The Netherlands is the European part of the Kingdom of the Netherlands , a parliamentary democracy under a constitutional monarch. It is located in northwestern Europe and borders the North Sea, Belgium and Germany. The country is often referred to by the name Holland, although this is technically incorrect; Holland was the economic powerhouse during the time of the United Provinces (1581–1795), during the Napoleonic era it was split into North and South Holland.The Netherlands is one of the most densely populated and geographically low-lying countries in the world and is famous for its dikes, windmills, wooden shoes, tulips, and perceived social tolerance. Its liberal policies are often mentioned abroad. The country is host to the International Court of Justice. Amsterdam is the official capital as stated by the constitution. The Hague is the administrative capital