NETHERLANDS
Public Administration
Country Profile
March 2006
All papers, statistics and materials contained in the Country Profiles express entirely the opinion of the mentioned authors.
They should not, unless otherwise mentioned, be attributed to the Secretariat of the United Nations.
The designations employed and the presentation of material on maps in the Country Profiles do not imply the expression
of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country,
territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.
Table of Contents
Table of Contents........................................................................................... 1
Country ........................................................................................................ 2
1
Netherlands
Country
Click here for detailed map
Government type
constitutional monarchy
Independence
23 January 1579
Constitution
adopted 1815; amended several
times, last time 2002
Legal system
civil law system incorporating French
penal theory; constitution does not
permit judicial review of acts of the
States General; accepts compulsory
ICJ jurisdiction, with reservations
Administrative divisions
12 provinces (provincies, singular -
provincie);
Source: The World Factbook – Netherlands Source: The World Factbook – Netherlands
Before the Christian era, the Netherlands was inhabited by Germanic and Celtic
tribes. Until the early 5th century, the area south of the Rhine was part of the Roman
Empire. Throughout the Middle Ages, the Netherlands consisted of many separate
feudal entities, which were eventually united, under Emperor Charles V (1500-1558),
with the rest of the "Low Countries" (present-day Belgium and Luxembourg) as part
of the Holy Roman Empire. In 1568, some of the northern Dutch provinces revolted
under Prince William of Orange and started what the Dutch call the Eighty Years'
War. The war ended in 1648 with the Peace of Westphalia, which recognised the
Republic of the United as an independent state. The republican form of government
retained one remnant of feudalism in the powerful position of Stadholder (provincial
governor).
During the 17th century, also called the 'Golden Age', the Republic became
increasingly prosperous, thanks largely to the Dutch East India Company (VOC). The
VOC, established in 1602 to coordinate shipping and trade with Southeast Asia, was
for a long time the largest commercial enterprise in the world. The VOC was active
along the coasts of Africa and Asia, with bases in present-day Indonesia, Japan,
Taiwan, Sri Lanka and South Africa. Around the same time, the Dutch West India
Company (WIC) was trading with West Africa and the Americas, and from 1625 to
1664 it administered New Amsterdam, which later became New York.
2
The French Revolution signalled the end of the Republic of the United Provinces. In
1795, it was invaded and occupied by French revolutionary forces, who turned it into
a vassal state named the Batavian Republic. Four years later, France again annexed
the whole of the Netherlands. Louis Napoleon proclaimed Amsterdam as the capital.
In 1813, the French Empire collapsed, and the Low Countries regained their
independence.
In 1815, the northern and southern Netherlands – today's Netherlands and Belgium
– were combined to form the Kingdom of the Netherlands. In 1830, the southern
Netherlands seceded from the Kingdom to form the independent state of Belgium.
This event gave the Netherlands its present-day borders. During the First World War
(1914-1918), the Netherlands remained neutral. It continued to pursue a policy of
strict neutrality until the Second World War, but was invaded by Germany in May
1940 and occupied for five years. After the Second World War, the Dutch colony of
Indonesia became independent and severed all constitutional links with the
Netherlands in 1949. On 25 November 1975, Suriname became an independent
republic.
Currently, more than 16 million live in the Netherlands which consists of 41,528
square kilometres, little more than half the size of Scotland. The Netherlands is thus
one of the world's most densely populated countries.. The Netherlands is a kingdom
and consists of the Netherlands itself and six islands in the Caribbean Sea: Aruba
and the Netherlands Antilles. The Netherlands was the world’s eighth largest
exporter of goods and services in 2003. Its workforce numbered 7.5 million, three-
quarters of whom worked in the service sector. Per capita gross domestic product
(GDP) was €27,900. More than half of the country’s GDP comes from international
trade. Over half of Dutch imports and exports consist of food, chemical products and
machinery. They also are re-exported with little or no processing – typifying the
country’s role as a hub of distribution.
The north of the Netherlands contains huge reserves of natural gas, making it
Western Europe's largest producer. Drilling companies operate in gas and oil fields
both on land and in the waters off the Netherlands’ North Sea coast. A crucial link in
Western Europe’s energy supply chain is the seaport of Rotterdam, where large
quantities of crude oil arrive by vessel. The port is home to large transhipment
companies and refineries, from which considerable quantities of crude oil and its
petroleum products are carried directly to the industrial areas of Germany and
Belgium. The presence of refineries and offshore installations has led to an array of
activities serving the oil and gas industries. Four large steel construction companies,
for instance, design and build entire chemical factories, oil refineries and offshore
installations. And dozens more businesses produce specialist equipment. Several
Dutch research institutes even have laboratories for simulating offshore conditions.
3
1. General Information
1.1 People Netherlands Belgium Germany 1
Population a
i
Female school life expectancy, 2000-2001 15.9 16 15.1 1
i
Male school life expectancy, 2000-2001 16.1 16 15.4 1
e
Employment
Unemployment rate (15+) (%), 2000 3.3 ii 7 iii 7.9ii 1
vi
Female adult (+15) economic activity rate (%), 2001 54 43 49 2
GDP a
1
United Nations Statistics Division:
a
Statistics Division and Population Division of the UN Secretariat; b Statistics Division and Population Division of the UN
Secretariat; c Population Division of the UN Secretariat; d1 UNESCO ; d2 UNESCO; e1 ILO; e2 ILO/OECD
2
World Bank - Data and Statistics:
a
Quick Reference Tables; b Data Profile Tables ; c Country at a Glance
4
1.3 Public Spending Netherlands Belgium Germany
Public expenditures 3
Notes: .Data may not be strictly comparable with those for earlier years as a result of methodological changes,
i ii
Data refer to the ministry of
education only, iii
Data refer to the Federal Republic of Germany before reunification, a
Data refer to the Flemish community only.
3
UNDP - Human Development Report 2002
a
Data refer to total public expenditure on education, including current and capital expenditures.
b
As a result of a number of limitations in the data, comparisons of military expenditure data over time and across
countries should be made with caution. For detailed notes on the data see SIPRI (2001).
4
Averages for regions and sub regions are only generated if data is available for at least 35% of the countries in that
region or sub region.
5
Excluding education, health and police – if available (view Country Sources for further explanations).
5
2. Legal Structure
Since 1848 the Netherlands' system of government has been defined as a
constitutional monarchy, in which the power of the executive is limited by the
constitution and in which the government is responsible to an elected parliament.
The head of the state of the Netherlands is the monarch, who has limited power in
running the government under the constitution. The principal executive official of the
country is the prime minister, who heads a cabinet that is responsible for the Dutch
parliament. The Netherlands uses proportional representation in electing municipal,
provincial and national assemblies. This system allows even small political parties to
win a seat. On the national level the Netherlands has always been governed by
coalitions of parties.
Source: Joseph M. Katz, Graduate School of Business, International Business Ethics, Netherlands) & Tweede Kamer Der
Staten – General (2006) -edited
6
Source of fact boxes if nothing else stated: The World Factbook – Netherlands
7
Inter-Parliamentary Union - Women in National Parliaments
6
2.2 Executive Branch
cabinet: Council of Ministers appointed by the monarch
elections: none; the monarchy is hereditary; following Second Chamber elections, the leader of the
majority party or leader of a majority coalition is usually appointed prime minister by the monarch; vice
prime ministers appointed by the monarch
note: there is also a Council of State composed of the monarch, heir apparent, and councilors that
provides consultations to the cabinet on legislative and administrative policy
Fact box:
The Prime Minister of the Netherlands (Minister-President in
chief of state: Queen
Dutch) is the head of government and active executive
BEATRIX (since 30 April
authority of the Dutch government. The Prime Minister is the
1980); Heir Apparent
leader of the majority party or coalition in the lower house of
WILLEM-ALEXANDER
parliament (Tweede Kamer). (born 27 April 1967),
son of the monarch
The cabinet of the Netherlands or council of ministers plans head of government:
and implements government policy. The Monarch and the Prime Minister Jan Peter
Council of Ministers together are called the Crown. Most BALKENENDE (since 22
ministers also head government ministries, although July 2002) and Deputy
ministers-without-portfolio exist. The ministers, collectively Prime Ministers Gerrit
and individually, are responsible to the States General ZALM (since 27 May
(parliament). Minister cannot simultaneously be members of 2003) and Laurens Jan
parliament. BRINKHORST (since 31
March 2005)
Source: The Hague University – Government and Polics (2006)
Supreme Court or Hoge Raad (justices are nominated for life by the monarch)
There are 19 district courts, 5 courts of appeal and 2 other appeal bodies (Central
Appeals Tribunal and the Trade and Industry Appeals Tribunal), and there is 1
Supreme Court (Hoge Raad). Members of the Supreme Court are appointed by Royal
Decree, from a list of three, advised by the Tweede Kamer on the advice of the Hoge
Raad itself. The judges are, like every judge in The Netherlands, appointed for life,
until they either retire or reach the age of 70.
The Supreme Court is usually composed of a panel of five judges. The decisions of
the Lower Courts, the District Courts and the Courts of Appeal may be brought
before the Supreme Court for an appeal in cassation. This Court must decide on
questions of law. If it overturns a decision of a lower court, the Supreme Court may
either send the case back to this court or render a final judgement. Courts of Appeal
usually comprise three judges. Their decisions may be appealed to the Supreme
Court. District Courts are composed of various divisions, such as family law or
criminal law. They have jurisdiction over major offences and civil cases that are not
allocated to the Lower Courts. Their decisions may be appealed to a Court of Appeal.
The Administrative Division of the District Courts have jurisdiction in first instance
over social security matters and employment cases involving civil servants. To
appeal the decision of an Administrative Division, a claimant must bring the case
before the Central Appeal Tribunal, located in Utrecht, and which is composed of a
panel of three judges.
Source: International Labor organization (ILO), Joseph M. Katz, Graduate School of Business, International Business
Ethics, Netherlands (edited), the Dutch justice system (de rechtspraak)
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2.4 Local Government
The Netherlands has three tiers of government: central, provincial and municipal.
Central government concerns itself with issues of national interest. The provinces
and municipalities are tiers of local government. In addition, there are water boards,
responsible for local water management. Provincial and municipal authorities may
pass independent bylaws, but they must conform to national legislation. They are
also required to collaborate in implementing central government measures. In the
case of municipalities, this also applies to measures adopted by the province in which
they are situated.
The Netherlands is made up of 483 municipalities (in 2004). Municipal authorities are
responsible for water supply, traffic, housing, public-sector schools, local social
services and health care, sport, recreation and culture. Each municipal authority
consists of a council, a mayor and an executive (comprising the mayor and
aldermen). Municipal authorities are subject to scrutiny by the province and central
government, though in practice this power is used sparingly. Each municipal council
appoints several aldermen from among its members. The mayor is appointed by the
Government for six years, after which s/he may be reappointed. The mayor presides
over both the municipal executive and the council. The executive implements
decisions taken by central government and the provincial executive. Municipal
councils are elected by local residents for a four-year term. Foreign nationals who
have been legally resident in the Netherlands for at least five years are also entitled
to vote in municipal elections.
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3. The State and Civil Society
3.1 Ombudsperson
Established by the National Ombudsman Act the National Ombudsman's main task is
to investigate the actions of administrative authorities and decide whether they were
improper or not. The National Ombudsman can investigate complaints or " institute
an investigation on his own initiative into the way in which an administrative
authority has acted in a particular matter". Examples of the standards which may be
relevant to such investigations include the principles of equal treatment for equal
cases, of reasonableness, of proportionality between means and end, of legal
certainty and of legitimate expectations, the requirement to provide reasons for
decisions, certain duties of care, to treat people fairly, to respect human dignity, and
to be unbiased and helpful. The National Ombudsman can not investigate a case if
other available legal remedies have not been pursued.
The main restriction to both associations and foundations is that they are not allowed
to distribute financial benefits to their members, founders or persons appointed to
their internal bodies. Beyond this restriction, foundations and associations, like all
legal persons, cannot have as their purpose the disruption of public order such as
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supporting or initiating armed revolutions, the initiation of hatred against certain
groups of people, or the promotion of views that go against human dignity.
Associations and foundations are exempt from company tax, unless they pursue
profitable activities that are in direct competition with business. An important
difference in the tax treatment between nonprofit and commercial organizations is
that for the latter all sources of income are subject to company tax, while for
associations and foundations only the net profits of the commercial activities are
taxable, whereas income from donations, contributions and investments are not
subject to taxation.
Source: Lester Salamon, Helmut Anheier, Working Papers of the John Hopkins Comparative Nonprofit Sector Project,
1997
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4. Civil Service
The Dutch public service is organised in twelve sectors, of which the central
government is one (civil staff of the state). In addition, the Senior Public Service (SPS)
represents the upper echelons of the Dutch civil service. Its members are the senior
managers who bear overall responsibility for manpower and resources: the secretaries-
general, directors-general, inspectors-general and directors (at scale 15 and above) of
the various ministries, and the administrative directors at a number of High Councils of
State. This group now comprises some eight hundred members.
Source: Labor relations in the Belgian, French, German and Dutch public services (2001) & Minister of Interior and
Kingdom Relations - Senior Public Service annual report 2004 (2006)
Civil servants receive an unilateral appointment from the governmental body that
employs them. The terms under which civil servants are employed are to be laid
down by law on the basis of a governmental decision for which the minister of
Interior Affairs is responsible to parliament.
Source: Labor relations in the Belgian, French, German and Dutch public services (2001)
4.2 Recruitment
There are no comparative entry exams; educational background, previous work
experience and motivation are the three important recruitment criteria. This means
that each department has its own recruitment policy and that recruitment is
“appointment based” and is post oriented, not career oriented. This implies that all
vacancies, at all levels, within the civil service are open to anyone, inside or outside
the system, who meets the required job qualifications. For a promotion to a senior
post in the Dutch civil service there is not a requirement in terms of a minimal
number of years to be served within the civil service prior to appointment.
Source: Policy work in the Netherlands: the Case of the Ministry for Education,
Science, and Culture (2004) & Speech at German governance commission (2001)
4.3 Promotion
For a promotion to a senior post in the Dutch civil service there is no requirement in
terms of a minimal number of years to be served within the civil service prior to
appointment. For people within the civil service this means that the only entitlement
one has is the post to which one is appointed. An “automatic” career is not part of
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the deal. At the same time this system opens the opportunity of an (extremely) fast
career for high achievers.
The Dutch civil service system therefore possesses the typical characteristics of a
non-career system. Staff is generally not recruited for a career, but only for a
specific position. With the exception of specific services like the fiscal authorities,
normally each position can be filled by internal and external candidates. In practice
most civil servants make their entire career and increase in hierarchy by hopping
from one position to another. The Dutch civil service system is still a public law-
based system. The terms and conditions of Dutch civil servants are to a large extent
harmonised with the private sector as a consequence of the government policy of
“normalisation” of labour relations and employment conditions.
In regard to the Senior Public Service (SPS) members, they are responsible for their
own career planning. Accordingly, they themselves must work on their personal and
professional growth. However, the SPS Office offers expertise, assistance, advice and
access to specific programmes designed to develop management and leadership
qualities in the public service. Some staff will receive additional coaching and training
further to the agreements made during the SPS Review.
Source: Minister of Interior and Kingdom Relations - Senior Public Service annual report 2004 (2006)
& Labor relations in the Belgian, French, German and Dutch public services (2001)
4.4 Remuneration
The pay scales belonging to each grade are specified in the Remuneration Decree for
Civil Servants (Bezoldingsbeluit Rijksambtenaren). In addition, The Council for
Government Personnel Policy (ROP) determines which topics are subject to collective
bargaining on the sectoral level. These are the general wage developments,
modifications in the general duration of employment, modifications in the above
minimum rights with regard to unemployment and sickness benefits, as well as other
terms and conditions that the negotiating partners want to bargain. The protocol
provides for the possibility of decentralisation of negotiations within each of the
sectors. In this case the ROP has an advisory function.
Source: Labor relations in the Belgian, French, German and Dutch public services (2001)
4.5 Training
Position in the European Institutions are considered training ground for future high-
civil servants. As such the proposed EU trainee placements for participants in the
SPS Candidates Programme were realized. In 2004, three such placements were
available, with a further two positions opening in 2005. A series of ‘EU Master
Classes’ were organized for the benefit of the Top Management Group (TMG),
examining the functioning of the EU in the context of the Dutch presidency of the
Union. In addition, there is a SPS Candidates Programme which aims to promote the
throughflow of existing junior management talent to senior SPS positions. The
programme is a joint investment in future management quality on the part of various
departments and the SPS Office. Each year, some 28 candidates take part in a
programme comprising both a collective and an individual component, and a
component addressing context change.
Source: Minister of Interior and Kingdom Relations - Senior Public Service annual report 2004 (2006)
12
Source: Minister of Interior and Kingdom Relations - Senior Public Service annual report 2004 (2006)
4.6 Gender
Skills in diversity management were given an even more prominent place in the
recruitment and selection of SPS managers. Such. The SPS membership does not yet
display the desired level of cultural diversity. Similarly, women remain
underrepresented, the female membership falling far short of an accurate reflection
of society.
Source: Minister of Interior and Kingdom Relations - Senior Public Service annual report 2004 (2006)
Source: Minister of Interior and Kingdom Relations - Senior Public Service annual report 2004 (2006)
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5. Ethics and Civil Service
5.1 Corruption
2003 CPI Score relates to perceptions of the degree of corruption as seen by
business people and country analysts and ranges between 10 (highly clean) and 0
(highly corrupt).
Surveys Used: Refers to the number of surveys that were used to assess a country's performance. 17 surveys were
used and at least 3 surveys were required for a country to be included in the CPI.
Standard Deviation: Indicates differences in the values of the sources. Values below 0.5 indicate agreement, values
between 0.5 and c. 0.9 indicate some agreement, while values equal or larger than 1 indicate disagreement.
High-Low Range: Provides the highest and lowest values of the sources.
Number Institutions: Refers to the number of independent institutions that assessed a country's performance. Since
some institutions provided more than one survey.
90 percent confidence range: Provides a range of possible values of the CPI score. With 5 percent probability the score
is above this range and with another 5 percent it is below.
Crimes committed by civil servants are prosecuted under criminal law before
ordinary courts. Crimes, which fall under criminal prosecution, are, e.g., bribery,
misuse of official position and acceptance of undue advantages.
There is also a Court of Audit that determines whether central government uses
funds from the public purse correctly and effectively. The Court of Audit is
independent of the government. The tasks, powers and legal status are laid down in
the Constitution and the Government Accounts Act, the act of parliament that
governs the management of public finance. Each tier of government has its own
external public finance control. At the national level a “General Chamber of Audit”
exists, the Algemene Rekenkamer. “General” stands for the fact that it audits all
central government activities. The General Chamber of Audit originates like many of
its colleagues from centuries ago and it has a firm legal basis in the Constitution and
the Accountability Act.
The court of Audit also conduct regularity audits of institutions that are not part of
government but receive public funds to carry out 'statutory tasks', such as provide
medical care, administer social security benefits and provide education. The Court of
Audit refers to such institutions as 'legal persons with a statutory task'.
The Court of Audit also investigates whether central government policy is
implemented and whether the policy goals are achieved. In doing so, it pays
particular attention to policy that directly affects the public: safety and security,
care, education, work and income and sustainable development. These 'performance
audits' are also laid down in the Government Accounts Act.
The Netherlands Court of Audit works closely with its autonomous counterparts in
Aruba and the Netherlands Antilles, the other states which make up the Kingdom of
the Netherlands. These constitutional links have created a special relationship
14
between the three Courts. Since 2000 that relationship has been formalised in a
protocol of cooperation.
Source: Local Government Audit in the Netherlands (2005) & system of Government in the
Netherlands (2004) & Court of Audit of the Netherlands (2006) -edited
5.2 Ethics
In the Netherlands, public servants occupying managerial positions are charged with
the protection and promotion of ethics. As such, managers must set a good example.
Special courses are targeted at them. It is also a criminal code that deals specifically
with public office offences, such as in the Netherlands where it is a criminal offence
for a public servant to accept a gift or a promise. Any breach of ethics can be
reported to the Internal Security Service
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6. e-Government
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Secondary indicators
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16
e-Participation
Index:
6.2 e-Participation e-Participation Index
Refers to the willing-
ness, on the part of
the government, to 1
use ICT to provide 0.9
high quality informa- 0.8
tion (explicit know-
0.7
ledge) and effective
communication tools 0.6
for the specific 0.5
purpose of empower- 0.4
ring people for able 0.3
participation in
0.2
consultations and
0.1
decision-making both
in their capacity as 0
consumers of public
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services and as
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citizens.
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e-decision making:
5
The government
indicates that it will
0
take citizens input
into account in
A
UK
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Fr
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provides actual
th
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feedback on the
outcome of specific
issues. Source: United Nations – World Public Sector Report 2003
e-consultation:
The government website explains e-consultation mechanisms and tools. It offers a choice of public policy topics online for discussion with
real time and archived access to audios and videos of public meetings. The government encourages citizens to participate in discussions.
17
7. Links
OECD http://www.oecd.org
18