Protecting vested interests 'stifling growth'

25th November 2005, Comments 0 comments

25 November 2005, AMSTERDAM - Innovation and economic growth in the Netherlands are being stifled by lack of competition in the labour and capital markets, according a report by the Board of Economic Advisors (REA) to parliament.

25 November 2005

AMSTERDAM - Innovation and economic growth in the Netherlands are being stifled by lack of competition in the labour and capital markets, according a report by the Board of Economic Advisors (REA) to parliament.

The economists declared Dutch education, research and entrepreurship all "neglected" and called for a shake-up of the whole system of subsidies and investment in infrastructure, with savings put into education and research.

There is insufficient competition in the employment market thanks to sitting tenants – mostly middle-aged Dutch men – being helped to cling on to their positions at the expense of the young, the female and the foreign, it said.

Meanwhile, a concentration of power in large financial institutions meant too little capital was making its way to small and starting businesses.

The report concluded that government attention must shift from protecting vested interests to supporting risk-takers: small businesses, the highly-educated, immigrants and investors who risk their capital in start-ups.

[Copyright Expatica News + ANP 2005]

Subject: Dutch news

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