Nov 27, 2007

Evaluation of the effects of Dutch deregulation policies

Eric van Damme Should policy-makers stop pushing for the introduction of market-based incentives in those sectors formerly dominated by public firms and pause for reflection? In the Netherlands, successive governments have introduced regulatory reforms in various markets with the aim of increasing competition intensity and thereby social welfare. These microeconomic policies have recently come under attack. Among others, the Socialist Party (SP) and the labor unions have called for a "time out". In May, the Dutch parliament asked for a formal evaluation of past policies and the minister of economic affairs agreed to it. Presently, the extent to which those policies have succeeded in enhancing efficiency, accessibility, quality and affordability of services, and their overall impact on welfare and employment are under investigation. An external committee was set up to supervise this research and guarantee its objectivity. TILEC Director Eric van Damme was appointed as one of its members. See Kamerstukken Tweede Kamer 24036, nr. 337.