The Netherlands' Economy
The Polder Model and Consensus
How Dutch unions, employers and government negotiate wages and policies through consensus, including the 1982 Wassenaar Agreement that traded wage restraint for jobs.
The Netherlands is known for consensus policymaking.
Polder model
Unions, employers and government negotiate together, named after the cooperation needed to manage polders.
Wassenaar Agreement
In 1982, unions agreed to wage restraint in exchange for shorter hours and job creation, helping recovery from high unemployment.
Social and Economic Council
The SER advises the government on economic policy.
Benefits
- Fewer strikes.
- Stable policies.
Criticism
Consensus can be slow, and coalition politics has become more fragmented.
Unions accept modest raises in a downturn, and employers commit to hiring more workers.
The Dutch negotiate consensus.
- The polder model means negotiated consensus.
- The 1982 Wassenaar Agreement traded wages for jobs.
- The SER advises the government.
- Consensus can be slow.
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