Going Dutch - How I Learned to Love the European Welfare State
“I spent my initial months in Amsterdam under the impression that I was living in a quasi-socialistic system, built upon ideas that originated in the brains of Marx and Engels. This was one of the puzzling features of the Netherlands. It is and has long been a highly capitalistic country — the Dutch pioneered the multinational corporation and advanced the concept of shares of stock, and last year the country was the third-largest investor in U.S. businesses — and yet it has what I had been led to believe was a vast, socialistic welfare state. How can these polar-opposite value systems coexist?
A short stroll from my apartment suggests the outlines of an answer. In about six minutes you reach the Dam, the wide plaza that is the Times Square of Amsterdam… The Dam is therefore a reminder not only of the country’s past but also of its ceaseless battle with water. And that battle turns out to be the key to understanding the Netherlands’ blend of free market and social welfare. The Low Countries never developed a fully feudal system of aristocratic landowners and serfs. Rather, sailors, merchants and farmers bought shares in trading ships and in cooperatives to protect the land from the sea, a development that led to the creation of one of the world’s first stock markets and helped fuel the Dutch golden age. Today the country remains among the most free-market-oriented in Europe.
At the same time, water also played a part in the development of the welfare system. To get an authoritative primer on the Dutch social-welfare state, I sat down with Geert Mak, perhaps the country’s pre-eminent author, to whose books the Dutch themselves turn to understand their history. The Dutch call their collectivist mentality and way of politics-by-consensus the “polder model,” after the areas of low land systematically reclaimed from the sea. “People think of the polder model as a romantic idea” and assume its origins are more myth than fact, Mak told me. “But if you look at records of the Middle Ages, you see it was a real thing. Everyone had to deal with water. With a polder, the big problem is pumping the water. But in most cases your land lies in the middle of the country, so where are you going to pump it? To someone else’s land. And then they have to do the same thing, and their neighbor does, too. So what you see in the records are these extraordinarily complicated deals. All of this had to be done together.”
…The nation today embodies a centuries-old inclination toward collectivism, which one writer characterized as “the democracy of dry feet.””
(Russell Shorto for the NYT Magazine, 20090429)
