US embassy cable - 05THEHAGUE3230

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 
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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 
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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.