A Regional Form of the Netherlands Model
My GSE Trip to D-1560 in Mideast Netherlands: A Green Country

Takumi Hirai

Researcher at the Institute for Advanced Industry Development, Osaka Prefectural Government
Sponsored by the Osaka-Sonezaki Rotary Club

Introduction

GSE team for this trip consisted of 6 people, and it was a unique team with members from a wide variety of backgrounds. Our team leader was Mr. Kazuaki Naka (Hirakata-Kuzuha RC), and the other team members were Mr. Takashi Iwagami, Ms. Yukari Umeda, Ms. Rika Hirashima, Ms. Fumie Yonezawa, and myself.

In the Netherlands,we were welcomed so warmly and treated so well by the local Rotary Clubs and Rotarians that I sometimes wondered if it was really all right for us to be receiving such treatment! We were able to visit a variety of places, meet many people, and experience precious and incomparable things. I want to express my gratitude to everyone who supported and helped us throughout this GSE program. The following report will give a simple summary of my experiences and impressions.

The Places We Visited in the Netherlands

As a result of my studies in preparation for the trip, I realized that the Netherlands is a country deserving of much attention and from which we can learn many things. For example, according to the 2001 edition of the World Competitiveness Yearbook (a book published by the Swiss organization IMD), in regard to economic conditions and competitiveness, the Netherlands ranks 5th in the world, compared 26th for Japan.

I learned in my studies and from my time in the Netherlands that the Dutch economy ranks among the top of the countries of the EU, and I think there are many things that Osaka Prefecture can apply from the the Netherlands' Model, or as it is sometimes referred to, the Polder [reclaimed land] Model. In particular, in Japan, we know little about the kinds of regional efforts and plans and the major economic role that small and medium-size businesses play in the Netherlands. There are more than 700,000 small and medium-size companies (companies with less than 100 employees) there, and the number is growing. For this reason, I wanted to learn more during my GSE trip about the role small and medium-size companies play in the Netherlands. See Table 1, please.

Table 1　The Number of Small and Medium-size Companies in the Netherlands

upper figure: No. of enterprises (in 1,000s)
lower figure: % of total enterprises
Source: Statistics Netherlands (a government homepage)

Our GSE vocational study trips were planned and organized based upon the team members' individual fields of expertise, and my study trips included visits to chambers of commerce, large, medium-size and small companies, and the industrial promotion departments of regional autonomous bodies, etc. These study trips were extremely beneficial to me because of the conversations I was able to have with the people there.

In the Netherlands, a chamber of commerce (KVK: Kamer Van Koophandel) is not comprised of those companies that desire to be members. Rather, it is the obligation of all companies, whether large, medium-size or small, to join. By making the most of the advantages of this system, a chamber of commerce is able to put together a very effective and complete data base, and I found it interesting that the chambers of commerce are carrying out plans that place emphasis on a given region's important points and that involve continual reorganization and changing of policies.

Photo 1 Logo and sign of the chamber of commerce

Photo 2 Listening to an explanation during my visit to the chamber of commerce

Also, our GSE team visited a number of places together, such as the Japanese Embassy, schools, police stations, universities, and more, and we were given the opportunity, through these visits, to get a feel for the culture and lifestyle of the Dutch people. In addition, we also had the opportunity to view the works of famous Dutch artists, such as Vincent Van Gogh.

The Economy of the Netherlands and Regional Development

Compared to Japan, the ratio of economic or business activities in the Netherlands, in relation to the following three categories (Agriculture/hunting/fishing, Wholesale and retail sales/food service/hotel industry, and Financing/insurance/real estate/service industry) is higher than here in Japan. We can see, in the following table (Table 2), that the economy of the Netherlands is characterized by the fact that the agriculture-related industries and service industries are integrated.

Table 2 GDP by Business (1995)

*1: In Japan, “Others” includes the food services and hotel industry.
*2: In the Netherlands, real estate business is included under “wholesale and retail sales, food service, hotel industry.”
Source: Sekai no Tohkei (World Statistics 2001), published by the Sohmushoh Tohkei-kyoku, Tohkei Kenshuushoh (Statistic Training Center, Statistics Bureau, Ministry of Public Management, Home Affairs, Posts and Telecommunications)

During the 1970s and 1980s, the economy of the Netherlands was generally said to be stagnant. Government expenditures increased as income gained from natural gas exploration was spent on government programs (such as social security), but after prices for 1st-tier products (agriculture, livestock, fishing) dropped, reduced annual expenditures complicated matters. Decreased social security spending, demands for higher wages, and increased personnel costs resulted in decreased business profitability and reductions in hiring.

Table 3 Unemployment rate by country (%)

Note:
1) Figures are based on International Labor Organization standards.
2) “Germany” includes former East Germany.
Source: Statistics Netherlands (a government homepage)

During my trip to mideast Netherlands, I was able to see how chambers of commerce, non-profit organizations, and local autonomous bodies were taking various leadership roles, setting their sights on certain goals, and then carrying out regional development projects after consulting with related organizations. I am unable to detail all that I learned during my time in the Netherlands due to space limitations, but the following are two representative examples of what I saw.

Examples of regional development efforts

(1) Achterhoek region (population approx. 150,000)

This region is made up 17 cities and towns, the largest of which is Doetinchem City (pop. 48,000). This is not a formal administrative district, but the cities and towns are cooperating because they realize that socioeconomic relationships are not efficient when municipalities do things independently.

One characteristic of this region is the existence of a non-profit organization called Sociaal-Economisch Overleg (Socioeconomic Convention). This organization came into existence in 1994 when the mayor of the Achterhoek region had a number of topics of concern about which he wished to hold discussions, and the result was the commencement of a small-scale regional development project.

Today, the person in charge of the SEO is Mr. Walter van Hulstijn, who also serves as the region's economic department head. The most important function of the SEO is coming up with a long-term vision (10-year plan) for achieving socioeconomic growth and then coordinating projects that are designed to bring about those goals. In concrete terms, this means working to achieve harmony and balance between related organizations and their respective interests and goals, overseeing the progress of the plan(s), and becoming involved at a variety of levels in public organizations (city hall, provincial government, central government, EU, etc.).

There are various socioeconomic problems that need to be addressed, and the SEO is involved in requesting the government to help by improving infrastructure (such as roads, etc.), cooperating in granting permission to build factories in choice locations, regional and tourism promotion, helping to solve labor disputes, etc. and getting the related parties to work together to achieve the goals of a given project.

One example of such a program is the human resources cultivation program. This region is suffering from a shortage of workers, and organizations affiliated with the finance industry work together with local schools to provide educational programs that provide students with on-the-job work experiences at member companies. Those who complete such educational programs are then guaranteed a job in the industry upon graduation. In the first year of the program (2000), 19 students took part, and in 2001, this number increased to 68 students. Compared to similar government programs, this program is more substantive and much more popular among students.

The SEO is actively involved in the program in a variety of aspects, including advertising the program, putting together a group of companies that serves as the foundation of the program, and actually promoting the program, while also providing advice and counsel and making sure related organizations participate. In this way, the SEO is able to freely moderate the various non-profit organizations involved in the program, which makes it possible for the SEO to help such organizations more quickly reach an agreement and put the resultant policies into practice.

Photo 3 Mr. Walter van Hulstijn, who is in charge of the Achterhoek Regional SEO

(2) Apeldoorn City (population approx. 160,000)

Photo 4 The modern, bright Apeldoorn City Hall. The city assembly meets on the first floor, and visitors are allowed to listen in on deliberations.

One thing this city has done in order to achieve its goals of “greenery” and “sustainability” is to promote “ecofactorij.” These are factories and plants that will be located in a new 95 ha industrial park that was once pastureland. The industrial park is scheduled to commence operations at the beginning of 2003.

At this park, the entire energy supply must be recyclable resources, and the heat generated in the factories must be rerouted for use within the park property for heating and other uses. In this way, the industrial park is placing considerable emphasis on energy recycling.

Also, every business that locates in the industrial park must give due consideration to the following seven themes: company image, land usage, transportation, construction, energy, water usage, and waste products. The park will assign a certain number of points to each of these factors, and based upon this point system, each business will be evaluated. After three years, the points will be tabulated based on an evaluation of the business' performance in these seven areas, and depending on the overall point total, a company will be eligible to have a certain percentage (up to 20%) of what it paid to purchase its building site returned. As a result of this new idea, this region is receiving considerable attention domestically, as well as from businesses and autonomous bodies in other countries within the EU. (The average cost of land in the industrial park is about 300 gilders (about 15,000 yen) per sq. meter, which is extremely inexpensive compared to land prices in Japan. I heard, though, that land prices have been rising a bit, reflecting the economic growth of recent years.)

These two examples show how collaboration based on consultation and consensus between the public sector, chamber of commerce, business organizations, and non-profit organizations is functioning efficiently in the Netherlands.

The largest municipality I visited during my GSE trip had a population of just 160,000 (even so, it was the 8th or 9th largest city in the Netherlands, whose largest city is Amsterdam, with a population of 1 million). This is in stark contrast to Osaka City, which has a population of 2.6 million, and it will be difficult to directly apply the things I saw working successfully in the Netherlands. I also felt, through my conversations with a number of Dutch Rotarians, that our nations are different in the sense that Japanese people operate on the principle of gaining perfect consensus, whereas in the Netherlands, everyone is willing to compromise to some extent in order to help things move along quickly and smoothly.

However, to Japan, which has always held consensus in high regard, the things I saw applied in the Netherlands Model are probably more likely to be adaptable in here compared to other nations. I think that we should carefully look into the possibility of applying some of the things I saw in the Netherlands here in Osaka City.

Dynamic Corporate Activity

Another thing I felt strongly during my time in the Netherlands was that the corporate activity in the EU is quite dynamic and transcends national borders, regardless of capital or field of business. The EU is truly a vast economic zone. For example, we visited a power company called Nuon while we were in Arnhem. This enterprise is carrying out aggressive corporate restructuring in preparation for the complete deregulation of the power industry in 2004, with the goal of strengthening its international competitiveness. Also, in Harderwijk, at the small and medium-size companies I visited, it was considered a perfectly natural thing to have production bases in other nations of the EU. I think that the key to the effectiveness of the Netherlands Model is maintaining this kind of industrial dynamism.

Photo 5 The president of an electronic parts maker based in Harderwijk that owns and operates a number of production facilities throughout the EU

We were able to cross the border into Germany for a half-day trip during our time in the Netherlands, and while we were driving there, we simply continued on the highway and ended up in Germany without ever being stopped to have our passports checked.

Also, the Dutch currency (the gilder) will be completely replaced by the euro next year. Now, even small shops have prices listed in both gilders and euros. For most Dutch people, the emotional ties to the gilder are not nearly as strong as their desire to have currency calculations simplified (made convenient) by the unified use of the euro through the EU.

Some Points of Concern Regarding the Dutch Economy

The Dutch economy seems to be running quite smoothly, but it appears that a number of concerns have arisen this year. First, almost all the businesses I visited mentioned their chronic labor shortage. One of the characteristics of the Polder Model is the fact that part-time workers are treated the same as full-time workers (although companies prefer full-time employees). But depending on the company, there are some that cannot help but accept part-time workers, even though they are harder to manage, because of their desperate need for workers.

Along with the labor shortage, people are beginning to see a need to end the wage controls that have been in effect for so long. Inflation is rising, and workers are starting to demand their share of the profits reaped during the years of economic growth. There were even some strikes by rail workers and some other labor unions while I was in the Netherlands, something that was almost unheard of in the past.

Traffic jams are also becoming a serious problem. It seemed to me that the road system in the Netherlands is superior to that in Japan, but during rush hour, more and more traffic jams are occurring. We even had to change our plans during our trip because of the traffic jams. The Netherlands is located in the heart of Europe and is important as a transportation center. With the growth the freight shipping industry is experiencing now, there is some sense of concern as to the impact of crowded roads on the economy.

The northeast region of the Netherlands is much more agriculture-oriented than other areas of the country, and the greatest source of worry right now is the impact of foot and mouth disease. The impact so far on the industry in this part of the Netherlands has been far greater than we have heard in Japan. During our first week in the Netherlands, all the livestock were kept in their barns to prevent the spread of the disease, and we didn't see any livestock at all. Also, national parks were closed, and we had to have our original plans altered because of this. There have been cases of foot and mouth disease reported in this region, and in such cases all the livestock within a radius of several kilometers from that farm have to be killed. There are many who are quite worried about what will happen to the beef industry, one of the Netherlands' strong industries, and the export of other agricultural products.

I was able to learn about how, in the midst of this uneasiness and worry, groups coming from different perspectives were able to join together, based on a certain initiative, and work on a regional development project. I was able to confirm that a system the same as the Netherlands Model does exist and work on both the regional level and national level. I think that the existence of this model shows, through the fact that there is an approach that can be used to solve a variety of problems, the sustainability of the Netherland's economic expansion.

The Reception We Received from Rotary Clubs

A number of unexpected things happened during our time in the Netherlands, but in a word, our time there and the way we were treated was absolutely wonderful. We had no idea what to do or expect when we arrived at Schiphol Airport, but each of the Rotary Club coordinators was always available for us to lean on, and when things didn't go according to plan, they made appropriate alternate plans for us.

Rotarians are active in a wide variety of fields, and because of this, we were able to see and do things that the average tourist to the Netherlands would never have the opportunity to do. For example, the vocational study trips we took, the many people we would never have had the privilege to meet had we not been with the Rotary, etc.

The Dutch GSE team members who came to Osaka prior to our visit were there to see us at the welcome party on the second day, as well as at the district conference (held in the middle of our time in the Netherlands) and at the end of the trip. They took time out of their busy schedules to be with us and to deal with all our requests and wishes.

My Impression of the Netherlands

One of the characteristics of the Dutch people is the kindness we experienced, but I was also able to experience first-hand the high degree of their quality of life. At work, they use their time efficiently and are very productive, so they do not have to work long hours of overtime (like we do in Japan). They are able to return home early and spend time with their families. Also, they consider it only natural to be able to take long vacations (2 to 3 weeks). While we were in the Netherlands, it was summer time (daylight savings time), so it was light until about 9:00 pm, and the weather was very pleasant. So, on weeknights, many people were enjoying one of their national sports, cycling (we were also given the opportunity to take part in such activities).

Another characteristic typical of Dutch culture is their strong sense of being part of an international community, as evidenced by the fact that most people there speak more than one language. Dutch is their mother tongue, but most people speak at least English and German fluently. Japan and the Netherlands have different historical backgrounds and geographic situations, of course, but I still felt very keenly how different our two nations are in regard to foreign languages.

Also, it goes without saying that the Netherlands has absolutely gorgeous scenery, with its well-known windmills, canals, and tulip fields (which were in bloom while we were there). There is an abundance of greenery all along the highways, and when we drove along residential roads, the scenery there was also very beautiful, with the new green leaves of May on the trees that lined both sides of the street forming a kind of green tunnel.

Photo 6 A tree-lined road

As the name of the country implies (in Dutch, Nederland means “lowland”), there were no mountains, and as far as we could see, flat land spread out in every direction. Seeing this, it reminded me of the history of the Netherlands' struggle against floods and its efforts to reclaim land.

Speaking of history, I also felt very strongly how the Dutch take national pride in their old towns and villages. The government has imposed very strict limits on the types of materials that can be used in construction and the way in which building designs will affect the overall view around construction sites. I learned a lot from the Dutch in regard to the importance of having a high community consciousness that moves people to voice their concerns about such matters and to then work positively together to solve the problem.

Host Families

Except for the one night we stayed in Amsterdam while sightseeing there, I spent every night at the home of a host family. Before leaving for the Netherlands, I honestly thought that, being a working person and all, I would have a hard time fitting in to homestay situations. But my worries were for nothing, and I realized that the homestay experience is a very important part of the GSE program.

As for the homes in which I stayed, many of my hosts had grown-up children, and they are living all alone now in their large houses. Compared to my home in Japan, these homes are all so spacious, and it was very easy for me to relax while I was there.

We stayed at each host family's home for a short 5 or 6 days, and each family I stayed with had its own unique characteristics.

Jaap and Gerda were my first hosts, and they were keeping several peacocks as pets in their big yard. I enjoyed swimming in their indoor pool, as well.

Jan (who is a pianist) and Merrikah (who used to be an English teacher) had a beautiful yard and a large wine cellar.

Arie and Rita have a daughter who is visually and aurally impaired and living a happy life with them (while I was in the Netherlands, their daughter appeared on national TV and we were able to watch that program together!).

Jan and Joke took me for a beautiful drive through gardens and along canals one Sunday, and invited me to their family barbecue.

Jacques and Miguel took me out shopping with them to buy food for a party, and challenged me to make some Japanese food for the party (I made, after 10 years of not making it, a type of sushi that consists of rice and some vegetables rolled up in dried sea weed into a long tubular shape and cut with a knife into circles.). And Fran and Maria, who gave me some very good job-related advice. Fran treated me like his own son, allowing me to help him make furniture and to drive his Porsche on public roads. I am so thankful to each one of these people, and there is no way I can say all I should about them in just one sentence. I will never forget them.

Attending Rotary Club Meetings and the District Conference

Photo 7 A presentation at a Rotary Club meeting

We were scheduled to speak for 45 minutes, but our presentation often went over 60 minutes. I'm afraid we created some problems for the clubs, but after we were done, without fail, many people would come up to us, shake our hands and say, “That was great,” or “I understand about Japan much better now.” In a way, I felt that our efforts in preparing our presentation had paid off in that we were able to repay, in a small way, those who had done so much for us while we were in the Netherlands, by helping them understand Japan a little better. Every time I displayed the banner of my sponsoring club during the banner exchange ceremony, people vocally expressed their admiration, and this made me very happy.

During our time in the Netherlands, we were also able to attend the District Conference, where we were given the opportunity to give short speeches before 150 people and to sing the song we always sang at the other club meetings. Also, we were able to have a reunion with the Dutch GSE team members who had come to Osaka, and even though it was a short time ago, they wanted to talk about their memories of Osaka because they were already feeling nostalgic about their trip.

Photo 8 Our presentation at the District Conference

GSE Day

As part of the GSE program, there was one very unique day planned for us, called GSE Day. On that day, all 7 of the GSE teams that were visiting the Netherlands that spring had a get together. All the GSE team members were together in one place. Actually, one of the teams had just left the country, so there were just 6 teams there, from Australia, Canada, the United States, the Philippines, Sendai (Japan) and Osaka. We were able to introduce ourselves and enjoy interchange with one another.

Photo 9 The GSE Day gathering

Because all the people I met that day were also GSE team members, we all shared the same experiences. As a result, even though we had just met for the first time, we were able to talk together like old friends, and we had a wonderful time. I am very grateful to the GSE program and Rotary International for giving me such a great experience. Such a gathering was also made possible by the fact that the GSE teams were all within 2 to 3 hours from the meeting place, due to the fact that the Netherlands is such a small country.

In Conclusion

As I look at the daily schedule I had with me in the Netherlands (it is falling apart from use!), I am recalling all the things I experienced there. Five weeks was a long time in a way, but looking back on it now, it seems as if it all passed in a moment. During my time there, I was able to gain valuable experiences related not only to my own field of expertise, but to other fields as well, and I think I was also able to broaden my horizons as a human being.

The GSE program is a wonderful program in and of itself, but I think the fact that I was able to go to the Netherlands with the team members I did made it even more meaningful to me. On the other hand, it might be that the fact that I now feel this way about it may be nothing more than another of the good points of this program.

I experienced and learned many things on the GSE trip, I want to continue to think seriously about what can be applied here in Osaka, to make the most of those experiences in my work, and to carry out better research that will help bring about the expansion of industry in the Osaka region. Also, I want to work hard to help others outside Japan learn more about Japan and Osaka. I believe this is what I can do to give something back to the many Rotarians who made this GSE trip possible.

I also want to do what I can to help more and more people become aware of this wonderful GSE program. It is my hope that the program will become better and better and that more people will follow in my footsteps.

Once again, I would like to take this opportunity to express my gratitude to GSE Chairman Nomura and all the GSE Committee members who made this trip possible, to the members of the Canada and Great Britain GSE teams who gave me help and advice on so many things, and to all the Rotarians at the Osaka-Sonezaki RC who supported me and sent me off so warmly to the Netherlands. Thank you!

Photo 10 Mr. Hans Haffmans, D-1560 GSE chairman