The Netherlands

The Netherlands performs relatively poorly in international comparison (rank 25) in the category of vertical accountability.

Elections are free and fair. Political parties receive state subsidies, while new parties must pay a significant entry fee. The party financing system raises concerns, as funding is not transparent, expenditures do not have to be declared and there is no independent body to audit finances. Sanctions for violating financing rules are rarely imposed.

The electoral system is fully proportional, with no threshold, allowing many political parties to compete. This system results in significant electoral volatility. Polarization has increased. Centrist parties have collaborated to exclude far-right parties from government in the past, but this system has broken down.

Responding to past criticisms, a Law on Open Government has been in place since 2022. However, as it contains considerable exclusions, it is not seen as having significantly changed the government’s culture of withholding information.

The Netherlands falls into the sample’s lower-middle ranks (rank 18) with regard to diagonal accountability.

The media is not subject to government censorship. Journalists face some dangers from organized crime – as in the killing of crime reporter Peter R. de Vries in 2021 – resulting in increased police protection. The media sector is dominated by a few large international companies, leading to plurality concerns.

The country ranks very high with regard to protecting political freedoms. Police forces have increased pressure on peaceful protesters. Under the poldering model of consultation, governments have historically worked closely with interest groups to make policy.

Unions and employers groups strongly influence socioeconomic policy, and negotiate over working conditions and wages. While welfare and environmental groups are also part of the poldering process, some environmental organizations have successfully turned to lawsuits to speed up policy change.

In the area of horizontal accountability, the Netherlands performs relatively poorly (rank 26).

The General Audit Chamber annually scrutinizes reports and policy evaluations by ministerial departments. The Dutch Data Protection Authority can fine organizations for violations of Dutch and European data protection laws, but is understaffed and underfinanced.

The judiciary is broadly trusted by the public. The Supreme Court has shown a tendency to side with the government in its decisions. Civil rights are generally strongly respected, but political parties have increasingly made proposals that violate fundamental constitutional rights or treaty agreements.

Corruption is not seen as a significant issue, but the rise of organized drug crime is compromising the integrity of the public administration and political officials at all levels. Parliamentary offices are underfunded and understaffed, hindering oversight abilities, but legislative investigations can be highly effective.

The Netherlands scores relatively poorly (rank 25) in the category of coordination.

The Dutch prime minister is responsible for coordinating overall government policy, chairing Council of Ministers meetings, and adjudicating interdepartmental conflicts. However, the Prime Minister’s Office has limited capacity to evaluate policy content unless it conflicts with the government platform.

Under the last Rutte government, the prime minister deliberately violated coalition conduct rules, leading to the government’s collapse. The poldering model of consultation encourages informal contacts between the government and stakeholders, leading to transparency concerns.

Local governments receive funding from the national level in return for implementing polices decided at the national level, with sums tied to economic swings. A new policy aims to ensure that local and regional governments are consulted early on in new policy proposals, and that structural budget allocations are made accordingly.

The Netherlands falls into the sample’s middle ranks (rank 13) with regard to consensus-building.

The government obtains high-quality scientific support in its policymaking via a range of permanent scientific advisory institutes. Other parts of government have also enhanced their access to scientific information.

Civil society organizations representing both capital and labor are still firmly embedded in the culture and practices of poldering, and thus have a strong influence on government policy. Social welfare organizations also routinely consult with the government, with somewhat less influence.

Environmental organizations also consult with the government through the poldering process. However, some have turned to the courts as a means of avoiding the delays of the traditional consultation procedure.

The Netherlands falls into the middle ranks (rank 13) in the category of sensemaking.

The government lacks a dedicated central unit for strategic foresight. Civil-servant training procedures have been criticized as focusing too much on operational management and recruitment rather than strategic governance.

Since 2021, policy proposals for measures costing over €20 million must include explanations of goals and instruments, along with monitoring instruments. Surveys have found that lawmakers tend to treat assessments as a formality, prioritizing political goals over policy effectiveness.

An ambitious new Environment Act has streamlined a patchwork of sustainability goals into a single complex set of measures. Parts of the government have begun treating ex post evaluation of individual polities as part of a broader evaluation of policy portfolios. It is not yet clear whether this is informing evaluation practices at the departmental levels.

The Netherlands falls into the upper-middle ranks (rank 10) in the category of economic sustainability.

The country has had a circular economy strategy since 2016, but commitment has been hesitant. A national coordinator oversees critical infrastructure policies, with line ministries establishing general frameworks for their sectoral areas. Progress toward decarbonization has been slow, but a new plan has sought to speed the transition.

Unemployment rates are low, and companies report labor shortages. Labor-market policies focus on those already within the labor market, while vulnerable job seekers receive less support. Discrimination against workers with a non-Western background is a concern.

Income taxes are progressive, and income redistribution is considerable. Externalities are addressed both with taxes and financial incentives. State spending has increasingly featured the use of special funds outside the regular budget, diminishing oversight. R&D spending is comparatively high. The country is viewed externally as a tax haven.

The Netherlands falls into the sample’s middle ranks (rank 13) with regard to social sustainability.

Educational performance has declined in recent years, with the country dropping in the international PISA rankings. A gap is opening between students from high- and low-income families. During the energy crisis, the government provided subsidies for low-income households.

The healthcare system has traditionally been viewed as exemplary, but is today suffering from disparities in access and bottlenecks. Waiting times are rising, and patients are struggling to find general practitioners. Despite a range of gender equality policies, the gender pay gap remains pronounced.

Child poverty remains a concern. Despite partial tax refunds, childcare and after-school care remain expensive. Family policy offers paid leave and parenting support. A major pension-system reform is underway. Migrants play a key role in filling labor shortages, but the housing shortage has caused overcrowding in reception centers and exacerbated opposition to migration.

In the category of environmental sustainability, the Netherlands falls into the sample’s lower-middle ranks (rank 19).

Recent court rulings have pushed climate policy to the political forefront. The state’s reliance on private-sector cooperation has not been altogether successful, as most major firms have not been on track to meet goals.

Political and social opposition to climate policies has grown, with significant resistance from industry, farmers and citizens concerned about financial burdens and lifestyle changes. Efforts to reduce nitrogen levels in soils led to massive protests among farmers. This opposition led to strong gains by climate-skeptic parties in the 2023 elections.

Environmental health efforts remain fragmented, focusing on localized pollution rather than constituting a cohesive national policy. Water management has been a strong focus in the country’s global climate diplomacy.