    -26,338

    -39,727

    -31,250

    -21,495

    7,558 16)

    Of this net interest

    -53,038

    -41,635

    -47,274

    -49,879

    -50,833

    -Instalments of loan-debt (foreign)

    30,108

    13,149

    28,490

    30,784

    31,375

    -Instalments of government-bonds

    48,161

    50,451

    48,366

    38,685

    24,920

    -Redemption of state-debt-proofs

    28,800

    22,509

    56,090

    37,998

    56,464

    Increase of Foreign gross-debt

    35,154

    -17,581

    12,703

    28,370

    25,057

    Increase of Domestic gross-debt 17)

    100,945

    119,581

    137,173

    95,955

    73,015

    Drawings on the central bank

    195

    33,517

    21,587

    2,625

    2,028

    Total financing

    137,701

    135,517

    171,463

    126,950

    100,100

    Table 6

    Distribution of import and of export on product-groups in 1985 and 1997

    Quantum-index 18)

    (1985=100)

    by product and year

    Unit-value-index

    (1985=100)

    by product and year

    Year

    1985

    1997

    1985

    1997

    Total import

    100

    166

    100

    91

    Products chiefly for direct use

    in agriculture and market garden

    100

    122

    100

    83

    Products chiefly for direct use

    in firms of contractors

    100

    167

    100

    107

    Products for direct use

    in other trades of the town

    100

    157

    100

    96

    Fuelmaterials, lubricating oil,

    electricity

    100

    92

    100

    50

    Machinery and capital equipment (excl.

    oil- and productions-platforms)

    100

    164

    100

    109

    Product chiefly for direct use

    100

    224

    100

    94

    Total Export

    100

    179

    100

    100

    Animal agriculture-products

    100

    161

    100

    93

    Vegetable agriculture-products

    100

    102

    100

    93

    Canned meat- and milk

    100

    87

    100

    95

    Industrial products (excl. canned milk and meat, ships)

    100

    186

    100

    108

    Fish, crayfish and mollusc

    100

    148

    100

    100

    Raw furs

    100

    129

    100

    68

    Fuelmaterials, lubricating oil, electricity

    100

    322

    100

    47

    Exchange-Rate for export and

    import in 1985 and 1997.

    Year

    1985

    1997

     Unit-value-index of export

    100

    100

    Unit-value-index of import

    100

    91

     Exchange-rate

    100

    109

    Source: Statistical ten-year review 1999


    Sources:

    1. Statistical ten-year-review 1999 – Danmarks Statistik – Copenhagen, Denmark

    2. Danish Government Borrowing and Debt 1995-1998 – Danmarks Nationalbank – Copenhagen, Denmark

    3. Ugebrevet Mandag Morgen nr. 4, 1993 og nr. 36, 1996 – Ugebrevet Mandag Morgen – Copenhagen, Denmark

    4. Immigrants-load 1997 – Information on Denmark – Aarhus, Denmark

    5. Unemployment, a proper account 1998 – Information on Denmark – Aarhus, Denmark

    + various general articles on demography and demographical analyses on the population of Denmark by the author.

    Foot-notes:

    1 Statement: 9½ pages. Diagrams and tables of documentation, sources and foot-notes: 4½ pages.

    2 This has been properly documented from more angles to the problem by the private Info-Stat headed by the author of this statement.

    3 This result has been adequately documented in an proper analyse, see note no. 2.

    4 1US$ was equivalent to 6.41dkr. on 01/25/99. All amounts are accounted in prices of the year in this section.

    5 Most educated economists have problems with a so-called "household-sector" refered to as a concept involving production. We throught the household was defined as a consuming-unit.

    6 Nearly every day we read that municipalities have to increase the foreign borrowing. In the years 1991, 1992, 1993 the debt of the municipalities was properly accounted and published : dkr. 78, 82, 93 billions.

    7 first row) was that the state sold its shares in the telephone-company Teledanmark to Ameritech for dkr. 31,4 billions. For the year 1997 where the arbitrary Maastricht-claims had to be reached the Danish state made swindle too. They accounted 13 months of income but 12 months of expenditures. A member of The Finance Committee also told publicly that the politicians of The Finance Committee made "some special arrangements" in order borrow money on public plots in spite of fact that this had been against the law until "the company arragement", in which the state was a shareholder. The borrowed money made a better result on the public finances. There is much more, and we could continue. It is not easy to understand our Prime Minister, when he report in public: "The Danish economy is 200 strong".

    8 See Table 1 and my correction.

    9 See the approved source: The Weekly Newsletter Monday Morning (Ugebrevet Mandag Morgen) no. 4, 1993.

    10 This has been properly proven by Information on Denmark. Read source no. 4.

    11 Info-State: A contributing explanation of this among other things is the reduced mathematic-level in the gymnasium. In the late 1980s the Principal of the studies of graduate engineers in Lundtofte, Denmark’s Technical University reported that students show up necessary preparatory knowledge. E.g. vector-arithmetic – nescessary for studies like Electronics and the Statics – have been removed, obviously because many students found it too difficult.

    12 Employees on leave are not included.

    13 Transfer-payments (20.0 p.c. of GDP in 1997, compare Table 2 and Table 4) are included in the private consumption.

    14 22,9 in 1987 (Table 2) does certainly not match the corresponding 26,3 in 1988 in Table 4. We have checked our reading and all asumptions according to this source: Statistical ten-year review 1999.

    15 Read foot-note no. 14

    16 Read foot-note no. 7

    17 In the period 1985-1989: dkr.1,623 mill. (entry: locked-up savings) have be added.

    18 Both quantum- and value-index have a few weaknesses and inaccuracies mentioned in the source: Statistical ten-year review 1999. They illustrate a few of the problems perfectly.

    INFO-STAT, Joern E. Vig, Tel/fax: (+45) 86 14 58 37,
    Internet 08/03/99, 10/20/99. e-mail: mail@lilliput-information.com