The Netherlands has a market economy, but the state traditionally has been a significant participant in such fields as transportation, resource extraction, and heavy industry. The government also employs a substantial percentage of the total labour force and effects investment policy. Nonetheless, during the 1980s, when the ideological climate favoured market economics, considerable privatization was initiated, government economic intervention was reduced, and the welfare state was restructured. State-owned companies such as DSM (Dutch State Mines) and KLM (Royal Dutch Airlines) were among those privatized. Nonetheless, the Netherlands has, relatively speaking, a highly regulated mixed economy.
Since World War II, economic development has been consciously stimulated by government policy, and state subsidies have been granted to attract industry and services toward the relatively underdeveloped north and certain other pockets of economic stagnation. Despite these subsidies, the western part of the country remains the centre of new activity, especially in the service sector.