Flanders vs Wallonia Traditionally, French-speaking Wallonia was wealthier than its northern neighbour, bolstered by a vibrant coal and steel industry, but its economic Wallonia and Flanders have roughly the same number of people working in the public sector, despite Flanders much larger population. This was the golden age of industry! [18] A slight decrease in the accumulated public debt compared to GDP has been seen, however, thanks to a higher economic growth rate compared to the budget growth rate, which pushed the percentage from 99% of GDP in 2009 to 95% of GDP in 2011, a four-point decrease in two years, a feat rare enough to mention in the Western World. Found insideThe 2020 edition analyses tourism performance and policy trends across 51 OECD countries and partner economies. Has a rooster on its coat of arms Flanders Finish Quiz No comments yet Add comment. Many slag heaps still surround the city. // fetchMarginPercent: 500, gtag('config', 'G-05XFQCS0PM'); The perpetual tensions pulling at Belgium can be hard to explain to outsiders, but one way do so is by looking at the factor behind so many clashes in history: money. Found inside Page 380In the meantime, another essential change was in motion: the economy of Flanders was surpassing the economy of Wallonia for the first time in Belgium' history. Until then, the Walloon industries had been the engine of the Belgian The hope is that by concentrating the financial resources of the new redeployment plan on specific sectors, Wallonia will be able to catch-up with Belgian or European averages in reality. Found inside Page 71Budgetary effects of autonomous increases in the personal income tax yield in Belgian regions Change in total revenues Wallonia Flanders Brussels Federal government Increase in PIT yield in Wallonia + +++ Increase in PIT yield in The Catching up repertoire places Flanders resolutely ahead of Wallonia in the global race toward knowledge, excellence, and growth, but suggests that Wallonia may, in due course, overtake Flanders as a top competitive region. // googletag.enableServices(); The number of jobs increased, unemployment was at its lowest and economic growth was strong. During the reconstruction period, Walloon companies were unable to refocus their activities towards more technologically advanced fields such as chemistry, the electrical industry or consumer goods. // googletag.cmd.push(function(){ du Muse de lArt wallon. Lige's neutrality encouraged the development of industries which won fame through Walloon entrepreneurs such as Jean Curtius. Flanders is responsible for the vast majority of Belgiums exports far surpassing the figures for the regions of Wallonia and Brussels. Found insideFor instance, at the beginning of the 2000s, the N-VA claimed that, contrary to common wisdom, Flanders did not have the capital required to adapt to the transition to a knowledge economy, because this was being siphoned off by Wallonia Eighty percent of the crop is exported.[29]. While Dutch was acknowledged in the new Belgian constitution, French de facto remained the only language for education, politics, military, business and religion. The Belgian Government reacted to the 1973 and 1979 oil price hikes by hiring the redundant work force into the public sector and subsidizing industries like coal, steel, textiles, glass, and shipbuilding, which had lost their international competitive edge. The Walloon share of Belgian GDP stabilised around 23.5% while the Walloon GDP per capita followed the same trajectory with a slight recovery to arrive at an index of 73.8 compared with the Belgian average of 100 in 2010. Belgium was the first country to undergo an industrial revolution on the continent of Europe in the early 19th century and has since developed an excellent transportation infrastructure of ports, canals, railways, and highways to integrate its industry with that of its neighbours. There were none of the rivalries that gnaw at Belgium today. Found inside Page 221The unemployment figures and their evolution reflect quite important differences in the economic structures and capacities of the three As we said above, some 350,000 jobs are filled by people living in Flanders and Wallonia. Found inside Page 126In Walloon Brabant, the sales price had risen to 40 times the yearly lease price, more than in Inner-Flanders (32 one in five in Flanders, compared to two in five in the Campine and Walloon Brabant, and four in five in the Ardennes. Found inside Page 114This phenomenon refers particularly to the striking divergence in terms of growth rates and per capita levels of regional GDP between Flanders and Wallonia. The economic situation of Brussels Capital is comparable to other city-states Falling under the control of major financial groups set up in Brussels, Walloon industry saw an accumulation of under-investment that would cost it dearly. Between 2008 and 2010, Wallonia was more resilient than many countries to the economic crisis. function gtag(){dataLayer.push(arguments);} They hardly think anything of it. Ghent became the most populated city north of the alps after Paris. It is also host to a great number of European institutions, in addition to the Belgian federal government, the government of the Flemish Community and the government of the French Community. Found insideWallonia. Troclet never criticized the scope of inter-regional transfers.32 In recent years, however, his research, as well as the idea that Flanders benefited from territorial transfers before Wallonia's economy began its downslide in From this time, Walloons were calling for a clear diagnosis and appealing for a response. Early indications suggest that the party is now the biggest political force in Flanders, the Flemish-speaking region of Belgium. Found insideHowever, depillarisation has been less pronounced in Wallonia than in Flanders (van den Berg & Coff 2012). From a 'bottom-up' perspective, the importance of the economic cleavage in Wallonia may simply be understood as a reflection In May 1990, the government linked the Belgian franc to the Deutsche Mark, primarily through closely tracking German interest rates. The manufacture of nails, gunpowder and weapons took off and coal exports increased. In 2015, Walloon economic growth, estimated at 1%, remained slightly below that of Flanders and Brussels. Between 2010 and 2015, economic growth deficits were reduced in Wallonia compared with Flanders. // The economy has always been unbalanced in Belgium, too. [18], About 80% of Belgium's trade is with fellow EU member states. It is not easy to replace these industries when they fail, he says. A study in 1918 demonstrated that in the first 88 years of its existence, 80% of the Belgian GDP was invested in Wallonia. Through technical progress, the Walloon country established itself as one of the densest steel regions in western Europe. // adslot0 = googletag.defineSlot('/312997750/Super_Billboard_1', [[970, 250], [1230, 250]], 'div-gpt-ad-1555597002018-0').setTargeting("test","infinitescroll"). During the period in question, Wallonia developed several programmes aiming to boost its economy and employment, notably through the Future Contract for Wallonia and its update, the Marshall Plan. The Belgian authorities are, as a rule, anti-protectionist and try to maintain a hospitable and open trade and investment climate. The Flemish cities that had thrived in the Middle Ages were now in decline. The most inflammatory statement spoken publicly was one unionist in Ghent who said that Even a broken clocks right twice a day, and if thats the worst, then the government can handle it. With nothing to fill the steel and coal gap, unemployment rose. However, from 1990, progress stalled. Flanders, a strong backbone for international trade. Economic activity varied: favourable until 2000, in decline in the early 2000s, then a recovery which ended with a major economic and financial crisis in 2009. (For more information on the history of Flanders, see Belgium: History; Brabant; Flanders, the historical region.) In the mid-1990s, the Walloon economy presented a radically different face from the one it had forty years earlier. [31], Media related to Economy of Belgium at Wikimedia Commons, "World Economic Outlook Database, April 2019", "World Economic Outlook Database, October 2020", "People at risk of poverty or social exclusion", "Gini coefficient of equivalised disposable income - EU-SILC survey", "Employment rate by sex, age group 20-64", "Unemployment by sex and age - monthly average", "Euro area and EU27 government deficit both at 0.6% of GDP", "Scope downgrades the Kingdom of Belgium's ratings to AA-; Outlook revised to Stable", https://ec.europa.eu/eurostat/databrowser/view/teina225/default/table?lang=en, "Productivity - GDP per hour worked - OECD Data", "Le march du travail en chiffres absolus", "GDP per inhabitant in 2006 ranged from 25% of the EU27 average in Nord-Est in Romania to 336% in Inner London", "Taux de chmage stable (20,6%) mais augmentation du nombre de chercheurs d'emploi sur base annuelle", "Report for Selected Countries and Subjects", World Bank Summary Trade Statistics Belgium, Organisation for Economic Co-operation and Development (OECD), Convention on the Organisation for Economic Co-operation and Development, Trade-Related Aspects of Intellectual Property Rights, Special administrative regions of the People's Republic of China, Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, https://en.wikipedia.org/w/index.php?title=Economy_of_Belgium&oldid=1039282532, Articles with dead external links from September 2017, Articles with permanently dead external links, Articles with dead external links from June 2016, Short description is different from Wikidata, Articles containing potentially dated statements from 2006, All articles containing potentially dated statements, Articles with unsourced statements from August 2012, Articles with unsourced statements from July 2021, Wikipedia articles incorporating text from the World Factbook, Wikipedia articles incorporating text from the United States Department of State Background Notes, Creative Commons Attribution-ShareAlike License, engineering and metal products, motor vehicle assembly, transportation equipment, scientific instruments, processed food and beverages, chemicals, pharmaceuticals, base metals, textiles, glass, petroleum, chemicals, machinery and equipment, finished diamonds, metals and metal products, foodstuffs, raw materials, machinery and equipment, chemicals, raw diamonds, pharmaceuticals, foodstuffs, transportation equipment, oil products, Officially the Republic of China, participates as ", This page was last edited on 17 August 2021, at 20:00. Nestor Martin exported his iron and copper productions as far as China, glassmakers founded production centres in the United States, Jean Jadot built power plants, tram lines and railways in China, while Edward Empaincreated the Paris metro. [18], Belgium's unemployment rate was 6.5% in 2008. // googletag.pubads().enableSingleRequest(); French is spoken in Wallonia (red). A secondary reason is that many highly quali ed EU citi-zens who work in Brussels choose to live in the green belt around All Rights Reserved. Found inside Page 29Conversely, Wallonia declined in economic terms after the Second World War. While the post-war industrialisation of Flanders was based on small and medium-sized enterprises and multinationals, Wallonia's economy was based on heavy Egged on by identity politicians, many in Flanders still see Walloons as work-shy scroungers in a sclerotic rust belt. From 1965, investments in Wallonia were in decline and created few jobs. Economic growth and foreign direct investment dropped in 2008. It also carried over a lingering sense of resentment that suggests the Flemish still have a chip on their collective shoulder about the long period when the region and the people were subservient to the French-speakers. Given this high percentage, it seeks to diversify and expand trade opportunities with non-EU countries. The friction between the two main language groups is as old as the country itself, and has several causes, which have historically included economic imbalance (with first Wallonia being the more prosperous region, and then Flanders) leading to dominance of one group over the other, and also the facilities extended to French speakers in the Flemish suburbs of Brussels causing a backlash, but the main Industrial production fell once more while the rise in unemployment increased. As in many other European regions, Wallonia experienced a strong "tertiarization" in its economy. Charleroi features an industrial area, iron and steel industry, glassworks, chemicals, and electrical engineering. Found inside Page 208The economic inequality was becoming more apparent. Wallonia had once been one of the richest regions on the continent while Flanders was a poor, rural area. Some of the bourgeois elite in Flanders began to speak French at home, // googletag.pubads().collapseEmptyDivs(); Found inside Page 95The Walloon regionalists increasingly considered the economic geography of Belgium as dominated by Flanders, with Wallonia in a semi-peripheral position. The Walloon working class realized that the Belgian holdings felt no attachment or In 2006, the baptism rate in Wallonia was 54%, as against 69% in Flanders; 53% of funerals were held in churches as against 70% in Flanders. A first industrial boom at the end of the Middle Ages (15th century), The expansion of the metal working industry (16th century), Towards an industrial pre-revolution (17th century), First transformations and expansion (18th century), A pioneering land during the continent's industrial revolution (19th century), After England, the industrial revolution gained a foothold on the European continent through the Walloon country. Etienne Lenoir lodged a patent for a combustion engine, Ernest Solvay developed an industrial production process for caustic soda and Znobe Gramme invented the dynamo, paving the way for the industrial use of electricity. Early trading accounts of the region show how Flanders was at the intersection of routes, from the Netherlands to France, and from Britain to the rest of Europe. Between 2008 and 2013, the average wage in Belgium rose by 11.5%, again with some regional differences. Belgium is the world's largest producer of begonias, planting 60 million tubers per year. The metal working industry was almost entirely destroyed or dismantled by the occupying German forces who plundered at will. Belgium in Brief: What Does Returning To Red Mean? Found inside Page 154This fear of being a minority inside the Belgian framework was fuelled by the economic development of the 1960s, when Flanders became richer than Wallonia in terms of Gross Regional Product for the first time in Belgian history. It has a number of regional headquarters of multinational corporations. Roberto Martinez hopes spectators will inspire Red Devils Government to focus on post-Covid recovery reforms Paris attacks: Renewed focus on Frances most watched Belgiums business community worried over nuclear energy uncertainty 5 ways to naturally boost the immune health Roberto Martinez hopes spectators will inspire Red Devils in match against Czechs, Government to focus on post-Covid recovery reforms, Paris attacks: Renewed focus on Frances most watched prisoner, Belgiums business community worried over nuclear energy uncertainty, 5 ways to naturally boost the immune health, Over 2,000 coronavirus infections per day in Belgium, Four police officers injured during anti-vaccination demonstration in London, Weather models predict up to 30 degrees in Belgium next week, Consultation with the Taliban unavoidable, says Wilms, Belgiums next Consultative Committee planned for 17 September, Brussels Leopold II tunnel closed at night until spring 2022, EU and AstraZeneca reach agreement on ending litigation, Eat! // }); The economy of Belgium is varied and cannot be understood without taking the regional differences into account. After England, the industrial revolution gained a foothold on the European continent through the Walloon country. // [19] The government succeeded in balancing its budget during the 20002008 period, and income distribution is relatively equal. // var adslot0; Theyre just too damn beautiful! When Belgium declared independence in 1830, breaking away from the Netherlands, its new ruling political elite was entirely French-speaking. With the onset of a recession in the 1970s, this system became an increasing burden on the economy and accounted for much of the government budget deficits. Brussels also has many commuters, with 230,000 coming from Flanders, and 130,000 from Wallonia. Wallonia Flanders 4. The textile industry began its expansion in the Verviers region. Belgium's trade advantages are derived from its central geographic location and a highly skilled, multilingual, and productive work force. The main political resentments are still between the Flemish and the Walloons and mostly stem from the economics. However, this analysis hides a complex and contrasting reality. Belgium began circulating the euro currency in January 2002. Belgium switched from the Belgian franc to the Euro as its currency after 1 January 2002. Walloon entrepreneurs and engineers literally spread throughout Europe and beyond. [18], Foreign investment contributed significantly to Belgian economic growth in the 1960s. Jaak Billiet, sociologist at the Katholieke Universiteit Leuven, reports on the findings concerning left and right standpoints in Flanders and Wallonia on the basis of large random samples. ), and the Dutch province of Zeeland (q.v. The Flanders and Wallonia regions Found inside Page 40As a result , Flanders ' traditional image of being a region of high unemployment , low wages and mass long 1950s marked the start of a rapid and fundamental change in the economic balance of power between Flanders and Wallonia . 1945-2010: 65 years of Wallonia's economic history (Walloon Region Economic and Social Council - CESW), 1945-1963: Disengagement concealed by growth, 1963-1973: The Golden sixties, a contrasting reality, 1988-1995: Towards a difficult exercise of new powers, 1995-2010: End of systematic disengagement and redeployment programmes, Genereal Direction for Economy, Employment and Research, CESW, Cifty years of economic history of Wallonia, Lige, 2004. In 2008, the per capita income (PPP) was $37,500. The national unemployment figures mask considerable differences between Flanders and Wallonia. The need to modernise our industrial apparatus seemed essential. Coal mining, which began in the 18th century in the Borinage, Centre, Charleroi and Lige basins gave rise to entrepreneurs' associations providing large investments to modernise coal mining processes. Furthermore, in the Principality of Lige as well as in all the Walloon Provinces governed by the Austrian Netherlands, the authorities began to develop modern roads that were needed for the purposes of trade. Brussels' GDP per capita is much higher than either region, although this is in many ways artificial, as many of those that work in the Brussels-Capital Region live in Flanders or Wallonia. // addSize([0, 0], [[300,250], 'fluid']). [18], The social security system, which expanded rapidly during the prosperous 1950s and 1960s, includes a medical system, unemployment insurance coverage, child allowances, invalid benefits, and other benefits and pensions. During this period, Wallonia and the country's other regions had to deal with a marked slowdown in economic activity. Wallonia and Brussels tend to elect left-wing and pro-environment politicians, while Flanders has veered to the right in recent years. // }); Leading the way for years, it had now been caught up then overtaken by its neighbours and trading partners. Economy. But the region still lags behind Flanders by almost every measure: productivity, exports, income and employment. So, between 1948 and 1958, the growth in GDP per capita and at constant price was 2.4% for Belgium and only 1.9% in Wallonia. Lige is also a very important logistic center: the city possesses the third largest river port in Europe, directly connected to Antwerp, Rotterdam and Germany via the Meuse river and the Albert Canal. [27] It also is the world's largest port for the import and export of new vehicles. Found inside Page 274Once again, later studies suggested that early reports overstated the differences between Flanders and Wallonia, and that differences between urban and rural areas (and especially between Brussels and the rest of the country) were far Belgium and Wallonia were not immune to the phenomenon. In order to take on the costs of such investments, the number of capitalist companies in the sector increased. Discover the most recent facts and figures on Flanders exports. // addService(googletag.pubads()); The older, traditional industries of Wallonia, particularly steel industry, began to lose their competitive edge during this period, but the general growth of world prosperity masked this deterioration until the 1973 and 1979 oil price shocks and resultant shifts in international demand sent the economy into a period of prolonged recession. The government has balanced the budget every year since, until 2009 where it ran a deficit of about $25 billion. There is rhetoric about one-way sponsorship, about Wallonias apparent unwillingness to pull itself out of its economic funk. Economy. Economically speaking as you well stated it makes no sense to live in a two speed country like it doesnt make sense for Europe to stay in a 3 speed economy it is bound to cause problems. A total of 4.99 million people make up Belgium's labor force. Inflation below 2% is in green. Its inflection point came Army These political divisions, combined with cultural and linguistic differences, a rising national debt, and a general rise in a national ideology based on ethnicity rather than formal borders, have resulted in the revival of a modern movement to formally split the Found inside Page 208The economic inequality was becoming more apparent. Wallonia had once been one of the richest regions on the continent while Flanders was a poor, rural area. Some of the bourgeois elite in Flanders began to speak French at home, Found inside Page 206The economic inequality was becoming more apparent. Wallonia had once been one of the richest regions on the continent while Flanders was a poor, rural area. Some of the bourgeois elite in Flanders began to speak French at home, In sum, we expect prejudice toward inhabitants of the other region to be more strongly linked to anti-immigrant prejudice in Flanders compared with Wallonia, reflecting its particular intergroup context: In Flanders both target groups are susceptible to similar justification mechanisms such as feelings of cultural and economic threat. Found insideOn the one hand, the Walloon economy stagnated and then declined rapidly from the mid-1950s onwards and especially in the 1970s and 1980s. Flanders, on the other hand, in the 1960s managed to attract new industries thanks to its Attracted by the EU 1992 single-market program, many foreign firms and lawyers have settled in Brussels since 1989. Their output is counted in Brussels and not where they live, artificially raising the per capita GDP of Brussels and slightly lowering that of Flanders and Wallonia. Found inside Page 2043The tension between the two peoples escalated after World War II, fanned by economic changes. Wallonia's outdated heavy industries declined rapidly, while new industries shifted to Flanders, nearer the Flemish port cities. In the south, many mediaeval towns emerged, each with their own prince, but none enjoyed the status of the Flemish. Slow to move to electric energy and suffering from the initial effects of maritimization, the First World War would have catastrophic consequences. Much of the success of Brussels is based on the high educational skills of its workforce. 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