Belgium
Belgium exhibits network-effects from political fragmentation: 15 centuries of linguistic division created the neutral crossroads hosting EU and NATO HQs with 80%+ trade-based GDP.
Belgium's linguistic boundary traces to Roman times—when Salic Franks pushed down from the northeast, those in the north retained Germanic languages while those moving south adopted the Romanized Gauls' French. Fifteen centuries later, this line still divides 60% Dutch-speaking Flanders from 40% French-speaking Wallonia, with Brussels as a bilingual capital between them.
This ancient fragmentation paradoxically positioned Belgium as Europe's neutral crossroads. Brussels hosts both EU and NATO headquarters, making the country a keystone in European governance despite—or because of—its lack of dominant national identity. The Port of Antwerp-Bruges ranks second in Europe (after Rotterdam), channeling 80%+ of GDP through trade. Exports concentrate in pharmaceuticals, chemicals, and machinery.
The economy shows the strains of its political structure. Belgium recorded a $665 billion GDP in 2024 ($56,206 per capita), but government debt stands at 104% of GDP, rising toward 112% by 2027. The deficit reached 5.3% in 2025. Between 2007-2011, Belgium spent 541 days without a government; from 2019-2020, over 650 days. These crises reflect the federal system's complexity—three regions and three language communities with overlapping authorities.
The 19th-century economic pattern has inverted: Wallonia's industrial base declined while Flanders grew service and technology sectors. This reversal exacerbated tensions that transformed Belgium from unitary to federal state (1970-1993). The country functions as an organism with distinct halves that have specialized differently over time, held together by Brussels and the advantages of remaining Europe's neutral hub.