During the 1960’s, Belgium’s growth reached its maximum peak within the century. This was thanks to many factors.

---

---

In this graph we can visually represent the growth rate of the GDP per capita throughout the second half of the XX th century. As we can see, the Real GDP per capita grew a lot between 1961 and 1964 before it started to fall.

• It recovered during the second half of the decade, until it reached its peak in the period 1968-1969. However, this peak led to a drastic fall, which was probably caused due to several economic factors, the main one being the oil crisis.
• During the 1980’s, as can be seen in the article regarding this economic period, the Economy of Belgium tried to recover from the downfall, which is the reason why there are a lot of fluctuations but without great deviations from the trend.

In 1993 we can see that the growth decreases greatly, which is probably related to the tense social climate at the time, due to the modification of the Belgian Constitution. After this downfall, the growth rate has recovered, with the exception of the year 2009, which is exactly one year after the 2008 crisis which affected most States.

---

Firstly, output growth accelerated; labor and capital became really efficient; investment increased, starring a boom in this decade; and the openness of the economy, which led to a high level of exports, also contributed to this golden period.

Regarding the last factor, the performance on international markets led to a division of Belgian sectors: the open sector, which was the manufacturer sector and was dedicated to the transformation of raw materials, and the sheltered sector, which included construction, transport and services sectors.

Moreover, there was an increase in government spending which led to a higher control by the government. The Belgian State expected to control that high level of spending. However, it was forced to borrow through the School Pact of 1958.

A main characteristic of this period is the high dynamism of the Belgian economy. This was thanks to its membership of the EEC, which supposed an abolition of all the barriers that the country had had to face in previous periods.

Besides, there was an exponential increase of foreign investment in Flanders, leading to an increase in output and income in this region. The opposite happened with Wallonia, which was hardly damaged by the Belgian adherence to the ECSC. This was because the organization forced Belgium to reduce the production of coal.

In 1959, the Expansion Laws were created in order to stimulate inward and domestic investment through the guarantee of loans and interest subsidies among other facts.

In relation to the labor market, there were an increase in negotiations between trade unions and employers. Consequently, there was an increase in social security development. Furthermore, all the factors explained before contributed to a decrease in unemployment, something which enhanced the bargain power of employees, who achieved an increase in wages.

(Centre for Economic Policy Research, 1996)

---

In this graph we can see the division between the open and sheltered sectors of the economy, and we can see that the growth rate of output during the golden sixties affected both sectors, but had a greater impact in the Open one.

• The most interesting fact about this graph is how the Open sector is severely changed when other States were affected by a specific event. As an example, if we look at the years of the oil crisis, more specifically at the years 1974-1976, we can see that the Sheltered sector had minor fluctuations while the Open sector suffered greatly, reaching its worse economic growth rate in the period.

---

In conclusion, we can say that thanks to these factors, the economy of Belgium excelled during this period. However, it does not imply that the economy of the country continued with this growth trend, as demonstrated by the analysis of the graphs. For further information: 2.3. OIL CRISIS

---

IMAGES

1. Kegels, B. B. (2015). Labour productivity growth in Belgium . Brussels: Federal Planning Bureau. Obtenido de https://www.plan.be/admin/uploaded/201510021314080.WP_1506_11090.pdf
2. Centre for Economic Policy Research. (1996). Economic Growth in Europe Since 1945.Cambridge; New York; Melbourne: Cambridge University Press

BIBLIOGRAPHY

1. Centre for Economic Policy Research. (1996). Economic Growth in Europe Since 1945.Cambridge; New York; Melbourne: Cambridge University Press

During the 1930’s, Belgium suffered an economic depression in which economic growth was very low, due to a very small variation in output. However, the most important factor was that Belgium’s adherence to gold started having negative consequences, which led to the abandonment of this system. This was due to two facts: The crack of the stock market of 1929 and that Britain left the Gold Standard earlier than Belgium.

It did have certain good structural factors which aided future economic growth: the development of human capital (through an increase in scholarization), and the incorporation of the socialist government in 1935, which tried to apply policies to regulate the situation, and a stable foreign exchange position.

The 1940’s in Belgium, more known as the Belgian miracle, are characterized by the good economic position of the country. This good position meant that Belgium hardly needed aid from the Marshall Plan (initially).  

Domestic production was really high, due to the fact that it satisfied the postwar demand through the sale of coal, metal, glass or cement (among other resources).

(Public domain)

In order not to lose control over the currency, the interest rate was high. This also prevented  industrial borrowing.

During this decade, energy and labor costs (both wages and Social Security costs) for firms started increasing. The recovery of the rest of Europe from World War Two meant that Belgium’s demand started falling, and its economy could not face this increasing costs.

However, over 1950 (the silver fifties), the country needed to ask for direct aid in order to finance consumption and production and to maintain social peace. This aid ended up going almost entirely to  the coal sector, because it favored the economy in the short-term and kept the population satisfied, and did not go to long-term economic measures such as financing investment.

 

The 1950’s were a time of economic splendor for Belgium (not as big as during the 1960’s), since the economy started opening up more to trade, savings increased, and the first international Belgian companies started emerging and investing in the Congo.

However, the region of Wallonia started losing economic stability due to the downfall of the coal industry, and the government was not able to attend to economic matters since it had to deal with the royal and scholar question during this decade, which could explain why the economy did not grow as much as it did during the 1960’s.

---

IMAGES:

1. Pahissa, E. (2018, May 25). MEJORA TU COMPETITIVIDAD DE LA MANO DE UNA STARTUP: NUEVOS MODELOS COLABORATIVOS EN ENTORNOS INDUSTRIALES. Retrieved from Amec: http://www.amec.es/evento/mejora-competitividad-la-mano-una-startup-nuevos-modelos-colaborativos-entornos-industriales/

BIBLIOGRAPHY:

1. Centre for Economic Policy Research. (1996). Economic Growth in Europe Since 1945.Cambridge; New York; Melbourne: Cambridge University Press

WEBGRAPHY:

1. Murphy, A. B., Van der Wee, H. F., Doucy, A. J., Lamberts, E. L., Materné, J. M., Van Molle, L., & Britannica, T. E. (2018, December 10). Encyclopædia Britannica. Retrieved from Belgium: https://www.britannica.com/place/Belgium/Belgium-and-World-War-I

Belgium has become a very important State regarding International Law for its active participation in many International Organizations.

Before Brussels became the headquarters to the European Union, Belgium was also a relevant Member State of NATO, Euratom, and the ECSC.

NATO: The NATO (North Atlantic Treaty Organization) was created through the ratification of the North Atlantic Treaty in 1949. Belgium was one of its 10 founding members. To this day, Belgium has continued supporting the NATO and its core objectives, which include the promotion of peace and stability among its members, through the handling of crisis, the mutual defense of its members, and the cooperation in the area of international protection.

Its headquarters were originally established in London, but they were transferred to Paris in 1952. However, since France withdrew from the military structure in 1966, the headquarters is settled in Belgium.

• ECSC. The European Coal and Steel Community was created in 1951 through the Treaty of Paris and Belgium was one of its original members. All of the members of the Benelux joined the ECSC. Its main objective was: ‘to supervise its members reduction of their excess production of coal as that mineral was replaced by petroleum as an industrial fuel’ since 1962. However, its original objective was ‘to create a common market for coal and steel’ for its Member States. (The Editors of Encyclopædia Britannica, 2016)

Given the importance of the coal industry in Belgium, it originally was one of the members which generated a lot of output, which was specially notorious after the Second World War. However, it forced the region of Wallonia to decrease the production of coal during the 1960’s, which damaged the economy of the region.

• 

  Euratom: The European Atomic Energy Community was created in 1957 through the Euratom Treaty. It was established by the ECSC. It is an International Organization which establishes a common market for nuclear resources. Since nowadays it is regulated by the EU organs, Belgium also plays an important role in the organization, and it was one of its founding members. It also tries to ensure the ‘secure access to nuclear materials and technology for peaceful uses and research.’ (Institute for Government, n.d.)

• EEC: The European Economic Community was also created in 1957 by the Treaty of Rome. All the topics which this organization is  involved in are related to economy. Among its objectives we can point out the establishment of a common market, fixing a common tariff, and a shared agricultural policy. After the signature of the Treaty of Maastricht in 1992, this organization was renamed as the European Commission (EC). This year, The ECSC, Euratom and EC (previously ECC) became components of the new EU.

---

IMAGES:

1. European Commission. (n.d.). Euratom. Retrieved December 2018, from European Commission: https://ec.europa.eu/programmes/horizon2020/en/h2020-section/euratom#Article
2. NATO. (n.d.). Retrieved from North Atlantic Treaty Organization: https://www.nato.int/

BIBLIOGRAPHY:

1. Leboutte, R. (2017). 14 Coal Mining, Foreign Workers and Mine Safety: Steps towards European Integration, 1946-85. In A. Croll, Towards a Comparative History of Coalfield Societies. Routledge.

CITED WORKS:

1. Institute for Government. (n.d.). Euratom. Retrieved December 2018, from Institute for Government: https://www.instituteforgovernment.org.uk/explainers/euratom

WEBGRAPHY:

1. Institute for Government. (n.d.). Euratom. Retrieved December 2018, from Institute for Government: https://www.instituteforgovernment.org.uk/explainers/euratom
2. Gabel, M. (2018, September). European Community. Retrieved from Encyclopædia Britannica: https://www.britannica.com/topic/European-Community-European-economic-association
3. The Editors of Encyclopædia Britannica. (2016, March 15). European Coal and Steel Community. Retrieved from Encyclopædia Britannica: https://www.britannica.com/topic/European-Coal-and-Steel-Community

The European Union is an integration International Organization which derives from the ECSC, Euratom and the EC, and originated to promote peace, stability and cooperation among European States. Its implications have been vast, since it has implied the establishment of an area of free movement of people, capital, and labor, and the creation of the Eurozone, an area in which States share a common currency, among other things.

 

As a member, Belgium received in 2017 7.3 million € from the EU, and its contribution to the EU was of 2.9 million €. It became part of the Euro-zone in 1999, and its commercial structure has been transformed radically since it became a member of the EU.

 

However, this article focuses on the implications the EU has had in Belgium, more specifically in Brussels. Brussels is known globally for being the headquarters to the European Union. The impact that this has had in the region of Brussels is immense.

Brussels is the capital of Belgium and the de facto capital of the European Union. Its main organs are situated there. Given these characteristics, it is logical that it is a very cosmopolitan city and metropoli.

(Public domain)

---

As a curiosity, we can see that both the old (second flag) and new flag (first flag) of Brussels share the color palette of the EU flag (navy blue and yellow), which helps symbolize that Brussels is its de facto capital

---

If we look at its labor structure, we can see that Brussels has followed the tendency of tertiarization of the economy, since nowadays, as of 2016, 90.5% of its economic structure is associated to third sector activities. The population of the Brussels-Capital region in 2015 was of 1,175,173 residents, of which the 33% had a different nationality from the Belgian one.

Specifically in the Brussels-Capital region, 14.5% of those jobs were related to public administration, 9.3% were related to commerce, and 7.5% to administrative and support services. This is a consequence of Brussels being de facto capital of the EU and being a capital of the State. However, if we account for the percentage of workers which work in international institutions, it corresponds to 16.7% of the employment of the region, which is equivalent to 121,000 job positions.

 

(Public domain)

---

Some of the buildings of the  European Parliament, the European Commission, the Council of the European Union and the European Council are located in Brussels, which is why we say that Brussels is the European Union’s de facto capital.

---

This data allows us to see numerically the impact that the EU has had not only in Brussels, but in the region of Brussels. Thanks to the installation of headquarters in Brussels, its economy has developed and transformed, which has also modified the economic progress of Belgium.

---

BIBLIOGRAPHY:

1.  Brussels.info. (s.f.). European Institutions in Brussels. Obtenido de Brussels.info: https://www.brussels.info/institutions/
2. Commissioner Brussels. (n.d.). BRUSSELS-EUROPE, THE FIGURES 2016. Retrieved from Commissioner Brussels: http://www.commissioner.brussels/i-am-an-expat/news/item/625-brussels-europe-in-figures
3. McNally, P. (2016, January 13). Brussels by numbers: Facts and figures for a truly international city. Retrieved from The Bulletin: https://www.thebulletin.be/brussels-numbers-facts-and-figures-truly-international-city
4. Wikipedia, the free encyclopedia. (21 de September de 2018). Brussels and the European Union. Obtenido de Wikipedia, the free encyclopedia: https://en.wikipedia.org/wiki/Brussels_and_the_European_Union