The Netherlands (/ˈnɛðərləndz/; Dutch: Nederland [ˈneːdərˌlɑnt]) is the main 'constituent country' (Dutch: land) of the Kingdom of the Netherlands. It is a small, densely populated country located in Western Europe with three island territories in the Caribbean. The European part of the Netherlands borders Germany to the east, Belgium to the south, and the North Sea to the northwest, sharing maritime borders with Belgium, the United Kingdom and Germany. The largest and most important cities in the Netherlands are Amsterdam, The Hague and Rotterdam. Amsterdam is the country's capital, while The Hague holds the Dutch seat of government and parliament. The port of Rotterdam is the largest port in Europe – as large as the next three largest combined - and was the world's largest port between 1962 and 2004.'Netherlands' literally means 'Lower Countries', influenced by its low land and flat geography, with only about 50% of its land exceeding one metre above sea level. Most of the areas below sea level are man-made. Since the late 16th century, large areas (polders) have been reclaimed from the sea and lakes, amounting to nearly 17% of the country's current land mass.With a population density of 408 people per km2 – 500 if water is excluded – the Netherlands is a very densely populated country for its size. Only Bangladesh, South Korea, and Taiwan have both a larger population and a higher population density. Nevertheless, the Netherlands is the world's second-largest exporter of food and agricultural products, after the United States. This is partly due to the fertility of the soil and the mild climate.The Netherlands was the third country in the world to have an elected parliament, and since 1848 it has been governed as a parliamentary democracy and a constitutional monarchy, organised as a unitary state. The Netherlands has a long history of social tolerance and is generally regarded as a liberal country, having legalised abortion, prostitution and euthanasia, while maintaining a progressive drugs policy. In 2001, it became the world's first country to legalise same-sex marriage.The Netherlands is a founding member of the EU, Eurozone, G-10, NATO, OECD and WTO, and a part of the trilateral Benelux Union. The country is host to the Organisation for the Prohibition of Chemical Weapons and five international courts: the Permanent Court of Arbitration, the International Court of Justice, the International Criminal Tribunal for the Former Yugoslavia, the International Criminal Court and the Special Tribunal for Lebanon. The first four are situated in The Hague, as is the EU's criminal intelligence agency Europol and judicial co-operation agency Eurojust. This has led to the city being dubbed 'the world's legal capital'. The Netherlands is also a part of the Schengen Area.The Netherlands has a market-based mixed economy, ranking 17th of 177 countries according to the Index of Economic Freedom. It had the thirteenth-highest per capita income in the world in 2013 according to the International Monetary Fund. In 2013, the United Nations World Happiness Report ranked the Netherlands as the seventh happiest country in the world, reflecting its high quality of life.