Dutch disease can be described as the economic condition that arises
when a vast amount of wealth, resulting from external factors, flows
into a country. Usually these windfall revenues create high inflation
and sustain a currency priced beyond its competitive value. It drives
up production costs and leaves the output of the economy uncompetitive.
Capital invested in the economy becomes unproductive and the
productivity of labour declines.
In the 1960's, North Sea oil and gas was the easy and irresistible challenge for the Netherlands to quickly create great financial prosperity. But unfortunately without the steadying hand of government, using policy measures to maintain the competitive viability of the overall economy, the boon soon became a monumental bust.
Basically everyone in the Netherlands is somehow still living in this 60's fantasy-world and living beyond their means including to having a cocky attitude about it. .
The Netherland's experience demonstrates that the Dutch disease is a condition that has to be met with policies to maintain the competitiveness of the whole economy if you don't want the good fortune of a sudden increase in externally generated revenues to become a costly bubble to an economy. Today, we find municipal governments in the Netherlands not really seriously looking at what makes their city attractive to foreign investors in order to create new investments and jobs, but instead most seem to be haggling among themselves about political, internal and trivial administrative matters.
Instead organizations like the World Trade Center and the Chambers of Commerce and Tourist organizations should become an integral part of strategies which increase interest, investment and employment for the local community. Obviously it can not be a one man show, but must be a joint effort of people, organizations and corporations, which have a common and personal interest to increase the exposure of their city in order to create wealth.
It's a big world out there and you need to blow your own horn. Just putting out a brochure (often only in Dutch) does not get investors too excited.
No one will come to your area if you can't get out of your comfort-zone and start putting in some "sweat and tears" to make it happen .
Almere-Digest
In the 1960's, North Sea oil and gas was the easy and irresistible challenge for the Netherlands to quickly create great financial prosperity. But unfortunately without the steadying hand of government, using policy measures to maintain the competitive viability of the overall economy, the boon soon became a monumental bust.
Basically everyone in the Netherlands is somehow still living in this 60's fantasy-world and living beyond their means including to having a cocky attitude about it. .
The Netherland's experience demonstrates that the Dutch disease is a condition that has to be met with policies to maintain the competitiveness of the whole economy if you don't want the good fortune of a sudden increase in externally generated revenues to become a costly bubble to an economy. Today, we find municipal governments in the Netherlands not really seriously looking at what makes their city attractive to foreign investors in order to create new investments and jobs, but instead most seem to be haggling among themselves about political, internal and trivial administrative matters.
Instead organizations like the World Trade Center and the Chambers of Commerce and Tourist organizations should become an integral part of strategies which increase interest, investment and employment for the local community. Obviously it can not be a one man show, but must be a joint effort of people, organizations and corporations, which have a common and personal interest to increase the exposure of their city in order to create wealth.
It's a big world out there and you need to blow your own horn. Just putting out a brochure (often only in Dutch) does not get investors too excited.
No one will come to your area if you can't get out of your comfort-zone and start putting in some "sweat and tears" to make it happen .
Almere-Digest
