Major policy shifts are rare phenomena on a national level, and identifying the specific moments when these transitions take place is not always possible. In the case of the Netherlands, 1982...Show moreMajor policy shifts are rare phenomena on a national level, and identifying the specific moments when these transitions take place is not always possible. In the case of the Netherlands, 1982 proves to be an exception: the ‘Wassenaar Accord’ was a turning point in the governmental policymaking regarding the influence of labour unions and employers’ organisations, after years of economic malaise. The enduring lack of economic growth in combination with high inflation, known as stagflation during the 1970s, paved the way for the new cabinet to force employers’ organisations and trade unions into an agreement on wage cuts in exchange for shorter working years. New policies through a breakthrough agreement were needed because of what an Economist article from 1977 described as the ‘Dutch disease’: high unemployment and lack of economic growth despite natural resource exports. The timing of the negotiations in Wassenaar coincided with neoliberal economists taking over the IMF and the World Bank (Harvey 93). What does this remarkable transition tell us about the way states should handle economic events such as stagflation, or more specifically the Dutch disease? This research seeks to provide the background information on that matter and answer the following question: how should the Dutch policies which were meant to counter the Dutch disease be identified? The processes leading up to the Wassenaar Accord can be traced back to causal mechanisms which will clarify to what extend the Dutch policies where identifiable as policies befitting neocorporatism, if they shifted towards the international trend of neoliberalism and perhaps if the Netherlands found a third way between the two established explanations.Show less
