Monday, November 29, 2004

Dutch study confirms Anglo-Saxon model is best for economy

A study by the Dutch Bureau for Economic Policy Analysis ("CPB") indicates that Optimal Growth of the Dutch Economy (GDP) is best achieved with Global Cooperation and an Anglo-Saxon markets-led economic system. The study presents four scenarios with plausible developments for the Dutch economy at the macro and the sectoral level until 2040:
  1. Regional Communities: low market-orientation, no reforms in Europe: GDP +0,7%/yr
  2. Strong Europe: low market-orientation, reforms in Europe: GDP +1,6%/yr
  3. Transatlantic Market: Anglo-Saxon model, poor European integraton: GDP +1,9%/yr
  4. Global Economy: Anglo-Saxon model, European integraton: GDP +2,6%/yr

However, the scenarios with high GDP growth are also characterised by more income inequality and less concern for the environment. Furthermore, ageing has a negative effect on labour supply and employment growth and on the ratio of the active to the non-active population in all scenarios. An increase in participation, especially of women and older workers, may counterbalance these effects. See for more information (only partly in English)