The Netherlands in 2003


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Case Details:

Case Code : ECOA109
Case Length : 19 Pages
Period : 2003
Organization : -
Pub Date : 2003
Teaching Note :Not Available
Countries : Netherlands, Europe
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The polder model, it is often said, demonstrates that economies can grow and jobs can be created without dismantling the rigid and overly generous European social-welfare system. Similarly, it is argued that consensus policies, agreed across the political spectrum (coalition government is inherent in the Dutch electoral system), are the best way of dealing with social problems

- The Economist, 2nd May 2002.

Introduction

The Netherlands had become one of the most developed countries in the world, despite limited natural resources. Much of the modern Netherlands had been reclaimed from the sea. Since the 1980s, the Dutch economy had grown impressively at an average rate of 3.0%.

In terms of per capita GDP, the Netherlands was the fourth most prosperous economy in the European union. Through most of the 1990s, the Dutch seemed to have mastered the art of combining high growth rate, low unemployment and low inflation.

The Dutch polder model, which emphasized consensus building among government, businessmen and unions, had attracted the attention of economists and policy makers all over the world...

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