This report is the first country assessment to be produced as part of the OECD study on value for money in government. This study, launched in 2008 on the initiative of the Dutch government, aims to identify new developments in the organisation of central government that are leading to better value for money: better services at lower costs for taxpayers. The first report in the Value for Money series was published in July 2010 under the title Public Administration after “New Public Management”.

This report presents the results of an assessment regarding the organisation of the central government of the Netherlands. This report is part of the Value for Money in Government series. The series reports on a multi-annual study that aims to identify reforms currently undertaken or planned in OECD member countries that are interesting from the point of view of value for money. The study looks at reforms aimed to improve the quality of services (more value) and efficiency (less money) in central government.

This report presents the results of an assessment regarding the organisation of the central government of the Netherlands. This report is part of the OECD Value for Money in Government series. The series reports on a multi-annual study that aims to identify reforms and plans for reform currently undertaken or planned in OECD member countries that are interesting from the point of view of value for money. The study looks at reforms aimed to improve the quality of services (more value) and efficiency (less money) in central government.

The Netherlands is a country of small size in terms of territory and intermediate size in terms of population and GDP. Its constitutional structure characterises it as a parliamentary democracy. Parliament is elected on the basis of proportional representation. Cabinets are based on coalitions between two or three major parties. Basic statistics about the Netherlands are provided in Table 2.1.

Since the 1980s, three periods of reform can be distinguished in the Netherlands, as is also the case in many OECD member countries. The 1980s were years of “receding government”. Policies in these years were inspired by the theory of supply-side economics that emphasised the burden of large government on society and the adverse effects of high tax levels on economic growth. These were the years of the Reagan administration in the United States, of the Thatcher government in the United Kingdom, and of the “no-nonsense” cabinets of Prime Minister Lubbers in the Netherlands. In this period, the spending review procedure was developed and the “grand operations” (see below) had a far-reaching impact on the size and structure of government.

This chapter presents the ten reforms or reform trends from the list of 70 to be presented in Building on Basics (OECD, forthcoming) that, in the view of the OECD Secretariat, are particularly interesting for the Netherlands. Each section will conclude with recommendations to the Dutch government. Indications of potential quality improvements and savings will be provided in the final section.