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Vision | Perspective on broad prosperity in 2040 : Building the economy of the future

Perspective on broad prosperity in 2040, Building the economy of the future is the title of the future vision that the Social and Economic Council (SER) offers the informateur (person who investigates whether a proposed government formation will succeed). With this, the SER presents a long-term perspective for the Netherlands, with policy recommendations for a broad welfare economy in which people take centre stage. That perspective is sorely needed. To increase broad prosperity in 2040, we need a balanced distribution of scarce resources. The new government will have to make important considerations in this regard. The SER would like to discuss this with the political domain.

Anticipating trends

The Netherlands is confronted with trends that will have a major impact on its broad prosperity in the coming years: an ageing population and increasing labour market shortages, the development of social inequality, digitalisation, changing geopolitical relations, climate change, loss of biodiversity and an ever-increasing demand for space. Many people experience a loss of control over their lives. In order to increase our current broad prosperity and offer people an attractive perspective, the Netherlands must recognise these trends and deal with them in an appropriate manner.

"The SER opts for a social market economy based on broad prosperity. A social market economy reasons from a people's perspective - workers and entrepreneurs - and the available space and nature, not one from systems. We want a strong social dialogue in the Netherlands and Brussels, in which we make proper agreements about work, learning, providing care and our living environment. We want an economy based on sustainable growth and innovation, with high-quality collective facilities. This is good for everyone and necessary to promote equal opportunities," SER chair Kim Putters explains.

Recommendations

In order to increase broad prosperity in 2040, the SER makes recommendations in three areas: decent work and income security, earning capacity and nature and space. For each domain, the council describes what is going on, what the desired vision for the future is and how we can achieve it. In the short term, the implementation of the (legislative) proposals following on from the SER Medium-Term Advice is an absolute basic condition for realising this vision of the future. This advice includes an ambitious programme to strengthen the agility and resilience of our economy and to offer people more security.

In the longer term, the SER formulates recommendations to the new government to work towards increasing broad prosperity in 2040. For example, the SER, together with the government, wants to focus more on increasing labour supply by involving people who want to work and by allowing people to work more hours, if they so want. Work should also pay better through employment conditions, a simplification of the income support system and taxation.

In addition, the government is advised to promote technologies and sectors that show potential for the Netherlands. With that, public and private investments in R&D in the Netherlands should be increased to the EU target of 3% in 2030, in order to achieve an innovative economy. Adequate policy and an implementation structure are also needed to accelerate the raw materials transition to a circular economy. And a joint way out of the nitrogen crisis must be found in which all sectors assume their share of responsibility, with a focus on transition paths for agricultural companies with sustainable earning capacity. The SER further believes that climate adaptation is still too much of an option and that the government should take more control over spatial planning.

To demonstrate how the SER wants to help build the economy of the future, the SER is simultaneously issuing advice on Sustainability of the manufacturing industry, explaining how we can achieve a green innovative economy in the Netherlands, in which the social partners too want to take their responsibility.

Joint approach needed

The major challenges facing the Netherlands require a common direction and a joint approach; from governments, employee and employer organisations, citizens and civil society. A consistent direction is needed that reconciles the short-term with the long-term while gaining enough momentum to actually address these major challenges.

As an advisory and consultation body, the SER is eager to make an important contribution, also towards working on restoring confidence and combating polarisation. The SER proposes to organise semi-annual structured dialogues with the new government and party leaders, especially in these challenging times.

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