THE NETHERLANDS AT A CROSSROADS, SAYS HEAD OF

UNCLAS SECTION 01 OF 02 THE HAGUE 003230

SIPDIS

BRUSSELS FOR USEU

E.O. 12958: N/A
TAGS: ECON EFIN NL
SUBJECT: THE NETHERLANDS AT A CROSSROADS, SAYS HEAD OF
SOCIAL-ECONOMIC COUNCIL


SUMMARY
--------------

1. The Netherlands is at a crucial point in its history,
torn between its traditional openness and tolerance and a
newer, more inward-looking anxiety based on fear. So said
Herman Wijffels, chair of the Social-Economic Council (SER),
who told the Charge that decades of overly generous social
insurance had dulled work incentives and made large numbers
of working-age adults dependent on the state for support.
Similarly, the Dutch have 'spoiled a generation' of Muslim
immigrants by providing financial support without requiring
them to move towards self-sufficiency. But, but a consensus
is developing, he added, that will prevent the same mistake
being made with the new generation of Netherlands-born
Muslims. The SER is an official body composed of business,
labor, and university leaders responsible for making policy
recommendations and building consensus among relevant
stakeholders; it is already engaged on developing policies
for the government to be elected in 2007. End Summary

End summary.


Crucial point in Dutch history
--------------

2. In a November 28 introductory call by the Charge focused
on the key challenges now facing Dutch society, SER chairman
Herman Wijffels said that the Netherlands is now at a
crucial point in its history. Can it remain the open and
entrepreneurial country it has been for the past few
centuries, Wijffels asked, or will it turn inward and
isolationist, driven by fear of loss and a rejection of
change? Wijffels, formerly the chairman of one of the
Netherlands' largest banks, said that the world is changing
faster than ever, and mostly for the better, with millions
of people in the developing world escaping poverty. New
technologies, such as in the life sciences or the
development of renewable energy, also offer exciting
opportunities. But for many in the Netherlands view, these
changes are seen not as opportunities but as threats to
their settled and comfortable way of life.


3. Elaborating, Wijffels noted that, as a member of the
Prime Minister's Innovation Platform, he had commissioned a
study that showed that total Dutch investment in education
and R&D was around six to eight percent of GDP, below the EU
average of 8-9 percent and the ten percent-plus ratios of
such countries as Sweden, Korea, and the U.S. On the other
hand, the Dutch government, through a generous system of
disability benefits, long-term unemployment compensation,
and other measures allowed some two million of 10 million
working age adults (out of a total 20-64 population of
roughly 10 million) to be economically inactive. By
fostering such dependency on the state, and by not
sufficiently investing in knowledge and training, the Dutch
government had hindered both the ability and motivation of
the Dutch to compete in today's increasingly competitive
world economy.


4. Asked by the Charge about the social-economic situation
of the Netherlands' 1-million-strong Muslim community,
Wijffels made a similar indictment of past government
policy. The Netherlands had made two serious mistakes with
regard to immigration, he said. First, it had allowed in
simply too many immigrants, and then, instead of helping
them immigrants to integrate themselves into Dutch society,
the government had simply provided financial support. While
it is probably too late to do something to help older
immigrants, the same mistake cannot happen again with
younger people, those in school now and those just coming
into the labor force. A much better and more integrated
system of academic training and practical work experience is
needed.


5. When the Charge wondered if Dutch government policy
would support such a new approach, Wijffels stated firmly
was quite firm in stating that a political consensus is
developing in favor of such an intensified program of
immigrant integration, a consensus that would be reflected
in the program of the government to be elected in 2007, no
matter who wins. The goal of such a program would be to
provide both economic and cultural -- providing non-western
immigrants with the opportunities and tools needed for them
to make constructive contributions to society, as well as
creating an environment in which non-western communities
could maintain their distinctive cultures provided they
respect at the basic norms of Dutch society are respected.

Comment
--------------

6. Dutch political culture is strongly consensus-based;
Wijffels' SER's official role is to bring together key
stakeholders to discuss, negotiate, and forge the political
backing for policy recommendations presented to the
government. Wijffels' firm assurance that a consensus is
developing that will lead to a much more active and
ambitious program of immigrant integration regardless of who
wins the 2007 parliamentary election is thus a hopeful sign
that the Dutch political system is finally coming to grips
with the long-ignored issue of Muslim integration, the
country's gravesttop domestic social problem.