The Netherlands of the Kingdom of the Netherlands, consisting of twelve provinces in North-West Europe and three islands in the Caribbean. The European part of the Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders with Belgium, Germany and the United Kingdom. It is a parliamentary democracy organised as a unitary state. The country capital is Amsterdam and the seat of government is The Hague. The Netherlands in its entirety is often referred to as "Holland", although North and South Holland are actually only two of its provinces.The Netherlands is a geographically low-lying country, with about 20% of its area and 21% of its population located below sea level, and 50% of its land lying less than one metre above sea level. This distinct feature contributes to the country's name: in Dutch (Nederland), English, and in many other European languages, its name literally means "(The) Low Countries" or "Low Country". Most of the areas below sea level are man-made, caused by centuries of extensive and poorly controlled peat extraction, lowering the surface by several meters. Even in flooded areas peat extraction continued through turf dredging. From the late 16th century land reclamation started and large polder areas are now preserved through elaborate drainage systems with dikes, canals and pumping stations. Much of the Netherlands is formed by the estuary of three important European rivers, which together with their distributaries form the Rhine-Meuse-Scheldt delta. Most of the country is very flat, with the exception of foothills in the far southeast and several low hill ranges in the central parts.