By Lei Delsen
To what does the Netherlands owe their fresh monetary luck? Will the polder version turn into the sufferer of its personal good fortune or will the probability come ordinarily from open air? within the Netherlands, polder are small groups hemmed in via dykes outfitted to withstand quick emerging tides, and as a result suggest communal attempt to mediate damaging open air forces. Translated in to financial phrases, the polder version entailed tripartite cooperation among company, govt, and exertions to guard the nation's fiscal and social health. Delsen evaluates fresh adjustments within the Dutch economic system caused by globalization and American dominance and concludes that the polder version is attaining its finish.
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Additional info for Exit Polder Model?: Socioeconomic Changes in the Netherlands
5 percent (CPB 1994:13 and 15). In this period and in the ﬁrst period of the following conjunctural recovery (1994 and 1995), the Netherlands proﬁted from its package of specialization. 5 The demand for products of the ﬁrst sector is relatively insensitive to economic ﬂuctuations. The demand for products from the chemical industry and other semiﬁnished goods is high at the start of a trade revival when stocks are being replenished. Dutch industry beneﬁted from this in 1994 and 1995. As an economic boom matures, the Dutch pattern of specialization has a more disadvantageous effect.
The vision of the Dutch central bank, the Netherlands Bank (De Nederlandsche Bank—DNB), is that the appreciation of the guilder in the long run has no inﬂuence on the competitive position and the proﬁt margins in the open sector of the economy. The positive effect of the appreciation is related to the low real interest rate. On balance, the appreciation will have a positive effect on economic growth. Research has nevertheless shown that appreciation of the guilder after 1985 affected the proﬁtability of Dutch enterprises and, as a result, employment in exporting companies (Knoester, Van der Linden, and Schipper 1995; Watson et al.
Tax tariffs were considerably simpliﬁed: the original nine tariffs were replaced with the present three tariffs of 36, 50, and 60 percent. The highest tariff was decreased from 72 to 60 percent. 1 This simpliﬁcation was accompanied by tax reductions of over 4 billion guilders, which served as a “lubricant” to reduce the unwanted effect on purchasing power. The ﬁrst Kok government (1994–1998) also put much effort into the reorganization of government ﬁnances and moderation of wages. The ﬁrst purple government implemented a reduction of the tax burden and the total of social security contributions of 9 billion guilders.