The International Financial Architecture and the Limits to Neoliberal Hegemony

During the 1990s in many western countries employment decreased or at least stagnated and unemployment increased. One of the few countries where the reverse happened is the Netherlands. Harmonious relations and cooperation between capital and labour, particularly the exchange of wage moderation for jobs, are seen as the secret of its success and often viewed as a model in other European countries. One of the reasons for this is that the Dutch have not paid the price of an Anglo-Saxon poverty rate for employment growth. Despite some cuts, their comprehensive welfare system still has relatively high replacement rates. We will, however, see that the Dutch development is not as model-like as it superficially appears. Labour market participation is not particularly high and, consequently, non-employment—including a very large number of people on disability, early pension or social assistance schemes—is high. In fact, at least up to 1996/97, it had changed very little since the mid 1980s. Therefore, it is only in the very recent past that the rise of employment has been accompanied by a decline in non-employment.