Polder Model
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The polder model is the Dutch version of consensus policy in economics. The term is also use to describe similar cases of consensus decision-making.
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[edit] Socio-economic polder model
The Dutch polder model is characterized by the tri-partite cooperation between employers' organizations such as VNO-NCW, labour unions such as the FNV, and the government. These talks are embodied in the Social Economic Council (Dutch: Sociaal-Economische Raad, SER). The SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in Finland, namely Comprehensive Income Policy Agreement and universal validity of collective labour agreements.
The current polder model is said to have begun with the Wassenaar Accords of 1982 when unions, employers and government decided on a comprehensive plan to revitalize the economy involving shorter working times and less pay on the one hand, and more employment on the other. This poldermodel, combined with an economic policy of privatization and budget cuts has been held to be responsible for the Dutch economic miracle of the late 1990s.
An important role in this process was played by the Dutch Central Planning Bureau [1] (CPB) originally founded by Jan Tinbergen. The CPB's policy advice since 1976, in particular with the Den Hartog and Tjan model, in favour of wage restraint was an important argument, supportive for government and employers, that the unions could not easily counter.
[edit] Other uses
The word poldermodel and especially the verb "polderen" (English: to polder) has been used pejoratively by some politicians to describe the slow decision making process, where all parties have to be heard, which characterizes Dutch politics.
[edit] Historical background
There is no consensus about the exact historical background of the polder model. In general there are three views on this subject.
One explanation points to the rebuilding of the Netherlands after the Second World War. Corporatism was an important feature of Christian-Democratic, and particularly Catholic, political thought. After the Second World War, the political parties, including the catholic KVP, Protestant ARP and CHU, social-democratic PvdA and the liberal VVD decided to work together to reconstruct the Netherlands after the ravages of war, as did their unions and employers organisations. Important institutes, like the SER of the polder model were founded in this period.
Another explanation points to the dependency of the Netherlands on the international economy. The Netherlands is a small state and it is very dependent on the international economy. The Dutch cannot afford protectionism against the unpredictable tides of the international economy, because it is not an autarkic economy. Therefore to cushion against the international economy, the Dutch set up a tri-partite council which oversaw an extensive welfare state.
A third explanation points to a cultural tradition in the Netherlands of consensus decision making. Some point to the Middle Ages, as in those times it was necessary for farmers, noblemen, cities, and others to cooperate in order to maintain the polders from getting flooded. Without unanimous agreement on shared responsibility for maintenance of the dikes, the polders would have flooded and everyone would have suffered.
[edit] External links
- The Economist, Model makers, May 2nd 2002
- The Economist, Economic illusions, May 2nd 2002
- The Economist, A fine place to be, May 2nd 2002
- Mark Kranenburg, The political branch of the polder model, July 1, 1999
